By Jennifer Hill, Vice President of Commercial Strategy, Kalibri Labs, HSMAI Americas Revenue Optimization Advisory Board Member
Needless to say, we've seen a lot of changes in recent years, mainly due to the expansion of AI tools and the strong generational shift.
The global hotel market is expected to reach $5,816.66 billion by 2027, growing at a compound annual growth rate (CAGR) of 5.51% in 2023. This indicates a robust and expanding industry, which may be attractive to professionals considering a career in hotel sales, revenue, and marketing. Why does it seem so difficult?
HSMAI's Revenue Optimization Advisory Council provides insight into how this issue challenges our industry in terms of talent identification, recruitment, and retention.
Here are the five conclusions:
- Adequate compensation
A key obstacle to attracting top talent is offering competitive compensation. We struggle to compare salaries effectively, given the delicate balance between profitability and attractive salaries. Tools such as salary surveys, salary transparency laws, and internal adjustments based on exit interviews are increasingly being used. Furthermore, a worrying trend has emerged: talented individuals are leaving hospitality for sectors such as banking, attracted by better pay and more sociable schedules. This shift requires a reevaluation of compensation strategies in our industry. - Professional development and employee engagement
Professional development opportunities are essential not only for attracting but also for retaining talent. Innovative programs such as the JI for H1B initiative and HSMAI certifications are having a significant impact.
By investing in comprehensive development plans and creating cross-functional teams, hotels not only improve their skills but also promote loyalty and reduce turnover. This holistic approach to employee engagement is proving essential for creating a strong and healthy workforce. - Commercialize the discipline
Attracting talent for revenue optimization roles requires a creative marketing approach. Emphasizing the dynamic and multifaceted nature of the hospitality industry can make these roles more attractive. The focus should be on the industry's excitement and diversity, showcasing opportunities beyond traditional service roles. - Retention strategies and performance incentives
Retention is just as crucial as recruitment. Performance-based incentives, while effective, pose challenges, especially when they create significant salary discrepancies from year to year. Flexibility in work arrangements and recognition of the impact of economic conditions on salary expectations are emerging as key factors in retaining talent. This adaptability, combined with a variety of experiences in different roles, can help maintain employee interest and engagement. - The role of leadership in talent development
Effective leadership is essential to supporting and driving employee engagement and retention. Developing management skills that focus on nurturing talent, promoting a positive work environment, and recognizing individual contributions can have a significant impact on employee satisfaction and loyalty.