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LODGING ISSUE
The Lodging Labor Crisis: Then, Now and Beyond Needed changes in the industry
By PETER RICCI, EDD CHA, CHSE, CRME, CHIA, CHRM, HIFIA, CHBA, CHDM, DIRECTOR, HOSPITALITY & TOURISM MANAGEMENT, STEWART DISTINGUISHED PROFESSOR, FLORIDA ATLANTIC UNIVERSITY
THEN
First, we’ll start with the old news. Millions left the industry after feeling various levels of frustration during the pandemic. Many were disappointed about treatment during the pandemic, many realized other lines of work paid better and were more flexible, and many realized they had no health coverage. The mass exodus continues into 2022, yet, luckily, its pace has subsided. This is the “then” part of the story. Hotels across Florida are now paying wages for entry-level workers they could have never dreamed of just a few months or years back. And those are likely here to stay. The negativity on social media has somewhat subsided but the tarnished impact on the ability to hire across the lodging industry is here to stay for a long while. Indeed, hotel training programs of every level from certificate programs to associate, bachelor, master and doctoral programs have all faced a downturn in interest.
NOW
In Florida, we are amazingly lucky to have business levels to support and bring on these new hires, no matter what the financial implications. The business volume has kept us “alive,” so to speak, and reopened. In comparison to other locales and destinations, we are quite lucky in that event. This week, I had new hires at rates of $16 per hour, $18 per hour and $19 per hour, respectively, at three different lodging properties. The first in Orlando, the second in Sarasota, and the third in Fort Lauderdale. All of these hires are brand new to the industry with zero existing experience and all of them will be placed into the roles of front-desk agent. 30
SPRING 2022
Again, this is now. It’s expected that these higher rates of pay will continue as employees spread the word on their environments and pay grades. Again, we are lucky to be open, busy in most areas of the state, and hiring with more ability to hire than we had in 2021. Individuals are not exiting the industry as rapidly, nor is there as much ill will being spread about working in hospitality, since our rates are increasing. Also, currently taking place, lodging companies far and wide are trying to outdo their peers with levels of attractiveness as places to work. Hilton announced free tuition for all of its corporate office employees, as well as all employees globally, at corporate-managed properties. Recent articles in almost every trade publication in lodging indicate ongoing discussions among owners, operators, general managers and CEOs about ways to improve four key areas: pay, work/life balance, benefits and overall culture. The American Hotel & Lodging Association (AHLA) and its fantastic leadership have developed career path websites and they are completing local “road show” activities across the country to, again, reinforce our industry as the place to be for an attractive career. And, of course, owners and operators are in the now trying to deal with these increases in wages and changes in staffing quality. By quality, I mean that many hotels now have a preponderance of new hires without extensive hospitality backgrounds or experience. These new hires are impacting service quality in the short run, but their open attitudes can also be considered refreshing to the weary road warriors of the pandemic.
BEYOND
The beyond is something I embrace with optimism and excitement. There is already a hotel operating in Ft. Myers that I consider in the “beyond” stage with free benefits to all employees: meals included, fair pay, ability to work flexible schedules for work/life balance and tuition reimbursement. And they continue to win awards within their franchisor — they are corporate-managed, but independentlyowned — and they continue to make the bottom line attractive for these independent owners. There is, indeed, a way to get there. The “beyond” will include better pay, better benefits, better work/life balance and better career pathing. All of this must occur with simultaneous return on investment for owners and operators. Through technology, creative leadership, can-do cultures and the like, we will reach this goal. This will occur not only here in Florida, but nationally and beyond our borders. It must occur in order for the lodging industry to remain resilient and profitable, ready for its next crisis, and a desired place to work. I envision a new work model with more three-day workweeks and more flexibility in managerial roles instead of the siloed departmental leadership of the past. I expect varied schedules across the hotels, moving away from the historic 7 a.m. to 3 p.m. and 3-11 p.m., it-only-happens-thisway style. We already see hotels offering on-site daycare, lifelong training and tuition reimbursement, personalized career consultations with leadership and more value in the human life experience of their employees, versus an operations focus. The beyond is bright. And our faculty and their diverse backgrounds in finance, revenue optimization, operations, marketing and law are here to work with any individual hotels, management companies, or ownership groups that wish to get to the beyond faster. Most importantly, our team is here to continue to educate the future leaders of our great industry by instilling the values of care, compassion, leadership and warmth. Our core lodging values remain the same then, now and beyond. FLORIDA RESTAUR ANT & LOD GING A S SO CIATION
