From churn to commitment: why belonging is the key to retaining hospitality staff

The hospitality industry has always faced one of its biggest hidden costs: high staff turnover. In some markets, annual churn rates exceed 50% for frontline roles, draining time and money through constant recruitment, onboarding, and training. The impact is more than financial — guests encounter inconsistent experiences, while operators deal with weaker performance and team morale.

But here's the shift: retention requires both fair compensation and emotional connection—but the relative importance varies based on individual economic circumstances and local cost of living pressures. Research and practice now show that while competitive pay provides the foundation, the real differentiator is whether people feel emotionally connected to their workplace. Organisational psychologists have called this organisational commitment for decades. Today, leaders are more likely to use terms such as engagement, belonging, or employee experience. Whatever the label, the meaning is the same: when employees feel they matter, they stay longer and deliver better.

What commitment really means today

Commitment is about more than compliance with a contract. It's about whether employees genuinely believe they belong in the business, see a future there, and trust that leadership values them.

Researchers break it into three types:

• Affective commitment – staying because you want to, driven by emotional connection.
• Continuance commitment – staying because you have to, often due to financial or practical reasons.
• Normative commitment – staying because you feel you should, out of obligation or loyalty.

Of these, affective commitment is consistently the strongest predictor of both retention and performance. In hospitality, that matters even more. Staff who want to be there bring energy, warmth, and consistency that guests notice — and return for.

The evidence is clear

Research published in the International Journal of Culture, Tourism and Hospitality reviewed 13 studies covering more than 4,000 hospitality employees and found a clear link: the more connected people feel to their workplace, the less likely they are to leave. And timing is critical — if that sense of belonging doesn't take hold in the first few months, many won't even make it to their first year, a pattern all too familiar in hotels, restaurants, and venues worldwide. Read the full study here.

Why commitment is fragile in hospitality

Despite its people-focused image, hospitality struggles to build lasting employee connection. Some of the challenges are structural:

• Workload and hours – long, irregular, and emotionally demanding.
• Pay – often lower than other industries competing for the same talent.
• Career visibility – limited pathways and lack of structured progression.
• Stress and emotional labour – constant guest-facing pressure.
• Evolving workforce expectations – changing preferences around autonomy, development, and flexibility.

Deputy's Big Shift Report 2025 highlights how powerful workforce shifts are becoming: younger workers now make up more than half of all shift workers, and many express preferences for flexibility, shorter micro-shifts, and greater control of their schedules. As Deputy's CEO Silvija Martincevic explains:

"Employers must rethink how they engage, train, and retain talent in a labour market shaped by higher worker expectations, new scheduling preferences, and digital transformation."

The Deloitte Gen Z and Millennial Survey 2025 adds to the picture: 70% of Gen Z and 59% of millennials are upskilling weekly — often on their own time. Their top priority isn't just technical skills but soft skills like communication, empathy, and leadership. These are exactly the capabilities that drive great hospitality service.

However, it's crucial to recognise that workplace preferences vary significantly within generations, not just between them. Economic circumstances, cultural background, personality traits, and career stage all influence what individual employees value most. While generational trends provide useful insights into workforce shifts, effective retention strategies must account for individual variation rather than relying on broad demographic assumptions.

The economic reality: when belonging meets basic needs

While emotional connection drives long-term retention, economic pressures can't be ignored. Rising inflation and cost of living have shifted the hierarchy of employee needs, particularly for frontline workers. Research suggests that belonging and pay work together rather than in competition—but the balance varies significantly based on individual circumstances.

For employees struggling with housing costs or supporting families, competitive compensation becomes a prerequisite for engagement, not just a nice-to-have. In these cases, belonging initiatives may fail to retain staff if basic financial security isn't addressed first. However, once pay reaches a livable threshold, emotional connection becomes the primary differentiator between staying and leaving.

Smart operators are finding ways to address both: some are implementing living wage policies alongside culture programs, while others offer financial wellness support, emergency funds, or creative benefit packages that reduce employees' cost of living (meal programs, transportation assistance, flexible scheduling to support second jobs).

The key insight: belonging matters most when people aren't worried about paying rent.

Five strategies to build lasting commitment

So how can operators turn churn into loyalty? The research — and leading operators — point to five key actions.

1. Nail the first 90 days

The early weeks shape long-term retention. Go beyond paperwork and procedures:

• Provide structured, welcoming onboarding.
• Pair new hires with mentors.
• Make career pathways visible from day one.

This signals that the business is investing in their future, not just filling a shift.

2. Make growth a daily reality

Career progression opportunities reduce turnover likelihood by nearly 15%. Growth today must be continuous and visible:

• Offer upskilling, microlearning, and certification through comprehensive online training platforms
• Build internal promotion pipelines
• Position training as part of the daily workflow

3. Lead like a coach, not a boss

Managers have an outsized impact on whether staff feel connected. The most effective leadership styles today are coaching-oriented and human-centred:

• Servant leadership, authentic leadership, and psychological safety
• Recognition, trust, and open communication woven into daily practice

4. Flexibility by design

Hospitality can't eliminate irregular schedules, but it can make them fairer and more human:

• Use digital rostering for transparency.
• Allow staff to swap shifts easily.
• Respect personal commitments where possible.

While many workers value flexibility, individual preferences vary significantly based on personal circumstances, career goals, and financial situations. Regular check-ins help managers understand what flexibility means to each team member.

5. Treat people as strategy, not cost

Retention is not just a cost-saving exercise — it's a competitive advantage. Businesses that embed recognition, career development, and supportive HR practices into daily operations see stronger loyalty and better service outcomes.

One global operator already bringing these strategies to life is Accor. By embedding belonging, growth, and recognition into its culture, the group demonstrates how a people-first approach can turn abstract retention strategies into measurable results.

From strategy to implementation

While the research provides clear direction, translating these insights into practice requires thoughtful planning and consistent execution. The most successful hospitality businesses approach retention as a systematic challenge rather than a collection of isolated initiatives.

Building the foundation

Effective retention strategies require infrastructure that supports consistent delivery across all operations. This includes structured onboarding processes, clear career development pathways, and accessible learning opportunities that can adapt to different roles and experience levels.

Measuring progress

Success depends on tracking the right metrics: 90-day retention rates, internal promotion rates, training engagement, and employee satisfaction scores. This data helps identify what's working and where adjustments are needed.

Creating sustainable systems

The businesses that achieve lasting improvements in retention build systems that don't rely on individual managers or specific locations. They standardise their approaches while maintaining flexibility for local adaptation.

Whether operating a single property or multiple locations, the principles remain consistent: when employees feel valued, see opportunities for growth, and trust their leadership, they choose to stay.

From churn to loyalty

Turnover will never disappear entirely in hospitality. But the path forward is clear: when employees feel emotionally connected — when they belong — they stay longer, perform better, and deliver more consistent service.

For hospitality leaders, this means shifting focus from quick fixes like higher wages or one-off perks to culture, leadership, and continuous development. Commitment today is less about obligation and more about belonging and engagement. Success requires combining awareness of workforce trends with personalised approaches that recognise individual differences in what employees value most.

The result? Not just lower churn, but teams who genuinely want to be there — and guests who feel the difference every time they walk through the door.