Employee retention is set to be a top priority for businesses in 2025. The hospitality industry, recovering from ongoing economic uncertainties, continues to grapple with significant challenges in retaining staff. According to data from Hospitality Insights, the sector experienced a dramatic decline in employment, falling from 334 million in 2019 to 271 million in 2020. Many workers, having faced layoffs and instability, sought roles in industries offering better perks and more sociable hours. While the sector is recovering, staffing shortages and retention issues are expected to persist until at least 2025. Flexible scheduling, supported by advanced workforce management tools, is emerging as a key strategy to address these challenges and improve employee satisfaction in the fast-paced hospitality industry.
The Challenges of Employee Retention in 2025
The hospitality industry continues to face significant workforce challenges, many of which stem from structural issues made worse by external factors like the pandemic and ongoing economic pressures:
- Rising Labour Costs: With higher minimum wages and inflation, businesses are finding it increasingly difficult to balance operational expenses with employee satisfaction. Labour costs now represent a larger portion of overall expenses, prompting organisations to seek innovative ways to manage budgets without compromising employee wellbeing.
- High Turnover Rates: The hospitality sector is notorious for its high employee turnover, with many businesses experiencing annual turnover rates exceeding 70%. This constant churn disrupts daily operations, increases recruitment and training costs, and puts additional strain on remaining staff.
- Demand for Work-Life Balance: Employees across industries—but especially in hospitality—are prioritising flexibility and work-life balance. The rigid schedules traditionally associated with hospitality roles no longer align with the expectations of today’s workforce, making it harder to attract and retain talent.
The consequences of ignoring these challenges are severe. High turnover and unsatisfied employees can lead to reduced productivity, lower customer satisfaction, and increased operational costs. Businesses that fail to adapt risk losing their competitive edge.
A fresh approach is essential. Flexible scheduling, supported by advanced workforce management tools, offers a powerful solution to these challenges. By giving employees more control over their schedules and addressing the root causes of dissatisfaction, businesses can create a more engaged, loyal, and productive workforce, all while maintaining operational efficiency.
What is Flexible Scheduling?
Flexible scheduling adapts work shifts to meet both employee and business needs. It goes beyond traditional fixed schedules, offering options like:
- Rotating Shifts: Employees have varied shift times, promoting fairness and flexibility.
- Variable Hours: Work schedules that adjust based on employee availability and business demand.
- Trackable Tasklists: Allows managers and employees to track daily tasks in order to ensure efficiency. While allowing employees to plan their days accordingly.Â
Implementing flexible scheduling may sound complex, but modern scheduling software and rota tools make it easier than ever to manage.
Flexible scheduling has far-reaching benefits for both employees and employers. To start your businesses’ journey to flexible scheduling try out our free Employee Scheduling Guide.
The Benefits of Flexible Scheduling for Employee Retention
Flexible scheduling has far-reaching benefits for both employees and employers:
1. Improved Work-Life Balance
Employees who have more control over their schedules experience less burnout and greater job satisfaction. When employees feel their personal needs are respected, they’re more likely to stay loyal to the organisation. The best leaders take this a step further by finding out what flexibility means to on-site workers. As noted by Gallup, some employees may simply appreciate being able to leave briefly during the day to attend to real-life issues without feeling overly scrutinized. This common-sense flexibility fosters trust and helps employees feel valued, ultimately improving retention.
2. Enhanced Employee Satisfaction
Flexibility fosters a sense of trust and empowerment, leading to happier, more engaged employees. According to Hospitality Insights, tailoring work experiences to individual needs—such as allowing employees to choose their own working hours or job share—helps employees feel more in control and engaged with their work. This ultimately leads to improved performance and a positive organisational culture, reducing the likelihood of staff seeking opportunities elsewhere.
3. Reduced Turnover Costs
High turnover comes with significant financial and operational costs. Nearly a quarter of preventable turnover could be avoided if managers addressed organisational issues or problems with staffing, workload, or scheduling, according to Gallup. By addressing these root causes through flexible scheduling, businesses can reduce churn and save money in the long term.
Leveraging Workforce Management Software for Flexible Scheduling
The key to successful flexible scheduling lies in leveraging the right tools. Modern workforce management software and rota software simplify the process with features such as:
- Automated Rostering: Allows managers to create and publish rotas in minutes, even planning ahead for weeks at a time. This helps in managing time off, unavailability, overtime, and compliance, ensuring that schedules are both efficient and fair.
- Employee Self-Service: Self service portals for employees allow them to receive their schedules, update their profiles, and request time off. This self-service approach empowers team members to manage their availability and personal information, fostering a more engaged and satisfied workforce.
- Real-Time Updates: Live tracking of clock-in and clock-out times across all locations, allows managers to monitor attendance in real-time. This visibility helps in staying within budget and maintaining clarity at the end of the week, reducing confusion and absenteeism.
By adopting scheduling software like Bizimply, businesses can implement flexible scheduling without compromising operational efficiency.
Flexible Scheduling in Action: Hospitality Success Stories
Hospitality businesses that embrace flexible scheduling often see immediate improvements in employee retention. One standout example is the Irish Heritage Trust, which implemented Bizimply to address key workforce challenges.
The Irish Heritage Trust, a leading national organisation managing landmark heritage properties across Ireland, faced issues with manual payroll processes, communication, and scheduling prior to adopting Bizimply.
Laura Killeen, Human Resources Officer at the Irish Heritage Trust, noted that “Bizimply has provided more efficient, streamlined processes for areas of our business which were previously labour and time intensive. This has afforded those who had previously been charged with these tasks to focus on other aspects of their role and help us drive our organisation forward.”
Through Bizimply’s features like rota scheduling, automated rostering, employee self-service, and paperless HR onboarding, the Irish Heritage Trust significantly enhanced efficiency, productivity, and employee satisfaction. Their success demonstrates how tailored solutions can transform operations and improve employee retention.
These real-world examples showcase the transformative impact of flexible scheduling on employee retention and overall business performance.
Overcoming Challenges in Flexible Scheduling
While flexible scheduling offers numerous benefits, implementation can come with challenges:
- Resistance to Change: Managers and employees may initially resist new scheduling practices. Training and clear communication are essential.
- Balancing Preferences with Business Needs: Finding the right balance requires careful planning and the right tools to ensure fairness and coverage.
To overcome resistance, it’s crucial to involve employees in the transition process. Engage teams by explaining the benefits of flexible scheduling and addressing their concerns openly. Provide hands-on training for managers and staff to familiarise them with scheduling tools and ensure they feel confident using the system. Clear policies should also outline how schedule changes are handled to minimise misunderstandings and build trust.
Balancing preferences with business needs requires robust workforce management software that considers employee availability and operational requirements. For instance, software like Bizimply can use predictive analytics to forecast labour demand, ensuring adequate coverage while accommodating staff preferences. Regular feedback sessions can also help identify potential friction points, allowing businesses to refine their approach continuously.
By addressing these challenges head-on with the right strategies and tools, businesses can successfully adopt flexible scheduling and reap the rewards of improved employee satisfaction, retention, and operational efficiency.
Why Flexible Scheduling is a Must for Hospitality in 2025
Flexible scheduling is more than a trend, it’s a strategic approach to tackling the retention challenges facing the hospitality industry in 2025. By improving work-life balance, boosting employee satisfaction, and reducing turnover costs, flexible scheduling sets businesses up for long-term success.
With Bizimply, implementing flexible scheduling has never been easier. Our tools empower hospitality businesses to streamline operations, reduce labour costs, and keep employees happy and engaged. Book a demo now!
