Industry attraction and turnover intention

What attracted you to the tourism/hospitality sector?

The most common theme from the open-ended questions regarding what attracted people to the industry was the sociable, people-based, and interactive nature of the work. Respondents valued the opportunity to work with and meet a variety of diverse people and have a positive impact on their experiences: 

It’s all about people and experiences. This sector revolves around providing excellent service and creating memorable moments for travellers.

People! I have a real passion for people and connecting people. I like to form strong and genuine relationships and take the time to get to know people.

Another key theme was the flexibility of the work and how it allowed for study, travel, other jobs, and relationships to be managed effectively. The opportunity to start a business was important, as was the fun, creative and challenging nature of the work:

Wanting to become self-employed after years in other industries, we decided to purchase a suitable property, quit our jobs and relocate ... once open, we’ve found we love hosting guests.

I needed to bring in some extra income and working bar work at nights was a way for me to do this without interrupting my day job.

As a chef, I find immense joy and fulfilment in creating delightful and memorable dining experiences for guests. The dynamic and ever-evolving nature of this sector constantly challenges me to innovate and excel in my craft.

Finally, the industry was seen to embody sustainability and the natural expression of what it means to be Māori and care for people and the environment. People, flexibility, fun and opportunity were also the leading themes regarding attraction to the industry in the 2022 report.

Turnover intention 

It is concerning that turnover intention in the next 12 months at the job level has increased (Figure 17), with over half (61.0%) of respondents either intending to leave their job in the next 12 months (31.7%) or unsure if they will leave (29.3%). A similar picture was found in 2022, with 59.2% of respondents stating that they either expected to leave their current job (27.6%) or were unsure about leaving (31.6%).

Figure 17. Turnover and sector movement intentions

Leave current job (N = 1,029)
Stay in hospitality or tourism (N=1,030).

By business type, the group with the highest turnover intention were respondents working in restaurants and cafes (41.0%), followed by fast food (39%), and then accommodation (27.6%).  However, for respondents intending to leave their jobs, it was more unclear whether they intended to leave the sector, with most responding ‘No’ or ‘Unsure’.

There is an association between intention to leave their current job and age. The highest proportion of those intending to leave their job in the next 12 months were those aged under 25 (45.2%), with just 27.8% of this group not intending to leave. The next largest groups expressing that they intended to leave were those aged 25 to 34 years (36.4%) and 35 to 44 years (29.5%). Approximately half (50.3%; n = 76) of those who identified as neurodivergent (n = 151) believed they would leave their current job in the next year.

Large organisations (100+ people) had the lowest job turnover intention score (21.7%), followed by small organisations (1 to 5 people) at 25.4%. Mid-range organisations (20 to 99 people) scored between 31.4% and 36.7%. This was also the pattern for sector turnover scores. 
Permanent full-time employees had the lowest turnover intention (25.8%), while fixed term/temporary (57.9%), permanent part-time (44.9%) and casual employees (43.6%) all showed significantly higher turnover intention.

Managers/supervisors had significantly lower turnover intention (26.8%) than non-managers (36.0%).

Qualitative analysis of reasons for leaving current job

Most comments by respondents surrounding their intentions to leave their current job (Table 6) were in a grouping that captured discontent with pay, concerns over hours (too many, not enough, unsocial hours and resulting poor work/life balance), and stress induced by high workloads, unpaid hours and increasingly aggressive and demanding customers. Many comments linked these three themes, e.g. “I’m not getting paid enough given the long and unsocial hours, the stress from angry customers”. It should be noted that pay was the most significant driver of intention to leave by a large margin:

Cost of living. I can’t make a living with this job.

I love my job, but I am severely underpaid for the level of experience I bring to the role.

Consistently understaffed… The managers also make it difficult to call in sick and I feel guilty if nobody covers the shift as I know it just makes the person working really stressed. It’s a (basically) minimum-wage job that just isn’t worth the stress. I would rather be broke.

