Why is the Turnover Rate High in the Accommodation and Food Service Industries? Analyzing the Structure of “Low Wages,” “Long Hours,” and the “Vicious Cycle”

The accommodation and food service industries consistently exhibit higher turnover rates compared to other sectors. This is fundamentally rooted in harsh working conditions, such as the irregular working hours driven by customer demand, the normalization of long working hours, and a low wage level.

This article provides a detailed explanation of the specific factors contributing to the high turnover rate in this industry, examining them from four perspectives: working conditionscompensation/benefitsworkload, and career development, and clarifies the structure of the “vicious cycle” these factors create.

Turnover Rates in the Accommodation and Food Service Industries (Latest Data)

CategoryAccommodation and Food Service Turnover RateAverage Turnover Rate Across All Industries
Annual Turnover Rate26.8% (2022)15.0% (2022)
Turnover Rate within 3 Years (New University Graduates)55.4% (March 2022 Graduates)33.8% (March 2022 Graduates)
Turnover Rate within 3 Years (New High School Graduates)64.7% (March 2022 Graduates)37.9% (March 2022 Graduates)

1. The Issue of Working Hours (Long Hours and Irregular Shifts)

Many establishments in this industry operate 24 hours a day, 365 days a year to meet customer demand, leading to a structural problem where working hours tend to be irregular and long.

Irregular Working Hours:

  • Complexity of Shift Work: Shifts often involve early starts, late finishes, night shifts, and the stressful “Naka-nuke” shift (a long day with a substantial mid-day break), disrupting one’s life rhythm.
  • Difficulty Balancing Work and Life: Irregular hours make it hard to align schedules with family and friends, leading to significant mental and physical strain.

Normalization of Long Working Hours:

  • Excessive Workload Due to Staff Shortages: Chronic labor shortages often result in a heavy individual workload, which tends to increase overtime hours.
  • Peak Seasons Align with Public Holidays: Since periods like weekends, public holidays, Golden Week, Obon, and New Year’s are the busiest times, employees are unable to take extended leave when the general public is resting.

2. The Issue of Compensation and Benefits (Low Wage Levels and Few Holidays)

The industry as a whole tends to have lower wage levels compared to other sectors, leading many employees to feel that the compensation does not match the demanding nature of the work.

Low Salary Levels:

  • Imbalance with Duties: Many employees feel underpaid despite being required to handle multi-tasks and specialized skills such as customer service, cooking, cleaning, hygiene management, and complaint resolution.
  • Limited Opportunities for Raises: Vague evaluation systems or slow salary increases contribute to a decline in motivation.

Difficulty Taking Time Off:

  • Few Days Off: Due to the nature of the service industry, the annual number of holidays tends to be lower compared to the average across all industries.
  • High Hurdle for Taking Paid Leave: Operating with minimal staff makes employees hesitant to request paid leave, creating an environment where it is difficult to refresh and recuperate.

3. Workload and Mental Stress

The nature of the work itself and the stress arising from customer interaction are also major factors in employee turnover.

Significant Physical Strain:

  • Standing Work: Staff in restaurants and hotels often spend long hours standing, leading to accumulated physical fatigue.
  • Heavy Labor: The job frequently involves physically demanding tasks, such as transporting heavy items and extensive cleaning duties.

Mental Stress:

  • Complaint Handling: Direct interaction with customers necessitates dealing with unreasonable requests or severe complaints, leading to significant mental stress.
  • Interpersonal Issues: The pressure of high-demand periods can strain workplace communication, sometimes leading to a “craftsman/master” mentality or instances of harassment.

4. Issues with Career Development and Training Systems

A lack of clear future prospects, particularly for younger employees, is another cause of turnover.

Undeveloped Education and Training Systems:

  • “Learn by Watching” Culture: Due to the busy nature of the workplace, On-the-Job Training (OJT) can be insufficient, leading to a “learn by watching” culture that makes new employees feel anxious.

Lack of Clarity in Career Path:

  • Vague Evaluation Systems: When criteria for promotion or advancement are unclear, employees cannot visualize being rewarded for their efforts, leading more people to change industries in search of career advancement.
  • High Industry Fluidity: The relatively low barrier to switching to a competitor within the same industry is characteristic, resulting in a high rate of “fluid turnover” as employees seek better compensation and working environments.

The Structure of the Vicious Cycle

These factors are not isolated. They create a vicious cycle: “People quit because of low wages and few holidays →Staff shortages increase the workload per person, making working hours longer → More people quit because of the demanding conditions.” This vicious cycle is the primary reason for the high turnover rate in this industry.