The COVID-19 pandemic is long gone. According to an excellent joint research presentation (from VISIT FLORIDA and Skift) at the recent annual Florida Governor’s Conference, normal has returned. Not “new” normal, but normal. To me that means demand, economic cycles, booking patterns, et al. are returning to some sort of “Oh, yeah, I recognize that!”
Well, what happened to the workforce? At the same conference, I asked during my own time on stage how many in the audience had returned to hospitality after the pandemic. Just from my non-scientific, split-second poll, under 10 percent indicated they had returned. The other 300-400 were “newbies” to our industry.
A recent Qualtrics study of our 1,500-plus stakeholders in hospitality also indicates that the majority of their workers are also “new” or “recently hired”—over 80 percent in many hotels.
The higher pay that we thought was the “end all, be all” after the pandemic has proved faulty logic. We are almost back to fully staffed at most properties, yet the quit rate is close to the highest we have seen. Hoteliers are facing what I call the new-hire syndrome: lackluster guest service, inability to make tough decisions, and a lack of commitment to our industry. When these workers are frustrated early on in their roles with us, they quit. They “quietly quit” and show even lower performance, or they quit in the traditional sense and walk to another industry. According to a July 9, 2024, report from the law firm Schmidt & Clark, nearly three million people left their roles in leisure and hospitality between January and April, which is 204 percent above the national average. And just the past two months in Florida, we have hit an all-time high in quit rates, according to a recent article in Newsweek.
HR Technology
Companies are at an all-time high use rate of talent acquisition software. These algorithms fail more often than I would like to see in producing staff and leaders who stay with us long term. The reliance upon technology in HR is at a crossroads, and only time will tell. In the short run (past 36 months) it has failed miserably in identifying long-term workers for our industry. Are there outstanding programs finding the best talent? Of course there are, but when we hear more on the negative side, it leads me to question their ongoing ability.
“Old School” Measures
This outrageous quit rate and inability to keep staff for more than very short times is not sustainable by any means for long-term industry success. Further, it is definitely not pleasurable to anyone involved.
Who is to blame? Is it the operators and management companies who are trying to shrink costs? Is it the owners who believe in staff cuts as the easiest pathway to financial success? Is it our industry’s reputation of long hours and low pay? I wish I had all the answers. As an industry veteran, I think it is a bit of everything.
Many of the tactics that have proven tried and true have been pushed to the wayside to save costs for the short run. Concurrently, our collective employee knowledge and talent are the “lowest” based upon time at the property. It is no wonder our quit rates are outlandish.
A logical examination of this quit-rate scenario can lead to a more positive outcome. Instead of only looking at the short-term impacts to our profit & loss (P&L) statements, we need to spend a bit more now to achieve better yield later. Our successful hotel operators and owners share positive tactics including:
Engage with the staff—more than ever before. This includes all four or five generations working with you. Engage in their preferred method.
Mentor wholeheartedly and with passion. Get with the team members regularly before you “lose them.” This takes additional time, dollars, and desire. Do not just delegate to the HR team to onboard and train periodically. You must be a department head that spends considerable time and builds trust. As a general manager, you cannot be aloof. You must be “up close and personal” to get to know your people. This one-on-one mentoring and guidance will certainly help you keep more staff members in both the short and long run.
have cut to the bone to survive the noticeably increased wages. Cutting to the bone, however, is not the answer to sustainability or re-developing a career path that is desirable. Spending more dollars on training is something that is sung by every HR leader I know.
than ever. This all comes when we are paying the most we ever have across entry-level positions. The disconnect is that we have consolidated roles and cut costs further up the chain and it is taking a terrible toll on the morale, ability to succeed, and desire to work in lodging among the newer hires.
I strongly suggest going back to the “tried and true” methods above. Your P&L will thank you in the not-too-distant future, and so will your guests.
