The hospitality industry in both Canada and the USA has been undergoing significant shifts in recent years, and 2024 is no exception. With the combined impact of economic challenges, changing labor dynamics, and the aftermath of the COVID-19 pandemic, hiring conditions in hospitality are evolving rapidly. As businesses adapt to new demands, both regions are seeing shifts in recruitment practices, employee expectations, and workplace culture.

In this article, we’ll explore the most recent hiring trends and conditions within the hospitality industry across Canada and the USA, highlighting key insights, challenges, and opportunities that businesses and workers alike need to be aware of in 2024.

1. Labor Shortages and Staff Retention Challenges

The hospitality industry, long reliant on a transient workforce, has faced a severe shortage of workers, especially in front-line roles such as servers, housekeepers, and chefs. This issue, which began during the COVID-19 pandemic, persists into 2024, with many businesses struggling to attract and retain talent.

Key Factors Driving Labor Shortages:

• Post-Pandemic Shifts in Worker Priorities: Many workers have reevaluated their careers and work-life balance post-pandemic, leading to a shift away from traditional hospitality jobs. Many employees in the USA and Canada are seeking more flexible work options, remote work opportunities, or higher-paying, lower-stress jobs.
• Aging Workforce and Generational Gaps: In both countries, an aging workforce combined with fewer younger workers entering the industry is contributing to the staffing shortage. This has led employers to rethink their recruitment strategies and focus on retaining experienced staff while also attracting younger talent.

Strategies to Address Labor Shortages:

• Increased Wages and Benefits: To combat these shortages, many businesses are offering higher starting wages and enhanced benefits packages. In Canada, there has been a rise in the adoption of union agreements in certain provinces, which has resulted in wage increases and improved working conditions.
• Employee Development Programs: Offering career development opportunities, mentorship programs, and pathways for advancement has become a key strategy for retaining staff.
• Emphasis on Work-Life Balance: Flexible hours, better scheduling practices, and remote work for certain administrative roles are becoming more common.

2. The Rise of Technology and Automation

Another significant trend in hiring within the hospitality industry is the increasing reliance on technology and automation. From self-check-in kiosks in hotels to AI-powered customer service bots in restaurants, technology is reshaping how businesses operate and interact with customers.

Impact on Hiring:

• Demand for Tech-Savvy Employees: As the hospitality industry adopts more advanced technology, employers are increasingly looking for workers with technical expertise. Roles in IT support, digital marketing, and social media management are in higher demand, as are positions related to managing automated systems and customer-facing technology.
• Automation’s Impact on Job Roles: While automation may reduce the need for certain manual labor (e.g., front desk agents or cashiers), it creates new opportunities in tech and maintenance fields. For example, robotic kitchen assistants and automated housekeeping solutions have emerged in high-end hotels, leading to demand for workers skilled in tech support and equipment maintenance.

Tech Integration in Recruitment:

• AI-Powered Hiring Tools: Many hospitality companies are embracing AI-driven recruitment tools to streamline their hiring process. These tools are being used to screen resumes, conduct initial candidate assessments, and even facilitate virtual interviews, reducing hiring time and improving candidate experience.
• Online Training Platforms: With the rise of technology in the hospitality sector, many companies are offering virtual training programs for employees to quickly acquire tech skills and certifications. These programs are especially popular for positions that require knowledge of new software systems or customer service platforms.

3. Diversity, Equity, and Inclusion (DEI) Initiatives

In both Canada and the USA, there is increasing attention being paid to diversity, equity, and inclusion (DEI) in the workplace. Hospitality is an inherently diverse sector, and attracting and retaining a diverse workforce is crucial for the success of many businesses.

NOTE: At TWG, we still believe this is not the answer, and unleashes a lot of hidden negativity on organizations. See that post HERE.

Key DEI Trends:

• Hiring for Diversity: There is a growing focus on ensuring that recruitment processes are inclusive and that companies are attracting a wide variety of candidates. Employers are actively seeking to increase diversity within their teams, from hiring more women in leadership positions to recruiting underrepresented groups in various roles.
• Inclusive Hiring Practices: More hospitality companies are implementing blind recruitment processes, where personal details such as names and demographic information are excluded from initial hiring decisions, ensuring that candidates are evaluated based on merit.
• Training and Education: Companies are investing in DEI training programs to help staff members understand cultural differences, prevent discrimination, and create a more inclusive environment for both employees and guests.

4. The Gig Economy and Flexible Staffing Models

In both the USA and Canada, gig work continues to rise in popularity within the hospitality industry, particularly in cities with thriving tourism and entertainment sectors. The gig economy offers workers the ability to work on-demand, often through mobile apps, which provides flexibility for both employees and employers.

Gig Economy in Hospitality:

• Short-Term and Part-Time Roles: Restaurants, hotels, and event venues are increasingly turning to part-time and gig workers to fill shifts. This model allows businesses to maintain flexibility during peak seasons or busy hours.
• Platforms and Staffing Agencies: Companies are increasingly using online platforms and staffing agencies that specialize in temporary and on-demand workers. These platforms offer employers access to a pool of qualified candidates who can be brought in as needed, streamlining the hiring process for short-term needs.

Challenges of Gig Work:

• Lack of Job Security: Many gig workers in the hospitality industry face a lack of stability and benefits, such as health insurance and retirement savings. As a result, companies that rely heavily on gig workers are under pressure to offer more robust benefits to attract and retain talent.
• Regulation and Legal Issues: The gig economy faces increasing scrutiny and regulation, particularly in the USA, where states like California have passed laws requiring gig workers to be classified as employees rather than independent contractors. These regulations could have a significant impact on hiring practices and compensation structures.

5. Sustainability and Green Jobs in Hospitality

Sustainability is no longer just a buzzword in the hospitality industry—it’s becoming a central focus for many employers and consumers alike. As travelers demand more eco-friendly options, hotels, resorts, and restaurants are increasingly focusing on sustainable practices, from reducing waste to sourcing local, organic food.

Sustainability as a Hiring Factor:

• Green Jobs and Eco-Certifications: There is growing demand for hospitality workers with expertise in sustainable practices. Positions related to environmental management, energy efficiency, and waste reduction are on the rise, and employers are increasingly seeking candidates with certifications in sustainable tourism, green hotel management, and eco-friendly food sourcing.
• Training for Sustainability: Many businesses are now incorporating sustainability training into their employee onboarding processes to help workers implement environmentally friendly practices on the job.

Conclusion: Navigating the Shifting Landscape

As we move further into 2024, the hospitality industry in Canada and the USA is facing significant changes. From labor shortages and the rise of automation to a growing focus on DEI and sustainability, hiring conditions are evolving in response to shifting market demands, technological advancements, and societal changes.

For employers, staying competitive will require adapting to these trends by embracing flexibility, leveraging technology, and fostering inclusive and sustainable workplace cultures. For workers, this evolving landscape presents both challenges and opportunities. The key will be to stay adaptable, invest in upskilling, and seize opportunities that align with personal and professional goals.

As the industry continues to recover and transform, both employers and employees must be prepared to navigate these new realities and work together to build a more resilient and dynamic hospitality sector.