As of this writing, we have surpassed 12 months of a ravaging pandemic that changed our industry in ways even the most prophetic of prognosticators could predict.

Brands, operators, owners and their asset managers developed and implemented contingency plans, seemingly overnight, to survive what we thought might last until summer — Labor Day, at worst. As demand returned, we thought we would methodically bring back services and amenities to support our guests (and rates, alike!) We modeled strategic triggers — occupancy or other demand-driven indicators — that would signal the optimal time to bring back specific services, along with our employees who delivered them. It was simple: A few weeks before our forecast indicated we ramp up to the point of bringing back these programs and amenities, we would let our furloughed employees know and they would be ready to join us back at the hotel. It would be easy … surely the workforce has been eagerly awaiting the opportunity to dive back into hospitality.

The reality? A year later, and as our guests (and triggers) are rapidly approaching, our employees are not. Although operators have remained in touch with their employees as best they could, the industry is facing a substantial labor shortage. As you may likely agree, there a few obvious reasons that come to mind as to why employees are hard to come by: Homeschooling has made it impossible for hospitality workers to return to the office (no remote working here!); the risk of transmitting COVID-19 still exists for the near term; and, unemployment benefits have been extended making the decision to come back to work even more challenging. What is most concerning of all is that many employees have been forced to leave the hospitality industry completely.

Focusing on the near term, owners should ask their operators the following key questions:

• Are we forecasting increased costs to obtain new talent in tight labor markets and how do we offset these increases?

• What operational changes are being used to improve efficiency — have we increased PAR (per available room) levels, employed “team cleaning” practices or made additional changes to program and/or amenity levels to reflect current market conditions?

• How is the operator leveraging corporate size, scale and relationships to negotiate with contract labor companies?

• In a competitive labor market, how are you ensuring short-term wage increases don’t impact long-term profitability?

• What steps are being taken to keep the employees we already have? (e.g. what changes to the program need to be implemented in a post-COVID-19 environment?)

• Are there ways to provide additional flexibility to our team?

• Are we planning for lower retention rates as properties re-open and how does that factor into the plan?

• Has the timeline for approaching employees to ensure desired staffing levels changed as a result of the labor market and how have we adjusted our recruiting efforts?

• With what frequency are furloughed employees being contacted and what is the messaging?

• What steps are being taken to ensure employees return?

• What task force resources are available for my hotel and at what cost?

• Are there hourly employees at sister properties in need of part-time work or additional shifts?

• Is there an opportunity for regional or other corporate employees to work from my hotel and provide more traditional management support?

• What is the most cost-effective way to ensure adequate support now and as business returns?

• What non-traditional avenues are being explored to find new talent?

• As we rebuild, can we do so with an eye toward diversity and what specific goals are in place across all levels of the organization?

• What is the message being telegraphed to prospective employees to make my hotel more attractive than others?

• Is there an opportunity to host a job fair at my hotel?

• Are there properties that will be closing permanently? If so, how are we targeting those employees for recruitment?

• Are new hotel openings being monitored that might further deplete labor resources?

• What negotiations/concessions are being made by the union? If union hotels are offering new concessions or flexibilities to their employees, are we offering the same to our team members?

The hospitality industry is at an inflection point regarding labor, and if we are being truthful, the industry has been approaching this precipice for some time. To get to the other side more resilient than we started, we need to rethink how we attract and develop talent and structure compensation packages. We need to be more strategic in applying our resources — whether it be through targeting part-time workers or those from the gig economy, by offering overtime as a strategy when there is a labor shortage or by customizing packages based on what the specific employee needs. Strong mentors are required from our operating partners to attract new talent to the industry, nurture their ability and provide opportunities for career growth and professional development. Opportunistic hoteliers will emerge, having acquired and retained top talent with a streamlined operation. As a result, their assets will achieve superior returns by providing a better experience to their guests.

Sean Kreiman is a vice president and asset manager at CHMWarnick, provider of hotel asset management and owner advisory services. The company asset manages more than 70 hotels comprising approximately 29,000 rooms valued at roughly $15 billion and advises on development projects valued at over $2 billion.

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