Job dissatisfaction results in low productivity and increased stress. If unmanaged, this leads to costly, high turnover rates, reducing a business’s industry competitiveness. Seasonal industries especially suffer from these risks due to unpredictable schedules. With the median employee tenure reduced to 3.9 years in 2024, learning how to retain top talent is increasingly important.
Employee retention strategies in high-turnover industries involve navigating low job satisfaction, inadequate compensation, lack of growth opportunities, and poor management practices. Use this article as a guide in identifying the right solutions.
Losing top talent has direct and indirect costs. Direct costs involve the time management spends on recruiting, onboarding, and training new hires instead of working on productive, strategic, innovative tasks. More time will be taken away from core business operations if the talent search is difficult. The Society for Human Resource Management (SHRM) puts the average cost per hire at $4,700.
As for the indirect costs, high turnovers lead to productivity loss, knowledge drain, and team disruptions. Losing highly productive employees means other parties must perform the leftover work, distracting them from their main projects. The team also loses access to the previous employee’s insights, reducing the company’s potential opportunities.
Additionally, employee turnover reduces morale. If enough team members have left, the remaining ones may question the company’s stability. Suitable retention best practices should help avoid this snowball effect.
The motivation-hygiene theory suggests that the following factors affect employee retention:
Both types of factors should be present to encourage employee engagement. Whether you are looking for employee retention strategies for hospitality, retail, or other seasonal industries, the following approaches can help retain top talent.
There is no right kind of culture. However, an environment that nurtures the right beliefs and behaviors maintains job satisfaction. Company policies should showcase what matters most, with team leaders driving the implementation.
Companies must train leaders to be empathetic, as empathetic leaders support and treat team members with respect. The adage “employees leave bad managers, not bad jobs” has some truth to it. Seventy-five percent of Gen Z and 77% of millennials state that poor managers motivate them to switch companies.
Effective communication also builds trust. Keeping employees in the loop makes them feel connected and avoids misunderstandings. Team leaders should also create a culture where employees feel safe voicing their thoughts without fear of repercussions, like losing their jobs. In high-pressure environments, effective communication ensures everybody understands their priorities and that they can communicate any concerns.
Only 45% of lower-income families report extreme job satisfaction. Underpaid workers are also more likely to look for new jobs, especially without cost-of-living increases. To prevent such events, companies must regularly review market salaries and offer fair compensation.
While health insurance stands as the most important benefit, personalized benefits like tuition reimbursement can be enticing. They show employees that the company cares and listens to their needs. Most workers value paid time off, but many also expect access to retirement programs and separate family or parental leave.
Most workers expect growth opportunities from their organization. This helps them stay relevant or switch into other roles. While companies should consider each employee’s career advancement goals, the World Economic Forum reports the following to transform jobs by 2030:
Upskilling a company’s workforce to adapt to these technological changes contributes to the company’s success. While 63% of employers consider skill gaps the biggest barrier, 85% plan to upskill their workforce, and 70% plan to hire workers with the relevant skills. Mentorship programs can also help with upskilling while strengthening the bonds within the organization.
Reward systems encourage employees to perform at their best. Rewards do not need to be grand. For instance, companies may provide small gifts, bonuses, or extra paid time off for every milestone. In the same vein, companies that tolerate poor performance can frustrate their best employees.
Recognition programs also help employees understand their overall performance. Only 34% of employees say they receive feedback from their managers, and this lack of feedback leads to job dissatisfaction.
Chronic workplace stress leads to burnout if not managed properly. While low-level stress is motivating, burnout garners negative feelings within employees. Companies should train leaders to spot the early signs of burnout and step in to mitigate the risks. Leaders should also be mindful of encouraging acts that “go the extra mile.” Instead, normalizing taking paid time off can result in more recharged, focused employees.
Additionally, companies with flexible working conditions should effectively manage their employees’ schedules. For instance, the hospitality industry can use modern scheduling tools to manage odd shifts. Workers who know their shift starts at 5 a.m. in advance can easily plan their lives around such a schedule, or swap shifts with another employee as needed.
Technology makes applying employee retention strategies simpler. For instance, communication tools make it easier for leaders to share updates with team members. Technology, such as Workforce Velocity™, can also analyze employee performance data, making it easier to recommend training programs and provide feedback and rewards.
Flexible schedules are also easier to manage, especially for the hospitality industry, where companies must ensure sufficient staff during peak seasons. Because technology provides a single source of truth, organizations can avoid miscommunications while improving management efficiency.
Each high-turnover industry has its own needs. Organizations should adopt solutions that cater to each. For instance, companies in the following industries benefit from our solutions at EDS:
For seasonal industries with changing needs, working with technology providers who understand the business is essential.
High employee retention rates contribute to an organization’s success. To improve yours, EDS Service Solutions has the right expertise. We are more than a staffing agency — we analyze your workforce and demand trends, ensuring you get the right number of people and only the best talent.
Our proprietary Workforce Velocity™ is a turnkey solution that makes company operations efficient, with clients saving up to 40% in staffing costs. With an overview of your employees’ performance, you can easily create a supportive culture, identify promotion and growth opportunities, recognize the right personnel, and encourage more scheduling flexibility.
We understand how important your people are. If you are ready to learn more about our services, contact us for a consultation today.
