Where are they?
Picture by KJ The number of times history is allowed to ‘repeats itself’, is in the hospitality industry. Whenever the same issue surfaces, we hardly take any notice or action. Some of us prefer to sweep it under the carpet, while many others, like the ostrich, bury their heads in the sand hoping the storm (problem) will eventually disappear. Every time this occurs, this behaviour is repeated like a gramophone needle stuck on a “broken record”. I am talking here of the constantly encountered problem of a labour shortage - the hospitality industry has been grappling with… for decades.
Economists claim that our industry goes through peaks and valleys every 7 or 8 years. Meaning; after reaching a peak, following years of mountainous ‘growth’, there eventually comes a fall, usually precipitated by a recession. A recession is a ‘contraction’ phase of the business cycle brought about by numerous reasons. The last great recession that was precipitated in the US by the financial crisis in late 2007, quickly spread to many countries and lasted until mid-2009. This resulted in global unemployment figures doubling by the end of that recession.
Since then, and leading into 2020, the unprecedented growth of the travel industry, despite the SARS, MERS, and Swine Flu hiccups, has made the 2007 crash look like an insignificant blot in history. That is, until the coronavirus pandemic, both shocked and crashed the economy to a stuttering halt. As an unexpected ‘fall’ – this was it…the perfect storm!
When a recession occurs, the immediate measure companies take is not to hire anyone. The Hospitality trade goes a step further by discontinuing non-permanent employees. In between, generations of hotel staff leave or never join the industry – lost forever. And we keep wondering why people are reluctant to make a career in hospitality?
Once the pandemic fades away, millions of workers worldwide are expected to switch jobs. A global survey that included over 30,000 respondents in 31 countries revealed that more than 40% of them are considering leaving their current employers in 2021. With millions of jobs available in the horizon, employees will have more alternatives than ever before. What better time for employees who are insecure to try something new – particularly if it means not having to work ‘shifts’ and not having to work on evenings and weekends. For those operating hotels and restaurants this can turn out to be apocalyptic.
Even the businesses that did a commendable job navigating previous downturns may find that the same strategies and tactics won’t be as effective this time around. For instance, it’s been long known by hotel employees that to advance in their careers, (which to some translated as obtaining a raise in salary), the only way up, was to change hotels. For years, this issue has been a problem for employers. Some reacted to this by offering instant gratification such as a salary hike, promotion, additional perks (travel allowances - even a loan to lease / buy a car) and other benefits. This temporarily stemmed the flow but did not plug the leak.
The current scenario after COVID-19 is an entirely new ball game. Only those wise employers, who got into action early – to meet this new challenge head on, will weather the ‘after-shock’.
Are you one of them?
Ilzaf Keefahs is a freelance writer who enjoys focusing on hospitality related matters that he is passionate about, and likes to share his views with hoteliers and customers alike. He delves into the heart of hospitality to figure out both customer service and consumer trends that impact the industry.
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