How to Reduce Turnover in Hotels and Inns (Accommodation)? Five specific measures to tackle the problem.

The high turnover rate in the hotel industry is a serious issue. According to the “Survey on Employment Trends” by the Ministry of Health, Labor and Welfare, the turnover rate in the lodging and food service industry is the highest among all industries, reaching 25.6%. This means that more than one out of every four employees leaves the workplace each year, an unusually high level compared to other industries.

As a manager in charge of the front line, are you troubled by the frequent turnover of human resources? If the staff you have hired and trained do not stick around and quit, service quality will deteriorate and new hiring costs will increase.

So why is the turnover rate in the hotel industry so high? And what concrete measures should managers take to reduce the turnover rate? In this article, using the persona of a 35-year-old manager of a mid-sized lodging facility, we will introduce five measures to improve the high turnover rate while unraveling the causes of the high turnover rate from official data.

The report includes measures to address issues such as early turnover of young employees and retention of non-Japanese staff, and provides in-depth explanations of tips for increasing job satisfaction in the workplace. All of these measures can be put into practice in the workplace today, so we hope you will find them useful in improving your turnover rate.

Measure 1: Create a comfortable work environment by optimizing working hours and holidays

Severe working conditions, such as long working hours and lack of holidays, are the biggest factors pushing up the turnover rate in the hotel industry. In fact, according to a survey by the Ministry of Health, Labor and Welfare, the average number of annual holidays for the lodging and food service industry was only 97.1 days, which is extremely low compared to other industries. Many workplaces may find it “difficult to take time off” and “overtime work has become the norm” due to the 24/7 business format and 24-hour shift system. Lack of rest periods and irregular work hours can take a toll on the body and mind, causing staff to burn out and quit.

Specific measures to be taken: First, review shift management. Devise a shift system that prevents consecutive workdays, and aim for a system that allows at least two days off per week. It is also effective to introduce a planned leave system that allows staff to take turns taking consecutive days off, even during busy periods. If you are short on staff and cannot keep the work site running, consider using temporary or part-time workers on busy days. Also, streamline operations and introduce IT tools (e.g., online check-in and cleaning automation) to reduce overtime work. Reduce staff workload andA workplace where I can take time off and work without strain.”The foundation for preventing employee turnover is to realize the following. Ensuring adequate rest and work-life balance will protect the physical and mental health of employees and reduce turnover.

Measure 2: Improve wages and benefits based on industry standards

For those working in the hotel industry, dissatisfaction with pay and benefits is also a major motivator for leaving. The average wage in the lodging industry is lower than in other industries, and according to the Ministry of Health, Labor and Welfare’s Basic Wage Structure Statistics, the average monthly income in the lodging and food service industry is the lowest among all industries at approximately 259,000 yen. If workers feel that their income is not commensurate with the long hours of hard work, it is natural for them to consider changing jobs to a higher-paying industry. Younger workers are particularly concerned about salary, as they are worried about living expenses and future plans.

Specific measures to be taken: Even if it is difficult to immediately raise wages significantly, efforts should be made to improve compensation to the extent possible. For example, increase night shift allowances and accommodation allowances, and create new allowances for staff with language skills. It is also effective to introduce an incentive bonus system based on performance and create a system in which hard work is reflected in income.

In terms of benefits, the company can provide substantial support for living costs through the provision of employee dormitories, meal subsidies, and expanded employee discounts. In addition, it is also important to clearly set forth a system of regular salary increases and promotions based on fair personnel evaluations, and to show employees that they can aim for a “0” position and salary in the future if they work hard. Enhanced salary and benefits will increase employees’ sense of security and satisfaction, and deter turnover.

Measure 3: Establish a well-developed education and training program and clear career paths

In many cases, the lack of career growth opportunities is a major factor in the early turnover of young employees, especially those who leave the workforce. In fact, data shows that more than half of new graduates in the lodging industry leave their jobs within three years. This is probably a reflection of the true feelings of young employees, such as “I started working but didn’t feel a sense of growth,” or “I am changing jobs because I am attracted to other jobs.

The average length of employment in the lodging industry is about 10.2 years, which is shorter than the average for all industries of 11.9 years, and there is a tendency for fewer people to stay in the industry. If we do not focus on human resource development and provide them with a vision for their future careers, the more talented people may give up on the industry and leave.

Specific measures to be taken: First, it is essential to enhance the education and training system. In addition to training for new employees, provide regular learning opportunities such as improving hospitality skills, language training, and job rotation between departments. Even after being assigned to a field site, assign an on-the-job training supervisor or introduce a mentor system so that young employees can consult with the supervisor about any problems they may have.

Next, make it possible to envision a clear career path. Present specific promotion models such as “front desk staff → front desk manager → assistant manager” and the required years of experience and skills within the company. At the same time, introduce a promotion examination system and an open recruitment system to pave the way for employees to aim for career advancement on their own. In addition, it is also effective to hold periodic interviews to hear career aspirations and reflect them in personnel transfers and reassignments.

If employees have a vision of the future, such as “I can take on a challenge in a few years” or “I can become a manager in the future,” they will be more motivated in their current jobs, which will lead to higher retention rates. Appealing to employees as a workplace where they can grow is also a plus in terms of recruitment, creating a virtuous cycle of securing and retaining good human resources.

