Hospitality HR Challenges | HR in the Hospitality sector is a complex and fast-paced environment. Constantly changing aspects affect the overall business and the employees. On top of it, the Hospitality industry was hit hard by the Covid-19 Outbreak. In 2020, the expected sales numbers in the Restaurant industry have been down $240 billion US-Dollars. Over 110 000 restaurants were temporarily or are permanently closed. This caused many small businesses to let go of valuable staff to mitigate the risk of bankruptcy of their business.
Due to the shutdown of many restaurants, cafes and hotels, employees were forced to retrain and find employment in another sector. Now that the world is opening up again, restaurants are faced with the challenge of finding enough employees to cover the demand of customers. This is a challenging situation for business owners. It is more important now to be efficient in staff planning, recruitment & generally speaking, in HR Management without being professionally trained.
👉 Additionally, the industry is faced with some more impactful challenges.
High Turnover Rates
Workforce reduction doesn’t discriminate between enterprises and industries. It’s always harmful and costly in both resources and effort. Like many service-oriented industries, employees typically experience high levels of stress. When stress is coupled with ineffective decision-making from managers, high turnover rates are inevitable.
Training & Development
High-turnover usually results in constant training of new employees & making sure that the quality of service is consistent. This can make it even more stressful as the training quality of the employees will have a direct impact on sales numbers & customer satisfaction.
Satisfaction & Morale
Working in hospitality can place a lot of stress on employees. The customer facing industry is fast paced which employees have to get used to & sometimes, this can lead to overhours, lack of motivation, stress & dissatisfaction.
The pandemic has decreased the pool of suitable candidates that want to work in the hospitality industry. Businesses are forced to implement the right tool to filter through the applications as efficient as possible to be ahead of their competition.
Culture & Ethics
Work culture in hospitality can lack due to the nature of the industry. Unexperienced stuff & retention can lead to employees feeling replaceable and not valued. Employers must be determined to overcome these challenges to built a strong work culture.
Further blogs discussing these aspects will follow.
This post was written by Novative. They are an exhibitor on the HRTech247 Payroll, Time & Attendance floor in the Technology Hall here.