The hospitality industry is rebounding from the effects of a tight labor market, but challenges remain across our industry. A 2024 survey by the American Hotel and Lodging Association (AHLA) found that more than two-thirds of hoteliers were still experiencing staffing shortages. Such shortages place immense pressure on hotel owners and operators to recruit and retain top talent — all while grappling with the rising costs of labor.
Hospitality executives are deploying different tactics to address this issue, from increasing wages to expanding benefits. A 2024 report by PwC found that 60% of executives in the space have either raised or plan to raise compensation for existing associates. While efforts like these can help to move the needle in the short term, we must also focus on sustained retention. By prioritizing leadership development and career growth, hotel owners and operators can create an environment where associates are motivated to build lasting careers.
Creating opportunities for career growth applies to every level of a company. However, in the hospitality sector, it is particularly important for our general managers (GMs). The role of a GM is multifaceted, putting them in a position to act as a CEO for their individual property. GMs are responsible for a property’s on-site operations and take the lead in building and cultivating culture, which contributes to associate performance and retention. By investing in their growth and advancement, we can empower GMs to lead their teams effectively and create a foundation for long-term success at the property level.
Innovation and Automation
As the hotel’s frontline leader, the GM plays a crucial role in shaping and elevating the guest experience and ensuring each team member has the support they need to deliver exceptional service. As such, the most valuable place they can be is on the hotel floor, interacting with guests and associates.
However, when GMs are overburdened with administrative responsibilities, this aspect of their role can get overlooked, to the detriment of the business. This can limit their ability to address customer needs, support staff, and maintain smooth day-to-day operations. Fortunately, the hospitality industry has more operational technology at its disposal than ever before. According to data from Skift, 86% of hoteliers plan to increase their investment in technology over the next year. And while guest-facing solutions often garner the most attention, back-end software designed to streamline administrative processes can be just as transformative.
By investing in tools that can automate labor-intensive processes, such as hiring staff and building schedules, hotel owners and operators can free up GMs to direct their efforts to the areas where their leadership and engagement can have the greatest impact.
Automating aspects of the hiring process can also streamline and accelerate recruitment. For example, by using applicant tracking systems (ATS) to simplify the process of applying for open positions, companies may be able to boost the volume of applications they receive. In addition, by making it easier to review and rank candidates, ATS can help hiring managers engage and secure top talent before their competitors do.
Once associates are on board, technology can improve their everyday experience. For instance, automating scheduling tools can offer greater autonomy to associates. This puts more power in the hands of associates, giving them the flexibility to design a schedule that aligns with their personal commitments and swap shifts with colleagues while ensuring uninterrupted coverage for the hotel.
Setting the Stage for Success
GMs are at the forefront of workforce retention. Additionally, we know that compensation, opportunities for growth, and job security all factor into associate satisfaction. However, research indicates that — across industries — culture and leadership are central drivers of retention. While technology can remove administrative hurdles, nothing can replace a supportive, hands-on leader. Equipping GMs with the practical skills they need to lead is essential to building and maintaining a healthy workplace culture.
Organizations can set new GMs up for success by designing a robust onboarding process that smooths their transition into the team and company. For example, our GM onboarding process includes extensive engagement with sales and top-line teams. In addition, GMs regularly visit corporate headquarters for training, development, and networking.
When GMs understand their responsibilities in the context of a larger ecosystem — both within our corporate structure and the sector as a whole — they are better positioned to establish close relationships with corporate colleagues. These connections promote stronger alignment with company-wide values and objectives. GMs also gain access to a broader support network, allowing them to resolve issues quickly and tap into additional expertise when needed.
Investing in Associate Development
It’s not just GMs who benefit from regular training. Providing associates at every level of the organization with resources that keep them on the cusp of industry trends is a strategic investment — and one that pays dividends for hoteliers.
Well-trained staff offer a higher quality of service and are better prepared to handle challenges. Creating a culture as a place to grow and succeed also sends the message that an organization is invested in its associates’ futures, contributing to a more positive and productive work environment. Researchers have repeatedly found that employees who have chances to advance and grow are more likely to say they feel valued and stay in their positions for longer.
In LinkedIn’s 2024 Workplace Learning Report, 90% of employers said they considered learning opportunities to be their number one retention strategy. The same study found that 70% of respondents felt learning improved their sense of connection to the workplace, and 80% believed it added purpose to their role.
These data points should inspire all of us to consider the training and development programs we have in place and ensure we are meeting the needs of our people. By designing scaffolded professional development programs that cater to staff at every level of the organization, we create clear paths for associate growth. These programs enable associates to build the skills they need to advance in their roles, fostering a sense of accomplishment and making team members more likely to pursue long-term careers within the company.
An Internal Pipeline
At a time when recruitment continues to be a challenge for our industry, building a strong internal pipeline is crucial. By prioritizing internal promotions and offering comprehensive opportunities for training, hotels can create a built-in pool of talent to draw from — and provide opportunities that keep junior team members motivated and engaged.
Aimbridge aims to recruit 75% of its GMs from within the organization. In support of this goal, we have developed an apprenticeship program to prepare emerging leaders for more senior positions. This approach has strengthened the company’s internal talent base and ensured newly promoted leaders are well-equipped to succeed in their roles.
As organizations continue to invest in associate development efforts, offering structured opportunities for learning has become a key strategy for attracting and retaining talent. According to data from PwC, 64% of hospitality executives have or plan to invest in additional training for their employees. Increasingly, these initiatives are seen as vital both for enhancing performance and improving retention.
Along with providing programming for emerging leaders, hoteliers can boost the retention of GMs by offering mentorship and training to enable them to grow into positions at larger or more complex properties. By guiding qualified internal candidates toward these openings, hotels keep their high-potential associates engaged while continuing to benefit from their evolving skills, leadership, and contributions.
The Power of Listening
When it comes to assessing what their teams want and value, hotel owners and operators have a powerful tool at their disposal: feedback. Listening is a fundamental pillar of associate engagement — and one that is often underestimated. Regularly gathering feedback through internal surveys can provide leaders with insight into the aspects our associates most appreciate about their roles and any hurdles they may be navigating. This is an especially critical line of communication for executives who may not have direct, daily interactions with each property. By providing associates a platform to share their experiences, we remain attuned to local needs on a global scale, ultimately enhancing retention and overall job satisfaction.
Bolstering Workforce Resilience
Between 2019 and 2020, more than 680,000 workers left the hospitality industry. Now our focus needs to be on curating sustainable, scalable systems and strategies that enhance workforce resilience, bolster associate retention and engagement, and foster long-term growth. Through a focus on talent development, we can cultivate a pipeline of skilled professionals who add value to our properties and our broader hospitality ecosystem at every phase of their careers.
This is especially critical within the ranks of senior management. As property-level leaders, GMs shape the associate experience and are pivotal in driving revenue and performance. By giving them the necessary tools, training, and mentorship to lead effectively, we create a ripple effect, strengthening teams and improving service.
Of course, training and development are only part of the puzzle. Companies must also invest in technology and tools that boost productivity and allow associates to do their best work quickly and efficiently. In addition, just as individuals have room for growth, so too do organizations. By regularly soliciting feedback — and actively listening and responding to this input — companies can capitalize on every chance to retain and engage their talent.
Our road ahead is not without obstacles. But when it comes to attracting and nurturing talent, the route is clear. By prioritizing associate advancement, leveraging technology, and cultivating a culture focused on continuous improvement, we are building a strong, empowered workforce ready to navigate the future with confidence.
Reprinted from the Hotel Business Review with permission from www.HotelExecutive.com.
