4 HR Tips For Hospitality Businesses Post-Covid-19

The hospitality industry, which includes restaurants, bars, and hotels, has always faced challenges attracting and retaining talent. Low wages, high physical demands, schedule inflexibility, and difficult customers are some of the factors that contribute to high employee turnover rates in this sector. According to the Bureau of Labor Statistics, the hospitality industry had a 78.9% turnover rate in 2019, well above the average of 44.3% for all industries.

However, the COVID-19 pandemic has magnified these issues since 2020, as many hospitality workers have lost their jobs, quit their jobs, or switched careers due to health risks, lockdowns, reduced demand, or better opportunities elsewhere. The hospitality industry had a staggering 130.7% turnover rate in 2020, meaning that more workers left their jobs than were hired. Even as the economy reopened and travel resumed, many hospitality businesses struggled to find enough staff to meet the increased demand. According to Joblist's U.S. Job Market Report for Q3 2022, 36% of hospitality workers said they planned to quit their jobs before the end of 2022.

Waiter at a restaurant serving wine to guests.

So how can HR professionals & business owners in the hospitality industry cope with these unprecedented challenges and retain their existing staff while attracting new talent? Here are some strategies that can help:

1. Increase pay and benefits:

One of the main reasons why hospitality workers leave their jobs or avoid returning to the industry is low pay and lack of benefits. According to Joblist's report, 46% of hospitality workers cited low pay as a reason for not wanting to return to the industry, and 40% cited a lack of benefits. To compete with other sectors that offer higher wages and better perks, such as retail, e-commerce, or healthcare, hospitality businesses need to raise their pay rates and offer benefits such as health insurance, paid time off, retirement plans, or tuition reimbursement.

2. Offer more scheduling flexibility:

Another reason why hospitality workers are dissatisfied with their jobs is schedule inflexibility. According to Joblist's report, 34% of hospitality workers cited this as a reason for their unhappiness, and 28% cited it as a reason for not wanting to return to the industry. Many hospitality workers have family obligations, personal interests, or educational goals that require them to have more control over their work hours and days. To accommodate these needs and preferences, hospitality businesses can offer more scheduling flexibility by allowing workers to choose their shifts, swap shifts with others, request time off in advance, or work part-time if possible.

3. Provide training and development opportunities:

One of the ways to attract and retain skilled employees in the hospitality industry is to provide them with training and development opportunities that can help them advance their careers and increase their value. According to SHRM's article on Top HR Challenges in the Hospitality Industry, many hospitality workers are looking for opportunities to learn new skills, gain certifications, or earn degrees that can open up new possibilities for them within or outside the industry. Hospitality businesses can support these aspirations by offering on-the-job training, mentoring programs, online courses, tuition assistance, or career coaching.

4. Recognize and reward performance:

Another way to motivate and retain hospitality workers is to recognize and reward their performance and contributions. Recognizing and rewarding employee performance is critical in any industry, but it is particularly essential in the hospitality industry. Hospitality employees, such as servers, front desk staff, and housekeepers, play a vital role in creating a positive experience for guests. When these employees feel valued and appreciated for their hard work, they are more likely to remain motivated and committed to providing exceptional customer service.

Recognition and rewards can take many forms, such as verbal praise, bonuses, or promotions, and can have a significant impact on employee engagement, retention, and overall job satisfaction. In the competitive and fast-paced world of hospitality, recognizing and rewarding employee performance is not only imperative but also necessary for success.

The hospitality business post-Covid-19 has reached a cut-throat level of competition for talent. Attracting, recruiting, hiring, and retaining your talented staff is more critical than ever. If you are having trouble finding and hiring the right people, maybe its time we had a little chat- let's talk!