Measure 4: Stimulate communication in the workplace and provide appropriate evaluation and feedback

If people do not feel a sense of job satisfaction in the workplace, they will not stay, no matter how well treated they are. In the hotel industry, the focus is on customer service, and communication among employees and feedback from supervisors tends to be neglected. As a result, there are cases where employees leave because they feel that they are not appreciated even though they work hard, or that there is no atmosphere in which they can express their opinions. The quality of communication within the company is especially important for the younger generation, as it is difficult for them to maintain motivation if their desire for self-growth and recognition is not satisfied.

Specific measures to take: Provide positive encouragement and feedback in your daily work. Express appreciation and praise on the spot to staff members who have provided good customer service, and create a culture of recognizing even small accomplishments without overlooking them. Establish regular 1-on-1 meetings to listen to their concerns and opinions, and show that you are willing to incorporate the voices of the front line into management. In addition, introducing an in-house award system is also effective. For example, by recognizing staff members who receive high ratings from customers in the company newsletter or at morning meetings, such as “Service Star of the Month,” you will not only increase the motivation of the staff member but also boost the morale of those around them.

Above all, it is important to create a system to deliver “thank you” from customers to employees. Because it is difficult to see results in numbers in hotel work, staff working in the field may feel uneasy, “Is my customer service helping the guests?” So, for example, it is important to create a system whereby guests can ask their favorite staff members for their favorite messages and have them deliver them. For example, a hotel guest can use CoCoRo, a service that allows guests to send messages and tips (gratuities) to their favorite staff members, and with the introduction of CoCoRo, the gratitude of foreign guests, which is difficult to convey directly due to the language barrier, can be translated in real time and sent to staff. CoCoRo is a way to communicate the gratitude of foreign guests to the staff. When the voices and smiles of guests become visible, staff members can realize the significance of their work. This is a great motivator and leads to higher engagement, such as “I’ll work harder and keep working here.

By encouraging open communication throughout the workplace and building a culture that fairly recognizes hard work, employees will be able to work longer with peace of mind. A workplace that receives approval from supervisors and customers will be a place where people feel they want to grow with the hotel next time.

Measure 5: Support retention of foreign staff and create a workplace that makes the most of diversity

Against the backdrop of a serious labor shortage, the hotel industry is increasingly hiring foreign staff. They are a valuable asset to the workforce, and early job turnover is an issue that must be avoided. The most common reasons for staff turnover are stress due to language barriers and cultural differences, lack of future prospects, and loneliness caused by differences in lifestyle from their home country. If foreign employees are unable to fit in and become isolated in the workplace, they may leave before they are able to fulfill their potential.

Specific measures to be taken: First, strengthen language support. It is necessary to facilitate communication by making in-house postings and manuals available in multiple languages and distributing simple Japanese phrase books onsite. Providing Japanese language training opportunities and conversely providing basic foreign language training to Japanese staff are also effective for mutual understanding. Next, as an effort to promote cross-cultural understanding, it is a good idea to organize cross-cultural communication training and in-house events to introduce each country’s customs to each other. Knowing each other’s culture will strengthen the team bond and make it easier for non-Japanese staff to express their opinions.

It is also important to provide support in terms of daily living. For staff who have just arrived in Japan, support for finding housing and follow-up on administrative procedures should be provided, and a contact point (such as a multilingual human resources representative) should be set up for consultation when problems arise. In terms of work, it is important to provide fair evaluation and promotion opportunities, such as assigning positions of responsibility according to ability. If you make them feel that “foreigners cannot be promoted anyway,” they will lose motivation. Ask them about their career aspirations at regular interviews, and consider placing the right person in the right position and promoting them.

In addition, it is also effective to increase communication opportunities with customers using a system like CoCoRo mentioned above. For example, it is sometimes difficult for non-Japanese staff to receive direct appreciation from customers for their good service due to their poor Japanese. However, with the introduction of CoCoRo, “thank you” messages from foreign tourists in their native languages can be automatically translated and delivered to the customer in person. Knowing that your customer service has made the customer happy will give you confidence and a sense of satisfaction. By creating a workplace where all staff, regardless of nationality, are active and valued, the retention rate of foreign employees will also improve.

It is said that an organization that takes advantage of diversity will generate innovation and improve the quality of service. Creating an environment where foreign staff can work comfortably for a long period of time will contribute not only to resolving labor shortages, but also to strengthening the competitiveness of hotels.

Summary: Creating a rewarding workplace is a shortcut to improving turnover

We have introduced five concrete measures that managers should take to reduce turnover in the hotel industry. All of these measures can be implemented immediately onsite: improving the working environment, increasing compensation, supporting human resource development and careers, reforming communication and evaluation, and supporting the retention of diverse human resources. While there may be many challenges to face at first, if you steadily implement them one by one, you will surely see changes in your workplace.

The point is not only to prevent turnover but also to make employees feel that they want to continue working here. To achieve this, it is essential to build a workplace where each employee can experience growth and fulfillment, and where their contributions are fairly evaluated. As indicated in Section 3.1, improving employee engagement is the key to business growth in the hotel industry, where people are the key asset. Higher employee engagement will improve service quality, which in turn will create a virtuous cycle of higher customer satisfaction and improved business performance.

Start with measures you can take and accumulate small successes. For example, the introduction of CoCoRo mentioned in this article is one such example. A system that delivers “thank yous” from customers to staff members will increase job satisfaction and strongly support the improvement of staff turnover. As more staff are retained and become more experienced, the hotel’s overall service capabilities will stabilize. **Achieving a “workplace where people don’t quit “** is the first step to becoming a “hotel of choice. We encourage you to start reforming your workplace today to improve turnover and job satisfaction. The smiles and growth of your staff will surely brighten the future of your hotel.