Hcareers 2018 Hospitality Employment Trend Report for Q1
Hcareers recently conducted its quarterly Hospitality Employment Trend Report for Q2 2018 and compiled a round-up of the most important trends that are impacting leisure and hospitality employers right now.
Here’s what you need to know:
1. GROWTH TRENDS
In keeping with labor market trends in recent years, the leisure and hospitality sectors enjoyed continued growth in Q1 with a steady increase in the number of employees. In total, hospitality employed 16,256,000 people in the first quarter of 2018, which is a 3% gain from 2017.
As such, job openings have continued to increase, reaching a peak high in December 2017 with 31% YoY growth and a similarly impressive number in January 2018 at 24% YoY growth.
Likewise, the unemployment rate for the hospitality industry, which has been steadily decreasing for roughly a decade, reached a new low in March at 5.8%. This was only slightly higher than the US national unemployment rate, which came in at a 17-year low at 4.1%.
The Impact for Employers: Employment growth has led to a tight labor market, as fewer candidates are available for each open position. An increase in job openings and a shrinking candidate pool requires employers, recruiters, and hiring managers to act quickly and make employer branding a key part of their 2018 hiring strategy.
2. TIME-TO-HIRE TRENDS
Because of the tight labor market, the time to hire for hospitality jobs is at an historic high. On average, the mean vacancy duration for Q1 indicated that hospitality and leisure jobs remained open for 21 business days before being filled.
While this was still significantly lower than the overall time to hire for jobs in the US (30 business days), the time to hire for hospitality reflected a 7% increase compared to 2017.
The Impact for Employers: It's candidate’s market. Job seekers have a growing number of career options to choose from, requiring employers to think of new and creative ways to attract quality talent and stay competitive by doing things like improving the candidate’s experience, optimizing job descriptions, and making employer branding a top priority.
3. WAGE TRENDS
Hourly wages for hospitality and leisure continued to rise incrementally year on year. In Q1, hospitality employers in the US paid an average of $15.81 per hour, which is a 3% increase from 2017.
The Impact for Employers: As the value of quality talent is on the rise, it’s more important than ever for employers to optimize their recruitment strategy and hire the right people for each role. Employers should view their hires as long-term investments and offer as much career pathing support and mentoring programs as possible to keep employees engaged, loyal, and invested in the overall success of the company.
4. RECRUITMENT TRENDS
89% of job seekers say that reputation matters a great deal when they’re considering a new employer, often even more so than salary or benefits. Serious candidates who want a long-term career in the hospitality industry look for employers they can believe in, whose brand message aligns with their own service philosophy, and who can provide them with the resources and support to advance in their careers over time.
In this competitive talent marketplace, recruitment marketing needs the same thought and effort that the company gives to guest marketing. To attract the best candidates in the shortest amount of time, employers need to have a branding strategy that is as smart and high-quality as the candidates you’re hoping to hire.
Now is the time to get innovative, think long-term, and invest in your talent pipeline. Remember, if you invest in them, they’ll invest in you.
Click here to view the full Hcareers 2018 Q1 Employment Trend Report.