GSI Executive Search Blog

Impact of the Great Resignation on Clubs and Hospitality

Research has shown that millions have left the labor force since the pandemic, an event now known as the Great Resignation. It has also shown that the largest industry affected is hospitality, including private clubs and resorts. In those organizations, food and beverage seem to be the areas most affected, but also affected are finance and grounds positions. This dynamic means that the need for an expert executive search firm is greater than ever.

Traditional postings are yielding about the half the responses that they used to see. The initial responses are then dropping off or do not respond again. Many do not show up for interviews, or for the first day of work when hired. Boards and managers simply don’t have the time to always hire effectively in these conditions. A search firm with expertise, experience, and a good network and database can dig much deeper for candidates. Furthermore, more extensive digging and vetting can usually avoid surprises, no-shows, and counter offers. Deeper relationships in the industry can lead to better and more efficient results.

Many employees in the food and beverage industry and in hospitality left their positions during the pandemic due to closures, lay-offs, etc. Some found they could exist on unemployment and federal COVID assistance. Some returned to their positions later, but many stayed away and found other careers. It is well-known that hospitality and food and beverage positions involve long hours, nights and weekends, and holidays, often with low pay and little mentorship for their career paths. The industry is beginning to realize the importance of work-life balance, better compensation, better morale, and mentorship for professional growth. With today’s labor market, these are the important factors in attracting and retaining needed hospitality staff.

These conditions in today’s market have led to the most challenging recruitment landscape for hospitality in history. Professional help is needed now more than ever to recruit new talent and a different management mindset is needed to retain and keep them for the long term.