Reporter's Notebook

Hospitality turnover rose to 72.1% in 2015

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This post is part of the Reporter's Notebook blog.

Official numbers are beginning to emerge that confirm what restaurant operators already knew: Turnover rates have been pushing higher.

The turnover rate in the economy’s hospitality segment in 2015 rose to 72.1 percent, up from 66.7 percent in 2014, according to a recent Bureau of Labor Statistics report. It was the fifth consecutive year of turnover rate increases.

Bruce Grindy, chief economist for the National Restaurant Association, posted this week that turnover rates remained below the pre-recession high of 80.7 percent in 2007, but the 2015 rate was more than 15 percentage points higher than the 56.4 percent logged in 2010. The bureau does not report data solely for restaurants but uses a broader “accommodations and foodservices” sector.

Grindy noted that between 2002 and 2006, the annual turnover rate in the category averaged 80 percent.

The average turnover rate for all private-sector workers stood at 45.9 percent in 2015. Grindy noted that remained lower than the average turnover rate of 50 percent during the 2002–2006 period.

The Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey for 2015 further found:

• The quits rate in the restaurants-and-accommodations sector was 50.3 percent.

• The layoffs-and-discharges rate was 19.5 percent. 

• The category for other separations, including retirements, transfers, deaths and disability, was 2.3 percent.

Grindy said rising quit rates indicate “workers are increasingly confident in the labor market and are willing to move to another job.”

Contact Ron Ruggless at ronald.ruggless@penton.com.
Follow him on Twitter: @RonRuggless

Discuss this Blog Entry 2

on Mar 27, 2016

"....Grindy said rising quit rates indicate “workers are increasingly confident in the labor market and are willing to move to another job.”...." or more accurately employees rising quit rates reflect ancient customer service training practices and the evolving world of customer experience, customer engagement and intuitive buying and shopping. Employees are getting the "business end" of customer's frustration and moving on in hopes of finding more up to date leadership and training. They are finding It doesn't exist and thus the problem is self perpetuating.... and ridiculous in my opinion. If we trained our employees and managers to create engagement and experiences instead of focusing on food sales and labor costs, our employees would create a healthy, growing environment they would gladly stay in for years to come. They would quickly feel empowered and entrenched in the building of the business instead of replaceable and unaccountable. The world is changing. The restaurant industry's training has not. When it does employees will stay.

on Jun 22, 2016

Do you have any statistics on Management turnover?

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What's Reporter's Notebook?

Reporter's Notebook is NRN's newsroom blog, where our editors give their points of view on news happening in the restaurant business.

Contributors

Lisa Jennings

Follow @livetodineout From the Los Angeles office, Lisa Jennings covers companies based in the West, including California, Washington, Oregon, Colorado, Nevada, Wyoming, Montana, Utah, Alaska and...

Ron Ruggless

Ron Ruggless covers the states of Arizona, Arkansas, Kansas, Louisiana, Missouri, Mississippi, New Mexico, Oklahoma and Texas. He joined Nation's Restaurant News in 1992 after working 10 years in...
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