Don’t let high employee turnover sabotage your efforts to build your business.

Second only to retail, the hospitality sector has the highest turnover amongst top employment industries. And as hospitality managers know, a low employee retention rate leads to low employee morale and extremely high training costs. The average hospitality employee is paid $14.59 an hour and works about 26 hours a week. Since it costs about 16 percent of an annual salary to replace an employee that is earning these wages, companies lose about $3,200 every time they replace an employee. Creating effective exit interviews will improve your business’ retention rate and help you meet your financial goals.

Focus on management

Poor management is a leading cause of employee turnover. When you have ineffective managers, it doesn’t take long for their direct reports to become unhappy. In a fast-paced environment, this employee frustration can quickly turn to increased turnover that impacts customer service. To combat this, ask exit interview questions that paint a clear picture of what the management system looks like so that you can head off small management problems before they become a crisis.

Examine performance recognition

Within the hospitality industry, 67 percent of the people that leave their jobs say it’s because they are pursuing a new and more interesting challenge. During exit interviews, ask questions that speak to the perceived ability for advancement and if departing employees felt they were valued and recognized. HSD Metrics’ ExitRight® software can help pinpoint these trends and interpret data automatically. ExitRight also aggregates data into concise, easy-to-read analytics reports that include benchmarked data and red-flag alerts.

Analyze demographics

Within hospitality, the restaurant sector has the highest turnover rate. One of the reasons for this is because it employs many teenagers and students. According to Restaurant.org, students make up 28 percent of the dining labor force. To combat this in your establishment, analyze demographics and take heed of any noticeable trends. Turn these trends into actionable tasks that improve your retention rate, such as hiring employees that have a broader scope of availability.

Cultivate Culture

Leverage your exit interviews to get an insider’s perspective of the company culture. Culture is incredibly important in the hospitality sector and it may not only affect employment, but also the way your customers view your business. Asking departing employees pointed questions about how the company culture affected their time with the company can help your business retain employees and customers.

Happy employees yield happy customers. If you’re ready to start streamlining processes and get the most out of your exit interviews, call 877-439-9315, or contact us today. Our ExitRight software provides you with the tools you need to find out how to keep your most valuable employees while helping you save time and money in future hiring.