Workforce Inclusion

In today’s business climate, a solid employee retention strategy is more important than ever. Even as the Great Resignation has waned in some sectors, high employee turnover continues to plague organizations. It’s an issue that’s not going away anytime soon. In fact, advisory firm Forester predicts that employers will face more, not less, worker turnover long into the future. This is especially true of frontline workers—who already quit at a rate of 50 percent within the first three months. While some turnover is natural, excessive turnover can crush a business. Beyond the loss of valuable team members, the cost of replacing an employee can be staggering—from one-half to twice the employee’s salary. And the detrimental effects of high turnover extend beyond mere financial strain. Here are six ways that high turnover negatively impacts an organization.

Decreased Productivity

According to Gallup, employees who are considering leaving tend to become disengaged, and disengagement incurs a cost of between $450 billion and $550 billion each year in lost productivity. If workers do leave, the time it takes to train new employees—a minimum of three months by some estimates—further impairs productivity as managers are spending more time onboarding and training newcomers. Expedited training isn’t a viable solution. It can result in embarrassing, costly, or even dangerous mistakes that wind up taking even more time away from production.

Impaired Customer Relations

When employees are constantly new, lacking knowledge about products, services, and procedures, customers grow increasingly frustrated. Consulting firm Watermark found direct, negative correlations between companies’ employee retention rates and their Net Promoter Scores (a widely used measure of customer experience quality). High turnover led to low customer satisfaction. Especially in frontline industries, where courteous, skilled public-facing employees are vital to the customer experience, high employee turnover means bad online reviews and, eventually, lost customers.

Plummeting Morale

As employees watch their coworkers come and go, they become less likely to engage with new hires. Moreover, as coworkers leave, employees are more likely to consider the reasons why—ultimately leading to their own departures. Managers lose motivation, too, when it comes to implementing new initiatives or investing in employees’ growth. When morale is low among frontline employees, their customer service skills decline. In fact, a survey by Eagle Hill Consulting found that dissatisfied employees were more than 2.5 times more likely to say they do not provide excellent customer service. As mentioned above, indifferent customer service is contagious, leading to indifferent customers who will take their business elsewhere

Tarnished Reputation

High turnover makes businesses look bad. Those poor online reviews from disgruntled customers send a negative signal to both would-be buyers and potential employees. According to Forbes, negative online reviews deter 80% of viewers from contacting a business. And a Harvard Business Review study found that businesses with a poor reputation as employers had to offer at least 10 percent higher salaries to entice employees to join. A bad reputation can also discourage partners, investors, and lenders who view low employee retention as a sign of overall organizational instability.

Product Quality Issues

Whether the product is a clean, safe facility or a medical device, high turnover can negatively impact product quality. In the custodial industry, where turnover hovers around 200%–an entire workforce replaced twice in a year—turnover can turn into dirty, cluttered buildings. A poorly maintained building can deter potential tenants and visitors, as it’s often their first impression of a business. When it comes to manufacturing, poor employee retention can mean faulty products, leading to costly returns. A a research study by Informs found a direct link between turnover and product quality: “Despite the manufacturer’s extensive quality control efforts, including stringent testing, each percentage point increase in the weekly rate of workers quitting from an assembly line (its weekly worker turnover) is found to increase product failures by 0.74%–0.79%.”

Safety Concerns

High turnover decreases safety. According to OSHA, 40 percent of employees who are injured have been on the job less than one year. Not only is this statistic troubling when considering the human toll, but it’s also bad for a company’s bottom line. Businesses incur over $170 billion annually due to employee injuries or illnesses. Indirect expenses such as productivity loss, equipment damage, and legal fees can multiply total costs by a factor of ten.

Start with Recruiting the Right People for the Job

According to the Harvard Business Review, 80 percent of turnover is due to bad hires. Employee retention starts with recruiting and onboarding the right people. To do that, recruiters need to be crystal clear about their expectations and communicate them in an effective, accessible way. They also need to understand how much emphasis to put on hard versus soft skills—especially when it comes to frontline roles. In some cases, “trainable” is better than pre-trained. Finding the right people for the job also means widening the talent search to include innovative employment models and underutilized workforces. A 2020 study by Accenture and Harvard Business School coined the term “hidden workers”—an estimated 27 million people, including individuals with disabilities, who are eager to work, demonstrate numerous business benefits, and are statistically more likely to stay at a job.

