PHOENIX — Three years since COVID and the nation’s hotels still can’t find enough people to operate its hotels. It’s been a recurring theme and one that has yet to abate despite hotel owners, operators and brands best efforts.
“It’s not turnover, it’s getting bodies through the door,” said Julie Arrowsmith, president & interim CEO of G6 Hospitality, which includes the Motel 6 and Studio 6 brands, speaking on a panel of executives during The Lodging Conference, here at the JW Marriott Phoenix Desert Ridge.
Twelve percent of positions at Sonesta International Hotels still need to be filled, said CEO John Murray.
Aimbridge Hospitality, the largest third-party management company in the world, has turned to things like spot/daily pay to help retain employees and has paid out to date some $25 million by it. More than 70,000 of its associates take advantage of it, said Mark Tamis, global president at Aimbridge Hospitality.
For hotel employees, wages have not been an issue. In fact, according to data from CBRE, wage increases have exceeded RevPAR growth. With wages table stakes, hoteliers have turned to technology and adapting to employee wants and needs. One of the biggest desires: scheduling flexibility. And in the gig economy, this is a must, especially if hotels want to directly hire and employ workers in lieu of contract workers, which are considerably more expensive and less inclined to buy into a property or brand’s culture.
Aimbridge employees can schedule their shifts through an app and even trade shifts with colleagues. It’s the same at Highgate, said its CEO Arash Azarbarzin, where hotel employees use a payroll app to trade shifts and do their own scheduling on the spot.
In today’s hotel operations, the power lies with workers and the impetus is on employers to provide the necessary technology for them to fulfill their whims. If these measures aren’t in place, argued Tamis, “It’s why people leave our industry.”
Despite the labor headwinds, there has, perhaps, been no better time for those to enter the workforce. Hospitality is one of the few industries where a college degree is not a prerequisite for joining the C-suite. Dishwasher to CEO is not outlandish.
“It’s one of the most dynamic times to enter this industry,” said Jay Shah, executive chairman of Hersha Hospitality Trust. “An opportune to jump into a role and move on up,” added G6’s Arrowsmith.
Highgate’s Azarbarzin put it succinctly: “You don’t need a PhD. Just work hard.”
Though labor continues to hound hoteliers, the situation is improving, noted both Shah—”The number of open positions have come down significantly”— and Tamis—”The numbers are getting better,” he said.
Of course, according to some, there is always a labor problem. “General managers always say they are understaffed, anyway,” said Sonesta’s Murray.