To combat the seasonal spike in employee turnover during the summer, especially in the leisure and hospitality sectors, consistent and meaningful employee recognition is a simple, effective and critical tool for improving morale and retaining staff.
October 10, 2025 by Amy Freshman — Sr Dir HR, ADP
One of the stories published in Issue 2 of ADP Research's Today at Work 2025 report analyzed turnover trends by looking at five years' worth of ADP's robust payroll data.
The key finding? Employee turnover jumps in the summer months of June, July and August. During these months, turnover rises to 3.56% compared to 3.14% in the non-summer months.
Leisure and hospitality, which includes restaurants, is one of the most-impacted sectors. The sector faces the highest summer attrition: 5.04%. This is a .76 percentage point bump in turnover for the industry compared to when it's at 4.28% in the non-summer months, which is the second highest non-summer turnover rate with the retail trade sector seeing a non-summer turnover rate of 4.6%.
Hospitality relies heavily on part-time, younger and lower-wage workers who are more likely to leave their roles according to the ADP Research analysis, especially during peak summer months.
When it comes to employee turnover, early signs of disengagement can appear well before an employee gives notice.
One of the most effective ways to counter this trend is through recognition. Thoughtful, consistent recognition — especially when tied to specific actions — helps employees feel valued and seen. Whether it's a public shoutout during a team meeting, a quick note of appreciation after a hectic shift, or a reward for excellent service, timely recognition boosts morale, encourages loyalty, and reinforces a culture where good work is acknowledged.
A culture of recognition also helps set a standard for the entire company in terms of what high-performance looks like and how owners take the time to pause and celebrate employee efforts.
In the restaurant business, where success hinges on consistent service and high-performing frontline teams, employee recognition is far more than a feel-good gesture — it's an important tool to build connection, strengthen your team and retain good people.
Recognition is most powerful when it's specific, timely and personal. This distinction is critical. General praise like "Good job today" may boost morale in the moment, but it rarely builds long-term loyalty. In contrast, acknowledging an employee by name, for a specific action, and tying it to the guest experience or team success reinforces value and purpose.
Meaningful and effective praise follows the S.T.A.R. framework:
For example, instead of simply telling a server "Thanks for your help," a manager might say, "Thank you for handling that table of six so well after their reservation was delayed. You stayed cool, kept the mood positive and contributed to a great online review."
That kind of detailed recognition affirms the employee's skill and the direct business impact of their behavior.
In fast-paced restaurant settings, where it's easy to overlook moments of excellence during a rush, developing habits around recognition is essential. Managers can:
Importantly, recognition should be personalized. Not every employee wants a public shout-out. Some prefer private thanks, while others appreciate group acknowledgment or social media spotlights. Asking, "How do you like to be recognized?" can help tailor the approach and increase its impact.
Peer-to-peer recognition is also a valuable retention tool. Encouraging team members to acknowledge each other fosters camaraderie and strengthens teams. Digital tools can help enable peer recognition through notes, points or shared appreciation boards, but many hospitality teams achieve similar effects through shared message walls or team apps.
Recognition doesn't need to come with a prize or promotion either. Often, consistent verbal appreciation and visible support are enough to keep employees motivated and connected — especially during demanding seasons like summer.
In a season defined by long hours, full houses and constant pressure, recognition can be the steady force that keeps teams grounded. For restaurant and hospitality leaders facing predictable summer turnover, the solution isn't always higher pay or added perks — it's often as simple as a well-timed, sincere thank-you.
That said, higher pay, better benefits, added perks and career development opportunities are still critical and should be built into any talent strategy that is prioritizing retention. Recognition is just one 'easy' piece of the retention puzzle.
By adopting a structured, intentional approach to recognition that's specific, timely, authentic and relatable, leaders can reinforce purpose, improve morale and build loyalty. As the data shows, turnover may rise in summer, but there are ways owners and leaders can make an impact. With consistent, personalized praise, you can retain your top performers and sustain service excellence when it matters most.
30 years with ADP, 17 in the sales organization holding multiple roles from direct sales, sales leadership, leadership development and sales operations. 13 years now in Global HR leading large scale projects surrounding the employee experience from flexible working to wellness initiatives to acquisitions.