The hospitality industry is recovering at a probably unexpectedly fast pace in the wake of the COVID-19 pandemic, welcoming back guests and patrons with open arms. However, there is one major obstacle hindering the industry’s progress: the scarcity of talent. The hospitality sector, which heavily relies on skilled professionals, is currently grappling with significant challenges in finding and retaining talent. From chefs and servers to hotel managers and event planners, businesses across the industry are faced with the daunting task of filling vacancies and ensuring exceptional guest experiences. But why is that happening? When one looks at the data from Spain in particular, with a high percentage of youth unemployment, it might be challenging to understand.
The main reasons for that global lack of talent lies on:
Retention issues:
Hospitality has always been notorious for its high turnover rates, but the pandemic exacerbated this issue further. Many skilled workers in the industry were forced to seek alternative employment during the crisis, leading to a talent drain. As the industry has been reopening, businesses have found themselves in fierce competition to attract those who left and to retain the remaining talent. Increased demands, long working hours, and relatively low pay scales have made it challenging for businesses to offer enticing career paths and retain skilled professionals.
On this point, however, we also have to consider the change in mindset of most young people. Whilst in the past professionals joined a company and stayed there for 30-40 years, expecting to be offered a career path, many youngsters now do not plan to stay in the same role for more than a number of years, and their career will be reshaped again and again whilst new roles are tried.
Stigma:
The hospitality industry often faces a negative perception and stigma that dissuades potential talent from considering it as a viable career option. The perception of long hours, low wages, and limited career growth opportunities can deter individuals from pursuing hospitality as a long-term profession. To overcome this challenge, businesses need to invest in rebranding the industry, highlighting its potential for growth, creativity, and rewarding experiences.
This goes from the universities, which seem to forget that highly skilled tech jobs are also part of the industry, to the companies themselves, which fail to portrait themselves as “the place to be” when it comes to more skilled roles.
Evolving skill set requirements:
The modern hospitality landscape is evolving rapidly, demanding a diverse range of skills from professionals. Alongside traditional hospitality skills, such as customer service and attention to detail, businesses now seek individuals with digital literacy, social media marketing proficiency, data analysis capabilities, and a flexible mindset to adapt to changing guest preferences. This shift in skill requirements poses a challenge for recruiters who must identify candidates with both traditional and modern skill sets.
And another challenge arises here. How are these young professionals learning these skills if the educational plans are stuck in the 90s? How ready can these newly graduated profiles be if what they learn is already outdated?
Intensifying competition:
As the hospitality industry rebuilds, competition for talent has become more intense. Not only are hotels, restaurants, and resorts vying for skilled professionals amongst themselves, but they also face stiff competition from other sectors that offer similar skill sets, such as the retail and healthcare industries. This heightened competition makes it harder for hospitality businesses to attract and retain top talent, especially when other sectors offer more attractive benefits and compensation packages.
A clear example of this is the reception job in a place like London. A corporate receptionist can get a salary 30% higher than the one working at a 5* hotel, even if the latter has more responsibilities and 24/7 rosters.
Having reviewed the main challenges, let’s focus on the solutions:
Rebranding and promotion: Efforts to rebrand the industry as an exciting career choice, highlighting growth opportunities, to help attract new talent.
Training and development: Investing in comprehensive training programs that equip employees with both traditional and modern skill sets is essential. This not only enhances employee retention but also ensures a competent and adaptable workforce. If the schools and universities can not deliver, companies will have to train their own staff, be in internally, or outsourced.
Collaboration and partnerships: Building collaborations with educational institutions, vocational training centres, and industry associations can help bridge the talent gap. This includes internships, apprenticeships, and mentorship programs.
Do you agree on these points? what else could be done?
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