In an attempt to woo and retain talent amid continuing staffing shortages in the hotel industry, hoteliers are offering better pay and several incentives, a new study has revealed.
According to a new survey by the American Hotel & Lodging Association (AHLA), 67% of the surveyed hotels have said staffing shortages continue to impact their business. About 12% said they were “severely understaffed,” with the staffing shortage affecting their ability to operate.
Housekeeping emerged as the most essential staffing requirement, with 48% ranking it as their top hiring need.
These figures, however, were an improvement from May 2023, when 82% of the respondents said they were experiencing a staffing shortage.
To ensure talent retention, 82% of surveyed hoteliers said they had increased wages in the last six months. According to the U.S. Bureau of Labor Statistics, average wages in the leisure and hospitality sector reached record record-high average in December 2023.
Additionally, 59% of the respondents are offering more flexibility with hours and 33% are adding more benefits. Despite these incentives, 72% of the hoteliers said they were still struggling to fill vacancies.
Hoteliers said they were trying to fill an average of nine positions per property, which remained almost unchanged from May 2023 but improved from the seven vacancies per property average in January 2023.
The persistent staffing crisis has resulted in historic career opportunities for hotel employees, according to the survey. Citing Indeed, the survey report said there were over 70,000 hotel jobs currently open in the U.S., and as of December 2023, national average hotel wages hit a record high of $23.91 per, as per the Bureau of Labor Statistics.
Average hotel wages have increased more rapidly than average wages in the general economy since the onset of the pandemic, while hotel benefits and flexibility have been better than ever, AHLA said, adding that the peak average wages, better benefits and upward mobility have been bringing a positive change in the hotel workforce situation.
“But nationwide labor shortages are preventing hoteliers from filling tens of thousands of jobs, and that problem will weigh heavily on our members until Congress takes action. We urge lawmakers to address this urgent issue by creating an H-2B returning worker exemption, passing the Asylum Seeker Work Authorization Act, and passing the H-2 Improvements to Relieve Employers (HIRE) Act,” said AHLA President and CEO Chip Rogers.
Congress can help hoteliers address the existing staffing crisis by the following actions — growing and streamlining the legal H-2B guestworker program, cosponsoring and passing the Asylum Seeker Work Authorization Act and cosponsoring and passing the H02 Improvements to Relive Employers (HIRE) Act, said AHLA.
As of December 2023, there were 9 million vacancies across the U.S., but only 6.3 million unemployed people filled open spots, according to the Bureau of Labor Statistics.