Tackling High Turnover in the QSR Industry with Technology and Culture

High turnover has been an ongoing challenge for the Quick Service Restaurant industry, where over half of employees quit within 90 days of employment. For CIOs, CTOs, and other technology leaders within the hospitality space—whether in QSRs, hotels, or casinos—the effects of this turnover are felt far beyond human resources. Employee churn impacts operational efficiency, increases costs, and affects the customer experience, making it a critical issue that requires more than traditional solutions.

The root causes of this turnover are multifaceted. Low wages, irregular hours, and the demanding nature of customer service contribute to a burnout rate that already impacts 79% of workers in the broader workforce. For QSR employees, these challenges are compounded by the fact that many are teenagers or seasonal workers, seeking only part-time or temporary roles. However, this issue isn't limited to QSRs—high turnover is a pain point in various segments of the hospitality industry, from hotels to casinos, where service is the cornerstone of customer satisfaction.

As the industry navigates post-pandemic labor market shifts, including ‘The Great Resignation,’ leaders are being forced to reevaluate how they attract and retain talent. Technology plays a pivotal role in this transformation, enabling companies to address the underlying issues of turnover, while also future-proofing operations.

The New Expectations 

Employees in the hospitality sector have changed what they expect from their work experience. Competitive pay is important, but it’s only part of the solution. A recent study showed that 88% of employees want their workplace to provide growth opportunities, flexibility, and a fulfilling overall experience—especially when it comes to leveraging technology. For Gen Z, a demographic that now comprises nearly a third of the restaurant workforce, technological fluency is not just expected—it’s a requirement.

For technology leaders, this shift presents an opportunity. By modernizing outdated systems and streamlining cumbersome processes, companies can improve the employee experience and reduce turnover. In particular, tools that enhance flexibility, reduce administrative burden, and provide career development opportunities can help address many of the pain points that lead to turnover in the hospitality sector.

Leveraging Technology to Reduce Churn

Reducing turnover isn’t just an HR issue—it’s a technology challenge. Outdated systems not only slow down operations but also limit an organization’s ability to meet the modern workforce’s needs. For example, legacy payroll or scheduling systems can be a source of frustration for employees, leading to disengagement. In contrast, more modern systems enable flexible scheduling, seamless communication, and instant access to essential HR information, all of which are critical to employee satisfaction.

Flexible scheduling, in particular, is an area where QSRs and broader hospitality brands can make immediate gains. By allowing employees to have more control over their work hours, companies can offer the flexibility that workers increasingly demand. This is especially crucial in an industry where irregular shifts are the norm. Beyond scheduling, modern workforce management systems can automate onboarding, payroll, and shift management, reducing friction for employees and HR teams alike.

Consider the impact of automating payroll errors, scheduling conflicts, and onboarding delays, which can significantly contribute to employee dissatisfaction and turnover. A restaurant or casino with a workforce management platform that reduces these frictions can not only retain employees but also boost efficiency and overall service quality.

Building a Culture That Retains Talent

Technology alone, however, won’t solve the turnover crisis. Companies must pair technological investments with cultural improvements to create a holistic approach to retention. Engaging employees through recognition programs, career development opportunities, and feedback mechanisms is essential.

Development programs, in particular, are a critical retention strategy. Employees who see opportunities for advancement and skill-building are more likely to stay with their employer long-term. For hospitality brands, this means offering clear pathways for growth—from training programs to leadership development initiatives. Technology can facilitate this by delivering on-demand training and career development tools that fit into employees' often unpredictable schedules.

Additionally, real-time feedback tools, such as pulse surveys or digital suggestion boxes, can help leaders stay connected to employee concerns. This continuous feedback loop allows companies to course-correct quickly, addressing dissatisfaction before it leads to turnover.

Prioritizing Employee Experience

For technology leaders in the hospitality space, the link between employee experience and customer satisfaction is clear. In fact, 90% of employees report that the experience they have in the workplace directly impacts the service they provide to customers. This means that investing in employee experience technology isn’t just about reducing turnover—it’s about ensuring a high-quality customer experience, which is the lifeblood of hospitality.

As the workforce continues to evolve, the ability to adapt will be a key differentiator for QSRs, hotels, and casinos alike. Technology, when paired with a strong workplace culture, enables organizations to offer a more fulfilling, flexible, and engaging environment for employees. By focusing on these areas, hospitality leaders can reduce turnover, improve operational efficiency, and ultimately enhance the guest experience.