Tips To Solve Labor Shortage In Hospitality & Welcome Back Workers

Labor Shortage means there are more jobs than people out of work. Though this is a rare occurrence in the US economy, the COVID-19 pandemic has flipped several businesses upside down and resulted in a severe labor shortage. Currently, there are around 3.5 million fewer people in the workforce as of February 2020.

The labor deficit in 2022 is being driven by several factors:

• The significant cause for the personnel shortfall appears to be that many workers have simply left the restaurant business in search of more steady employment. The hospitality business is known for its long hours, poor earnings, and lack of benefits, a dangerous mix that puts many individuals at risk during the pandemic. When these individuals were laid off, many took advantage of the chance to pursue more stable employment and have not returned to hospitality.
• Because of the increase in unemployment benefits on top of stimulus checks, many employees were earning more while working in a ‘work from home jobs. This additional money, along with the security of being at home, has made some people hesitant to return to work.
• Because it has lowered the number of illegal employees, increased immigration enforcement has also contributed to the hotel labor shortage. This has a direct influence on the restaurant business, which has long relied significantly on their labor force participation.
• Furthermore, the number of teens in the labor force is half what it was 25 years ago, making it increasingly difficult to find people willing to take entry-level, low-paying jobs and contributing to the total labor shortage.

Tips on how the hospitality industry can solve this labor shortage:

• Work schedule flexibility (sabbaticals, 4-day work week, working around the rhythm of employees).

• Work-life integration (offering a haven to seek and give feedback; co-creation of new ideas and projects in the workplace; Chief Wellness Officers; job sharing).

• Lifelong learning (choice of training programs; individualized/personalized learning journeys; co-creation of a learning route with a mentor).

• Perk Up Employee Benefits (Get creative and come up with some unique incentives to offer your employees, such as professional training and development chances, business events, and overtime possibilities).

• Invest In Technology (Invest in technologies that can automate some of the most time-consuming administrative duties that your staff is now handling. Inventory and reservations may be automated without a significant investment, saving your skilled employees a significant time).