FOODSERVICE AND HOSPITALITY MAGAZINE, November 2000

THE TALENT SHORTAGE

As the economy has expanded, so too has the hospitality industry. The demand for talented people exceeds supply and the crisis is further exacerbated by two factors: 1) increasingly, because of out- dated, low-return compensation models and onerous working conditions, talented young people don't view our industry as a viable career option; and 2) the non-hospitality world, recognizing the transferable skills that hospitality professionals possess, has begun to aggressively target our workers for recruitment. Offering improved working conditions and superior compensation; they are like foxes in a henhouse.

The industry hasn't fully recognized the value young people place on quality of life. This is largely due to a generation gap - the employer's generation, who's motto is "Work like a dog and don't ask questions," versus the employee's creed: "Balance in life is paramount." Young people today have more varied employment opportunities than ever before. As an industry, we can no longer view our human capital as an expendable resource; we must continue to find creative ways to attract the best candidates.

Traditional recruitment tools are no longer effective. These days, print ads and job fairs attract little attention. Smart employers have embraced proactive recruitment strategies: they're always interested in interviewing good candidates whether openings exist or not; they recognize that we have shifted into an employees' market and have learned to see the benefits of their organizations; they have enhanced their compensation and benefit programs and have created real equity opportunities.

The tightening labour market offers employees who choose to remain in the industry both increased leverage (compensation) and increased job pressure (due to staff and management shortages). Operators, on the other hand, will feel increased pressure to compromise when hiring or promoting, and their customers, faced with poorer product and service standards, will increasingly become disgruntled.

Assuming the current economic expansion continues for the next five years, the labour shortage will intensify, which will enhance the present employees' market. Wages will continue to increase and the quality and supply available will probably decrease, causing many operators to compromise hiring decisions that will imperil service and product quality. And our best people, over-worked and underpaid, will continue to seek greener pastures.