CHLA California Lodging News November/December 2021

20 CALIFORNIA LODGING NEWS www.calodging.com Risks Related to Hotel Staffing Shortages and How to Address Them By John Welty, President, SUITELIFE Underwriting Managers, a subsidiary of Ryan Specialty Group THE RECENTLY SHIFTING ECONOMIC LANDSCAPE has created labor shortages across the U.S. and the hospitality industry has certainly not been immune to this shortage. In April 2020 alone, the California leisure and hospitality industry saw more than a 45% decrease in labor. According to a survey from Bloomberg, more than half of U.S. hospitality workers won’t return to their old jobs as the economy rebounds, and over one- third don’t plan to return to the hospitality industry at all. As travel begins to open back up and hotels see an increase in traffic, employees have been asked to work in different roles and take on additional responsibilities. The same employee in charge of the front desk could potentially be cleaning rooms or handling valet services. Not having a full team of workers opens hotels up to new risks. If there are not enough employees to complete all the necessary tasks, hotels must minimize guest stays and risk losing revenue, reputational damage, and more. Hoteliers who are adaptable, focus on the basics and always put the customer first will be more likely to find success in this and any challenging business environment. Risky Business The risks related to staffing issues can lead to expensive situations that can irreparably damage a hotel’s reputation, lead to guest injury, or worse. If employees don’t have the right training for new jobs, mistakes will occur, and accidents can happen. For instance, a hotel front desk employee stepping in to help with housekeeping could quickly mop up a spill on the floor and not know to display a “caution wet floor” sign. This oversight could create a slip and fall risk for guests and other employees. Accidents such as this can leave hoteliers open to insurance claims and costly litigation. Some of the more common insurance claims that hoteliers often see when working with limited staff include slip, trip, and fall accidents, valet accidents, and property damage. Fortunately, hoteliers can reduce new risk exposures related to staffing issues. First, hoteliers should work with their agent or broker to ensure they have a good insurance program in place. It can be beneficial to work with a specialty insurer who knows the industry. Many insurers can not only provide competitive coverage, they can also help hoteliers understand their unique risks and offer customized risk mitigation solutions. In fact, there are a number of things hoteliers can do to mitigate risks to their business as a result of the staffing shortage and changing economy. Making the Guest a Top Priority All hoteliers can agree that one constant in this shifting environment is that the guest experience should be the top priority. If a guest is expecting an advertised service, such as valet parking or spa availability, and that service is not available, it could lead to a negative customer experience. A negative guest experience is one of the most potentially damaging things for a hotel’s reputation. Not only is there a risk of losing future business with that individual, but the guest could leave a bad review, warning other future guests away from the hotel. Transparency and clear communication are key in setting guest expectations and providing a comfortable stay during a time when limited personnel can also translate to limitations on guest offerings. For instance, if the restaurant, pool, or spa is only open during certain hours, hoteliers should clearly post those hours on signage throughout the hotel, as well as on the website, social media, and the hotel TV channel. In the era of contactless check-ins, hotel management and staff should ensure that guests know who to contact in the event of an issue with their room or an accident/incident occurs. Hoteliers should post the number to the guest helpline throughout the room and prominently display it within the check-in details. If guests know what to expect ahead of time, they can plan to make the most of their stay and are more likely to have a positive experience. Getting Back to the Basics As employees are asked to take on more responsibility and don different hats, it is more important than ever for hoteliers to get the basics right. This means not letting safety fall to the wayside and focusing on good employee communication and training. Training can make or break a hotel experience for the guest. For example, employees who work in the restaurant should be trained on how to safely handle food and anyone working the valet services should take driver safety courses. As workers are shuffled into new roles, hoteliers should implement comprehensive onboarding training programs. While these programs are critical, they can only go so far without regular drills for employees, evaluations, and adjustments to keep policies and procedures up to date. Internal communication is just as important as communicating with guests. If employees have a clear understanding of the work that needs to get done, the hotel is likely to operate more efficiently and guests are sure to have a better experience. A good way to ensure that everyone knows their role is by implementing a daily checklist protocol outlining tasks and those responsible for completing the tasks.