by Nora Carver

Created on: March 15, 2011

Having been in the hospitality and service industry most of my adult life, the question as to why there is such a high staff turn over in the industry can be summed up by one general statement. The hospitality industry is the easiest industry to find a job in. Now this may seem a bit generalized and simplistic, let me explain.

Large portions of jobs in the hospitality industry require minimal skill, minimal educational requirements and no prior experience. These positions are easily filled due to the fact that many hospitality companies do not perform background or credit checks on potential employees, do not require proof of educational progress, do not require references, drug screening, prior employment records or even proof of long term residential stability. This means that larger than average portions of hospitality employees are prone to be transient, financially unstable or lacking in basic job skills.

A top reason for the high turn over rate of hospitality staff is the fact that many hospitality jobs do not pay well. Employees usually begin at a minimum wage rate or below which does not attract top quality long-term employees because these employees are always looking for a better paying position. Positions that pay below minimum wage depend entirely on customer satisfaction and generosity, i.e. Tips. In the southern United States, the average beginning waitstaff personnel is paid $2.13 per hour by their employer. The rest of their income is based solely on the whim of their patrons. Economic turn-downs mean fewer patrons, which in turn decreases wage potential. Add this to the fact that many hospitality positions are seasonal and it is not hard to see why hospitality staff turn over can reach high rates quickly.

Other reasons for high rates of hospitality staff turn over include lack of substantial benefits such as company provided health insurance, retirement benefits, vacation pay, sick leave, additional schooling or training programs and other fringe benefits which are so often perks of other industries. Since the labor pool for a large portion of hospitality jobs is so poor and turn over is so high, a majority of hospitality companies are unwilling to invest in programs which would attract long term employees. In the United States, many hospitality companies only offer the minimal benefits required by law to hourly employees and often times the services these benefits provide are too overpriced for the average hospitality worker to be able to afford

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