Case Study - Reducing Staff Turnover

Company Profile:  London Airport Hotel, 177 rooms and 190 staff.

Issue: Staff turnover in 2 key departments of Housekeeping and Restaurant was running at 90%.

Estimated cost of staff turnover - including overtime, loss of revenue, loss of skills, training time and management time to replace a staff member - was running at around £3,000 per position.

This was costing the business around £500,000 per year.

Solution: Improved the hotel's recruitment and selection process and combined this with a much more structured induction and probation training programme.

This reduced staff turnover to around 17% - down from an original 90% - within a 12-month period.

Saving:  The recruitment and training changes led to a saving of £400,000 per year.

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