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Impact of the Great Resignation on the Hospitality Industry

The Great Resignation is changing the workplace in many industries. However, no industry has been more impacted than the hospitality industry. While it is likely that the industry will find stability eventually, in the near future, many hospitality companies find themselves with a pressing need for staffing services.

Here’s how the Great Resignation has impacted the hospitality industry, and how Xclusive Services is prepared to help your business remain profitable despite these challenges.

Loss of Talent

The hospitality industry always experiences relatively high levels of turnover. Many people enter the industry, then quickly find they can’t handle the demands of their position. Others might work for a year or two until they find something else.

In the Great Resignation, many of those resigning from the hospitality industry are relatively seasoned veterans. Those with five or more years of experience in the hospitality industry are commonly resigning, and the rate of resignation is highest overall among people in the 35-40 age group – people who are traditionally the most stable workers in the labor pool.

Experienced workers are much harder to replace than new hires. With the overall supply of these workers in the industry diminishing, it’s not even possible for businesses to make up their own shortfall by “poaching” workers from other businesses in the area.

Increase in Competition

new restaurants creating staffing issues in the hospitality industry

***These are our own 3D generic designs. They do not infringe on any copyrighted designs.***

Although many people in the hospitality industry who resigned are retraining to leave the industry entirely, many others are taking their experience and going into business for themselves. This means that there are more hospitality businesses for your company to compete against, and some of them are run by your best former workers.

This is more of a problem for restaurants than hotels, but it is not inconsiderable for hotels, especially when coupled with the ongoing rise of Airbnb and other online house rental services.

Greater Demands

In part because of the Great Resignation, hospitality workers feel that they have more power to ask for concessions from their employers. This is partly about higher salary, but it’s more than that. Hospitality workers want more benefits, more control, more respect, and more ability to balance their home and work lives. This can make it even harder to staff shifts overnight and on the weekends.

At the same time, consumers returning to travel are making more demands of your hotel or restaurant. They have higher cleaning standards and may want additional services. This can add more challenge to maintaining adequate staff levels to keep customers satisfied.

How Xclusive Services Can Help

At Xclusive Services, we are ready to help your hospitality business overcome the challenges of the Great Resignation so that you can prosper. Lifting our people up has always been part of our Xclusive Excellence™ Approach, and it has helped buffer us against the Great Resignation. Our people know they are valued, and this keeps them committed to their work for your business.

In addition, Xclusive can supply workers at any experience level. Whether you need to fill entry-level positions, experienced managers, or even entire teams, we are prepared to help. With our Xclusive Excellence™ promise, we will:

We know that you might experience an urgent need for staffing in these difficult times, so we’re prepared to provide personnel quickly, often within hours. However, we never sacrifice quality for speed. When you get workers from Xclusive, you know they will be good employees. Plus, you can have confidence that we will handle all legal compliance for our personnel. This is never a worry for you. Finally, if you do have problems, our managers are available 24/7 to solve your problems ASAP, including providing additional or replacement workers.

Want to learn how Xclusive can help your hospitality business? Please call a nearby location for an urgent need or use our online form to request a quote.

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