Let Us Help You Reduce Employee Turnover

Turnover in frontline roles like retail, hospitality, manufacturing, and facilities maintenance is an ongoing challenge. Let us introduce you to a workforce that wants the jobs you sometimes find difficult to fill and retain. PRIDE Industries has decades of experience working with hundreds of businesses to provide turnkey, scalable staffing solutions. We make it easy to offer life-changing employment to individuals looking for long-term opportunities. Join us.

High employee turnover continues to plague companies—especially those that include frontline workers, and learning how to retain employees has become a business imperative.  While compensation certainly factors into low employee retention, departing employees cite other causes. Below, we summarize them, but, first, let us tell you about an innovative solution: supported work groups of employees with disabilities.

What is a Supported Work Group?

For hundreds of companies, the supported work group model answers the question of how to retain employees—but what, exactly is it? A typical work group is comprised of three employees with disabilities who have the desire and ability to work. Each group is supported onsite by a trained, dedicated employment coach supplied by the work group provider. The group is placed with employers whose jobs match the employees’ interests and skills.

The work group provider serves as the employer of record, taking on the recruiting, hiring, training, payroll, supervision, and quality control work—eliminating management overhead for the partner business. Supported work groups can be tailored for specific roles, offering flexible, scalable solutions while the pre-employment preparation process and on-the-job support ensure a workforce that’s both skilled and safe. What’s more, supported work groups directly solve many of the issues that lead to high turnover.

Causes of Employee Turnover and Work Group Solutions

Lack of a Sense of Belonging

When considering how to retain employees, first consider this: Belonging is the most basic of all human needs and is as important at work as anywhere else. A study by BetterUp and Harvard Business Review found that employees who feel they don’t belong have a 50 percent higher turnover risk than those who feel they do.

  • Solution: Lack of belonging is a fixable problem—one that’s built into the supported work group model. Because each work group is comprised of three eager employees with disabilities and one coach, a sense of community is established from the start. In some cases, transportation to and from work is included in the program, and the shared commute further increases comradery. Work group employees report looking forward to working each day.

Lack of Engagement

When belonging goes missing, so does engagement. A study by Qualtrics found that employees who don’t experience a sense of belonging are three and a half times less likely to engage—leading to a vicious cycle. Unengaged employees put in less effort, refuse extra responsibilities, cease to grow, withdraw from coworkers, and, ultimately, leave.

  • Solution: The work group is a team, and each day team members engage directly with each other and with their coach. The sense of belonging is inherent to the supported work group and fosters engagement. As a result, the disengage-withdraw-depart cycle is nipped in the bud.

Poor Communication

According to marketing research firm GITNUX’s 2024 Marketdata Report, inconsistent communication in the workplace increases employee turnover by 50 percent. It makes sense. Without consistent, effective communication, confusion reigns.

  • Solution: Key to the work group model are the skilled employment coaches who are trained to facilitate ongoing communication—not only among work group employees, but also with management. Employment coaches also help to prioritize and reprioritize employee’s tasks, tailoring them to an organization’s shifting needs.
paper with three boxes indicating level of satisfaction.

Lack of Goals and Purpose

Without goals, employees feel adrift. Without purpose, they feel like what they do doesn’t matter. Employees who are distanced from the big picture—including a company’s purpose, mission, and goals— lose enthusiasm and commitment. In fact, research by Great Place to Work found a lack of purpose to be one of three predictors for employee turnover, “regardless of generation or job type.” Similarly, employees without goals don’t know where to direct their efforts and are more likely to leave.

  • Solution: Purpose and goals are also critical components of supported work groups. From the employees to the coaches to the companies where work groups shine, everyone involved understands their goals and responsibilities. Goal setting starts pre-hiring, when employees with disabilities are matched with job opportunities aligned with their employment goals. Employment coaches work to help each work group member achieve their objectives on the job. Coaches also work with managers and co-workers to keep everyone aligned. Frequent check-ins mean that the employee receives regular feedback each step of the way.

Lack of Recognition

A survey by Indeed found that, for 30 percent of people who left a job within the first six months, recognition for their contributions could have made the difference—encouraging them to stay. Similarly, Gallup found that employee recognition results in employees who are 56 percent less likely to begin looking for a new job.

