NEW YORK, N.Y. – The biggest theme of the year isn’t the state of the hotel business, the hot new brand, or even the concern of RevPAR being near flat this year. Nope. The issue I hear most about is labor. It’s becoming near impossible for some hoteliers to find great employees, or pretty much any employee.
Of course, that’s an exaggeration, but not much of one. Believe it or not, there’s more than 800,000 available jobs in hotels across the country according to the AHLA, and the problem is getting worse as new hotels continue to open.
But that’s not the only problem the labor shortage is causing. It’s also pushing up base pay for staff and creating a scenario where folks are changing jobs at a rapid clip (yes, everyone deserves a living wage, but that’s a discussion for another day). That creates crippling costs for owners and operators who must replace those employees, which according to various sources can cost as much as 25% of that position’s annual salary to fill the job and train the new associate.
Fortunately, I’m seeing more owners and operators engaging staff to reduce turnover. They’re making career pathways more apparent, making associates feel like they truly matter, giving them more freedom of decision making, and even adding a gamification element to humdrum tasks that get people to compete against themselves or others for prizes.
Owners are also looking at long-term solutions to run properties with fewer people in ways that do not affect customer experience. Robotics and workforce optimization software are helping. Plus, new hotel types, such as extended stay hotels, are slashing the numbers of employees needed in half compared to a typical select service hotel.
The industry is also fighting for mind share amongst the next generation of folks coming into the workforce. Hilton, for example, has partnered with Jobs for America’s Graduates to get students excited about hospitality careers and the AHLA is doing all it can to assist the entire hotel industry to achieve that same goal.
Overall, labor is going to be one of the centerpiece issues hoteliers will face going forward. It’s incumbent on every one of us to share stories about the hotel business and hot it has made us all happier and given us career direction.
Most kids think the hotel business is about working the front desk, but we all know it’s so much more.
Get out there, tell the younger folks your story, and help them understand the myriad jobs available in the hospitality business. Maybe we’ll find enough people to ease the pressure we’re all facing.
Glenn Haussman is president of Rouse Media and host of the No Vacancy podcast.