I’m thrilled to sit down with Katarina Railko, a seasoned expert in the hospitality industry with a rich background in travel, tourism, entertainment, and events. With her deep insights into workforce dynamics and a passion for creating sustainable strategies, Katarina has become a leading voice in addressing challenges like turnover and retention in hotels. Today, we’ll explore the pressing issue of high turnover in the sector, dive into innovative approaches to employee retention, and discuss how investing in people can transform the guest experience and operational success.
Can you paint a picture of the current turnover landscape in the hospitality industry and what the recent data reveals about the challenges hotels are facing?
Absolutely. The numbers are quite telling— in January 2024 alone, the U.S. leisure and hospitality sector saw over a million hires, largely to replace the 781,000 who left their jobs that same month. This kind of churn isn’t progress; it’s a red flag. Hotels are grappling with a revolving door of staff, which creates instability and makes it hard to maintain consistent service. It reflects a deeper issue: many workers view these roles as temporary, and without a shift in how we approach retention, this cycle of hiring and losing talent will continue to drain resources and impact quality.
What are some of the underlying reasons you think so many workers in hospitality see their jobs as short-term or disposable?
A big factor is the nature of the work itself—hospitality often involves seasonal peaks, long hours, and physically demanding roles. On top of that, there’s a perception that frontline positions like housekeeping or guest services are dead ends with little room for growth. When employees don’t see a future or feel valued beyond their immediate tasks, they’re less likely to stick around. The industry has historically leaned on filling gaps quickly rather than building careers, and that mindset contributes to workers feeling like their time there is just a stepping stone.
How does the high cost of turnover really hit hotels, especially when we look at figures like the $4,700 it takes to replace an hourly worker?
That $4,700 per hourly worker is a staggering figure when you consider how quickly it adds up in an industry with constant turnover. It covers recruiting, onboarding, and training, but it’s just the tip of the iceberg. Financially, it eats into profit margins, especially for properties running on tight budgets. But the real damage is harder to quantify—every time a staff member leaves, you lose institutional knowledge, and the time spent getting a new hire up to speed means dips in service quality. It’s a direct hit to the bottom line that many hotels underestimate.
Beyond the financial impact, how does this constant churn affect the guest experience and team morale?
It’s a domino effect. Guests notice when staff are new or disengaged—they expect seamless, personalized service, and that’s tough to deliver when teams are in flux. Inconsistent experiences can erode loyalty, which is the lifeblood of hospitality. Internally, it’s just as bad. Remaining staff often pick up the slack, leading to burnout and frustration. Morale tanks when there’s no sense of stability or camaraderie, and that creates a vicious cycle where more people leave. It’s not just about filling positions; it’s about building a cohesive team.
Why do you think so many hotels still treat turnover as an inevitable cost of doing business rather than a problem to solve?
It comes down to a short-term mindset. Many operators are focused on keeping operations lean and meeting immediate demands, especially in a volatile economy. Turnover gets framed as a given because the industry has always been high-churn, and reactive hiring feels like the easiest fix. There’s also a historical tendency to see frontline roles as low-skill or replaceable, so the emphasis is on filling spots fast rather than investing in people. But this approach ignores how much stronger a hotel can be with a stable, skilled workforce.
Can you explain what it means to shift from reactive hiring to a more strategic focus on retention, and why that’s so critical now?
Reactive hiring is about plugging holes—finding bodies to fill shifts as quickly as possible. Strategic retention, on the other hand, is about building a foundation. It means looking at who you’re hiring, understanding their potential, and giving them reasons to stay. It’s critical now because the cost of churn—both financial and cultural—is unsustainable. In an industry where guest satisfaction hinges on human connection, you can’t afford constant turnover. Retention strategies prioritize long-term growth over short-term fixes, creating teams that are engaged and equipped to deliver excellence.
How can hotels transform frontline roles into starting points for meaningful careers rather than just temporary gigs?
It starts with changing the narrative. Hotels need to show employees that these roles are entry points, not endpoints. That means offering clear paths to advancement—whether it’s moving from housekeeping to supervisory roles or cross-training for different departments. Providing mentorship, skills training, and even small wins like recognizing achievements can make a big difference. When workers see that their effort today connects to opportunities tomorrow, they’re more likely to invest in the company and stay for the long haul.
What specific kinds of support or opportunities do you think employees need to envision a real future in hospitality?
Employees need tangible support, like access to education or training that aligns with their career goals. Think language courses for non-native speakers or programs that offer certifications in management or guest relations. Beyond that, they need visibility—managers who actively discuss career paths and help set goals. Flexibility in scheduling and benefits that show the company values their well-being also matter. When employees feel supported holistically, not just as workers but as individuals with aspirations, they start to see hospitality as a viable, rewarding career.
Can you share more about the impact of programs like the internal academy at a lifestyle hotel brand that offers debt-free education, especially in terms of retention?
That program is a game-changer. By covering 100% of tuition upfront for things like online courses, high school diplomas, and even bachelor’s degrees—not just for employees but for their dependents—it shows a deep commitment to growth. The results speak for themselves: participants had a 20% higher retention rate than non-participants. That’s huge because it means people aren’t just staying out of obligation; they’re staying because they see value in being there. It’s a powerful way to reduce churn while building a more skilled workforce.
How does a program like that, where 89% of participants felt the company was committed to their growth, influence employee loyalty and engagement?
When 89% of participants feel the company is invested in their future, it creates a profound shift in loyalty. Employees aren’t just clocking in; they’re emotionally tied to the organization. That sense of being valued translates into higher engagement—they’re more likely to go above and beyond for guests and collaborate with their team. It builds a culture of trust, where workers feel like partners in the company’s success rather than just cogs in a machine. That kind of loyalty is rare and incredibly powerful in an industry prone to turnover.
What’s your forecast for the future of workforce retention in hospitality, and how do you see these innovative strategies shaping the industry?
I’m optimistic about the future, but it’s going to require a real commitment to change. Retention will become a competitive edge for hotels that embrace it—those investing in education, career development, and employee well-being will stand out. We’ll see more brands adopting programs like internal academies or tech-driven training to upskill their teams. The industry will shift toward valuing human capital as much as guest experience, because the two are inseparable. Hotels that don’t adapt risk falling behind, while those that build from within will define the next era of hospitality.
