Blog 24 Aug 2025
TL;DR: The "Great Resignation" was a seismic event that saw millions of workers voluntarily quit their jobs. This phenomenon, which ran from early 2021 to mid-2022 and peaked in November 2021, was particularly disruptive for the hospitality industry, leaving hotels and restaurants grappling with unprecedented staff shortages and high turnover. The challenge has not disappeared. Instead, it has evolved into a new, more subtle, but equally critical problem: the era of "job hugging" and the "Great Detachment." For hospitality leaders, the game is no longer just about filling roles, but about rethinking and re-engaging a constantly disengaged workforce.
From Mass Quitting to Cautious Sticking
The data confirms the shift. The record-high U.S. quit rate has stabilized, returning to pre-pandemic levels. This creates what is called "job hugging," where workers, facing economic uncertainty, are holding onto their current positions out of caution rather than satisfaction. The motivation has changed from an empowered search for a better job to a defensive strategy of retaining what they have.
However, this doesn't mean employees are happy. This disengagement is the "Great Detachment." It describes a workforce that is mentally checked out, doing the bare minimum, and lacking loyalty, even if they aren't actively seeking new employment. The data paints a clear picture of a global workforce that is present but not engaged. According to Gallup's "State of the Global Workplace" report, only 23% of employees worldwide were engaged in their jobs in 2024. This means that nearly four out of every five employees are either "not engaged" or "actively disengaged." The report further breaks this down: 62% of employees are "not engaged"—often referred to as quiet quitters—and 15% are "actively disengaged"—loud quitters.
This is a major issue for any business. The negative impacts are far-reaching and measurable, with Gallup estimating that low employee engagement, and the cost of disengaged employees, costs the global economy an astounding $8.8 trillion annually, which is approximately 9% of global GDP. For individual companies, disengaged employees can cost between 18% and 34% of their annual salary due to lower productivity and higher absenteeism. In the hospitality sector, this is especially critical, as disengaged front-line staff are less likely to provide excellent customer service, leading to negative reviews, decreased customer satisfaction, and a loss of repeat business.
A Global Picture: Different Regions, Same Problem
While the underlying problem is universal, different regions are approaching it with distinct strategies.
- In the U.S., the hospitality industry continues to face persistent understaffing despite the slowing quit rate. Wages have risen significantly, but workers still demand more flexibility and a better work-life balance.
- In Europe, the focus is on employee retention. Firms are investing in training, career development, and a supportive work culture to retain talent.
- In Asia, the response has been a rapid embrace of technology. Businesses are leveraging automation for routine tasks, allowing human staff to focus on personalized guest services.
Strategic Solutions for a Stagnant Workforce
For hospitality leaders, the solution is not simply hiring more people. It is about fundamentally rethinking the concept of talent management solutions.
- Invest in Your People: Offering professional development and transparent career paths shows a commitment to your team's long-term success.
- Optimize with Technology: Automating repetitive tasks frees up staff to focus on guest experience. AI-driven scheduling and mobile-first operations give employees more control over their shifts.
- Build a Better Culture: Research has consistently shown that people don't leave jobs—they leave managers. Improving leadership and fostering a positive work environment can be a more powerful retention tool than a simple pay raise.
- Data-Driven Workforce Management: This uses predictive analytics to optimize scheduling and identify retention risks, preventing the burnout that leads to employee turnover.
- Holistic Total Rewards Programs: A holistic total rewards program includes a mix of monetary and non-monetary benefits like flexible scheduling, wellness stipends, and professional development opportunities.
Will the "Great Detachment" Continue? A Look Ahead
The short answer is yes. The "Great Detachment" is not a temporary trend but a long-term consequence of shifting workforce priorities. The factors that fueled it—from economic uncertainty to changing generational values—are likely to persist and even intensify.
As younger generations like Gen Z become the dominant force in the workforce by 2030, they will continue to prioritize flexibility, mental health, and a sense of purpose beyond a paycheck. This fundamentally changes the employer-employee relationship. Companies that fail to adapt will continue to see low engagement and high turnover, even if workers are "job hugging." The ongoing advancements in AI and automation may also contribute to the problem if they are not managed well. If technology is used to simply cut costs rather than free up employees for more meaningful, human-centric work, it could lead to even greater feelings of detachment.
Ultimately, the future of the hospitality workforce will be defined by how well leaders can pivot from a reactive hiring mindset to a proactive, human-first approach to talent management. The challenge is here to stay, and businesses that ignore it do so at their own peril.
The legacy of a more empowered workforce is here to stay. QQS provides comprehensive hospitality consulting, helping businesses navigate these new challenges and transform culinary artistry into a lasting and successful business.
#HospitalityTrends #TalentManagement #HotelManagement #WorkforceStrategy #StrategicPlanningHospitality #QQS #GreatResignation #EmployeeRetention #HospitalityConsulting #RestaurantConsulting #HotelBusinessStrategy #EmployeeEngagementSolutions #ReducingTurnover #CostOfTurnover #WorkforceAnalytics #TalentManagementConsulting #HotelManagementSolutionsAsia #HotelAssetManagement #StrategicPlanningHospitality #HospitalityIndustryExperts #BrandStrategy #HotelChains #QQSConsulting #HotelGrowthStrategy #guestexperience #brandloyalty #Hospitality #HotelIndustry #HotelOperations