Why the future workforce may require more gig workers and regional meetings
All those workers who disappeared from event services, housekeeping and meeting staffs over the last three years are not at home watching soap operas according to author and speaker Eric Termuende. In fact, Covid isn’t the be-all reason for the lack of responses to hospitality help-wanted ads. “It was a catalyst, and it caused the shift to happen faster,” he said.
The full answer is complicated. The workforce has indeed shrunk. People are retiring at twice the rate as before due to the demographics of the workforce. We are producing fewer new workers and immigration has slowed down.
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The pandemic also sped up technology development. The number of businesses created over the pandemic is about four or five times what it was prior to the pandemic. The people who have left our teams are often building businesses online. “They aren’t just opening an Etsy store. They are creating something brand new with technology that didn’t exist five years before,” Termuende said.
It is also worth mentioning that the generation retiring has more money than ever before and they are passing a lot of that down, enabling younger generations to work less. “It is no secret that interest rates are high, cost of living is high, healthcare and childcare is expensive. So, a lot of people—particularly women—are staying home to take care of their families.
Attracting Elusive Hospitality Workers
The unemployment rate is lower than it has been since 1969, which was when the labor market was half the size it is today.
One trend Termuende predicts is that full-time employees will start falling off drastically and contractors and freelancers will be hired more frequently. “Contractors will be very good at the niche skill set they do and you only pay for exactly what you need when you need it and when you aren’t putting on the event that requires that skill set, you aren’t paying for someone to ride the bench,” he explained.
There are challenges that come on both sides, he acknowledged, but as accounting gets automated and referral networks grow, more people could make a living as skilled contractors.
Some hospitality companies looking for full-time employees are offering signing bonuses and benefits. “Perks and benefits attract talent, but culture is what keeps them,” said Termuende. He pointed to a study that showed as much as 80% of people who left during the pandemic kind of want their old job back. “That tells me that they love those signing bonuses, but now they miss the community,” he said of these boomerang employees.
Read More: Marriott Plans to Win War for Talent by Emphasizing Culture
The cautionary point is to invest in the people you already have and give them the tools and stories to tell their network to attract like-minded people.
More Event Demand in Forecast
Termuende advised against just waiting for the supply-demand balance to change. Most of these shifts are long-term. The layoffs in the tech industry have dominated the headlines, but the sensational stories don’t mention that those same companies grew 30% or more over the last three years. Even if they laid off 15% of their employees, that is still up from where they were in 2019. “The hiring just doesn’t make headlines,” he quipped.
Meanwhile, the events business is booming and he predicted demand will only increase, particularly for smaller meetings.
Because only 50% of people are back in the office full-time, companies are realizing that camaraderie, connection and community are just as important, if not more important than in the past. “I think we will see more smaller, regional meetings that bring people together beyond learning and development. They will have fun elements, maybe not axe-throwing, but laughing and coming together. While there might be some fear for the huge conventions, I am optimistic about the smaller, 150- or 200-person events. We will see more of that in the years to come,” he predicted.
Love What You Do
Termuende advocates for adopting a servant mindset and aligning with others who do the same. That will lead to more joy at work. Then, just because there is a talent shortage across the country, that doesn’t mean there will be a talent shortage at your company.
“Work can be something we get to do instead of something we have to do. I am really optimistic about the future of work and really optimistic about our meetings industry,” he said.