  • Solution: Employee recognition is integral to the work group model. Whether it’s quarterly attendance awards, luncheons for a job well done, or a shout-out in the company newsletter, work group leaders regularly celebrate the successes of the employees they train and work with.

Poor Training for Employees

Research shows that 40 percent of employees who don’t receive proper job training will leave their positions within the first year. According to LinkedIn’s 2018 Workforce Learning Report, 94 percent of employees said they’d stay at a company longer if it invested in helping them learn—another important metric to consider when discerning how to retain employees.

  • Solution: As employment coaches are constantly present, training is never a one-and-done proposition with supported work groups. Coaches are prepared to help employees learn new skills as needed, and coaches have the know-how and flexibility to tailor training to each individual’s learning style.

Unclear Performance Expectations/Lack of Manager Feedback

Jim Harter, Chief Scientist of Workplace Management and Well Being at Gallup, said, “the most fundamental engagement element is knowing what’s expected of you.” Gallup’s meta-analysis discovered robust correlations between clarity of expectations and organizational results, including employee retention.

  • Solution: Work group leaders provide documented performance expectations for the employees they work with, from pre-employment to on-the-job in real time, as well as feedback about performance. Moreover, the presence of employment coaches allows for expectations to be easily tailored and scalable in accord with a business’s needs.

How to Retain Employees: A Business Imperative

In today’s high-turnover climate, a good employee retention strategy will include innovation. This means that employers will need to consider previously underutilized talent pools and workforce structures. To be competitive, savvy organizations must invest in creating and fostering an inclusive work environment where employees feel seen, valued, and empowered.

Let Us Help You Reduce Employee Turnover

Turnover in frontline roles like retail, hospitality, manufacturing, and facilities maintenance is an ongoing challenge. Let us introduce you to a workforce that wants the jobs you sometimes find difficult to fill and retain. PRIDE Industries has decades of experience working with hundreds of businesses to provide turnkey, scalable staffing solutions. We make it easy to offer life-changing employment to individuals looking for long-term opportunities. Join us.

As the pandemic has waned, hospitality staffing solutions are needed more than ever.

The hospitality industry continues to face an acute staffing shortage, making it difficult for many businesses to maintain high-quality service and meet customer expectations. Hotels, restaurants, and other service-oriented businesses report shortages severe enough to affect their ability to operate. The good news? There’s a proven solution that not only addresses staffing shortages but also promotes inclusivity and diversity within the workforce—employing people with disabilities.

The Untapped Potential of People with Disabilities

Over 10 percent of working-age Americans have a disability. Historically, only about 30 percent of these individuals have participated in the workforce—as opposed to 75 percent of persons without disabilities. That’s changing. A recent National Trends in Disability Employment (nTIDE) report, published by the Kessler Foundation and the University of New Hampshire, found that the disability employment-to-population ratio has risen to 37.9 percent. As cause for the shift, the study cited an increase in remote work and a growing awareness of the benefits of a workforce that includes people of all abilities—many of which specifically translate to hospitality staffing solutions.

A recent report by analyst firm Accenture found that employers who actively hire and support employees with disabilities earned 1.6 times more revenue, 2.6 times more net income and 2 times more economic profit than peer organizations.

Hospitality Staffing Solutions Include People of All Abilities

Not only are hotels, restaurants, and other service-oriented businesses grappling to find employees, but retention is also an issue. According to the Bureau of Labor Statistics, up to 80 percent of hospitality employees leave within the first year—incurring operational disruptions, impaired customer service, and substantial costs to employers. All of this has left hotel operators and food service providers with a dismal outlook. According to a survey by Deloitte, these employers don’t expect staffing to return to 2019 levels until around 2030. But it doesn’t have to be that way.

Of the many reported benefits that people with disabilities bring to employers, long-term retention, reliability, and high customer satisfaction top the list. That’s certainly what the managers of three busy hotels discovered when they adopted an inclusive hiring model.

Resorts Find Stellar Employees

Viejas Casino & Resort

Viejas Resort and Casino in Southern California has about 20 employees with disabilities, part of a 10-year partnership with PRIDE Industries. One, Mike Becker, an employee with a developmental disability, was recently featured on San Diego’s CBS 8 News for providing a decade of “hard work” to Viejas. Mike loves keeping the resort clean. “I would like to work here at the casino for 10 more years,” he said.

