OPTIMIZING TALENT RETENTION STRATEGIES TO COMBAT LABOR SHORTAGES IN THE U.S. HOSPITALITY SECTOR

Persistent labor shortages continue to challenge the U.S. hospitality sector, with staffing levels still trailing pre‑pandemic benchmarks despite vigorous recruitment efforts. This literature review synthesizes studies published between 2018 and 2025 to chart the evolution of workforce gaps and to evaluate empirically tested talent retention strategies. Beginning with an analysis of the principal drivers, ranging from shifting workforce expectations and demographic shifts to competitive pressures from adjacent industries. The review categorizes retention interventions into five domains: financial incentives, career development, organizational culture and leadership, work–life balance initiatives, and technological innovations. Across these domains, evidence consistently shows that combined approaches such as pairing wage premiums with structured mentorship or integrating flexible scheduling alongside digital feedback platforms deliver the strongest reductions in turnover. Case studies of leading hotel chains and boutique operators illustrate how data‑driven program design, real‑time analytics, and inclusive management practices translate into measurable gains in employee tenure and guest satisfaction. Gaps in the current literature are identified, notably the need for longitudinal ROI analyses and deeper exploration of boutique property dynamics. Drawing on this consolidated evidence base, the review proposes actionable recommendations for managers, emphasizing cohesive strategy alignment, continuous evaluation, and strategic use of technology for policymakers seeking to support workforce mobility and upskilling initiatives. This review argues that optimizing talent retention is a means to alleviate chronic staffing shortages and a strategic lever for sustained service excellence and competitive advantage in the U.S. hospitality industry. Keywords: Turnover, Retention, Hospitality, Incentives, Workforce