The economy. I've talked to many people about the economy over the past two years and its impact on the hospitality industry in Western Canada. When we have a downturn in the economy and continued instability, there are two emotions driving our actions and that of business in the hotel, restaurant, and tourism industry; greed and fear.
Whether you're an unemployed bellman or a over-worked restaurant Area Manager, fear and greed are constantly directing your work (or lack thereof),directly or indirectly.
Take restaurants for instance - they have been slowly seeing an initial market recovery in their bottom line. In most cases, their recovery has been spurred by lay-offs and wage and benefits cuts. Although many are in a financial position to hire needed employees, greed and and fear prevent them from hiring some new employees. Saving money is great in an unstable economy and the fear that they may have to lay people off again is just too painful.
As Joni Thomas Doolin, CEO of People Report, has pointed out, "we are essentially terrified of making hiring mistakes, because the consequences have been so raw and visible. So we procrastinate".
While hiring managers are procrastinating, the skilled and unemployed hospitality workers are also terrified - terrified to be facing a pending cut in unemployment insurance and long-term career holds. Recruiters, myself included, will tell you that a fear and greed mentality has doubled and tripled hiring cycle times of what they have been in the not too distant past - and the job markets feel like wading through molasses.
According to Joni Thomas Doolin, "any hiring manager worth their salt is going to make more mistakes in the years ahead - the trick is the overall batting average - not perfect seasons from now on. More truth, this is a very fragile economy, with stops and starts, and progress and reversals, and it doesn't show any sign of changing soon. So it is possible that we will work in companies where there will be more restructuring, reorganization and yes- job loss."
We're in the midst of a massive change in the workplace while trying to recruit the right workers, in the right place, at the right time. But the perfect time doesn't exist in such a volatile economy. "As we all know in the interim, our existing workers are fried, doing more with less, less engaged and have their eyes on the door. No one needs another survey to get that" says Joni Thomas Doolin.
Accelerating the job market recovery will have to start the same place that market recoveries start - in our heads. Companies, employees and potential employees have to work through the fear and greed that dominates the current economy and affects our ability to be hospitable hospitality leaders. It doesn't have to be grandiose - or foolish - just a willingness to recognize that the road back to prosperity includes making targeted investments in talent.
I think the use of the word "greed" is inaccurate. Survival would be more appropriate.
ReplyDeleteAs a small business operator, this economy stimulates my fear that I will not survive. Greed has nothing to do with it!!
A depressed economy stimulates fear, a fear of loosing ones lively hood, loosing a business, loosing house, home and family, loosing valuable staff. The list goes on.
Greed is part of our everyday business world, it matters not what the economy is like. Shareholders and large private ownerships are driven by greed at all times, good or bad.
Hiring policies in recent years have tended to be based on salary requirements and the ability of the company to find employees that are in essence drones. It should be no surprise that finding the "right" worker is difficult.
The fundemantal issues are much deeper and involve more than what has been written in this article.