Effective Labour Market Strategies to Combat Staff Shortages in the Hospitality Industry

The hospitality industry is experiencing a boom, with travel demand surging after years of pandemic restrictions. However, a significant challenge threatens to dampen this optimism: a critical shortage of staff.  From housekeeping to management positions, hotels across the globe are struggling to fill vacancies. This blog post explores the current state of staff shortages and explores effective labour market strategies that hotel chains can implement to attract and retain top talent.

Read more: How Hotels Should Respond to the Ongoing Business Travel Boom

Table of Contents: 

• Understanding the Reasons For Hospitality Staff Shortages
  • Low Wages and Benefits 
  • Demanding Work Schedules 
  • Limited Career Progression
  • The Pandemic's Impact
• Strategies for Tackling the Staff Shortage 
  • Adopt more innovative recruitment approaches
  • Enhance career advancement opportunities
  • Build a stronger, more resilient workforce

Understanding the Reasons For Hospitality Staff Shortages 

According to a recent survey conducted by the American Hotel & Lodging Association (AHLA)1, 67 per cent of respondents report staffing shortages, with 12 per cent even saying they are so severely understaffed that their ability to operate normally is being affected1.  

This translates to a constant scramble to fill positions, impacting operational efficiency and ultimately, the guest experience. 

Several factors contribute to the labour shortage in hospitality: 

Low Wages and Benefits 

Compared to other industries, the hospitality sector often offers lower wages and fewer benefits, making it less competitive in attracting talent. 

For example, according to the U.S. Bureau of Labor Statistics, the average annual wage of a housekeeping cleaner is only $27,130 (May 2023), significantly below the national median household income of $74,580 (as of 2022.) 

This indicates that hospitality workers, specifically housekeeping cleaners in this example, earn considerably less than the typical American household. 

In addition to that, many hospitality jobs offer basic or no health insurance, leaving employees to shoulder significant healthcare costs.

Demanding Work Schedules 

Long hours, split shifts, and weekends are a reality for many hotel staff, creating work-life balance challenges. 

Inconsistent work schedules can make it difficult for employees to plan childcare, pursue education, or maintain a healthy lifestyle. 

Hospitality jobs often offer minimal paid time off, making it challenging for employees to take vacations or attend to personal needs.

Read more: Quiet Vacationing: The Silent Retreats that Pave Way to Quiet Quitting

Limited Career Progression 

Perceptions of limited career advancement opportunities within the industry can deter potential employees, particularly those seeking long-term career paths. 

Many hospitality roles follow a relatively linear progression, meaning promotions often involve moving up within a specific department (e.g., from server to head waiter). This can feel restrictive for employees seeking diverse experiences or leadership positions. 

As a result of this linear progression, moving to different departments within a hotel can be challenging. Specific skillsets and experience are often required, making it difficult for employees to gain exposure to various areas of the business. 

Moreover, high turnover rates within the industry can create a sense of instability and impermanence. Employees may be hesitant to invest in long-term development if they feel job security is low. 

The Pandemic's Impact 

The pandemic undoubtedly disrupted careers, with many hospitality workers seeking opportunities in other sectors offering greater stability or remote working options.

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Strategies for Tackling the Staff Shortage 

Adopt more innovative recruitment approaches  

When it comes to recruiting new staff, hotels should think outside the box:

• Partner with Vocational Schools: Collaborate with vocational schools or hospitality programs to identify and nurture young talent with a passion for the industry. 
• Targeted Online Recruitment Platforms: Utilize online recruitment platforms that cater to specific demographics, like recent graduates or career changers. 
• Referral Bonuses: Motivate existing employees to become brand ambassadors by offering referral bonuses for successful hires. 
• Highlight Your Culture: Showcase your unique hotel culture and employee benefits in marketing campaigns and job postings to attract talent seeking a positive work environment.

Read more: Unlock Your Hiring Potential: Discover Great People Inside (GPI)

Enhance career advancement opportunities 

Hotels can combat the perception of limited career advancement by: 

• Implementing Mentorship Programs: Pair experienced employees with aspiring ones to provide guidance and career advice. 
• Creating Cross-Training Opportunities: Offer opportunities for employees to gain experience in different departments, broadening their skillset and improving their marketability within the industry. 
• Highlighting Internal Promotions: Showcase success stories of employees who have progressed within the company. This demonstrates the potential for career growth. 
• Providing Leadership Training: Invest in leadership training programs to equip employees with the skills and knowledge necessary for supervisory and management roles. 

By addressing these concerns and actively promoting career development opportunities, hotels can attract and retain ambitious talent who see a future within the dynamic hospitality industry.

Build a stronger, more resilient workforce 

Here's how hotel chains can build a strong, resilient workforce: 

• Competitive Compensation and Benefits: Re-evaluate salary structures and benefits packages to be more competitive in the job market. Consider offering health insurance, flexible spending accounts, or profit-sharing programs to incentivize potential hires. 
• Work-Life Balance Initiatives: Promote a healthy work-life balance by offering flexible scheduling options, paid time off, and predictable work schedules whenever possible. 
• Invest in Training and Development: Equip employees with the skills and knowledge they need to excel in their roles and advance their careers. Provide training programs, mentorship opportunities, and tuition reimbursement for relevant certifications. 
• Positive Work Environment: Foster a positive and supportive work environment where employees feel valued and respected. Invest in employee well-being initiatives to reduce stress and promote job satisfaction. 

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Addressing staff shortages requires a multi-faceted approach. By implementing the strategies outlined above, hotel chains can create a more attractive work environment, attract top talent, and build a loyal workforce. Remember, a dedicated and well-trained staff is an investment that pays dividends. Engaged employees deliver exceptional guest experiences, contribute to a positive hotel culture, and ultimately, drive long-term business success. 

Take action now to bridge the staff shortage gap and ensure your hotel chain is well-positioned to thrive in the resurgent hospitality industry. Subscribe to our blog today and stay ahead of the curve.