Mr. Ferrara

Human Resources, Recruitment & Training

Managing the Mass Exodus: Strategies for securing top talent in the midst of a labor shortage

By Jason Ferrara, Vice President, Corporate Marketing, CareerBuilder

It takes a lot of people to make a hotel feel like home for its guests. So it's not surprising that the hospitality industry is a major component of the overall U.S. labor force. According to the U.S. Bureau of Labor Statistics (BLS), the accommodations and food services industry makes up 8.1 percent of all employment.

And Americans aren't abandoning their vacations or business outings anytime soon. The hospitality industry is expected to grow 18 percent and add more than 1.6 million new jobs through 2012, according to BLS data.

But while we're in the business of making others feel cared for, the labor market won't be very comfortable for hospitality employers in coming years.

A shrinking labor force

The United States is facing a looming shortage over the next few decades. In the past, the nation has always been able to depend on an expanding labor force, but this growth is expected to slow to just 3 percent over the next 20 years.

By 2012, the there will be 43 percent more people in the 55 to 64 age bracket. By contrast, the number of workers between the prime working ages of 25 and 54 is expected to stagnate. This means smaller generations of replacement workers will move in to fill the gap left by retiring Baby Boomers... and productivity can't make up the differential.

Unfortunately, employers are already beginning to feel the pinch on the labor force. In a recent survey conducted by CareerBuilder.com and Robert Half International, hiring managers said the biggest hiring challenge they face is finding qualified workers. And 86 percent of employers expect the hiring landscape to be even bleaker just one year from now.

Relying on an incompetent or insufficient staff could have a devastating effect on the hospitality industry. With fewer workers available, personalized service will suffer, and do-it-yourself service could become standard. Customers will also be burdened with more hassles and longer wait times.

Keeping a full roster of reliable and efficient employees will require a multi-tiered approach. Employers must find new, creative methods to retain their top talent while keeping an eye out for new ways to attract quality candidates.

Keeping your employees from checking out

The hospitality industry suffers one of the highest turnover rates in the nation. Nearly one-third of hospitality workers plan to leave their jobs in 2006, according to CareerBuilder.com's annual forecast.

Why are workers fleeing? Quite simply, they are feeling overworked and under-appreciated.

To help alleviate the problem, most employers are willing to shell over more money to existing employees. In a recent joint survey by CareerBuilder.com and America Online, 78 percent of hiring managers plan to increase existing employees' paychecks in 2006. More than one-in-five plan to raise pay by 5 percent or more.

But pay is not enough. Companies are increasingly recognizing the value of their most experienced workers, and looking for new ways to retain them. Forty-five percent plan to offer incentives for workers to postpone their retirements or recruit retirees from other companies.

Businesses are also focusing on boosting quality of life for their employees. To encourage recruitment and retention of workers, 48 percent of hiring managers are willing to provide flexible work options like job sharing and alternative schedules in 2006.

Branding your corporate experience

Although using these strategies can help to reduce turnover, they will not eliminate the problem completely. To attract the most quality candidates, employers must position their companies as great places to work.

The recruitment landscape is tough for hospitality employers. Even though you may be competing with the Ritz-Carlton or Starwood Hotel Chain for revenues, you are competing across multiple industries for workers - including retail, healthcare and food service. Thus, you must sell your work experience as the very best.

The Hyatt Corporation does this with a special section on its Web site. With just a few clicks, visitors to the Hyatt site can get extensive information on the company's work culture, training opportunities, as well as detailed benefits information, including the company's 401(k) matching program and free hotel stays.

The Marriot chain lets its accomplishments speak for them. The Marriot site reminds potential candidates that the hotel chain earned a top spot on Fortune, DiversityInc and Working Mother magazines' "Best companies to work for" lists.

While employee branding is crucial, employers must also devise creative strategies to ensure their employees accept the offer. To do this, many businesses are increasing starting wages, and putting a premium on recruiting diverse candidates that help mirror their customer base. Recognizing the positive impact workforce diversity has on business performance, one-in-ten hiring managers predicts diverse candidates will comprise 50 percent or more of their new hires in 2006; one-third expect diverse candidates to comprise 25 percent or more of their new hires.

When branding your company, start by defining what your ideal candidate would be. Then, emphasize the company assets that would best appeal to these candidates. Some benefits to consider include: disciplined freedom; learning; challenge; recognition; belief or candor.

Thinking big picture

Finally, to have the most effective recruiting cycle possible, you must exhaust all your resources. Top recruitment resources include:

By making yourself available to job seekers through a variety of mediums, you drastically improve your chances of reaching quality candidates.

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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