While there is understandably a great deal of discussion and debate amongst hoteliers about how the political transition in the United States will affect the industry going forward, it might be a refreshing change of pace to take a step back and consider the future of the industry from another perspective: the changing demographic landscape of America, the influence of new generations of young talent and the growing diversity that is already beginning to manifest itself across the industry.
Approximately one-third (more than 50 million) of today’s workforce is made up of millennials. Millennials will comprise about half of the workforce by 2020, and those numbers are expected to continue to grow. By 2025, millennials could make up a full 75% of the workforce. For the hotel industry, this is even more relevant, as younger millennials (those between the ages of 18 and 24) predominantly work in service industries, including hospitality.
Between an infusion of young talent with millennials and the forthcoming Generation Z, an industrywide glass ceiling that is already riddled with cracks and is on the verge of shattering, and a diverse group of young leaders whose talents are already percolating up to levels of management, these are exciting times for an industry that—for all of its admirable qualities—has been slow at times when it comes to embracing change and diversity.
The hotel industry is currently in the midst of a generational shift that is already being felt in everything from changing company cultures, to the enthusiastic embrace of new technologies, perspectives and marketing platforms. From property management systems and guest-friendly tech conveniences to social media engagement, the impact of fresh perspectives and new ideas is significant. That influence will only become more pronounced as these innovative and inspired young professionals move up the ranks in the industry. A decade from now, the hotel industry will look very different—and that’s a good thing!
My own anecdotal experiences inside and outside of my organization are evidence of this. At least 80% of the students in the hospitality graduate program that I teach are women. I am inspired by the influx of young talent I engage with on a regular basis. It’s safe to say that the industry’s glass ceiling will soon be a thing of the past. Growing racial, ethnic and cultural diversity is another area where the industry is making enormous strides. Leadership positions will soon be occupied by a more diverse group of talented professionals—mirroring the larger national marketplace.
The American Hotel & Lodging Association has been proactive about tackling diversity issues within the industry and are working to advocate for and implement effective solutions to improve diversity. The industry is starting to understand—and respond to—the value of diversity. Individual companies are doing their part as well.
While many have a long way to go, visionary companies are working hard to attract and retain the best and brightest young professionals from all backgrounds and walks of life. It is also of concern to make sure that they are elevating deserving women into positions of leadership. It is incumbent upon hotel owners and operators to continue working to ensure equal opportunity for all, and to keep reaching out to qualified women and minority candidates.
The influence and impact of young professionals has not gone unnoticed in trade publications and professional organizations. Some of the most popular and profitable media outlets and publications are making a point to incorporate coverage focused on the priorities and perspectives of younger professionals. Several have begun formally recognizing and rewarding up-and-coming young talent with awards or special recognition. One of the things I’m most excited about is that a couple of our own team members here were recently recognized with awards that affirmed their status as emerging leaders in the industry.
It isn’t just the media, either. The hotel industry in general has done a great job in appealing to millennials. This enormously influential group is already the best represented demographic in the American workforce, and understanding their preferences and priorities are critical. Millennials tend to be socially conscious, embrace environmentally friendly policies and practices, and value companies that take their role as an important member of the surrounding community seriously. They want to think of their work as a cause, not just a job. In fact, 84% of millennials in the workforce say that “making a difference in the world” is more important to them than professional recognition.
Millennials have high expectations¬—both of themselves and of their employer—particularly with respect to benefits, schedule flexibility, work-life balance and quality-of-life issues. About 80% of millennials said that recreation and free time is “very important,” a number that is a noticeable increase from the 65% of baby boomers who make the same claim. Millennials will commit, and can be fiercely loyal, but they also want to know that they will have opportunities ahead if they work hard and perform well. They are highly motivated, embrace leadership opportunities and value feedback and engagement with management.
However, they also tend to be less patient with respect to advancement, and they expect to be rewarded for great work. Consider the implications of two studies, one by PricewaterhouseCoopers that found that more than 50% of millennials claim to specifically be attracted to employers who provide opportunities for career progression, and another by Deloitte that reports that 44% of millennials would leave their job in the next two years if the right opportunity arose.
Millennials also understand the value of education, and hotel owners and operators should make sure their staff has access to continuing education and certification programs. Decision-makers who are serious about cultivating millennial talent should also be proactive about establishing a welcoming professional culture, and promoting an atmosphere of teamwork and collaboration within the organization. They should also work to articulate clearly delineated career paths, and to assure young employees—particularly promising leadership candidates—that their career advancement is limited only by their talent, ambition and capacity for hard work.
An established pipeline to elevate promising young employees to positions of leadership down the road is an investment that can pay handsome dividends both today and well into the future. Part of that process is giving young employees plenty of opportunities to grow and contribute beyond their niche. Millennials want the freedom to innovate and the opportunity to spread their wings.
Promoting diversity and embracing millennial/Generation Z talent takes introspection, commitment and long-term planning. The marketplace is changing, and the workforce is changing with it. With that, leadership—within the industry and within individual organizations—will be changing, too.
As for today’s industry leaders, we need to continue to evaluate our own companies, reaffirm our commitment to the communities and serve the employees that we rely on. Part of that is making sure that we are not just talking the talk, but are serious about giving meaningful opportunities to future leaders. This means adjusting our messaging, practices and priorities to appeal to a younger and more diverse talent pool. Those who can do so successfully will not just attract, but retain promising young talent and establish a level of innovation, professionalism and continuity that can contribute to sustained long-term success.
These are often small, incremental changes: evolution rather than revolution. Sometimes it’s two steps forward and one step back. But, the cumulative impact of those changes over time can be profound—and can have a lasting positive impact on a dynamic and increasingly diverse industry.
Robert Habeeb is president and CEO of First Hospitality Group, Inc., a national, experienced, and established hospitality management and development company serving the investment and real estate industries. Since 1985, FHG has been an award-winning pioneer in the hospitality industry. FHG has successfully developed, marketed and managed more than 16 brands and 50 properties throughout the Midwest. Visit www.fhginc.com.
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