New Financial Wellness Trends in Hospitality Industry

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Published on
April 4, 2024
New Financial Wellness Trends in Hospitality Industry

We recently brought hospitality leaders together to discuss labor market challenges, top hospitality trends, and opportunities to leverage financial wellness. With decades of collective experience, these individuals shared invaluable insights into persistent issues like retention and engagement and proposed innovative strategies to address them.

Thought Leaders in Hospitality

  • Vanessa Varano - Vice President of Learning & Development at Mac Haik Restaurant Group
  • Andy Hooper - CEO/Founder of Hart House, Kevin Hart's vegan fast-food chain
  • Carla Hallman - Director of Human Resources at Farmington Country Club
  • Sid Pailla - CEO/Founder of Sunny Day Fund

Fast Casual & QSR Workforce Insights

How many of us had one of our first jobs in hospitality businesses? Do you still talk about those lessons learned and remember that when you dine out? The hospitality industry touches our lives frequently, so understanding trends in the hospitality sector is important—the patterns and solutions, the struggles and wins—and we dive into it all.

With over 25 years in the restaurant industry, Vanessa likened working in hospitality companies to the Hotel California—once you’re in, it’s challenging to leave. However, amid this reality lies a shared aspiration among industry insiders to elevate restaurant work into a fulfilling and sustainable career path.

Andy emphasized the vast untapped potential within the industry to create quality jobs and foster a culture of hospitality technology and innovation.

Drawing upon her storied background in fast food, military, and HR, Carla underscored the importance of creating a hospitable work environment for employees. The intrinsic value of hospitality as a trend and a fundamental human virtue can not be underestimated.

Current Challenges for Restaurant Workers

The discussion delved into the sobering reality of staggering turnover rates within the hospitality industry, averaging a mind-boggling 180% annually in QSR specifically. This doesn’t have to be accepted as the unquestioned standard—employers can fight this.

Moreover, the prevalence of hourly wage structures was emphasized, with wages typically hovering around $15 per hour, albeit varying by geographic location. Essential qualities such as shift flexibility and reliability were highlighted as prerequisites for workers in this demanding sector.

SAVE Student Loan Repayment Plan

One notable initiative discussed was the SAVE plan, which aimed to alleviate the burden of student loan debt among industry workers. By leveraging income-based repayment programs, workers could potentially save an average of $150 per month—an impactful reduction of financial strain.

Prioritize the Employment Experience - Beyond The Straw

Andy’s thought-provoking presentation titled “Beyond The Straw” challenged the superficiality of certain industry initiatives, such as the focus on eliminating plastic straws. While symbolic, these initiatives often fail to address the fundamental challenges hospitality workers face. Andy advocated for a paradigm shift towards prioritizing the sustainability of the employment experience, particularly through tackling financial precarity as a foundational step.

Modernize Total Rewards

Vanessa shared her experience in modernizing total rewards packages, showing how data analytics can provide actionable insights in tailoring packages with benefits such as earned wage access and flexible scheduling to enhance work-life balance. Additionally, innovations like the Tip Card, providing immediate access to tips, demonstrated a commitment to addressing the financial needs of hourly workers.

Overall, the discussion underscored the imperative for hospitality companies to prioritize the well-being and professional development of their workforce. By implementing comprehensive support systems and innovative financial solutions, the restaurant and hospitality sector can evolve into a more sustainable and rewarding career path for its employees.

As Andy aptly stated, it’s time to embrace the challenge and undertake the necessary hard work to effect meaningful change within the industry.

https://www.tiktok.com/@sunnydayfund/video/7353434094333676830?is_from_webapp=1&sender_device=pc&web_id=7351563382589228549

Holistic HR Strategy

Carla underscored the importance of holistic support for employees, emphasizing the need to consider their well-being beyond their immediate work responsibilities. Initiatives such as emergency savings accounts and mental wellness programs were highlighted as essential components of a robust employee value proposition, fostering long-term retention and satisfaction.

Employers Can Build a New Financial Future for Workers

Expanding upon this dialogue reveals a multifaceted approach to addressing the myriad challenges facing the restaurant and hospitality sector. From tackling turnover rates and wage disparities to prioritizing employee well-being and professional growth, there's a clear recognition of the need for systemic change within the industry.

By fostering a culture of inclusivity, innovation, and support, industry leaders can pave the way for a brighter future—one where restaurant work isn't just a job but a fulfilling and sustainable career path for all.

https://www.youtube.com/watch?v=YPSZl5iNznk

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