Retaining and developing current talent is a top priority for hotel operators and management firms, as labor shortages remain a significant challenge.
Despite the broader US labor recovery post-Covid-19, hotel employment remains around 10 percent below February 2020 levels, according to AHLA. The accommodations sector had 1.95 million jobs in June 2025, which is 170,000 short of its December 2019 peak of 2.12 million, according to BLS Employment Highlights – June 2025 & Co-star.
Sixty-five percent of hotels report staffing shortages, and 9 percent are “severely understaffed.” Additionally, 12 percent are in danger of closure due to staffing shortages, according to Escoffier Global. Additionally, hospitality’s quit rate has trended upward this year so far and now sits at 4.6.
“Staffing remains a persistent challenge across our sector,” said Cherise Lee Campbell, corporate director of talent development & culture for Los Angeles, Calif.-based Springboard Hospitality, a management company of 48 independent hotels. And, while the company’s hotels have numerous long-term employees, there is high turnover among line-level roles, a challenge the company is addressing through culture-building and development opportunities, according to Campbell.
Retaining Staff is the Solution
While hospitality staffing is in a much stronger position than it was in the immediate post-pandemic years, competition for top talent is “still fierce,” said Career Group Companies Founder and CEO Susan Levine. “Hotels are losing excellent people because they’re being recruited by competitors offering significantly higher compensation packages.”
As a result, retention and career development are absolutely critical, according to Levine. To stay competitive, hotels need to focus on both pay and culture, she emphasized. “Compensation packages must align with current market expectations, but equally important is offering a clear path for growth. Promoting from within helps with retention because employees are less likely to look elsewhere when they see a future at their current job,” Levine said.
Recognizing achievements and investing in wellness initiatives also builds loyalty, Levine added.
Springboard Hospitality is retaining staff in part via due to its Culture Champion Club, a program developed three years ago to enhance employee satisfaction and foster an inclusive and empowering workplace. "Our goal with employment at Springboard Hospitality is not just to provide a job, but to also welcome an individual into a community where everyone feels seen, valued and connected," Campbell said.
Many younger employees view hospitality as a stepping stone, not a long-term career, Campbell explained. They are looking for growth, development and a sense of purpose—factors that depend heavily on how companies invest in their culture and leaders.
“Retention starts with visibility and value,” Campbell explained. “From day one, employees need to understand their role and what growth opportunities exist. Engagement is a key focus for us; each property has its own culture and we celebrate that individuality while staying true to the Springboard vision.”
Sandi Lesuer, founder and CEO of VIRTU Resorts & Residences, a new wellness and indigenous-focused brand based in Vancouver, B.C., said at Hotec Operations in Orlando in May, the company expects to retain employees by paying higher wages, treating employees with kindness and respect and offering benefits such as staff housing.
Similarly, Ellis Hospitality Groups wants team members to feel “welcome, wanted and respected,” Ellis Hospitality President and CEO Jyoti Sarolia said during the Hotec Operations labor panel. To that end, the company hosts events such as monthly lunches and family-style dinners and is flexible with employees’ schedules.
Education and Upward Development
Hotels that focus on culture, compensation and career growth are winning top talent even in the competitive market, Levine said. “Employers that commit to promoting from within and investing in their people are building not just stronger teams today, but also greater long-term loyalty and stability.”
Employees want to feel valued and know they have a future with their employer, so providing clear promotion tracks and development opportunities is critical, Levine emphasized.
“In a market as competitive as this one, losing an excellent employee can mean losing not only skill and organizational knowledge but also momentum, as competitors are often quick to recruit top performers away with higher pay and promises of faster advancement,” Levine said. “Promoting from within is one of the strongest tools for retention because it sends a clear message that career growth is possible without leaving the organization.”
Even though 65 percent of applicants rank career development as critical, only 47 percent of employers offer education perks, according to Escoffier Global. The firm estimates that offering education support could cut turnover rates by between 20 and 40 percent.
Notably, a majority (82 percent) of employees say education helps them perform better and 76 percent say it influences whether they accept an offer, according to Instride.
As properties streamline operations and redefine service models, strategic workforce development becomes even more critical to success, said Escoffier Chief Development Officer Jeffrey Larson. ”Hotels may be operating with fewer employees, but guest expectations haven’t gone down. That gap is exactly where workforce development matters most,” Larson said.
Ultimately, solving the labor issue is not just about filling roles, Campbell said. Instead, it is about reshaping hospitality into a “viable, fulfilling career path.” “That means offering career development, flexible options where possible and a company culture people want to be part of,” she said.
Springboard’s Champion Culture Club, which focuses on education and development, has made a “noticeable impact,” Campbell said. “When a hotel has an active culture champion in place, we see higher employee engagement scores and stronger leadership alignment.” The company’s annual engagement surveys show that properties with a culture champion consistently score in the 80s or higher.
“We’ve also seen a clear correlation between participation in the Culture Club and lower voluntary turnover. The program helps foster recognition, community and connection, all core drivers of retention,” Campbell said.
Additionally, retention and hiring bonuses have helped Springboard stay competitive with recruitment and retention. And its most consistently effective tool is its robust employee referral program, according to Campbell. “The best team members often come through internal referrals; those employees already understand our culture and tend to refer people who align with our values. Referrals lead to stronger performance and longer retention,” she said.
Looking ahead, Springboard Hospitality is excited to launch a mentorship program pairing employees with executive leaders to further career development and personal growth.
Similarly, Orlando-based Hyatt Regency Grand Cypress has “excellent” retention by focusing on treating its colleagues well and fostering upward mobility, the hotel’s Director of Human Resources Maria Pastrana said. HGRC has reached its hiring peak, and expects to slow down on hiring for the remainder of the year.
Learning and development are a top priority at Hyatt Hotels & Resorts, Pastrana explained. “In addition to providing opportunities for team members who want to grow, we offer a job shadowing program, as well as a Leadership Development program for leaders.” The company also prioritizes promoting from within.
The hotel surveys its leaders on topics that support development and then create fun, interactive classes to help upskill the team, according to Pastrana. “Because of feedback from that survey, we recently hosted a workshop about public speaking,” Pastrana said.
Ellis has stepped up cross-training employees to improve retention. For instance, a guest service agent who had “such an acute attention to detail,” Sarolia said, that she trained to be housekeeping supervisor and moved to the position within six months.
Retention starts with recognition, Larson said. “When employees see a path forward—through mentorship, training or promotion—they’re more likely to stay and grow with the business. Development isn’t a perk, it’s a strategy. Investing in your team’s future signals that you value their contributions today and see them as part of your long-term success.”
This article was originally published in the September edition of Hotel Management magazine. Subscribe here.