The contributions of people in hospitality — those who welcome guests, create experiences for guests, and bring a level of intangibility that keeps customers returning — are paramount to the whole industry. However, in the background, there is an issue that has been defining the future of the hospitality industry: talent retention. This is no secret to those working in the hospitality sector. In some markets, the annual turnover rate has surpassed 70% for years, with higher turnover attributed to scheduling demands, low pay, and the frantic rhythm of service delivery.

The single most significant groups in the hospitality workforce (as it currently stands) are Millennials and Gen Z. Both groups can contribute a certain level of energy and innovation while also having different expectations of their work life, values, and ability to commit to an employer. So, which group is likely to stay in hospitality jobs for longer, and what can employers do to retain them?

Understanding Retention Trends in Hospitality

The Persistence of Hospitality’s Challenge.  

Turnover has been a defining challenge of hospitality for years - turnover rates in hospitality are often greater than other industries, even before the pandemic. The reasons are many: long and inconsistent hours, physically demanding work, variability by season and special occasions, and pressure to serve quickly and efficiently to high standards.  

Gen Z’s view of tenure.  

• Short-Term View: Most Gen Z employees (roughly ages 16–27) expect to work in hospitality for less than four years, unless they can envision a stronger career path.  
• High Turnover: A large portion leave within the first year because they do not feel supported or disengaged.  
• Evolving View: Recent trends in workplace behaviours and attitudes indicate that some Gen Z professionals are starting to retreat from their habitual job-hopping and may be leaning towards remaining in a role for some time.  
• Value Alignment/Weight: They will stay with an employer for longer if they feel their values align with that employer, with some added stability, better work-life balance, and hopefully opportunities for personal growth/development (though they use that term lightly).  

Millennials’ retention characteristics.  

• Career Path Development: Millennials (roughly ages 28–44) want to have seemingly rapid career path development, frequent (though not overwhelming) feedback loops, and meaningful work.  
• Contingent loyalty: They will stay (possibly for a long time) unless the pathway to advancement is not available, or if they cannot add to their skills while in the role.
• Issues with the sector: While many individuals enjoy working in the hospitality sector, some also decide to work in hospitality because they plan to stop eventually at some point and move careers, unless it offers continuous growth. 

Why Gen Z May Leave — or Stay

Reasons for Leaving: 

Gen Z employees may leave hospitality jobs for reasons including:

• Financial stress, fluctuating schedules, and limited vision for advancement can have Gen Z to move on quickly. 
• Many place a high value on mental health, and when the environment begins to feel toxic or unhealthy, they will leave.

Reasons for Staying: 

They are typically responsive to employers that offer purpose, pathways for training, and a sense of community. There is also technology, distance learning, and job rotation. With workplaces that offer flexibility accompanied by structured progressions for advancement, they are likely to remain engaged for much longer than expected or predicted.

What Prevents Millennials from Staying — and How to Keep Them

Millennials seek environments where they can learn new skills demonstrably, receive positive feedback, and lead others. They are attracted to workplaces that give them the freedom to be creative and shape the guest experience. When Millennials stop receiving feedback and/or new challenges, they will start exploring options with other companies and industries. 

Ambassadors of Millennials are typically employers who have leadership programs, provide mentors, and are transparent about the pathway for promotions. They also want to be clear about how their performance is connected to promotion possibilities.

Techniques to Cultivate Longevity Across Generations

For Both Generations: 

• Provide clear progression paths with visible career milestones.
• Utilise technology to simplify scheduling, training, and communication. 
• Create strong mental health and wellness support. 
• Acknowledge the success of individuals and the team as a whole.

Generation Z Specific Techniques: 

• Create a culture that has a strong purpose and inclusiveness.
• Identify opportunities for job rotation and cross-training.
• Use “digital” tools and social engagement to create a connection. 

Millennial-Specific Techniques: 

• Provide regular, ongoing, and constructive feedback to attain goals that link to career advancement.
• Give opportunities to create, work with autonomy, and innovate in their roles.
• Provide transparent and values-based leadership.

Final Thoughts: Who Stays Longer?

Overall, Millennials have historically had a slightly longer length of service in hospitality; however, Gen Z is catching up fast, especially if employers offer stability, purpose and clear career pathways. The distinction usually comes back to motivation: Millions stay for the promotion; Gen Z stays for the values and wellness.

For hospitality leaders, it isn't about Millennials or Gen Z. An employer's goal should be to create meaningful experiences to have both generations feeling supported, challenged and connected to their work in a community. When employers can provide the mix of flexibility, purpose and opportunity, both generations can build loyalty and become long-term contributors to an industry known for transience.

Retain Talent Faster on Foodism Connect 

Whether you’re hiring passionate Gen Zers who want a purpose and peer-charged tech-friendly workplace, or driven Millennials looking for a defined career path, the right recruiting platform can help you find and retain your best talent. 

Foodism Connect makes hospitality hiring simple, quick, and targeted. You can post jobs, screen candidates, and then link with professionals, finding a fit for your culture to the career you are offering - all in one place. 

Get started on Foodism Connect and begin to grow your dedicated hospitality team today!