According to the National Restaurant Association, the turnover rate in the hospitality industry is 70%. It costs roughly 100% to 200% of an employee’s base salary to recruit and train a replacement (Canada Human Resources Centre). This represents a large cost to your business – here are a few ways to improve employee retention:

  • Offering a competitive compensation package
  • Building employee engagement
  • Investing in your employees


Although compensation is not necessarily what makes top talent stay, it does send a message to employees about their importance and value to the company. Seventy-three percent of organizations believe they provide fair compensation, but only 36% of employees agree (Payscale). Compensation goes beyond salary, additional items to consider are employee benefits, retirement savings plans and other perks. After an increase in salary, 42% of employees said a better benefits package would make them more likely to stay in their jobs (Society for Human Resource Management -SHRM). Employees who are very satisfied with their benefits are almost four times more likely to be satisfied with their jobs (Metlife). Forty-one percent of people not part of a workplace retirement savings plan would consider changing jobs if another employer offered one (Canadian Life and Health Insurance Association).

Healthcare spending accounts (HSA) are a popular alternative to traditional fully insured health and dental plans. Employers have complete cost control as they deposit a set amount into each employee’s account at the beginning of the year to pay medical and dental expenses. HSA’s are more flexible than traditional benefit plans as employers can give each class of employees a different amount. Employees can use the funds for a broader range of services than conventional benefit plans. The cost of a HSA is a tax deductible business expense and the benefits are received tax-free. Unused funds remain the property of the employer if they are not used in a specified time or if an employee terminates.


Employee engagement is a key component of retaining your best employees. Employee engagement is highest at the beginning of employment when the candidate is excited to join a new organization, so make the most of it with a great onboarding program. Fifty-eight percent of employees who had a great onboarding experience are likely to stay with their organization for three years (SHRM). During onboarding, discuss your new employee’s desired career path and create goals to help them get there. Employees are more likely to stay longer if they can see a realistic future at your organization.


Provide learning and mentoring opportunities to help your staff reach their goals and give them new job responsibilities as opportunities arise. By investing resources in to your employee’s professional development and recognizing their contributions, you show them how important they are to your organization.

By offering a competitive compensation package and keeping employees engaged, you can retain top talent who will help grow your business. In turn you can reduce the costs of turnover and become an employer of choice in your industry.

JONES DesLauriers Blevins works to improve the health, productivity and financial success of our client’s organizations and their employees. We help organizations identify the factors and health risks that contribute to rising benefits costs and work with them to create a healthier working environment. Our unique and talented people are what drives our success in delivering administrative, retirement, health and productivity solutions.

Contact us for more information:

Laura Arambalis
Corporate Strategic Consultant


Canada Human Resources Centre – Hospitality Industry Market Overview
Canadian Life and Health Insurance Association – The importance of a Workplace Savings Program
Metlife – 13th Annual MetLife Study of Employee Benefits Trends
National Restaurant Association – Hospitality turnover rose to 72.1% in 2015
Payscale – 2017 Compensation Best Practices Report
Society for Human Resource Management – Better Pay and Benefits Loom Large in Job Satisfaction
Employee Job Satisfaction and Engagement –