In December 2023, the U.S. Bureau of Labor Statistics reported that there were nearly three million more job openings than unemployed people to fill them. The situation has improved in recent months as the ratio of available jobs per job-seeker fell to its lowest level in three years. However, the situation remains delicate in industries like hospitality.

According to a survey conducted by the American Hotel and Lodging Association (AHLA), 76 per cent of hotels are experiencing summer staffing shortages, with 13 per cent saying the shortage is severe. And just this month, about 13,500 US hotel workers across Boston, Honolulu, Providence and San Francisco held votes on whether to strike.

In an environment such as this, it has become increasingly important to look after and therefore retain employees.

The employee-employer relationship

“There has never been a more important time to focus on talent and people strategies”, Jyoti Chopra, chief HR officer at MGM Resorts says, noting that the relationship between employers and employees has fundamentally changed especially in the aftermath of the pandemic.

Kymberley Kuebler, VP talent development at Aimbridge Hospitality agrees. “That contract with employee and employer has changed and that relationship is different - people want a different relationship with their employer, they want to make sure that their specific needs are met. You have to meet their needs in the way that's important to them today.

She notes that one of the biggest needs is around connection, with employees wanting to feel connected to a purpose, their teams and to the company.

And part of this is creating an inclusive workplace where employees feel valued and respected, with attention to diversity, equity, and inclusion (DEI) within organizational culture a crucial consideration when seeking to retain talent.

“Recognition is really an important part of the employee value proposition - making your people feel valued. It is about creating an environment, a culture in the workplace where your employees, your people, feel valued and respected, where they can bring their authentic selves to work,” Chopra says.

Diversity, equity and inclusion

She notes it is important to consider DEI on three levels, the first being the actual people, the second being the culture in the workplace and the third being the marketplace i.e. the external forces which have an impact such as the client base.

“It is not just about one aspect, it's about all of it,” she says, adding that community-based groups are a practical way to foster a sense of belonging and build employee engagement in any organisation.

“When you create an environment where people can just bring themselves to work, be themselves, feel cared for and feel a sense of association that's meaningful, it means that they're going to be happy and productive. And that in turn is then going to benefit your business.”

And when it comes to inclusivity for neurodiverse people or those with hidden needs, experts stress the importance of inclusive language being a part of the company culture across the board as well as partnering with relevant organisations.

Sourcing talent and recruitment

But creating an environment that benefits both the talent and the business starts right from the recruitment stage, with Neil Flavin, chief operating officer at HVS Asset Management & Advisory stressing the need for outside-the-box thinking.

“Look at the way that you're advertising out there for positions. Why is every single ad the same as yours? Turn your ads upside down. Talk about the most important things for prospective applicants – benefits, pay, upward mobility. Show upfront that you're willing to invest in your associates to get them to invest in you.”

He adds that there needs to be evolution in the talent acquisition process.

“You can't interview people the way that you used to. You need to delve into what trips their trigger, what are the things that motivate them to come to work? What are their ambitions for the next 12 months, 24 months, five years from now? And then work through an interview process to try to uncover some of those ambitions because that will help you find the right people for the right positions.”

And then comes the onboarding of the newly hired talent, Chopra says, which plays a huge role in retaining the employee by helping them see value in the company.

“At MGM, we’ve revamped our onboarding process. It’s about welcoming people in the right way - we've redone our new hire orientation, and we literally have a red carpet to welcome new employees when they come in on day one. You have to invest in them in terms of giving them a terrific experience, having a really well thought through employee value proposition and living that employee value proposition every day through your actions.”

And this outside-the-box thinking could also be applied to sources of talent, with Kuebler highlighting programmes that provide jobs for refugees, victims of human trafficking, people from disadvantaged backgrounds or underserved communities in different categories.

“We've invested heavily in some sources like Tent, Salvation Army and Goodwill where we've found really good tenured employees. What we find is that those are the folks that are most excited about coming to work with us. They have resources from the agencies that are supporting them and they want to grow with us and have a career,” Kuebler says.

She adds that implementing strategies such as same-day pay could also improve retention. “People can access the funds that they need when they need it. We've actually seen an improvement in our retention over the last 12 to 18 months.”

Invest and trust

Training, investment in the employee and trust were also highlighted as crucial elements in retention strategies.

“We have to invest the right resources in training the right individuals to perform functions that we're asking them to. We must trust them to make the decisions within certain guidelines and within certain limits, and then verify that those are the right decisions. And if mistakes are made, coach them and encourage them to be better. That's how we save our workforce and retain our associates,” Flavin says.

And this investment isn’t limited to professional development, with Chopra stressing the value of investing to improve employee facilities such as dining rooms and menus, investing in mental health benefits and investing in mentorship programmes.

Technology and AI

The experts also highlighted the role of technology and AI in recruiting and retaining talent, noting that while advances could help streamline recruitment processes and enhance career development, it should complement and not replace the human touch in HR.

Flavin remarked. “You have to find the right balance. You have to marry the two together. Using AI is an opportunity for us as an industry to free up the time of a lot of these associates to not have to perform as many of the menial functions and allow us to spend more time with our customer. And if we can do that, we create a better environment, not only for the associates but for our guests.”

It seems that the answer to retaining talent and maximizing profit amidst a challenging labour landscape lies in adopting a holistic approach, which includes embracing innovative recruitment practices, investing in employee development and fostering an inclusive culture.

By Ifeoluwa Taiwo