Better work environments could reduce hospitality staff turnover; Costs €1.5 billion per year

The annual staff turnover in the Dutch hotel and catering industry is 40 percent. This costs the sector 1.4 billion euros per year, or around 6 percent of its total turnover, ABN Amro said in a report on Tuesday. Better working conditions can reduce this, according to the bank, reports.

Workers in the hospitality industry on average stay with the same employer for 2.5 years. The bank proposed multiple solutions to reduce the staff turnover structurally. Companies should pay more attention to their existing staff, by for example providing them with career development opportunities and guidance, and by reducing their workload. Better recruitment and selection of new staff will also help keep the turnover from increasing. 

The staff turnover costs amount to an average of 42 thousand euros per company. The costs are mainly incurred during the recruitment and training of new staff. Existing employees are less productive in this period, and new employees must first learn the ropes before they can make a positive contribution to the company. 

Dutch restaurants are hit hardest by staff turnover, with costs at 614 million euros a year or 7 percent of their annual turnover. Replacing a cook costs almost 30 thousand euros, replacing serving staff costs over 15 thousand euros. Hotels are least affected at 270 million euros a year or 5 percent of turnover.