Hospitality Staff Retention: Strategies That Actually Work

• Australian hospitality turnover costs the industry $3.8 billion annually, with 42% of new hires leaving within their first 90 days

• Pay is the number one reason hospitality workers leave — but flexible rostering and recognition matter almost as much

• Staff who have influence over their rosters are twice as likely to report positive sentiment about their job

• Proactive strategies like demand forecasting, open communication, and career development help you build a team that stays
  
  

In this article:

• Why hospitality turnover is so costly

• Offer competitive pay and benefits

• Build flexible rostering into your operations

• Prevent burnout before it starts

• Get rostering and staffing levels right

• Recognise and reward your team

• Invest in training and career development

• Build a positive and inclusive workplace culture

• Use exit interviews and data to improve retention

• FAQs
  
  

With 22% of Australian hospitality workers actively looking to resign, retention isn't just an HR buzzword — it's a survival strategy. According to the Deputy Big Shift Report 2025, the hospitality industry faces some of the highest turnover rates of any sector, and the costs are staggering. In this guide, you'll learn practical, proven strategies to keep your best people — from competitive pay and flexible rostering to recognition programs and career pathways. Let's dig into what actually works.

Why hospitality turnover is so costly

Staff turnover isn't just inconvenient — it's expensive. Every time someone leaves, you're paying for recruitment, training, and the lost productivity while a new hire gets up to speed. Your remaining team picks up extra shifts, service quality drops, and regular customers notice when familiar faces disappear.

The numbers tell a sobering story. 42% of hospitality staff leave within their first 90 days, which means nearly half your investment in hiring and onboarding walks out the door before you see any return. Across Australia, first-year turnover in hospitality costs the industry an estimated $3.8 billion annually. That's money that could go toward better wages, improved equipment, or growing your business.

When you lose a good team member, you don't just lose their skills — you lose the relationships they've built with customers and colleagues. The accommodation and food services sector has the highest job turnover rate in Australia at 15.5%, and the ripple effects touch every part of your operation, from kitchen efficiency to front-of-house morale.

Offer competitive pay and benefits

Let's be direct: pay is the number one reason hospitality workers leave. If you're not competitive on wages, no amount of team pizza parties or employee-of-the-month awards will keep your best people.

The Deputy Big Shift Report 2025 found that for every $1 increase in hourly wages, workers are 13% more likely to report positive sentiment about their job. That's a measurable return on your investment in your team. Yet despite nominal hourly rates rising to $32.80, real wages in Australian hospitality have actually declined to $28.70 when you account for inflation. Your staff feel that squeeze every time they pay rent or fill up their car.

Understand your award obligations

Before you can compete on pay, you need to know the baseline. The Hospitality Industry (General) Award sets minimum rates for different classifications, penalty rates for weekends and public holidays, and allowances for things like split shifts and uniform costs.

Make sure you're meeting these requirements — not just for compliance, but because falling short erodes trust with your team. When staff discover they've been underpaid, even unintentionally, it damages the relationship in ways that are hard to repair.

Go beyond the minimum

Award rates are the floor, not the ceiling. If you want to attract and keep great people, consider what else you can offer:

• Pay above award rates, especially for skilled positions and long-tenure staff

• Be transparent about penalty rates — some staff don't fully understand what they're earning on weekends and public holidays

• Offer staff meals or discounts, which have real value without adding significantly to your labour costs

• Consider super contributions above the minimum if you can afford it

• Look at non-monetary benefits like mental health support, professional development budgets, or public transport subsidies

The goal isn't to throw money at the problem — it's to show your team that you value their contribution and want them to build a future with you.

Build flexible rostering into your operations

After pay, flexibility is what hospitality workers want most. The Deputy Big Shift Report 2025 found that shift workers who have influence over their rosters are twice as likely to report positive sentiment about their jobs. That's a powerful insight: giving staff some control over when they work makes them significantly happier.

Flexibility doesn't mean chaos. It means building systems that let you meet business needs while accommodating your team's lives outside work.

