The Bureau of Labor Statistics (BLS) anticipates that 23.1% of all new jobs projected from 2021 to 2031 will be in the hospitality and leisure sector, with the largest increase expected in food preparation and service. Given that there are already an estimated 2 million open jobs in the sector in the US and an aging workforce, this will leave a significant gap in workers to meet demand. The labor market challenges are compounded by the sector having the highest quit rates and the greatest need for in-person work, with over 80% of workers fully on-site.
Battling over the same workers using the same approaches for restaurants, hotels, and retailers will not change the results. In fact, it is risky because while competitors act, those that do not will face higher quit rates and less engaged employees.
Three Strategies to Attract, Hire, and Retain the Best Frontline Employees
- Invest in Responsible AI and Thoughtful Automation According to the National Restaurant Association’s Restaurant Technology Landscape Report 2024, 64% of restaurant operators consider their use of technology to be mainstream, yet only 13% think their restaurant is on the leading edge compared to peers. Hiring technology can be a great starting point for investment that will enhance or even transform the experience. Given that in this industry, your candidates are often your customers, it is a great way to embrace and lead the way while also increasing speed and efficiency.
- Amplify Worker Voice Constantly seek feedback from your frontline workers, even if it’s hard to hear. Staffing your restaurants, stores, and properties might be step one, but to sustain operations, it is critical to continuously listen and reduce friction so team members are best equipped to deliver on the quality that is most important to guests – happy, friendly, and attentive staff.
- Blend Technology with Human-Centered Design 82% of US and 74% of non-US consumers want more human interaction as technology improves. It’s not that humans are resisting technology; quite the opposite. Rather, there are key moments where a human provides connectivity, empathy, and compassion that only human interaction and kindness can deliver. The human touch fosters warm connections and empathy in recruitment, meaning understanding candidates’ aspirations, anxieties, and motivations. By incorporating one or two key touchpoints in a technology-led recruitment experience, candidates have the chance to feel valued and heard as they make a life-altering decision about joining and staying with a company.
In an industry as dynamic and people-centric as retail, restaurants, hotels, and consumer goods the blend of technology and human interaction is not just beneficial – it’s essential. By investing in responsible AI and automation, amplifying the voices of your frontline workers, and ensuring a human-centered recruitment experience, you can create a more efficient, empathetic, and engaging environment that ultimately leads to achieving business outcomes.
References
- Leisure and hospitality projected to mostly recover pandemic-driven employment losses: The Economics Daily: U.S. Bureau of Labor Statistics
- Understanding America’s Labor Shortage: The Most Impacted Industries | U.S. Chamber of Commerce
- National Restaurant Association’s Restaurant Technology Landscape Report 2024
- Deloitte Serving up a great restaurant customer experience strategy | Deloitte US
- PwC Experience is everything: Here’s how to get it right