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Ending the revolving door of hospitality staff
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Ending the revolving door of hospitality staff

Key points:

  • Pubs that retain staff focus on creating a positive workplace culture, not just offering higher wages.

  • Recognition, growth opportunities, mentoring, and team-building initiatives strengthen loyalty and reduce turnover.

  • Better culture, better business: A retention-focused workplace boosts service quality, report higher average spend, customer satisfaction, and develops future leaders.


Why hospitality staff turnover is costing more than you think

In an industry where staff turnover hits a staggering 15.5% – the highest of any sector in Australia – pub owners are caught in a costly cycle of recruitment, visa applications, training, and goodbye parties.

While competitive wages and safe workplaces are non-negotiable foundations, they’re simply not enough in today’s challenging hospitality landscape. What leading venues and organisations are doing is cultivating workplace cultures that make staff want to stay.

What pubs lose when staff keep leaving

When experienced staff leave, they take institutional knowledge with them, including a regular’s order, who wants a certain beer in a certain style of glass, or when to anticipate the evening rush.

New hires, although they may already know how to pour a beer, it can take weeks to rebuild trust and relationships with other team members and patrons.

Regular staff changes also disrupt team dynamics, reduce service quality, and ultimately impact the customer experience that keeps your venue thriving.

Why culture is the real retention advantage

The pubs that are winning the staffing battle, however, aren’t necessarily the highest-paying venues. They’re the ones where team members feel valued, see growth opportunities, and genuinely enjoy coming to work.

Exit interviews consistently reveal that culture trumps an extra dollar per hour when staff make decisions about staying or leaving.

How pubs are building retention-focused cultures

Creating a retention-focused culture doesn’t require a corporate budget. Successful pub operators are implementing morning huddles with quick five-minute team check-ins before shifts to align on daily goals and recognise recent wins.

They’re training managers to explicitly reference company values when making decisions, creating a consistent experience for staff and customers alike.

Recognition programs that resonate make a significant difference too. Simple peer nomination systems where staff highlight colleagues who have gone above and beyond cost nothing but mean everything.

Growth opportunities matter tremendously in retention. Forward-thinking pubs offer training opportunities, create pathways for bar staff to learn kitchen operations or develop management capabilities.

Mentor matching programs that pair newer staff with experienced team members benefit both through knowledge sharing and leadership development, creating natural succession planning.

Building community, not just employing colleagues, transforms the workplace dynamic. Monthly competitions between sections or shifts build camaraderie without significant expense.

Subsidised sports teams or hobby groups strengthen bonds outside work hours, creating connections that make staff think twice before leaving for a marginally better offer elsewhere.

The business case for investing in culture

Venues implementing these approaches report benefits far beyond reduced turnover. Improved customer satisfaction scores, higher average spend per patron, increased staff referrals for new positions, and natural development of future managers and potential successors all stem from a positive workplace culture.

The most successful pub owners see culture as an investment, not an expense. When budgeting, they allocate resources to team building with the same seriousness as they do to marketing or equipment maintenance.

Transforming workplace culture doesn’t happen overnight, but it doesn’t have to be overwhelming either.

In an industry where finding and keeping great staff is increasingly challenging, culture has become the difference between venues that struggle and those that thrive. Every shift becomes an opportunity to either build loyalty or lose it.

Ready to build a team that stays? Contact Pitcher Partners Newcastle and Hunter today for a confidential discussion about creating your venue’s culture strategy.

 


This content is general commentary only and does not constitute advice. Before making any decision or taking any action in relation to the content, you should consult your professional advisor. To the maximum extent permitted by law, neither Pitcher Partners or its affiliated entities, nor any of our employees will be liable for any loss, damage, liability or claim whatsoever suffered or incurred arising directly or indirectly out of the use or reliance on the material contained in this content. Pitcher Partners is an association of independent firms. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. Liability limited by a scheme approved under professional standards legislation.

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