Six solutions to the hospitality industry’s manpower shortage
It goes without saying that there has always been a labor shortage and substantial employee turnover in the hotel sector. This truth was brought home by the COVID-19 pandemic, and as a result, restaurants have had to depend more on their employees to work erratic hours for the same compensation, whether they are too little hours per week or too many hours per day.
This led to a manpower shortage in the hospitality industry worldwide. Workers in the hotel industry departed during COVID-19 and had no plans to return to their establishments. It is still difficult for many employers to find and keep trustworthy workers in order to run their companies. This is particularly true in pricey cities like San Francisco and London, where the population was migrating away from cities and with it, revenue streams related to hospitality.
At the Food Integrity Global discussion titled “Plugging the Gaps: How do we address the labour shortfall in hospitality,” solutions to those issues were discussed. Editor of New Food Joshua Minchin was joined by a panel of experts on October 17, 2023, at the London Millennium Gloucester Hotel.
The Managing Director (MD) of Market Place London is Blake Henderson. It is a multi-unit food hall that gives 56 independent international street food businesses a range of mixed usage spaces. Additionally, it creates opportunities for the local community by lowering barriers to entry and fostering the growth of independent businesses. Laura Dunn Nelson holds the position of Vice President (VP) for Business Development at Intertek Alchemy, a people-oriented company that creates services and solutions for thousands of clients to guarantee that their millions of frontline employees feel appreciated and have ample opportunity for advancement. The operations manager of CH&CO, a team of chefs, dietitians, and people-pleasers who share a passion for food that promotes both physical and emotional well-being, is Simone Santeramo. Speaking on behalf of Farming Hope, a paid culinary job training non-profit located in San Francisco that helps Apprentices facing significant social and economic barriers to employment prepare meals for their communities, themselves, and eventually their future employers, was Philip Saneski, CD of Farming Hope.
There were a lot of important lessons learned, things to anticipate, and long-term plans for resolving the labor shortage in the hotel industry. which were all covered in-depth on the conference stage.
Labor expenses
The workforce in the hospitality industry no longer accepts working eighteen-hour days; it is unsustainable. Even while companies might need to hire more workers to cover eight-hour shifts, employee productivity will eventually lower labor costs and increase quality. Setting a single quarterly KPI or OKR and presenting the company’s financial improvements to the staff is one way to measure this progress and enable all stakeholders to monitor operational efficiency collectively. This responsibility would provide some fantastic cross-functional learning opportunities.
Making use of technology
Food production companies may teach restaurants how to leverage technology to create more effective and efficient procedures. Better information transfer, standard operating procedures, and food safety compliance were cited as some examples.
Putting “proper” training first
By enabling managers to consistently perform their managerial duties, investments in adequate training can lower labor costs and foster business expansion. Retraining staff may require executive-level resources to be diverted from high-level projects to day-to-day troubleshooting.
A “trickle-up” impact when managers don’t feel supported and can lead to leadership turnover could result from this kind of turnover. Leveraging the resources of the CSR and Sustainability departments to improve staff engagement and labor retention could be one approach for larger firms to gauge this.
Establishing a robust corporate culture
According to data cited by Laura Dunn Nelson, around 50% of frontline staff depart from their organization due to a sense of disconnection and uncertain professional advancement paths. She underlined the significance of creating a strong workplace culture where every worker feels appreciated and heard by their colleagues.
Following one’s passions
Apart from the work ethics that restaurants instill, there are other professional paths available to individuals who begin their careers in hospitality and wish to follow their passions. These may include advanced culinary arts, wine education, marketing, supply chain management, operations, or any other managerial aspiration.
Hendersen gave the example of a bartender who was interested in photography as a pastime, and how a restaurant company gave them a position on their digital marketing team. An further instance was provided with a Farming Hope Apprentice alumnus who, driven by his desire to assist marginalized groups in obtaining employment in the hospitality industry, established a position for himself as a Chef Program Mentor.
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Significant hiring
Effective hiring practices may foster a fantastic, “can-do” workplace culture where each employee is held to a high standard of accountability. At Farming Hope, examples were offered of how hiring people with criminal records, unstable housing, addiction recovery, or seeking political asylum as a new immigrant helped create a low bar for entry-level and managerial personnel.
All employees can be motivated to be thankful and appreciative of their stable income, coworkers, and loved ones by understanding what others are going through. Data on how Farming Hope Apprentice graduates improved labor retention by remaining devoted workers to restaurant owners who took a chance on hiring them was also shared. Narratives such as this demonstrate how hospitality companies can take all available measures to draw in steady talent and demonstrate the goals of corporate DEI programs within broader hospitality cultures.
Furthermore, Simone Santeramo made excellent observations regarding the ways in which the CH&CO Group has supported DEI recruiting objectives by partnering with charitable and philanthropic organizations. In addition, he provided long-term strategic advice on how business organizations and academic institutions might jointly apply for grants in order to better grasp more data points that indicate more effective operational systems. Social impact initiatives such as these can draw top university students who are eager to make a positive effect and encourage them to apply for positions in the hospitality business.
In summary, supervisors who cultivate connections with staff members at all levels foster a positive work environment, reduce employee churn, enhance labor productivity over time, and encourage a variety of career paths in the hospitality industry. We occasionally forget that the hospitality industry is in the business of bringing happiness to people (and that contented people produce contented food).