Introduction
The Hospitality & Tourism Steering Committee was organized in mid-2005. For more than eighteen months, 70 leaders from business, government, education and non-profit organizations conducted research about the industry, its workforce and workforce development issues. The committee's analysis and recommendations were published in an industry monograph in December, 2006, and presented at the Hospitality and Tourism Workforce Summit on January 23, 2007.
Since the publication of the Post Summit Report in March 2007, the steering committee has worked diligently to develop a plan of action that addresses the industry's most critical workforce issues.
Industry Snapshot
Maryland's multibillion dollar hospitality and tourism industry employs almost 230,000 people in more than 13,000 diverse businesses in four segments: restaurant and food/ beverage services; lodging; parks, recreation, amusements/attractions; and travel/tourism. In 2005, the state welcomed more than 27 million visitors, and contributed $10 billion to Maryland's economy. One in ten jobs in Maryland is in the hospitality and tourism industry. The 7.2% employment increase between 2001 and 2004 was four times the rate of total private sector employment, resulting in a net increase of 15,464 jobs.1
By 2014, the number of workers in the leisure and hospitality sector is projected to grow by 17.7%.2 Assuming that Maryland's Hospitality and Tourism industry keeps pace with the national growth rate, the industry will need to hire 40,000-plus
new workers over the next seven years.3
A greater challenge to industry is the replenishment of 179,902 incumbent positions each year. The hospitality and tourism workforce is fluid as evidenced by a high turnover rate, tenure rate one-half that of other industries, significant numbers of part-time and seasonal employee.4 Nationally, the hospitality sector's average annual "hires rate" is 77%5, which means the industry makes 77 hires for every 100 employees on the company's payrolls. Applying that rate to Maryland, the Hospitality and Tourism industry must make 179,902 hires every year.
Hospitality and tourism employment is comprised of a wide range of positions in food service, customer service, maintenance and repair, transportation, management and operations, protective services, and office administration. Most of the occupations in the industry require only limited education and are classified as needing short-term on-the-job training.
Industry-wide, employers struggle to find an adequate supply of workers for nearly all positions. Some positions are more difficult than others. According to employers surveyed by the committee, the following positions are most in demand and are affected by difficulties in attracting, recruiting and retaining.6
- Food Service - waiters, waitresses; host and hostesses; chefs, cooks, and food preparers; and general managers.
- Lodging - maids and housekeepers; janitors and maintenance workers; front desk clerks, and general managers.
- Parks and Attractions - attendants; protective service workers; recreation workers; natural science managers and technicians.
Workforce Development Challenges
In Maryland, demand is high and the supply of labor is tight. More than 2.9 million people are working and the unemployment rate is below four-percent.7 The leading edge of the baby boomer generation (1946 to 1964) is reaching retirement age this year. Over the next ten years more than 19 percent of Maryland's population will be 65 or
older8, and many will leave the workforce. Many other "seniors" will continue to work. How many might be attracted to hospitality and tourism is unknown. The generations following the boomers, Gen-X, Gen Y, but particularly the New Millennials (1977 to 1995) from whom hospitality and tourism businesses traditionally hire for entry-level and seasonal (part-time) work, are significantly smaller in numbers.9
Maryland's hospitality and tourism industry faces four critical challenges as it competes with other industry sectors to attract, recruit, hire and retain the new and replacement workers.10
- The image and perception of the industry is that of low wages, menial/dead end jobs with little opportunity for advancement.
- Employers experience difficulty finding workers with basic academic and workplace readiness skills.
- Employers experience difficulty finding seasonal workers to fill short-term high demand, low-skill positions.
- Small businesses have more challenges in recruiting and retaining workers.
Workforce Solutions - Five Goals
Through the initiative process, the Steering Committee identified eight workforce issues and fourteen recommendations to improve its ability to attract and retain workers, and to increase the labor supply. These were presented and validated at the Workforce Summit in January, 2007.11
In the months following the summit, the committee reviewed the issues and recommendations, guided by the summit workgroup discussions. The committee created this action plan outline for the Governor Workforce Investment Board. It contains five goals. They reflect the industry's primary concerns - how to enhance the flow of new workers, improve the industry ability to attract workers in the pipeline, and how to help small businesses improve their ability to recruit and retain workers.
