Supporting the Hospitality Workforce: Key Learnings and Insights to Employee Retention, Engagement, and Success from our Customers

Every day, millions of hospitality workers go above and beyond to create memorable experiences for their guests, whether in hotels, restaurants, or travel and tourism. From early mornings preparing coffee and breakfast orders to late nights ensuring seamless check-ins, their dedication keeps the industry running. That’s why February 23 is a day worth celebrating—National Hospitality Workers Appreciation Day. It’s an opportunity to recognize and thank the individuals who make seamless dining and travel journeys and exceptional experiences possible. At UKG, we are proud to support hospitality organizations in fostering great workplaces where employees feel valued, engaged, and empowered.

Addressing Industry Challenges with Hiring and Retention

The hospitality industry faces significant challenges in hiring and retaining top talent. High turnover rates, staffing shortages, and direct competition with gig-based jobs like ridesharing put a strain on both employees and businesses, leading to increased workloads and diminished service quality. 

At UKG, we have seen customers who prioritize improved employee experiences and workplace culture experience higher retention and stronger operational performance. In this blog, we’ll discuss a few strategies some of our customers have implemented to improve employee engagement and retention by leveraging the UKG Pro suite®, an AI-powered human capital management system. From communication tools to increased engagement, to enhancing financial wellness with pay transparency, hospitality organizations are making strides in employee satisfaction. Additionally, flexible scheduling and shift-swap capabilities empower frontline workers with greater control over their work-life balance. These solutions create great workplaces, ensuring a better experience for both employees and guests.

Increasing Engagement Through Communication Tools

In the hospitality industry, where guest satisfaction is paramount, effective engagement and communication among the workforce are crucial. Engaged employees are more likely to deliver exceptional service, creating memorable experiences for guests and fostering loyalty. Tools like UKG Talk® play a pivotal role in enhancing communication within hospitality teams. For instance, Lettuce Entertain You Enterprises, an independent restaurant group with more than 130 restaurants and a workforce over 7,000 people in the U.S., has successfully utilized UKG Talk to improve collaboration and engagement among its frontline workers, leading to a more cohesive and motivated team. 

"We had a vision to dramatically improve our culture with open and honest communication, from our managers to restaurant staff and among frontline staff. UKG Talk not only fulfilled that vision but is a key driver of our culture and a vital component of our technology infrastructure to help us become a great place to work," said Ethan Samson, Executive Vice President and Deputy General Counsel at Lettuce Entertain You. This not only boosts employee morale but also translates to better guest interactions and overall service quality.

Moreover, effective communication ensures that all team members are aligned with the organization's goals and standards. Aimbridge Hospitality saw an opportunity to dramatically reinvent its communications with employees from the front office to the frontline with UKG Talk. 

“We rely on our General Managers to lead their properties and cascade messages down to their frontline employees,” said Ann Christenson, Chief Human Resources Officer. “Every associate has access to UKG, and the ability to use the communications platform in UKG, where employees are already accessing their schedules, timecards, paystubs, and time-off requests, is extremely valuable. With UKG Talk, all of our communications are streamlined, leading to stronger operations and a more consistent, reliable, and enjoyable communications experience for our frontline employees.”

Enhancing Employee Experience with Pay Transparency and Financial Wellness

Pay transparency is crucial for frontline workers in the hospitality industry because it helps foster trust and equity, especially amidst challenges like tipping, and compliance with labor laws. Workers often rely on tips, which can fluctuate and create wage disparities, making clear pay structures essential for fair compensation. Moreover, pay transparency ensures that wages align with labor laws, reducing the risk of violations related to minimum wage requirements and overtime, thus creating a more stable and fair work environment.

Lettuce Entertain You has achieved success in providing pay transparency and schedule flexibility while still meeting strict labor standards and Fair Workweek laws. As Ethan Sampson noted, “Employees want to get paid, understand how they’re being paid, and know what their schedule is, and UKG has simplified all of that for our frontline staff.” By leveraging our UKG Pro suite, Lettuce Entertain You is able to provide a way for tipped employees to easily view their pay, including the tips reflected in their pay statements. Sampson further noted that “Giving employees easy access to pay and scheduling information in one place gives us a competitive advantage when it comes to retention and engagement.”

Another key aspect to retaining talent is offering financial wellness, particularly Earned Wage Access (EWA), which allows employees to access a portion of their accrued wages prior to their regular paycheck. If 72 % of individuals experience financial stress or worry at least once a year, offering EWA tools helps workers bridge the gap between pay periods, while also keeping them focused, productive, and gives empowerment over their finances. To put a finer point on the benefits of financial stability and wellness, Payactiv CEO Safwan Shah on UKG Wallet says, “Employees in fast-paced environments need financial flexibility. Our EWA service helps hospitality staff stay financially secure, resulting in better morale and improved customer service.”

Encore, a 15-year hospitality customer already leveraging the AI-powered UKG Pro suite with a global workforce of 12,000 people, implemented UKG Wallet to provide its employees with Earned Wage Access (EWA), aiming to improve financial well-being and reduce the stress of waiting for payday. By offering instant access to earned wages, Encore aimed to empower workers, especially those in hourly roles, by giving them more control over their finances. The results were clear: employees experienced greater financial stability, which led to improved morale and reduced turnover. Additionally, Encore saw an increase in employee retention by 14%, demonstrating how EWA can drive both employee satisfaction and business success. “We established the program as another way to support our team members so that they can be at their best in delivering for our customers,” said Ben Erwin, President and CEO of Encore.

Creating Flexibility with Shift Swaps 

Flexibility is a critical factor in employee satisfaction, especially in hospitality, where rigid schedules can make work-life balance challenging. Employees want more control over their shifts, and businesses that provide flexible scheduling options are better positioned to attract and retain talent.

For example, Aimbridge Hospitality has embraced shift flexibility by "gigifying" work, giving employees greater control over when and where they work. “By allowing our associates to view open shifts and pick up work that fits their schedules, we’re fostering a culture that supports work-life balance,” said Christenson. This flexibility ensures a more engaged workforce and helps businesses remain adequately staffed.

With hospitality often competing directly with gig-based jobs like ridesharing, providing flexible, on-demand scheduling has never been more important. Through the UKG Pro suite, organizations empower their employees with self-service tools that allow them to swap shifts, manage availability, and plan their work schedules with greater ease. We've seen customers who use our scheduling solutions be able to ensure that these shift changes happen seamlessly, without disrupting operations. Additionally, the hours saved by managers in scheduling processes can be spent fostering stronger connections with frontline associates and customers, enhancing both employee satisfaction and guest experiences.

Thank you, Hospitality Workers

Recognizing the dedication of hospitality workers goes beyond just one day. By implementing strategies that prioritize flexibility, communication, and financial wellness, organizations create great workplaces where employees feel supported every day of the year. In fact, workplaces with strong cultures see a 4x increase in revenue growth compared to their competitors.

To all our customers in the hospitality industry who make our experiences unforgettable—thank you!