Staff Shortages Pose Problems - Travel, Hospitality & Restaurant

Travel and dining, two sectors of the economy hit hardest by the pandemic, seem to be bouncing back. However, they still rank as two of the least happy industries. In this blog post, we’ll look at the challenges these industries face and explore possible solutions.

Travel & Hospitality
This industry is still recovering from the negative effects of the pandemic. While employee happiness has yet to overtake its peak of January 2020, it is on the rise. In 2023 alone, happiness is increasing at a rate of 59%. However, a survey by the American Hotel & Lodging Association found that nearly all hotels, 87%, are experiencing staffing shortages, 36% severely so.

Now is a crucial time to focus on recruitment and retention. Recognizing incoming employees immediately after they accept the position instantly engages them with the organization. One way to do this is with a welcome kit that includes some branded merch for the new employee to show off. This gets them excited about the company, even if they haven’t officially started yet. Encouraging retention is always a challenge, but keeping your employees engaged is the key. When employees are engaged, they feel a greater sense of purpose and are more likely to stay at the company that cares. Take Hilton, for example. They hold the number 2 ranking on Fortune’s 100 Best Companies to Work For list. They achieved this ranking by focusing on the employee experience. This has included improving wellness, offering free counseling to staff and providing more flexibility over when staff members work and how often they’re paid.

Restaurant and Food & Beverage
The steady downward trend of unhappiness in this industry since 2020 has softened in 2023. However, 79% of restaurant operators are struggling to hire, according to a survey by the National Restaurant Association. This seems to be due in part to low wages in this sector of the economy. However, money isn’t the only thing that matters to workers. Most employees, 72%, say that internal communication greatly impacts their happiness at work.

Standing out in this field will involve effective communication among teams and fostering a culture of recognition. This can be accomplished by immediately recognizing an employee when they do something noteworthy. Being praised for a specific action right away feels the most genuine and gratifying. If a manager waits until the end of a worker’s shift and gives them a general “great job today” without acknowledging a specific action, the employee may feel like the manager doesn’t really notice their hard work. With staff shortages, employees are already feeling overworked, so it is important to make them feel appreciated. Remember, the most effective recognition is spontaneous and immediate.

Read the previous post in this series Pandemic Toll Looms Large - Healthcare & Education. And download our graphic that ranks the industries from least to most happy.