Let staff swap shifts and pick up open shifts

When someone needs a Saturday off for a family event, they shouldn't have to spend hours texting colleagues and waiting for replies. Modern rostering tools let staff swap shifts directly with qualified teammates, with manager approval built into the workflow. Open shifts can be posted for anyone available to claim, filling gaps quickly without management needing to make dozens of phone calls.

This self-service approach saves you time and gives staff ownership over their rosters. They're more likely to show up engaged when they've chosen to work that shift rather than feeling forced into it.

Use availability and agreed hours to protect work-life balance

Respecting your team's availability isn't just good manners — it's essential for retention. When staff set their availability and agreed hours, you have a clear picture of who can work when, and staff can trust that their boundaries will be respected.

Deputy's rostering features help you see at a glance who's available for each shift, flag conflicts before you publish, and track whether staff are getting the hours they've agreed to. This visibility helps you roster fairly and consistently, which builds trust over time.

Prevent burnout before it starts

Hospitality is hard work. Long hours on your feet, demanding customers, and the pressure of peak service can wear people down. According to the Deputy Big Shift Report 2025, 9% of Australian hospitality workers report negative sentiment about their jobs — and many more are likely feeling the strain without saying so.

Burnout doesn't happen overnight. It builds gradually through weeks and months of stress, inadequate rest, and feeling unappreciated. By the time someone hands in their notice, it's often too late to turn things around. Your job is to spot the warning signs early and address them before they reach that point.

Keep communication open and regular

Staff who feel heard are less likely to burn out. Create channels for feedback that don't require a formal meeting — quick check-ins after busy services, anonymous suggestion boxes, or digital communication tools that let people raise concerns when they think of them.

The key is making it easy and safe for staff to speak up. If someone mentions they're struggling with their workload or feeling undervalued, listen and act. Even small adjustments — like adjusting break timing or acknowledging good work — can make a difference.

Watch for the warning signs

Burnout often shows up in behaviour changes before someone says anything directly. Watch for:

• Increased absenteeism or arriving late more often

• Declining performance or making more mistakes than usual

• Withdrawal from team activities or conversations

• Visible exhaustion or changes in mood

• Resistance to taking on tasks they previously enjoyed

Using task management tools can help you distribute work evenly and spot when someone's plate is getting too full. For a deeper look at what to watch for, see our guide on signs of burnout.

Get rostering and staffing levels right

Understaffing burns people out. Overstaffing wastes money and means fewer hours (and less pay) for everyone. Getting staffing levels right is one of the most important things you can do for both your business and your team.

The challenge is that hospitality demand fluctuates constantly — by day of week, time of day, season, weather, local events, and a dozen other factors. You need to match your staffing to that demand without relying on guesswork.

Use demand forecasting to match staff to demand

Demand forecasting uses your historical sales data and other inputs to predict how busy you'll be. This helps you roster the right number of people for each shift — enough to deliver great service without paying for staff you don't need.

When you consistently roster accurately, staff get predictable hours and manageable workloads. They're not rushed off their feet during unexpected rushes or standing around bored during quiet periods. That predictability is valuable, and it keeps your labour costs under control too. For more on this, check out our tips to reduce labour costs without cutting corners.

Track availability to prevent understaffing

Even the best forecast is useless if you don't have staff available to work. Keep your team's availability up to date and make it easy for them to update their own records. When you're building rosters, you should be able to see instantly who's available, who's approaching their maximum hours, and who might be interested in picking up extra shifts.

Deputy shows you all this information in one place, flagging potential issues before you publish so you can fill gaps proactively rather than scrambling at the last minute.

Recognise and reward your team

People stay where they feel valued. Recognition doesn't have to be expensive — often it's the small, consistent acknowledgments that matter most. A genuine "thank you" after a tough service, a shout-out in a team meeting, or a personal note recognising someone's contribution can go a long way.