“Viejas management and executives love having our employees there,” said David Cuevas, Director of Workforce Inclusion. “They are an integral part of the team, keeping the different casino areas spotless.”

Viejas also appreciates the positivity this workforce brings. “They show up every day with a smile on their face, eager to work,” said Cuevas.

So valued is this team that they are “treated like family,” according to Viejas management.

Legacy Resort Hotel & Spa

Ben Godwin impressed the team at San Diego’s Legacy Resort Hotel and Spa team from the start of the hiring process in 2020.

“Unlike many of our interviewees, Ben was totally at ease,” said Tonya Seidler, Legacy’s Human Resources Director. “He answered all the interview questions thoroughly, providing examples of prior work responsibilities to help us visualize him in our open position.”

In addition to being professional and prepared for the interview, Ben had an infectious enthusiasm that impressed Tonya from the very start. “He’s continued to wow us ever since,” she said.

“We serve people from all over the world,” said Steve Marciano, General Manager. “And we need quality people like Ben.”

Ben’s supervisor, Josh Bueno, concurs. “Providing quality service includes being friendly and helpful to the hotel’s guests,” he said. “Ben does this every day. He’s a team player, too. When he’s asked to deviate from his assigned tasks, he does so willingly.”

Thunder Valley Casino Resort

In Northern California, an “elite laundry team,” which includes 23 employees with disabilities, has helped keep Thunder Valley Casino Resort patrons supplied with clean linens and towels since 2019. So impressive is this team that Laundry Manager Khawar Qureshi has called on other teams to “step up and learn” from them, citing the group’s ability to multi-task while maintaining production flow in a busy environment. “They are very productive, and they do quality work,” said Khawar.

“I think it’s a great workforce,” said Brant Kelly, Director of Hotel Operations, adding that working with the team has been “nothing but a pleasure.”

Joel Moore, Vice President of Operations at Thunder Valley, shares the enthusiasm, saying that laundry operations have been so successful that the casino is looking to add employees with disabilities in other areas.

Hiring People with Disabilities Boosts Profitability

Aside from strengthening day-to-day operations, a workforce that includes people with disabilities garners many financial benefits as well. A recent report by analyst firm Accenture found that employers who actively hire and support employees with disabilities earned 1.6 times more revenue, 2.6 times more net income, and 2 times more economic profit than peer organizations. A separate study by Global Markets found that inclusive companies earn 2.5 times higher cash flow per employee, and inclusive teams are more productive by over 35%.

And Wait, There’s More

There really is. The Accenture study found that companies that hire people with disabilities demonstrate greater appeal to customers and socially conscious investors, increase innovation, and enjoy greater workplace morale—with all employees benefitting from an inclusive environment.

What’s more, this workforce specifically excels in areas that are key to the hospitality industry: retention, adaptability, and empathy.

When it comes to hospitality staffing solutions, extending your talent search to include people with disabilities just makes sense. With decades of experience as the leading employer of people with disabilities, PRIDE Industries makes connecting with this stellar workforce easy.

Let Us Help Solve Your Labor Shortages

The US Chamber of Commerce recommends that businesses turn to experienced partners to tap the many benefits—including tax incentives—of employing people with disabilities. PRIDE Industries has helped hundreds of companies do just that, helping recruit, hire, train, and support this growing and reliable talent pool—free of charge to employers.

Many hotel operators are wondering how to find employees. As a labor shortage threatens to impact businesses, there are good reasons to consider people with disabilities as an alternative hotel labor pool. 

According to a recent survey conducted by the American Hotel and Lodging Association (AHLA), over 80 percent of hotels are experiencing staffing shortages—a number that has increased even as the pandemic has receded. Add to this a daily hotel room demand that’s expected to reach record highs in 2024, according to analytics firm STR, a division of CoStar, and it could mean the perfect storm.

Given this situation, many hotel operators are wondering how to find employees to fill an array of jobs, from housekeeping to food services to front desk positions.

The solution to finding hotel employees may be simple. Consider a nontraditional workforce in people with disabilities—because they make great hotel employees.

They’re Available

According to the Bureau of Labor Statistics, businesses that include people with disabilities reported a 72 percent increase in overall employee productivity—great news for any hotelier.

