Tackling employee turnover in the hospitality industry

Employee turnover is a major issue. A study by Linkedin Talent Solutions showed a yearly turnover of 10,9% on average. However, for the hospitality sector, these percentages rise up till 17,2%. The cost of losing entry-level employees costs the employer up to 50% of their annual salary, with technical or senior employees this is even higher, up to 125% of their yearly salary.

Allthough seasonality and the composition of the workforce, being rather young, is part of the explanation. The reasons for catering and hospitality being a high-churn sector are more diverse and for a large proportion linked to cultural fit and engagement with the employer.

Mapping company values

Knowing your company culture starts with the right measurement. The values that management puts upfront are seldom equal to the values that actually live in companies. In large organizations, significant differences are notable on store level or team-level. For a restaurant chain or hotel group, it is thus advisable to measure on these levels.

Twegos uses a bottom-up measurement, starting from individuals. This results in reference groups, in which one can then do optimizations and regroup individuals or compare to profiles measured with candidates in the recruitment process.

A good fit predicts with high accuracy the engagement, job satisfaction and retention of personnel.

Predicting the perfect matches

Thanks to the screening of candidates, using Twegos’ value fit model, better matches can be made with a team, manager or company. A successful introduction in the recruitment process is found at international restaurant group Le Pain Quotidien, 16 months after the method was launched, they marked a decrease in turnover of 31%! Candidates preselected by the Twegos algorithm scored higher in evaluations on attitude and acquired new skills more easily.

Cost-saving

The average costs for hiring and training an employee at Le Pain Quotidien is 5.000 euro on average. Having 75 people less leaving the company on a yearly basis, this results in a saving of costs by 375.000 euro. This does not yet include hidden costs and the negative impact of less engaged employees on the productivity and morale of their co-workers.

Twegos developed a model to calculate the costs related to poor culture fit. Contact the team to get insights in the numbers and potential benefits for your teams.

News sources (articles in Dutch)

As one of the main HR-issues in 2019 for the hospitality and restaurant sector, the Twegos algorithm is gaining press attention. Underneath are some of the most recent publications in Belgian national newspapers.

De Standaard and Het Nieuwsblad headline “Hoe Le Pain Quotidien haar personeelsverloop drastisch kon verlagen”

Jobat published “Twegos brengt ‘perfect match’ in kaart”