Hospitality Runs on People: Six HR Challenges Hotels and Restaurants Can Overcome 

September 17, 2025

Hotel bellman hospitality industry

Hospitality is built on people. Behind every warm welcome and spotless room is a nonstop HR engine keeping your team running. Whether you manage a cozy inn or a multi-location hotel, success depends not just on great service but on how well you hire, train, and retain staff in one of the highest-turnover industries in the country. 

We’ve identified six HR challenges that hospitality businesses face every day and offer practical solutions that make life better for your team and your bottom line. 

Turnover and Recruiting

Nearly 5% of hospitality workers quit every month. That kind of churn leaves managers stuck in a loop of posting jobs, interviewing, and onboarding; and that’s all while trying to deliver top-tier service to guests walking through the door. 

Recruiting isn’t any easier. Other industries offer higher pay, steadier hours, and better work-life balance. But hospitality offers its employees something different: the chance to grow in a fast-paced environment while creating memorable experiences for guests. With the right approach you can shift from reacting to the turnover, to building a team that sticks. 

It starts with clarity. When employees receive clear job expectations from day one, they’re more likely to stay. Managers who check in regularly, and not just when something goes wrong, build stronger relationships and trust. Recognition doesn’t need to be elaborate. Even something as simple as monthly commendation programs or offering flexible scheduling can go a long way in making staff feel valued. Additionally, when you talk openly about career growth, even for part-time employees, you show your team that their contributions matter today, and their opportunities can grow tomorrow. 

These steps help transform hospitality roles into something more appealing and sustainable, giving your business a better shot at long-term success. 

Payroll and Tip Management

Payroll in hospitality is rarely straightforward. Factors such as overtime pay or compliance with state and federal wage laws can turn even small mistakes into large frustrations. Restaurants face added complexity with tips including cash versus credit, tip credits, pooling rules, and processing fees. When payroll isn’t handled correctly, trust breaks down and legal risks grow. 

The solution is to automate. A payroll platform built for hospitality can handle the details for you. With CommPayHR, once you input your payroll data, the system takes care of the calculations. Employees see they’re being paid accurately, which builds confidence. Managers stop stressing over spreadsheets. The result is a more efficient and accurate payroll process that keeps employees satisfied and businesses compliant. 

Training and Employee Development

High turnover means managers are constantly onboarding new hires. In hospitality, training is often hands-on and time-consuming, and it can feel wasted when employees leave quickly. Seasonal peaks make the cycle even more intense. Evaluating performance is also tricky, since so much depends on guest interactions and soft skills. How do you measure a server’s smile or a concierge’s calm under pressure? 

To make training more effective, you can choose to include a Learning Management tool as part of your custom platform to deliver certain training modules via a guided self-service feature. That gives managers more time to conduct practices like job shadowing and role-playing exercises with new employees. Pairing new hires with experienced staff speeds up learning too, and exit interviews help you understand why people leave. CommPayHR’s onboarding and performance tools help hotels and restaurants handle paperwork, track training completion, manage certifications, and capture performance feedback, all in one place. That keeps employees moving forward, even in a high-turnover environment. 

Scheduling and Shift Management

Hospitality schedules rarely follow a neat 9-to-5. Nights, weekends, holidays, and last-minute changes are the norm. One sick call or no-show can throw service off completely. Managers juggle availability, break requirements, and fluctuating demand—often without the right tools to make it easier. The result is stress for both staff and managers, and frustration when schedules feel chaotic. 

Smarter scheduling starts with better tools. When you can track availability, prevent overtime conflicts, and let employees swap shifts without confusion, everything runs smoother. Communicating schedules in advance and offering flexibility shows employees their time is respected. That reduces burnout and improves reliability. CommPayHR’s time-related tools helps restaurants and hotels simplify shift management. Employees can view schedules, request time off, or swap shifts directly in the system, while managers stay in control. 

Engagement and Retention

Because hospitality is a people-first business, guests notice disengaged employees right away. A distracted server, a rushed front desk clerk, or a housekeeper cutting corners all impact the customer experience. The challenge is that some employees see hospitality work as temporary, which makes motivation harder to sustain. 

To build engagement, make recognition a habit, not just an annual event. Celebrate both small and big wins. A culture of kindness and respect often matters more than company parties. For performance reviews, combine guest feedback, peer input, and manager observations. Employees are more motivated when they know their soft skills matter just as much as their speed or accuracy. 

CommPayHR’s Share & Perform tool helps hospitality businesses build stronger employee connections. Whether it’s through surveys or performance reviews, you can quickly understand what employees need and act on it. That builds a workplace where people feel heard and valued. 

Safety Compliance

In the hospitality industry, the safety risks are real: late-night shifts, slippery kitchens, heavy lifting, and difficult guests can all put employees at risk. 

Instead of viewing safety as a burden, approach it as a core part of your business strategy. Transform your safety scorecard into a competitive advantage and make your business a place in which employees feel safe working. Beyond that, investing in safety pays off. Every $1 spent on a well-run safety program saves between $4 and $6. And that’s before you factor in the ripple effects of injuries like missed deadlines, productivity dips, or losing key team members. 

At CommPayHR, we know that safety and compliance aren’t just about checking boxes—they’re about protecting your people and strengthening your business. That’s why we help hospitality businesses build customized platforms that simplify training, track compliance, and provide ongoing support from our HR Services experts. With the right tools and personal guidance, you can reduce risk, improve retention, and create a workplace where both employees and guests feel safe. 

CommPayHR: The HR Partner Hospitality Businesses Can Count On

Managing HR in hospitality doesn’t have to be overwhelming. With the right technology and the right partner, you can simplify processes, keep employees engaged, and free up time to focus on guests. 

At CommPayHR, we don’t just hand you software. We pair you with dedicated customer service and support specialists who get to know your business and your team. That level of service, combined with the all-in-one platform we’ll customize for your business, makes your goals achievable.  

Let’s start a conversation about how we can help you solve the challenges you’re facing so you can get back to what you do best: creating memorable experiences for your guests. 

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