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To pay or not to pay? The wage dilemma

For those veterans out there, we know very well that hospitality has never been an industry chosen for money and benefits, but mostly for the passion one has for the job, the glamour and lifestyle, as well as the delight in serving others while creating memorable experiences.

Contributed by Rocco Bova, managing director, Grupo Hotelero 1800, Mexico

Over the past decades, wages and pay have been increasingly better for hospitality workers, yet far from other industries.

It is also known that many hospitality school graduates are taken by, or opt for, other industries where they are recognized for their achievements, enjoy faster career progression, have better salary and benefits and work more regular hours.

While money is not our main motivator, it is definitely one that needs to pay our living and help us all have decent lifestyles, not just pretend it while at work.

Often this “detail’’ is overlooked and the cost of employing the cheaper option is not the solution in managing payroll costs.

Many hospitality businesses regularly employ foreign labor and immigrants, who often accept any type of work and lower wages.

Today, there is news about keeping lower wages or reduced salaries in some locations, even if business is returning to some sort of normal level. Basically, employers are taking advantage of job shortages for the sake of saving further on the employees’ back.

In the past few months, I have heard several CEOs (including the ones from the big 5) talking in public about reviewing past practices in terms of salary and benefits for its employees. Does this mean that finally we are going through a shift, or will it be just a temporary measure to calm the struggle to find great, passionate and motivated workers? 

For example, I hear of some companies paying a finder’s fee for those who recommend another potential employee, others raising basic pay to higher than the average standards. This is all well and good, and while it was clear that neither this pandemic nor other future crises will avoid such short-term solutions, we need to begin thinking what are the real expectations of our present and future employees. What can we all do to attract first and retain later those who truly are the genuine ambassadors of hospitality and service?

I have been thinking if, perhaps, we should start to get staff on a better incentive-based system with bonuses (at all levels, not just senior management) and perhaps even consider profit sharing. Review what earnings and ROI are sufficient for owners, investment funds and management companies.

I am not sure if anyone knows how much profit is enough, but it is clear that something is gone wrong in our industry and this pandemic has shown it in full colors. I know how labor intensive our industry is and, so far, little has been done in terms of automation or implementing technology to eliminate certain manual tasks and making work more efficient.

Tourism and travel will return stronger than before. Revenge travel will revive the industry and, slowly, each destination will come back to normal. But are we ready to return to normal? Europe and the United States are already suffering from not being able to find staff and, in some cases, offering limited services or even delaying opening.

I know this post will raise more than a few eyebrows and it’s no coincidence that it was intentional. It’s time for a change, a real one, that will make us conscious that we need to address this issue, and proud once we take the first step forward. While only time will tell what changes the industry will see in the next 12-24 months, we can all hope for a better world. One where everyone wins and everyone earns.

1 comment
  1. Sonjasauer017
    Sonjasauer017
    October 7, 2021 at 6:56 am

    Well done – I wish these words will be understood and implemented as the whole tourism deserves.

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