Retaining Employees in Hotels Is Not Enough: Why Engagement Should Be Measured Separately?

A decrease in employee turnover at a hotel may seem like good news at first glance.

It can mean lower hiring costs, less training burden, retention of an experienced team, and a more stable operation.

However, just because employees stay with the business does not automatically indicate that they are engaged.

The key issue discussed in the expert panel published by Hospitality Net in August 2026 is this. Prof. Linchi Kwok from Cal Poly Pomona points out that during periods of economic uncertainty, some employees may feel that transitioning to a new job is risky, allowing them to hold onto their current position. This situation is defined as "job-hugging." Employees may stay in the business, but the reason for their stay may not be engagement, but rather external uncertainty.

This distinction is critical from a hospitality perspective.

Because the guest experience is determined not only by how many staff members are present but also by how much those employees take ownership of their jobs.

Why is Retention an Incomplete KPI on Its Own?

Employee retention rate is one of the important indicators of a business.

Frequent staff changes create hiring, orientation, training, and productivity losses. Cornell research also shows that a significant portion of turnover costs in hotel businesses can stem from productivity losses due to the inexperience of new employees. In previous Cornell studies, the cost of turnover for frontline employees was estimated at around $6,000, while for managers, it was about $10,000. These figures should not be used as current cost levels; however, they indicate that the hidden costs of turnover have long been documented.

More importantly, employee loss does not only reflect on the HR budget.

A study conducted by Cornell ILR School in hotel and casino operations found that in units where voluntary employee turnover was high, customer service evaluations also deteriorated. The need for experienced employees to take time away from guest services to train new hires also increased pressure on operations.

Therefore, retention should be measured.

The problem is making it a standalone indicator of success.

Employees May Stay but Reduce Their Contribution

The discussion highlighted in the Hospitality Net panel reported by Tourism Newspaper emphasizes the difference between employee engagement and retaining employees in the business.

Mark Fancourt, Co-Founder of TRAVHOTECH, argues that employee satisfaction, guest satisfaction, and business performance should be evaluated together. In his approach, the accommodation business has two different "guests": the person staying at the hotel and the person working at the hotel. One's experience is not entirely independent of the other.

This relationship is quite tangible in hotel operations.

Does the front desk employee solve the issue only as a matter of procedure, or are they looking for alternatives?

Does the waiter just drop off the order at the table, or do they notice the guest's needs?

Does the housekeeping staff only complete the checklist, or do they report potential problems in the room?

Many of these differences relate to voluntary contributions that are difficult to measure in job descriptions.

An employee with decreased job engagement may not have left the business; however, they may minimize their initiative, empathy, and willingness to solve problems.

"Quiet Quitting" May Be More Visible in Hospitality

Brendan Cronin, one of the experts on the Hospitality Net panel, relates low engagement to the "quiet quitting" discussion.

This concept does not mean that the employee actually resigns; it refers to contributing only within the limits of mandatory duties while continuing to work. The impact of this in hospitality may be visible more quickly than in many desk jobs because service production occurs through direct contact between the employee and the guest.

An employee may not take a few extra minutes to solve a guest's problem.

They may redirect an issue between departments instead of taking it on themselves.

They may not voluntarily support a teammate during busy service.

None of these are visible in employee turnover rates.

The employee is still on the payroll.

But the voluntary contribution to service quality has diminished.

Gallup: Engagement is Related to Performance

The relationship between employee engagement and business performance is not solely based on the opinions of hospitality experts.

Gallup's recent Q12 meta-analysis examines over 183,000 business units covering more than 3.35 million employees. In the analysis, employee engagement is associated with 11 performance indicators, including customer engagement, profitability, productivity, turnover, absenteeism, quality, and employee well-being.

In Gallup's analysis, units in the top quartile of employee engagement show 23% higher profitability and 18% higher results in sales-based productivity compared to those in the bottom quartile. The difference in employee turnover in organizations with high turnover rates is also around 21%.

This data is not specific to the hospitality sector.

Therefore, it would not be accurate to say that a hotel will achieve exactly the same results.

However, it strongly supports the idea that engagement is not just about the question "Does the employee feel good?"; it is a business indicator that should be evaluated alongside customer, productivity, and financial performance.

What Indicators Should Hotels Monitor Together?

Prof. Linchi Kwok's suggestion in the Hospitality Net panel is not to choose another single KPI instead of retention.

It is to establish a more holistic measurement system.

Accordingly, hotels should monitor employee retention rates alongside engagement, intent to stay, performance, absenteeism, internal mobility, participation in development programs, and guest feedback.

In practice, a hotel can set up a table as follows:

Turnover and retention show how long the team has stayed.

Absenteeism may signal operational disruptions.

Employee engagement surveys measure the individual's relationship with their job and manager.

Internal promotion rates indicate whether the career system is truly working.

Training participation and post-training performance help understand the impact of development programs.

Guest reviews can reflect the service aspect of the employee experience.

None of these should be expected to yield definitive results on their own.

The value comes from reading the indicators together.

The Quality of Management Should Be at the Center of Measurement

It would also be incorrect to evaluate low engagement solely as a personal motivation issue for the employee.

In Gallup's 2026 assessment, factors contributing to employee disengagement include uncertainty of expectations, weak organizational culture, and insufficient recognition. In Gallup's 2025 data, only 47% of employees strongly agree that they clearly know what is expected of them at work.

In hospitality, shift managers and department heads are therefore critical.

Employees interact daily not with the general manager but directly with their manager.

Shift distribution.

Leave.

Recognition.

Response after mistakes.

Task sharing.

Promotion opportunities.

Support during busy periods.

A significant portion of the employee's evaluation of the business is shaped through these daily relationships.

That is why it is not sufficient to leave the engagement program solely to the annual HR survey.

The Seasonal Structure in Turkey Should Also Be Considered

Interpreting the employee retention indicator in Turkish hospitality can be even more challenging.

Especially in Antalya, Muğla, and some coastal destinations, the seasonal operating structure naturally increases employee mobility.

A strong employee who leaves at the end of the season may not have low engagement.

They may be continuing their education in another city.

They may have found different career opportunities for the next season.

Similarly, an employee who has stayed in the business for several years may only be staying because alternative job opportunities are limited in the region they are in.

Dr. Babis Giousmpasoglou from Bournemouth University also points out this exact point in the Hospitality Net panel: age, career stage, family responsibilities, immigration status, and alternative job opportunities affect employees' decisions to stay or leave. Therefore, the equation "stayed = engaged, left = not engaged" is not reliable.

In Turkey, businesses can particularly monitor the return rate for the next season through exit interviews at the end of the season.

An employee's contract ending may be seen as turnover; however, the same person's return to the business for three consecutive seasons is a different indicator of engagement.

Stafflink's View

In our opinion, the question that hotels should ask in their employee strategy is no longer just "How many people did we lose?"

"To what extent does the team we have retained still want to contribute?"

A decrease in turnover can reduce hiring and training costs. This is important.

However, it may be premature to declare success without understanding whether strong employer branding, career opportunities, good management, or merely a weak job market is behind low turnover.

Especially in hospitality, where service quality arises from employee behavior, engagement, guest experience, and financial performance should be viewed on the same management dashboard.

The success of human resources is not just about keeping employees in the building.

It is about establishing a system where employees continue to grow, take responsibility, and create value for guests while remaining in the business.