Retention Strategies


The hospitality and restaurant field is highly competitive, and no where is that more obvious than in finding talented, experienced staff for the kitchen, management or corporate roles.

The following elements must be part of a restaurant or hotel’s employee retention strategy:

Pay Competitive Wages

Raising pay is not an automatic method to avoid turnover. Paying too little during low unemployment will contribute to turnover. Paying competitive wages is important but it is not the only method nor is it a guarantee.

Provide Flexibility

Increasingly, employees want flexibility in their jobs and will remain with an employer who guarantees it. Schedule changes, fixed shifts, time off for personal matters and other family-friendly initiatives are appreciated.

Champion Longevity

Employees appreciate an employer who honors long service. While signing bonuses make sense in tight labor markets, employers also recognize those whose continued service is valued.

Respecting Employees

Loyalty, like respect, are values that appear to be reciprocal. Individualized work sites, relationship with peers and superiors and providing training are some of the techniques employers can use to reinforce their respect for employees.

Increase and Improve Communications

Tell employees periodically about the advantages of employment. Benchmark competitors and communicate advantages. Explore various communication methods, such as focus groups, on-line database and hotlines and attitude surveys. Demand that good communication be a priority for all managers and measure progress.

Pay Retention Bonuses

During difficult times — mergers, acquisitions, plan or site closures, financial difficulties — more and more employers are using retention bonuses for key staff to ensure continued employment through transitions. Part of an overall retention bonus strategy is to design a program that includes more than salary payments and can include other benefits such as college tuition, relocation, and retirement enhancements. It’s more effective to pay retention bonuses in payments over time as opposed to a lump sum.