Staff turnover is the rate at which employees leave and are replaced over a period. Hospitality has historically one of the highest turnover rates of any sector, and it’s a problem as costly as it is underestimated.
It’s calculated as the ratio of employees who left to the average headcount over a period. But the number alone doesn’t tell the whole story: what matters most is how much it costs.
The hidden cost
Every person who leaves takes with them a cost far beyond their wage: recruiting, interviews, training the replacement, lower productivity in the early weeks, service errors, the extra load on those who stay (who in turn risk burnout) and lost relationships with regulars.
Added up, that’s thousands of euros per departure — a direct weight on labour cost. That’s why retention isn’t a “soft” topic but an economic lever. Here’s the real cost of turnover.
Frequently asked questions
- How do you calculate staff turnover?
- Divide the number of employees who left in a period by the average headcount for the same period, as a percentage. Read it alongside the cost of each replacement.
- Why is turnover so costly in hospitality?
- Because every departure means recruiting, training, lower early productivity, errors, overload on those who stay, and lost relationships with regulars — costs that add up to thousands of euros per person.