There are 22 million working-age people with disabilities, and just a third are employed. That leaves 14 million potential employees to fill hotel jobs. With unprecedented access to educational and training opportunities, this largely untapped talent pool is not only accessible—it’s also well-equipped for many hotel positions. Hale Pulsifer, Vice President of Customer Inclusion for Fidelity Investments, puts it this way, “For employers, it’s like discovering gold in the backyard.”

They’re Loyal

Not only are today’s hotel operators wondering how to find employees for their jobs, they’re also wondering how to keep them. According to the Bureau of Labor Statistics (BLS), the hospitality industry—including the hotel sector—has the highest annual turnover rate of any hospitality business. Employees with disabilities offer the antidote for this costly, disruptive trend—with exceptionally high retention rates leading to consistency, better customer service, and cost savings.

They Improve Morale and Customer Service

Studies have shown that the presence of employees with disabilities boosts overall workplace morale and reflects an employer’s commitment to inclusion. And where morale is high, customer service is better—a finding confirmed by Glassdoor’s 2019 study, which cited a direct link between workplace morale and customer service. In the hotel industry, where many jobs are customer-facing, workplace morale directly impacts the guest experience. High employee morale, then, translates into a better experience for hotel customers.

They Reflect Guest Diversity

A 2020 study by the Open Doors Organization found that the disability travel market is more robust than ever—to the tune of $58.7 billion, with growth projected to increase as the pandemic recovery continues. In an increasingly globalized world, hotels welcome a more diverse clientele than ever before—including people of varying abilities. A truly welcoming hotel staff should reflect the diversity of its customers.

They’re Empathetic

According to EHL, the world’s leading source of hospitality education, empathy is the key to hotel customer satisfaction. “Exceptional service is provided by those who don’t only respond to a request or complaint, but those who also empathize with the guest.” Living with a disability is not without challenges—which is exactly why people with disabilities tend to rank high in empathy. A 2016 study published in the peer-reviewed scientific journal, Emotion, found that people who have navigated significant adversity exhibit higher degrees of empathy than those who have not.

They’re Adaptable

The hotel workplace is a dynamic one where adaptability is imperative. Guests’ travel plans can change on a dime, as can their needs during a stay. Hotel operators can experience vendor delays, HVAC might seize, plumbing might clog, and the hotel’s best chef might call in sick—each necessitating an operational pivot. As high as people with disabilities tend to score on the empathy scale, they also rank high in adaptability. “Generally, people with disability demonstrate huge resilience and adaptability,” said Llewellen Prain, Deputy Chair for Canada’s Greater Western Water. “They are also great problem solvers because life involves a lot of workarounds every day.” In an article for Inclusion Hub, disability advocate Chelsea Perry echoes this sentiment, saying, “We’ve perfected important soft skills like adaptability.”

They’re Productive

Research by DuPont and Virginia Commonwealth University National found that employees with disabilities perform equal to or better than their counterparts without disabilities. Moreover, according to the Bureau of Labor Statistics, businesses that include people with disabilities reported a 72 percent increase in overall employee productivity—great news for any hotel operator wondering how to find employees.

How to Tap Into this Stellar Talent Pool

Are you wondering how to find employees for your hotel jobs? PRIDE Industries can help. As the nation’s leading employer of people with disabilities, we have unique access to this talent pool in numerous communities across the country. We hire and manage the employees and serve as the employer of record, minimizing the risk to hotel operators. Our employment coaches provide hands-on, on-the-job support, including job coaching, advocacy, problem-solving, and conflict resolution—all leading to smooth operations.

We’ve helped hundreds of businesses—including some of the country’s most prestigious hotels—build a workforce that they can rely on. And we can help you, too.

Let Us Help Solve Your Labor Shortages

The US Chamber of Commerce recommends that businesses turn to experienced partners to tap the many benefits—including tax incentives—of employing people with disabilities. PRIDE Industries has helped hundreds of companies do just that, helping recruit, hire, train, and support this growing and reliable talent pool—free of charge to employers.

Opportunity youth are those aged 16-24 who are disconnected from school and employment due to life experiences like disabilities, poverty, involvement with the juvenile or adult justice system, foster care, or other barriers. We can help. Read this article in Comstock’s Magazine to learn about  PRIDE Industries’ YES! program to provide pathways to employment for opportunity youth.