Mr. Ferrara

Human Resources, Recruitment & Training

Hospitality Hiring Forecast: Employers to Remain Cautious About Adding Headcount

By Jason Ferrara, Vice President, Corporate Marketing, CareerBuilder

The hospitality industry was not immune to the challenges that many organizations faced in the past year. Benefit cuts, layoffs and restructuring were just a few of the hurdles that were encountered by companies of all shapes and sizes in 2009.

There is encouraging news, though. As hospitality employers look ahead to the coming months, they will remain cautious with their hiring plans, but they plan to add more employees than they did in 2009. According to CareerBuilder, a global leader in human capital solutions, 12 percent of hospitality companies plan to add full-time employees this year; compared to only 5 percent who said the same in 2009. Temporary hiring – often a positive indicator of future full-time recruitment – is also forecasted to increase with 22 percent of companies saying they will bring on part-time help. This is up from 11 percent who said the same last year.

What does this mean for your property? It is a hopeful sign that your business will grow in the coming year. From a hiring standpoint, you’ll likely be able to add some of the right people to remain competitive. At the same time, retention will be a focus. You’ll want to ensure that your “A” players are kept in place to best serve your guests. Paying attention to key recruitment and workplace trends is one way to stay on top of the hiring environment.

As we look ahead optimistically to the coming months, what are the trends your business should pay attention to? Here’s a list of eight trends to look out for, according to CareerBuilder’s hospitality hiring forecast:

Replacing Lower-Performing Employees

Hospitality employers are taking advantage of the large number of top talent in the current labor pool to strengthen their work force. Nearly six-in-ten (57 percent) employers say they plan to replace lower-performing employees with higher-performers in 2010. When asked to grade their current work force, 19 percent rated them an "A", 60 percent a "B", 19 percent a "C", and 2 percent a "D." Less than one-half of a percent felt their current staff was a failure.

Emphasis on Social Media to Strengthen Brand

The economy required companies to make some tough decisions about their businesses, which had a negative impact on their brands. More than half (52 percent) of hospitality organizations, the highest among organizations surveyed, plan to put a greater emphasis on social media in 2010 to create a more positive brand for their organization.

Rehiring Laid-off Workers

In the last year, hospitality companies had to adjust their business plans to the economic downturn. As a result, four-in-ten hospitality employers say they were forced to lay off workers. Among those who had lay-offs last year, thirty-three percent of employers say they plan to bring back those workers with 28 percent either doing it now or planning to do so in the first six months of 2010.

Flexible Work Arrangements

Hotels plan to continue providing employees with greater flexibility in hopes of maintaining a better work-life balance. Thirty-one percent of employers say they plan to provide more flexible work arrangements in 2010. These arrangements include:

• Alternate schedules - come in early and leave early or come in later and leave later - 74 percent
  
• Telecommuting options - 19 percent
  
• Compressed workweeks - work the same hours, but in fewer days - 24 percent
  
• Summer hours - 24 percent
  
• Job sharing - 10 percent
  
• Sabbaticals - 5 percent

Cutting Perks and Benefits

Even as hospitality companies beginning to grow their businesses again, many are still choosing to trim perks and benefits. Thirty-nine percent of employers say they will cut perks and benefits in 2010. Perks and benefits employers plan to trim include bonuses, medical coverage, suspended 401k matching and office perks such as coffee, tea and condiments.

Freelance or Contract Hiring

While hospitality employers still plan to be cautious regarding the number of full-time employees they add in the new year, many will turn to freelance or contract employees to help keep their businesses moving forward. Twenty percent of hospitality employers anticipate hiring freelancers or contractors this year, up slightly from 12 percent in 2009.

Bilingual Recruitment

Hospitality employers have identified having a diverse work force as an important measure of success as they begin to rebuild their businesses after the economic downturn. One area they plan to focus on is building a bilingual team. More than half (51 percent) said they plan to hire bilingual candidates in 2010 and 52 percent said that if they had two equally qualified candidates, they would be more inclined to hire the bilingual candidate.

Compensation

Even as properties continue to watch their spending, they still plan slight increases to salaries in the coming year. Half of hospitality companies report that they will increase salaries for existing employees in 2010, down just slightly from 53 percent in 2009. Twenty-seven percent expect to raise salaries of existing employees by 3 percent or more, while 10 percent anticipate increases of 5 percent or more.

Twenty-three percent of hospitality employers plan to increase salaries on initial offers to new employees, down just slightly from 25 percent in 2009. Twelve percent report they will raise salaries on initial offers by 3 percent or more while 4 percent anticipate increases of 5 percent or more.

Regardless of the size or location of your property, paying attention to trends like these can help you best manage your employees, recruit the right team members and plan for the future. 2009 was a tough year for recruitment. As we look ahead to a recovery, you will be primed to emerge stronger than you were in the past by adding and keeping the right people for future success.

Jason Ferrara leads the development of strategic marketing for the Corporate Marketing team at CareerBuilder.com, the nation's largest online job site with over 22 million unique visitors each month and over 1.5 million jobs. Focused on the recruitment needs of employers, Ferrara is responsible for business-to-business strategy including communications, advertising, promotions, e-commerce management, customer lifecycle and loyalty, and sales support. Prior to joining the company, Ferrara worked as Director, Online Marketing for SPSS, Inc. He holds a MBA from Kellogg School of Management. Mr. Ferrara can be contacted at 773-353-2601 or jason.ferrara@careerbuilder.com Extended Bio...

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