The big escape. The glory of resignation. The Great Resignation. No matter what you call it, it’s happening, and you can’t turn back. And the hotel industry has taken the brunt of the damage, more so than almost any other industry. The hotel sector is suffering from historic labor shortages, thanks to COVID-19 and a range of other issues such as the rise of the gig economy, virtual job alternatives, employee insecurity, and the absence of hotel tech such as Hotel Management Software. During the early stages of the pandemic, the hotel industry was one of the most hit. Layoffs and furloughs were prevalent as governments imposed stay-at-home orders and limited travel. However, as the world continues to reopen and travel returns to the forefront of people’s minds, the sector is battling to re-hire or even keep its current workforce.
More than 50% of U.S. hospitality workers that were let go or furloughed would not return to their positions, according to a new study of 13,000 job searchers. Worse, more than a third claimed they have no plans to return to the sector. The epidemic brought to light the areas where hotel employees (and personnel in other businesses) were dissatisfied, and it provided them with a genuine chance to reflect, whether forced or not. The study showed that 52% of workers would not return because they want a better work environment, 45% want better benefits, 19% want more flexibility, and 16% want remote work. So, how can hotels recruit, empower, and keep excellent employees?
What’s Causing Labor Shortage In The Hospitality Industry?
There are numerous reasons for a massive labor shortage in the hospitality industry. Let’s take the COVID situation for starters; not only did it cause a stressful workplace but also resulted in low pay and huge layoffs. What’s truly troublesome is the fact that a large number of the workforce now resents the idea of returning to the hospitality industry.
Other than the above stated, there are many other reasons for the shortage, let’s take a look at some.
- The hospitality industry receives flak for low wages compared to other sectors. This is a major contributing factor for the workforce leaving or not returning to their jobs.
- The hospitality sector comes with a lot of pressure. And a high-pressure work environment isn’t something that every individual wishes to cope with.
- The absence of a systematic hiring process or system is another contributor.
- The absence of a systematic growth plan for employees.
- Lack of training for the job. Although there are numerous institutes that cater to the industry, a majority of them are far behind in terms of quality and consistency.
In addition to these, there are also some ‘hush-hush’ reasons that cause labor shortage. What’s interesting to note amid all of this is the fact that this issue isn’t something that cannot be treated. The hospitality sector as a whole needs to genuinely look at these gaps and inculcate a system that can fill them up for good.
Stated below are 5 ‘top of the hand’ things hoteliers can do to fill this void of labor shortage and make way for their employees back to where they’re needed.
Invest In Technologies Like Hotel Management Software That Frees The Staff
There are seldom issues that technology cannot provide an answer to. And this is true even in the case of the hotel industry. Technology is an investment, and investing in one can truly be the solution to the rising woes of labor shortage. The aim here would be to reduce your staffing requirements by a significant percentage with the use of tech and making do with fewer employees.
Find some of the ways here in which you as a hotel can use technology to not only reduce your dependency on staff but to also enhance the overall user experience:
- A mobile-friendly website that offers personalized automated messages powered with a CMS.
- Cloud PMS allows staff to handle the task from anywhere on the property.
- A chatbot on the website as well as property to handle complaints/requests and to inform about the hotel amenities.
- A virtual concierge on the property to respond to queries on open attractions, places to eat, the destination itself, etc.
- Contactless technology that requires minimum to no contact by offering self mobile check-in and check-out, digital menu for room service, digital room keys, and more.
- User-friendly mobile app to make requests with the room service/housekeeping or to open the room.
- Digital menus and robots for room service requirements.
- Facilities like smart rooms come with pros like features on smartphones or tablets allowing to control in-room temperature and more.
- Automated personalized messages throughout the stay to ensure repeat business, good reviews, and quality.
Make Employee Wellness A Priority
The general workforce at the moment seeks job opportunities that not only offer a consistent paycheck but also take their physical and mental health into account. A committed focus on the wellness of employees is paving the way across industries and the hospitality industry shouldn’t fall back on this effect either. The hospitality sector as a whole needs to embrace a more comprehensive view of their employees’ needs and experience while creating a wellness-focused workplace culture. Much like safety and health, the industry needs to cornerstone a culture that empowers its workforce.
Meet The Monetary Requirements
Although this comes across as obvious, there are still many hoteliers that are apprehensive to engage in this. As a matter of fact, increasing the wages definitely isn’t something that proves successful in the long-term perspective. It is however something that is the need of the hour and is happening across industries due to demographic and economic constraints. Consequently, to attract new employees, hospitality industry players are forced to increase wages. As a result, wages now account for 25% to 30% of the total revenue. Monetary gains attract everyone everywhere, and in the hospitality industry as well, the workforce is lured by higher salaries.
Benefits And Perks Are How You Do It!
Among the major reasons listed by hotel staffers who aren’t willing to come back to the job was a lack of benefits. It certainly may be time to revisit and reassess your benefits package. It would be a good idea to include your hourly and part-time staff in your list of beneficiaries for dental and health coverage. Other than assistance in terms of tech via cloud PMS, consider what else can you offer other than the standards that include: Vacation days, personal days, and paid sick leaves. Offering medical benefits and coverage provides a sense of relief and stability to your employees. It also makes you as an industry more realistic, and supportive of your workforce. This promotes the staff into considering a life in the hospitality sector a lifelong career option. Other than the traditional perks, here are some creative ones that you can incorporate, like access to the hotel amenities on their off days. That can be anything from unlimited gym access, to a day at the on-site spa to special menu preview tastings. These things would come at absolutely minimal to no cost to your hotel property but come with the benefits of retaining your valuable staff.
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