What can employers do about the tourism sector's persistent recruitment challenges?
Editorial by Christian Saint Cyr
National Director / Canadian Job Development Network
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Several years ago, I was speaking with a group of businesses organized by a chamber of commerce in a prominent tourism community and when asked what employers could do to recruit the workers they need, I told them they need to be the most preferred employer in town.
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I told them that the should be actively recruiting away the staff of their competitors and build the best workforce possible. This is the very playbook of most search firms and they're making billions of dollars doing it.
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Obviously, the organizers didn't like this -- they would have much rather I suggested a magical solution to bring more than enough employees into the community, thus eliminating the need for employers to question things like their hiring practices, support for existing employees, remuneration or the efforts they take to speak to the fundamental needs of their employees.
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Are there things 'the business community' can do to attract more employees? Yes. But if employers want to hire more employees they need to do more to attract loyal employees.
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Skilled workers have options in this job market and aside from being a bastion of minimum wage jobs, the tourism and hospitality sectors have done plenty to scare people off. How many of us have tuned in to eagerly see Gordon Ramsey yell at, berate and belittle employees? Who wouldn't want to do that for $18.25 an hour?
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Hospitality and tourism employers need to shake off these stereotypes. They need to treat people with respect, showcase the unique benefits of the sector, become more inclusive and dare I say, pay people a half-decent wage -- even if it means we're paying $6.50 for a cup of coffee.
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Whatever challenges employers are facing today, they're going to get that much more amplified over the next decade. According to Tourism HR Canada, by 2035, the tourism sector will need 2.3 million more workers just to meet the demand.
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According to the Ontario Tourism Education Corporation (OTEC), this year alone, Ontario will have 723,000 job openings in the tourism sector.
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“Filling that gap with the current state of affairs is just going to be a major challenge," said one representative.
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“Anecdotally, what we're hearing is some operators are just not able to operate. They're not able to offer their full suite of services and accommodations. Some places are just basically not able to operate their business at all, and some have to reduce the scale of the business that they're operating.”
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Currently, Canada is looking at a potential shortfall by 2035 of $10 billion of potential revenue if the industry is unable to continue to grow.
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One way that employers in the tourism sector can fill job openings is simply by offering “more competitive compensation and benefits,” the OTEC notes.
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However, “with the cost of business increasing across the board, not just related to staffing, that is a very challenging situation to address.”
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This situation is not unique to Ontario. Earlier in 2024, Restaurants Canada reported 62 per cent of restaurants were operating at a loss or barely breaking even, compared with 10 per cent pre-pandemic. Last year saw a notable upsurge in closures, with bankruptcies up 44 per cent.
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Restrictions on temporary foreign workers is also having a significant impact on all tourism employers. The updated program restricts workers to one-year contracts, down from the current two and, will also cap workplaces like restaurants and bars to fill 10% of their staff with imported employees, down from 20%.
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Nevertheless, there is a bright spot in all of the data. The percentage of hospitality and tourism employees who said they wanted to leave the sector saw a major drop in 2024.
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This leaves job development professionals with three fundamental questions:
- How can we help employers see the benefit of becoming more inclusive?
- How can we educate job seekers about the career opportunities the tourism and hospitality sectors provide?
- How can we help hospitality employers retain and support their existing workforce?
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As to hiring our clients, my simple statement to employers is: "How is that working for you?"
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Put in a less condescending manner: "I'm hearing you say that you're dealing with a revolving door of employees and as soon as you have someone trained up, they leave for another job. Perhaps if you were to hire someone who needed a little more mentorship and support, they might stay longer and feel more loyal."
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Employers are always pursuing for the 'Goldilocks' candidate. The workers who are ready on day one and don't need much training. Enough experience and education, but not too much.
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These candidates are the first to leave when better opportunities come along.
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This said, employers have to FIND THE TIME to train, support and mentor them. People leave jobs because they don't feel valued and the tourism and hospitality sector has got increasingly worse at this. Employers will say, "I don't have the time," to which I say, "there is no more important job you have -- because you're wasting a tonne of time hiring people."
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As to clients, the tourism and hospitality sector may start with low wages but those wages can rise extremely high for workers who are prepared to work hard, prove themselves, demonstrate loyalty and go above and beyond.
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And while this might seem like a formula for success in most sectors, it's not generally true in public administration, education, health care, professional services, utilities and many highly unionized environments.
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Tourism and hospitality lends itself well to stackable micro-credentials, networking and ongoing professional development. Individuals who pursue higher degrees, can potentially go on to jobs that pay hundreds of thousands of dollars per year.
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Recently the Toronto Marriott Hotel was looking for a General Manager and the salary was $325,000 to $428,000 per year based on experience and qualifications.
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You may be wondering why I'm even suggesting you need to help employers address employee turnover. Afterall you're in the employment game and more turnover means more job opportunities.
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Assisting with issues that don't directly create employment are how we gain credibility with employers. It's how we can build trust and become a valued community resource.
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This is how we can demonstrate our expertise within the local chamber, board of trade or business improvement association.
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To assist employers in this area, we need to share new and emerging information about progressive employment practices. Perhaps employers can't pay top-tier wages, but they can do flexible schedules, after-hours car pooling, time for personal issues such as parenting and staff development.
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An employee who feels their career and their career ambitions are being supported by their employer are unlikely to leave simply because a slightly higher wage is offered.
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Simply put, employers need to cultivate a reputation as an employer of preference. They should constantly be scouting their competition for the best employees and their current employees should be their best brand ambassadors.
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We’ll be discussing the challenges the tourism sector faces and what can be done about them at our #MotivatingMondays meeting of the Canadian Job Development Network, Monday Jan. 20th at 8:30am Pacific; 9:30am Mountain; 10:30am Central; 11:30am Eastern; 12:30pm Atlantic and at 1pm in Newfoundland.
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On the morning of Monday January 20th, 'Click this Link' to join the session LIVE.
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