Whether voluntarily or legally obligated, hospitality employers have made record-setting pay rate increases in 2023. However, many companies are still struggling to attract talent due to a low unemployment rate. When employers compete for talent in a small talent pool, they need more than increased pay to gain the upper hand.
These conditions will produce an explosion of lucrative benefits for employees in 2024. The following are the most competitive benefits that we will see hospitality employers offering this year:
- Performance Based Bonuses
- Hyper-Flexible Scheduling
- Financial Health
- Paid Family Leave
- Expanded Medication Coverage
- Growth Opportunities
Performance Based Bonuses
The sign-on and retention bonuses that were desperately offered during the pandemic have proven ineffective in keeping staff levels elevated. Bonuses tied to positive performance have proven more effective in motivating and retaining workers. Employers must find ways to reward specific successes, individually and company-wide, to incentivize staff. Companies with existing performance bonuses for management should also consider expanding them to hourly positions.
Hyper-Flexible Scheduling
While working from home is a tough perk to provide in hospitality, employers can still find ways to offer increased flexibility to employee schedules. More paid time off or giving employees more say in their schedules is a great start. Floating holidays can help accommodate diverse backgrounds by allowing employees to observe holidays most relevant to them. Some companies also offer four-day workweeks as an option to employees who prefer a condensed schedule.
Financial Health
Hospitality workers are the least likely in any industry to have access to a retirement plan at work, and they are also the least likely to have confidence in their ability to retire comfortably. Hospitality companies must provide financial peace of mind with access to retirement plans like 401(k)’s. They also need to give them the confidence to participate in these programs by offering financial planning services and access to educational resources.
Paid Family Leave
Over 120 countries have laws that ensure paid leave for new parents, yet the US is not one of them. American workers are very aware of this and are looking for employers who will proactively step up to the plate. Since over 60% of married households rely on dual incomes, paid parental leave to new parents is highly effective in retaining many workers in their twenties and thirties.
Expanded Medication Coverage
Studies now show that many seemingly non-essential medications are vital to a healthy workforce. This is evident with recent weight loss drugs like Ozempic, which nearly double the number of employers plan to cover in 2024. Employees are also finding more value in FSA Healthcare plans, which can be used for far-ranging types of medications and treatments at employees’ discretion.
Growth Opportunities
After the mass layoffs during COVID-19, workers are looking for their next opportunity to come with greater possibilities of job stability. Competitive hospitality employers are acknowledging this and providing professional development programs that can give entry-level workers a path to a career in hospitality. These programs also benefit employers by creating a more engaged and skilled workforce.
Get More Insights from Hospitality Recruitment Experts
Want even more insights into attracting hospitality talent?
Request your copy of the NEW 2024 Hospitality Compensation and Benefits Guide for industry trends, legal updates, employment trends, and detailed salary ranges for hotels, restaurants, and private clubs.
Attracting workers to your hotel, restaurant, private club, or other hospitality business requires time, energy, and expertise. Our hospitality recruitment team has over twenty-five years of experience in finding top management talent for hospitality companies nationwide. Through this experience, we can provide a consultative approach to building a full talent acquisition strategy. Contact us to learn more!
