The growing financial cost of hotel employee turnover

Abstract

For decades, high employee turnover has been accepted as inevitable in the hotel industry. However, this passive acceptance must be challenged from a human capital perspective and a financial standpoint. While hotel executives focus on the operational aspects of employee turnover, the financial costs associated with attrition remain critically underexplored. These costs extend beyond recruitment and onboarding, encompassing off-boarding procedures, productivity loss, administrative overheads, disruptions in team dynamics, reduced service quality, and potential revenue losses. Overlooking the financial impact of turnover is no longer tenable. This conceptual paper advances the argument for a more rigorous and analytical approach to understanding turnover costs in the hotel sector, highlighting the need for validated costing models and encouraging the development of frameworks that can guide data-informed decision-making. Doing so lays the groundwork for future research directions that support a shift toward strategic, cost-conscious human capital management in the hospitality industry.