PHOENIX — Labor has been a lingering issue in the hospitality industry, whether it's attracting new employees, retaining existing ones or dealing with continued wage inflation. Add nationwide labor strikes to the mix, and it's an issue that's rising to the top of things keeping hoteliers up at night.
During the "A View from the Top" session at The Lodging Conference, hotel executives discussed how they've focused their efforts to recruit new employees and retain existing ones.
G6 Hospitality President and CEO Julie Arrowsmith said owners have become increasingly savvy at ensuring fair wages and adding incentives in place to attract workers. G6 Hospitality has done leadership training and development to emphasize talent retention.
"It's something that just has to be very embedded culturally, and we do a lot to make sure that we're out there visiting our owners. Not just for their grand openings, but on a day-to-day front and really connecting with them and listening to what they're dealing with, making sure that we have the best-in-class training materials so that it's super easy for them to onboard and keep the team members up to speed on any kind of notable or latest hot topics," she said.
Arash Azarbarzin, principal and CEO at Highgate, said given the job reports and unemployment rates, it's been one of the toughest job markets to find the right talent. Just to get to an even playing field with the industry, wages and benefits need to be competitive upfront.
"We have learned that we have to walk the walk, and we have to talk the talk. We have to set the right example," he said. "For us, one of the biggest areas why we retain and keep our talent more than the industry and our turnover is the lowest in the industry, is because we provide opportunities to growth, through mentorship, through education, through cross-training, through the ability to go into other parts of the world and see the world."
Azarbarzin said maintaining a culture that promotes a line of communication at the top helps in turn with service, profitability and growth on the property level.
He said he knows each of his general managers personally, and they can reach out to him anytime. He visits 70 to 80 properties a year to touch base.
"It's not about going and sending emails and conference calls. You've got to go out there and touch the people. You got to go out there and show that you care. Once your people are in place, the rest will fall in," he said.
Geoff Ballotti, president and CEO of Wyndham Hotels & Resorts, said leaders need to do a better job of attracting students with interest in the hospitality business to continue pursuing employment in the industry.
"Everybody in this room would admit that ... we all have a responsibility to do a way better job attracting leaders," he said. "We need to do a better job attracting [students], and we need everybody's help in this room to help focus."
The hotel industry also needs to focus more on employee retention, BRE Hotels & Resorts President and CEO Joe Berger said. It becomes difficult to keep up with competing properties if there's constant staff turnover.
"So much of it ... is beginning your career with the right amount of training, the right amount of support, the right amount of feeling this is where I belong, and that takes a lot of intention and it takes a lot of effort, and I don't think it gets enough attention in our business," he said.
Sonesta International Hotels President and CEO John Murray agreed with Berger's point on retention, adding that artificial intelligence and technology can play a role in increasing it.
"We talk at Sonesta about being people people, and the training is critical to make sure that everybody feels that they're qualified for the job," he said. "You can use AI and technology in a lot of ways to enhance associate experience, make it easier for employees to do their jobs so there's more job satisfaction."