As a result of Hurricane Maria, the United States, particularly Florida, has seen a large influx of Puerto Rican refugees looking for work. This could be great news for the hospitality industry which, with the unemployment rate reported at 4.1% in October and November and the difficulty securing workers through the H2B visa program, has struggled to find labor to fill housekeeping, public area cleaning and stewarding positions. What should the executive teams of hotels and casinos with understaffed departments be taking into consideration as they look to hire workers from this group of over 200,000 individuals?
First, hiring from this pool of workers is costly. Hotels and casinos must be aware that they will be incurring costs from the recruitment and onboarding processes as well as ongoing fees associated with insurance. Recruitment costs will include background checks, drug tests and e-verification in addition to travel costs to attend job fairs, and relocation and lodging fees for the new hires.
Once hired, these new associates go through the onboarding and training process. While this varies from property to property, at The Service Companies, each of our associates completes a 30-day training program for any of our fully managed services including housekeeping, EVS and Stewarding. The costs that result from training can be high. In 2016, in conjunction with Navigate Corporation, a premier management consulting firm in Philadelphia, Pennsylvania, The Service Companies took a deep dive to understand the drivers of associate retention and engagement. During this study, we saw that onboarding a new associate could cost thousands of dollars. Depending on how short staffed a hotel or casino is, just the onboarding costs could quickly and easily surpass $10,000 with only a few new hires. On top of this, add the costs for medical and dental benefits, general liability and workers compensation insurance, which will continue throughout the associate’s tenure at the property.
It takes a well-capitalized company or property to be able to successfully hire workers that are newly displaced. Located across the country, The Service Companies, the one-stop-shop for managed, staffing and specialty services to the hospitality and gaming industry, is one of the few with the capital and experience (over 30 years) to take on this responsibility. With our turn-key housekeeping, public area/EVS cleaning and stewarding model, we assume full accountability of a hotel or casino’s most challenging departments, handling recruiting, background, drug and e-verification checks, training and insurance. No other company has the same resources, experience or nationwide presence. To learn more, visit www.theservicecompanies.com.
The Service Companies is the premier service provider to the hospitality, gaming, healthcare, education, entertainment, and corporate catering industries. We deliver best-in-class cleaning, staffing, and managed labor services using exclusively legal, compliant labor.
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