Celebrate milestones and achievements

Mark the moments that matter:

• Work anniversaries, especially significant ones like one year, three years, five years

• Completing training or gaining new qualifications

• Exceptional customer feedback that mentions a staff member by name

• Going above and beyond during a particularly challenging shift

• Personal milestones like graduations or new babies

These celebrations don't need to be elaborate. Sometimes it's as simple as bringing in a cake or giving someone first pick of shifts for a week. The point is showing that you notice and appreciate your team. For more inspiration, see our employee appreciation ideas.

Make recognition part of your routine

One-off gestures are nice, but consistent recognition is what builds a culture of appreciation. Consider building recognition into your regular rhythms:

• Start team meetings by acknowledging wins from the past week

• Create a channel where team members can recognise each other

• Give managers a weekly reminder to thank at least three team members personally

• Share positive customer feedback publicly so the whole team sees it

When recognition becomes routine, staff know that good work gets noticed — and that motivates them to keep delivering.

Invest in training and career development

Hospitality might be a first job for many workers, but that doesn't mean they're not thinking about their futures. Staff who see a path to growth are more likely to stay. Staff who feel stuck will start looking elsewhere.

Create clear career pathways

Show your team what's possible. Map out how someone progresses from entry-level to senior roles in your business. What skills do they need? What experience? How long does it typically take? Having clear answers to these questions gives ambitious staff something to work toward.

Consider creating formal development plans for team members who show potential. Meet with them regularly to discuss their progress, identify gaps, and plan their next steps. When a leadership position opens up, they should know they're being considered — and they should have been preparing for it.

Promote from within whenever possible. Nothing demonstrates that career growth is real quite like seeing a colleague move up.

Use onboarding to set new hires up for success

Remember that 42% of hospitality staff leave within 90 days? Many of those departures happen because new hires feel overwhelmed, undertrained, or disconnected from their team.

Your onboarding process sets the tone for someone's entire tenure. A thorough, supportive onboarding experience:

• Introduces new hires to the team and makes them feel welcome

• Provides clear training on systems, processes, and expectations

• Gives them a buddy or mentor to answer questions

• Checks in regularly during those critical first weeks

• Celebrates early wins to build confidence

Investing more upfront in onboarding pays off quickly in reduced early turnover and faster time to full productivity.

Build a positive and inclusive workplace culture

Culture isn't just about having fun at work — though that matters too. It's about creating an environment where people feel safe, respected, and connected to something larger than their individual shifts.

Foster team connection

Hospitality teams that genuinely like each other perform better and stick around longer. Look for opportunities to build connections:

• Team meals after busy services

• Social events outside work hours (optional, never mandatory)

• Cross-training that helps people understand each other's roles

• Collaborative problem-solving when things go wrong

• Celebrating team achievements, not just individual ones

Small gestures add up. When staff know their colleagues have their back, the hard shifts become more bearable.

Create a safe and respectful environment

Hospitality workers face unique challenges — difficult customers, high-pressure moments, and sometimes harassment. Research from Hospitality Magazine found that one in three hospitality workers report experiencing high to severe psychological distress — double the national average. Your team needs to know that you'll support them when things get tough.

Set clear expectations about respectful behaviour and follow through when those expectations aren't met. This applies to:

• How staff treat each other

• How managers treat staff

• How you handle customer behaviour that crosses the line

Staff should feel confident reporting problems without fear of retaliation. When issues arise, address them promptly and fairly. A reputation as a safe, respectful workplace helps you attract and keep great people.

Use exit interviews and data to improve retention

Despite your best efforts, some staff will leave. When they do, treat their departure as an opportunity to learn and improve.

Conduct meaningful exit interviews

Exit interviews work best when they're conducted by someone other than the departing employee's direct manager — that person may be part of the reason they're leaving. Create a safe space for honest feedback by:

• Assuring confidentiality (and meaning it)

• Asking open-ended questions about their experience

• Listening without being defensive

• Following up on patterns across multiple exits

Good questions include: What prompted you to start looking? What could we have done differently? What would bring you back? Would you recommend us to a friend?