Steering Committee's New Role12
The steering committee will become the implementation committee. Its size and composition will change to fit member interests and the needs of the plan. The implementation committee has three objectives:
- Complete the Hospitality and Tourism Plan of Action. Timelines and other appropriate metrics must be defined. The committee has completed some of this work already.
- Identify and recruit advocates and partners, leaders who will take responsibility to act in accordance with the goals outlined in the plan.
- Create an executive business council to monitor the plan of action and promote workforce development to the industry.
Goal - 1. Create and implement an information campaign that promotes positive images of hospitality and tourism careers, professional advancement, benefits and compensation.
The industry's prospective workforce is reluctant to enter or remain in the industry due to negative perceptions about career choices, advancement, benefits, and compensation. Potential employees are unaware of the variety of career opportunities available in the industry. The public's perception of the hospitality and tourism industry is fundamentally inaccurate and inadequate. The information campaign will deliver accurate information about career opportunities, job responsibilities, professionalism, and compensation in the hospitality and tourism industry.
Action Steps
1.1 Create a campaign and implementation plan
- Broadly identify diverse audiences to raise the awareness of Hospitality and Tourism as a desirable career choice.
- Identify unique messages to raise the awareness of Hospitality and Tourism as a desirable career choice.
- Identify effective communication channels to raise the awareness of Hospitality and Tourism as a desirable career choice.
- Create effective partnerships in the state and with national associations such as the Travel Industry Association of America
- Create Public Relations (PR) information shell of data to be used by any entity doing a press release about a hospitality and tourism program, project or course
1.2 Secure funding for the campaign
- Develop a budget and time line for the creation and dissemination of the campaign
- Create an RFP to hire agency assistance (Hire the message.)
- Identity an organization as the funding conduit for project/program funding
- Identify prospective sponsors
- Write funding grants
1.3 Implement the campaign
- Publicize industry successes.
- Use testimonials from industry members.
- Publicize educational opportunities to prepare for the industry
1.4 Identify and engage some entity on a statewide basis to maintain an on-going campaign marketing hospitality and tourism careers.
- Continue promotion and dissemination of Public Relations (PR) information data and shell for use by any entity doing a press release about a hospitality and tourism program, project or course
- Continue to publicize educational opportunities to prepare for the industry
- Maintain effective partnerships in the state and with national associations such as the Travel Industry Association of America
- Continue to research, write and disseminate testimonials and career stories for use by industry members in presentations and education.
Goal - 2. Strengthen partnerships between industry and education institutions and other public workforce service providers who deliver education and training needed by industry.
Hospitality and tourism employers do not easily find people, from high school graduates to non-traditional populations served by Maryland's workforce development system, with the job-readiness skills needed by the industry. Employers that responded to the GWIB Committee consistently stated that it was more important to them that their employees have basic job-readiness skills than certain industry-specific skills. The industry-state partnership will seek to expand the employability skill training for all youth graduating from Maryland's K-16 education system, and to those populations serviced by Maryland's workforce development system.
Action Steps
2.1 Develop a central portal listing all education and training providers.
- Establish links to existing web-based information and resources
- ESL training
- Recommended "employability skill sets" (MSDE skills for success)
2.2 Market the services of Maryland's One Stops to industry.
2.3 Expand the number of local school systems using the industry standard based programs (ProStart, Lodging Management Program (LMP),
etc.)
2.4 Publicize the career development model (CDM) and identify where and how it is used in local school systems, post-secondary education and community groups
2.5 Identify workplace expectations modules especially for and to small businesses
- Provide information about and access to information/providers
2.6 Advocate to increase funds for literacy, basic skills, ESL, and incumbent worker training.
2.7 Access and implement supervisory, management training for incumbent workers.
Goal - 3. Create a state liaison office for immigration issues.
Immigrants and foreign-born students are good sources for seasonal workers. Potential employees for the hospitality and tourism industry from the immigrant population need assistance to secure employment in the state. A state-level office devoted to connecting foreign-born workers with hospitality and tourism industry specialists and government officials could increase the number of legal immigrants employed in the industry. This office could identify potential workers interested in hospitality and tourism positions and help them with the legal immigration process. It would also collect state statistics pertaining to immigration and the hospitality and tourism industry workforce.
