3 Three Hiring Challenges in Hospitality
In an uncertain economic market, recruiters are often finding it hard to hire the best hospitality candidates.
While the hospitality industry is doing well post-recession—adding 424,000 jobs in the last 12 months according to the Bureau of Labor Statistics—many restaurant and hotel owners and managers continue to make do with less. Unfortunately, a shortage of essential employees can seriously impede the business growth and profitability of any hospitality-based company.
According to the PwC 2012 Global CEO Survey, 28 percent of leaders in the hospitality industry reported they “were unable to pursue a market opportunity” due to talent constraints. Twenty-eight percent also stated they were “unable to innovate effectively,” while 21 percent said they “couldn’t achieve growth forecasts.” More than a third, or 34 percent, said that hiring staff has become more difficult. Consider the following issues frequently identified as the top three hiring challenges in hospitality.
1. The continuation of economic uncertainty
Has the economy improved or not? The somewhat volatile Consumer Confidence Index may have been up in August, but the answer to that question is still open to interpretation. Unemployment continues to trend down, yet median household income is still at 2008 levels. Business travel is increasing—creating more demand for associated hospitality services—and American families continue to spend 47 percent of their food dollars at restaurants. However, congress will soon begin arguing the debt ceiling once again, and the Fed is talking about scaling back their quantitative easing program. No one knows what the future holds, so it’s easy to see why some restaurant and hotel owners are reluctant to move forward with hiring.
2. High employee turnover
Turnover in the hospitality industry is notoriously high. According to one study, hotel, restaurant and other hospitality employees had a 34 percent turnover rate in 2011. The average across all other industries was about 15 percent that year. Some attribute the problem to differences between Baby Boomer managers and Generation Y workers. Others say it is due to the seasonal nature of the industry and poor compensation packages. Some hospitality workers—particularly those in less skilled positions—may view a job in the industry as merely a way to pay their bills. Others see hotel and restaurant positions as stepping-stones to their future careers. These are the candidates hospitality employers must court if they wish to hire workers who will commit to their company for the long term.
3. Finding the best hospitality job candidates
In order to find these career-seeking candidates—those who are more likely to remain with your company for years—restaurant and hotel managers and owners need to know where to look. Niche networks such as Hcareers are the best place to start. Not only does Hcareers attract active job seekers with a passion for hospitality, but its extensive library of industry-specific articles also draws in the passive ones—those who would consider leaving their current hospitality employer but are not actively looking for a new position.
While the economy is largely out of the control of any employer, hospitality managers and recruiters can easily tackle these other hiring challenges head on. Searching for career-focused employees at Hcareers can make the difference between securing the best talent in the industry and continuing to operate your hotel or restaurant with inadequate staff.