A talent crisis sweeping through Taiwan’s service industry has moved far beyond a simple “labor shortage” into a deeper and more alarming “talent drain.”
The intensity of the problem shows up in staggering numbers. Some restaurant chains report annual turnover that exceeds 100%, with cases reportedly reaching 200%, and recent surveys indicate as many as 87% of service-industry employees are considering leaving within a year.
This is not a seasonal or short-term fluctuation. It is a systemic, structural problem whose roots are far more complex than the simplistic claim that “young people won’t endure hardship.”
Analyzing the crisis — why we cannot retain or recruit talent
The service industry’s predicament stems from a long-term structural imbalance. It is a two-front battle — current employees are pushed out by real-world pressures, while potential candidates are discouraged from even applying. The core of this crisis can be boiled down to several fundamental pain points.
Primary issue — wages and labor value are disconnected
Time and again, “compensation that doesn’t meet expectations” emerges as the No. 1 reason for talent loss. A survey by Taiwan’s Directorate-General of Budget, Accounting and Statistics has found that this is why more than 60% of the unemployed hesitate to re-enter the workforce.
Over the past two decades, wage growth in services has lagged far behind manufacturing, with accommodation and food service especially weak. This isn’t only about stagnant paychecks — it is a demoralizing signal that the value of labor in this sector is underestimated.
In an era of high inflation and rising living costs, static wages make it hard to maintain a basic quality of life. Many employees are driven to the gig economy — delivery platforms that offer flexibility and faster cash flow.
The result is a vicious cycle of low pay, long hours, and high stress that perpetuates the talent exodus.
From defense to offense — proactive strategies for a thriving workforce
Instead of passively complaining about the crisis, businesses can take proactive, decisive action. Forward-thinking companies have shown it is possible to reverse the trend by implementing systemic, strategic changes.
The core shift is perspective. Employees must be treated not as costs to minimize, but as the company’s most valuable assets to be developed.
Strategy 1 — redesign compensation and benefits for shared prosperity
Competitive base pay is the non-negotiable foundation for retention. The game-changer is building a mechanism for shared prosperity so everyone wins when the company succeeds.
When FamilyMart International Restaurant Group planned its IPO, it made employee stock ownership a cornerstone. Even frontline, entry-level employees could become shareholders, transforming staff from “workers” into “business partners” whose efforts are directly linked to company growth and creating a stronger sense of ownership and loyalty.
Benefits that improve life outside work matter, too. McDonald’s goes beyond legal requirements by granting full-time employees in their first year 10 days of special leave plus seven paid “Family Days,” signaling respect for time and responsibilities beyond the job.
Strategy 2 — reimagine career paths with dual tracks for specialists and managers
Today’s workforce seeks personal and professional growth. A one-size-fits-all ladder is no longer enough.
Orange Shabu Shabu House — often called the “Louis Vuitton of hot pot” — reports cutting turnover from above 20% to about 3% after creating a dual-track promotion system. The company built distinct but equally valued paths for management and expert roles, allowing people to advance based on their strengths and aspirations, whether they lead teams or master their craft.
Strategy 3 — reshape corporate culture to build purpose and belonging
A positive corporate culture that transcends material rewards is the ultimate retention engine. When employees feel respected, valued, and connected to a larger mission, they stay.
A Nike flagship once recorded zero turnover across a 40-person team for two consecutive years. The result came from deliberate practices: setting meaningful goals that resonate, flattening hierarchy to foster equal relationships, and creating a stage for recognition where every contribution is seen and celebrated.
Strategy 4 — integrate technology and optimize processes to empower, not replace, employees
Smart use of technology can ease the harshest and most tedious parts of service work. Automated ordering, kitchen display systems, and smart scheduling reduce repetitive tasks and administrative burdens.
Freed from drudgery, staff can invest energy in higher-value work — meaningful customer interactions, creative problem-solving, and service innovation. The role of technology should be to “empower,” not to “replace,” with the aim of optimizing workflows, making work smarter and more humane, and lifting both efficiency and job satisfaction.