Track themes across your exit interviews. If multiple people mention the same issues — a difficult manager, unpredictable rostering, lack of recognition — you've found something worth fixing.

Track engagement data to spot problems early

Don't wait until someone quits to find out they were unhappy. Regular pulse checks let you monitor team sentiment and catch issues before they become resignations.

Deputy's Shift Pulse+ asks staff for quick feedback after each shift — a simple rating and optional comment that takes seconds to complete. Over time, you can see trends: Is sentiment dropping at certain locations? On certain days? For certain roles?

This data helps you intervene early. When you notice someone's sentiment declining over several weeks, you can check in before frustration turns into a resignation letter.

Key takeaways and next steps

Retaining hospitality staff takes ongoing effort, but the investment pays off in lower costs, better service, and a stronger team. Here's what to focus on:

• Pay competitively — it's the number one reason people leave, so don't skimp on wages and benefits

• Build flexible rostering into your operations so staff have influence over when they work

• Watch for burnout and address it before it leads to resignations

• Get staffing levels right with demand forecasting and availability tracking

• Recognise your team consistently, not just on special occasions

• Invest in development so staff can see a future with you

• Create a positive culture where people feel safe, respected, and connected

• Learn from departures and use data to spot problems early

Ready to build a rostering and workforce management system that supports retention? Try Deputy for free and see how the right tools can help you keep your best people.

Frequently asked questions

What is the average staff turnover rate in Australian hospitality?

The average annual turnover rate in Australian hospitality was 38.7% in 2024. This is significantly higher than most other industries and reflects the challenging nature of hospitality work, including irregular hours, physical demands, and historically lower pay. Deputy helps address these challenges by giving managers the rostering, communication, and engagement tools they need to create a better employee experience.

How much does it cost to replace a hospitality employee in Australia?

Replacing a hospitality employee costs between $3,000 and $7,000 when you account for recruitment, training, lost productivity, and the impact on service quality during the transition. Across the industry, first-year turnover costs an estimated $3.8 billion annually. Deputy helps reduce these costs by providing tools that support retention — including flexible rostering, shift swaps, and Shift Pulse+ for tracking team sentiment before issues become resignations.

How can Deputy help with hospitality staff retention?

Deputy supports hospitality staff retention through several key features. Smart rostering tools let you match staffing to demand while giving staff flexibility through shift swaps and availability management. Demand forecasting helps you roster the right number of people, avoiding both understaffing burnout and overstaffing that cuts into everyone's hours. Shift Pulse+ provides post-shift feedback so you can monitor team sentiment and intervene early when engagement drops. Together, these tools help create a better work experience that keeps staff longer.

What role does rostering play in keeping hospitality staff?

Rostering plays a critical role in retention. According to the Deputy Big Shift Report 2025, shift workers who have influence over their rosters are twice as likely to report positive sentiment about their jobs. Poor rostering — unpredictable hours, ignored availability, difficulty getting time off — drives people away. Deputy's rostering features help you build rosters that respect staff availability, enable easy shift swaps, and distribute hours fairly, all of which contribute to higher retention.

How do you measure staff retention in hospitality?

Staff retention rate measures the percentage of employees who stay with you over a given period. The formula is: (Number of employees at end of period minus new hires during period) divided by number of employees at start of period, multiplied by 100. For example, if you started the year with 50 staff, hired 20, and ended with 55, your retention rate would be (55-20)/50 x 100 = 70%. Deputy's analytics can help you track these numbers across locations and identify where retention is strongest or weakest.

What are the first signs a hospitality employee is about to leave?

Early warning signs include increased absenteeism, arriving late more often, declining performance, withdrawal from team activities, visible exhaustion, and loss of enthusiasm for tasks they previously enjoyed. You might also notice them becoming less engaged in conversations about the future or avoiding discussions about upcoming rosters. Deputy's Shift Pulse+ helps you spot these patterns by tracking post-shift feedback over time — when someone's sentiment starts declining consistently, it's a signal to check in before they decide to leave.