(Corrected on Sept. 23 to remove an incorrect quote.)
The continuing COVID-19 crisis and an already tight labor pool has made finding the best employees challenging for hotels. For smaller, boutique properties competing against the prestige and allure of larger hotels, it can be more difficult, particularly in mega-resort markets such as Orlando and Las Vegas.
To stand out, some boutique hotels offer creative benefits and greater paths for promotion, which resonate especially with younger recruits.
Employers have found that traditional compensation offerings are no longer enough to bring in top millennial and Gen Z staffers. According to a 2018 survey conducted by Challenger, Gray & Christmas Inc., a global outplacement and executive coaching firm, 78% of companies are actively recruiting millennials and 56% are targeting members of Gen Z in their hiring efforts.
"Hotels are having a challenging time competing for labor," said David Sangree, president of Hotel & Leisure Advisors, LLC. "In addition, the owners and managers at smaller properties are having to work more hours by filling shifts themselves and trying to keep the properties running on lower staff levels."
David Heath, managing partner at Heath & Company Hospitality Advisors, a professional services firm with experience in labor productivity in the hospitality industry, said compounding the problem is that the best talent is already taken.
"The best candidates already have jobs. Unless an operator is lucky enough to find someone who’s just relocated and drops into the HR office, the dream applicant just isn’t going to walk in and apply," he said. "Hotels need to position themselves to stand out to get applicant attention."
Hoteliers have to be very proactive, he added, noting a search for front-desk associates might start by scouting sales associates at the local mall.
"Trolling for the friendliest servers and bartenders when dining out at local restaurants is a great way to scout for talent. It’s important to look for potential employees who are engaging, friendly, make eye contact and smile," Heath said.
The best candidate for a position may already work in the hotel, he added.
"In-house candidates are a known quantity with a verifiable track record in terms of performance punctuality and positive attitude. Promoting from within sends a positive message to all the employees on the team," he said.
Incentive referral programs are an excellent way to identify talent, he said. Asking current employees to refer friends and relatives is another useful recruiting strategy. Many hotels pay a bonus to employees for referring a friend or relative who successfully completes their probationary period, Heath said.
Finding housekeeping staff in particular can be challenging, Heath said. A smaller hotel can do something like complete a zip code analysis to identify the neighborhoods where that hotel’s existing housekeeping and stewarding employees live. Then the property can contact the local churches in those neighborhoods to post advertisements offering employment.
In addition, school connections can be used. "It never hurts to connect with the local university. College students often make great part-time employees, and recent graduates can be excellent for entry-level positions," Heath said.
Smaller properties can possibly offer a faster management track.
In addition, smaller hotels must offer competitive salaries, a good work environment, job stability and professional development, said Gabriel Ibarra, sales and marketing director at Mexico Grand Hotels.
Employees also want to feel like they are an indispensable part of the company. For example, Mexico Grand Hotels has financially supported employees during illness and provided the resources they needed, Ibarra said.
"Luckily, we can offer the same amenities and services as larger resorts, with a warmer and more personalized environment since we are smaller hotels, which means less staff that allows us to get to know them better," he said.
Employees, especially those who have worked at large hotels first, want flexibility and less of the stress associated with the big convention hotels. They want a more relaxed environment and the ability to converse with guests, said Robert Rauch, CEO and founder of R.A. Rauch & Associates.
"Busy hotels don’t necessarily set themselves up to provide personalized service," he said.
His company has smaller hotels, such as the Fairfield Inn & Suites San Diego North/San Marcos. While this property may not pay as much as the large, convention hotels, it offers a fast management track and more relaxed environment, Rauch said. Employees get training directly from an owner, area general manager and direct supervisor.
"The brands are the same, so travel benefits are there, just like with the big boxes," Rauch said.