The next most common theme highlighted moving on to new opportunities, careers, and travel. This group also captured those who never intended to stay in the job and are moving on to roles that are better aligned with the qualifications they hold or have just gained:

I feel isolated. There are hardly any other Māori in our industry and it’s lonely after returning back to the industry.

I’m finishing my last year, year 13 and then I’m going into the army.

The third grouping captures comments regarding poor conditions and toxic environments, a lack of career prospects, opportunities and growth, and a lack of appreciation and recognition. Many felt their skills and potential were not being well used:

Even when I hold a certificate which should push me towards a promotion, it feels like it’s always dangled in front of me instead of promoting to the position I’ve worked hard towards and feel like I deserve.

Table 6. What are the main reason(s) for wanting to leave your current job within the next 12 months?

Intention to leave the sector

Of the respondents who intended to leave their jobs in the next 12 months (Figure 17), only 18.3% intended to leave the hospitality and tourism sector altogether in the next 12 months, compared with 33.7% in 2022. It was also found this year that of those wanting to change their job, 51.7% did not want to leave the sector (30.0% were unsure), as compared to 2022, where just 18.9% did not want to leave the sector (with 47.4% being unsure). 

The percentage intending to leave the sector in the next 12 months was nearly identical for women (31.5%) and men (31.7%), but higher for those identifying as another gender (50%; n = 4).

Again, there is an association between intention to leave the sector and age. Of those intending to leave their job, the highest proportion of those intending to also leave the sector in the next 12 months were those younger than 25 years old (26.2%), followed by those in the 25 to 34 age group (22.7%). Most individuals in the 45 to 64 age group who intended to leave their job in the next year intended to remain in the sector, reporting intentions not to leave by those in the 45 to 54 year (64.2%) and 55 to 64 year (64.4%) groups. 

In a similar fashion to turnover intention for jobs, turnover intention for leaving the sector showed permanent full-time employees registering the lowest turnover intention (13.9%) followed by casuals (28.2%), permanent part-timers (28%) and fixed-term or temporary employees (21.1%). 

Qualitative analysis of reasons for leaving the sector 

As Table 6 shows, respondents’ reasons for their intention to leave the sector closely matched those comments regarding leaving specific job roles. Again, pay was a clear leader, with concerns over hours and stress commonly grouped:

Upper management want 2019 results on 2024 staffing.Quality staff are hard to come by.

Wages have not kept up with demands arising from the cost of living. Extended period of no days off (currently 41 days straight) has led to health issues. The stress is not worth the experience.

The pay is absolute trash. Especially considering I work every weekend till 3am, I get no extra money for working weekends or past 12am…I have a lack of a social life and find it hard to have a normal sleeping schedule.

There is limited room for growth financially within this sector when you compare the number of hours worked vs earnings compared to other sectors.

The next most common theme also highlighted moving on to new opportunities and captured those who never intended to stay in the job and are moving on to roles better aligned with their qualifications. Lack of career prospects was not as strongly highlighted, compared to comments regarding leaving their job. The third grouping captures comments regarding poor conditions and the fact that respondents’ skills and potential were not being used well:

There’s just a raft of issues concerning sexism in our industry which are completely ignored, including gendered and Indigenous pay gaps. Not to mention the lack of breaks, systematic wage theft, and the overall lack of respect ... Anyone who believes hospitality is a low-skilled industry should try a high-volume night behind the bar, shaking a million cocktails while dealing with customers and often violence on shift.

It’s horrible. No accommodation in Queenstown, especially affordable accommodation for the amount we get paid. They always overwork their current workers because they are understaffed, and they wonder why everyone quit this place.

Another respondent was clear in their reasons for wanting to stay in the sector:

Work environment: I am fortunate to be part of a team that values collaboration and innovation. The supportive and positive work environment motivates me to stay and contribute to our collective success. I am committed to achieving excellence in my craft, and my current job provides the platform and resources necessary to pursue this goal. Leaving now would disrupt the progress I have made and the goals I have set for myself.

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