Action Steps
3.1. Organize and conduct feasibility study for the creation of the office.
3.2 Collect Maryland-specific immigration workforce statistics.
3.3 Collect, organize and distribute workforce related information about immigration demographics and immigration laws/policies and procedures to the industry.
3.4 Monitor and support improvements in immigration policies and increases in visa quotas of interest to the industry.
Goal - 4 Expand industry's recruiting of nontraditional populations such as senior citizens, immigrants, the disabled, veterans, and ex-offenders.
The committee recognized the workforce potential for the industry of untapped nontraditional labor sources in the state. Senior citizens, immigrants, the disabled, veterans, youth, and ex-offenders are currently being served by a wide variety of state workforce development programs. These are valuable potential populations of workers that the industry does not now easily connect.
Action Steps
4.1 Appoint industry leaders to serve on the GWIB "Challenged Populations" subcommittee
- Develop partnerships between industry organizations and organizations that serve special populations.
4.2 Collect, organize and distribute information on existing programs and services for nontraditional populations
-
" Create and/or expand bridge programs through existing educational institutions, local One-Stop Career centers, and organizations that directly serve non-traditional populations.
4.3 Create recruiting and career information materials design for non-traditional population segments.
Goal - 5. Help small hospitality and tourism businesses find and use information/resources to improve their ability to attract, recruit and retain workers.
Small businesses generate jobs. Seventy-three percent of the industry's businesses employ fewer than 20 employees. Twenty-four percent of the businesses employ between 20 and 99 employees, and account for half of all workers in the industry. Small businesses have fewer resources to devote to attracting, recruiting and retaining workers.
Action Steps
5.1 Provide information about the resources of Maryland's workforce development system.
5.2 Develop information and best practices focused on competitive benefits and compensation.
- Conduct research of benefits and compensation best practices and innovative options
o Flex time
o Job sharing
o Tuition reimbursement
o Health and medical allowances
- Publish report research findings to small business owners
Hospitality and Tourism Industry Profiles13
Restaurant and Food/Beverage Services
The Restaurant and Food/Beverage Services segment includes full-service restaurants, businesses offering limited-service eating, special food services, and establishments that serve alcoholic beverages for immediate consumption. It also includes food service contractors, caterers, and mobile food service providers. The segment comprises 9,103 businesses and employed over 164,000 people in 2004, carrying a payroll of more than $2.3 billion. The industry share of employment for this segment was 71.3% in 2004, with full- and limited-service restaurants contributing 63.8% to this share.
Lodging
The Lodging segment consists of businesses that provide lodging for business travelers, vacationers, and others. This segment is divided into two clusters, one that represents traveler accommodations (hotel, motels, and inns) and the other representing public and private RV parks and recreational camps (travel trailer/tent campgrounds, cabins, and recreation/vacation camps). The segment comprises 713 businesses and employed over 24,000 people in 2004, carrying a payroll of over $800 million. The industry share of employment for this segment was 10.8% in 2004, with motels, hotels, and inns contributing 10.4% to this share.
Parks, Recreation, Attractions, and Amusements
The Parks, Recreation, Attractions, and Amusements segment includes establishments that provide services for recreational activities, amusements, nature study, wildlife viewing, boating and other leisure-time pursuits. The segment comprises 2,164 businesses and employed more than 35,000 people in 2004, carrying a payroll of over $820 million. The industry share of employment for this segment was 15.4% in 2004, with all clusters contributing almost evenly.
Travel and Tourism
The Travel and Tourism segment comprises five clusters representing scenic and sightseeing transportation on land, scenic and sightseeing transportation on water, other scenic and sightseeing transportation, travel arrangement and reservation services, and convention and trade show organizers. Some of these businesses provide different modes of transportation for recreation and entertainment. This transportation is usually local and involves same-day return to place of departure. The segment is composed of 676 businesses and employed over 5,700 people in 2004, carrying a payroll of over $178 million. The industry share of employment for this segment was 2.5% in 2004, with travel arrangement and reservation services contributing 1.4% to this share.
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