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The hospitality industry continues to face a competitive labor market and increased customer demands.
As hospitality companies look to set themselves up as the premier destination for consumers, they should first consider how to become the employer of choice and attract top employees.
To effectively address these challenges and outpace their competitors, hospitality employers should consider focusing on how they can enhance the employee experience through financial wellness benefits anchored by on-demand pay.
Staff Shortages Require a New Management Approach
Hospitality employers are still playing catch-up after a year-long halt to travel and tourism in 2020. Employment in the leisure and hospitality industry remains 7.9% below pre-pandemic levels, according to a 2022 report by PressReader.1
To address staff shortages, employers may have to reimagine staff management strategies to further support employee wellness. This reimagined approach should invest in employees and adopt technologies that improve employee efficiency while still delivering exceptional services.2
An Uptick in Travel and Guest Expectations Requires an Engaged Workforce
Although staffing levels haven’t rebounded to pre-pandemic levels, travel certainly has returned to standards.
According to a 2023 report from AHLA, consumer demand this year is projected to surpass pre-pandemic levels, noting that the hotel industry is projected to achieve 1.3 billion occupied room nights.3
To meet this surge in travel, hospitality employers need an engaged and motivated workforce to meet and exceed evolving expectations.
Competition for Labor Between Employers Is Fierce
An employee retention strategy can be a difference-maker for hospitality businesses looking to reduce employee turnover. According to Hospitality Net, innovative technologies and employee training will be key to retaining a skilled workforce.4
As several hospitality companies fight for candidates in the same labor pool, an employee retention strategy backed by valuable benefits can make all the difference in reducing employee turnover and standing out to potential applicants.
Invest in Employee Wellness to Address Labor Challenges
To thrive in the current hospitality labor market, employers must invest in their employees with valuable pay and benefits packages, opportunities for career growth and more workplace flexibility.
Businesses can set themselves apart by offering the benefits today’s employees are asking for. Empowered with greater financial visibility and control, employees feel more valued leading to greater employee retention for hospitality employers.
An on-demand pay benefit through DailyPay has been demonstrated to reduce turnover costs, improve retention and strengthen the employer–employee bond.
Learn how DailyPay may help to drive value for your business.
All information herein is for educational purposes only and should not be relied upon for any other use. The information herein does not constitute the rendering of financial, business, accounting, securities, tax, legal or professional advice by DailyPay. No fiduciary obligation or duty exists or is created, between you and DailyPay. DailyPay does not warrant the completeness or accuracy of any information provided to you.
1 https://5357741.fs1.hubspotusercontent-na1.net/hubfs/5357741/Content%20Offers/PressReader-easing-hotels-labor-pains-report-2022.pdf :DailyPay, 2020
2 https://5357741.fs1.hubspotusercontent-na1.net/hubfs/5357741/Content%20Offers/PressReader-easing-hotels-labor-pains-report-2022.pdf :DailyPay, 2020
3 https://www.ahla.com/sites/default/files/AHLA.SOTI_.Report.2023.final_.002.pdf :DailyPay, 2020
4 https://www.hospitalitynet.org/opinion/4114325.html :DailyPay, 2020
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