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A 40-year high inflation rate is driving up costs around the United States.1 Just like hotel companies, employees are dealing with high prices in their personal lives.
In addition to increased costs inside and outside of work, hotel employees are also dealing with difficult work conditions brought on by COVID-19 and supply chain shortages. This combination of stressors is putting pressure on employers and employees, and has the potential to impact guests.
Considering hotel employees play a crucial part in delivering great customer service, businesses should consider new methods to support and retain their employees through these challenging times.
A popular option throughout many industries is salary increases. However, it appears that salary increases alone may not be enough to fully support employees and fill vacant positions.2 Instead, hotels should consider improving their benefit offerings as well. Additional benefits and support can show your employees that you care about their wellbeing. This extra support may also improve both current employee morale and lead to better hiring rates.
A Cost-Effective Way to Retain and Attract Employees
According to a survey by the UK’s Meeting Industry Association, 90% of hospitality venues reported increased operational costs, with over half indicating substantial increases.3
As hotels deal with higher operational costs across energy and supplies4, some may have a difficult time taking on additional investments to support their employees. Instead, they can find strategic ways to show their staff they are valued and increase employee satisfaction.
A benefit such as on-demand pay may prove to be a cost-effective solution. Hotel and hospitality businesses can turn to on-demand pay to improve employee retention5, which may help prepare them to meet a potential increase in travel rates in 2022.6 According to a 2021 Mercator Advisory Group report sponsored by DailyPay, on-demand pay reduces employee turnover by up to 73%.<sup7This higher retention rates likely mean your employees are more satisfied with their jobs and will ideally lead to improved customer service and happier guests.8
To learn how DailyPay may help hotels and hospitality companies, book a demo today.
This post is part of a larger series, so check back soon for more insights into Travel and Hospitality.
All information herein is for educational purposes only and should not be relied upon for any other use. The information herein does not constitute the rendering of financial business, accounting, securities, tax, legal advice, or other professional advice by DailyPay. No fiduciary obligation or duty exists or is created, between you and DailyPay. DailyPay does not warrant the completeness or accuracy of any information provided to you.
1 https://www.nbcnews.com/business/consumer/inflation-march-2022-hits-record-high-data-stats-details-rcna23654:DailyPay, 2020
2 https://www.cnbc.com/2021/09/01/raising-wages-isnt-enough-to-attract-and-keep-workers-experts-say-.html:DailyPay, 2020
3 https://skift.com/2021/11/17/global-hotel-rates-could-be-4-times-inflation-in-2022-new-report/:DailyPay, 2020
4 https://skift.com/2021/11/17/global-hotel-rates-could-be-4-times-inflation-in-2022-new-report/:DailyPay, 2020
5 https://www.benefitspro.com/2022/03/28/why-on-demand-pay-is-the-employee-retention-benefit-you-need-in-2022/?slreturn=20220424093408:DailyPay, 2020
6 https://www.allianzworldwidepartners.com/usa/media-center/press-releases/SUMMER-TRAVEL-UP-FOR-2022.html:DailyPay, 2020
7 https://www.dailypay.com/mercator-report-2021/:DailyPay, 2020
8 https://work.chron.com/employee-retention-satisfaction-1307.html:DailyPay, 2020
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