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U.S. Hospitality Managers: Insights from 500 Frontline Leaders

The hospitality industry is facing a critical tipping point, and it’s not just about gratuities. We polled 500 frontline hospitality managers in the U.S. and the results uncovered a range of challenges—reduced tipping, escalating burnout, inadequate training and evolving guest expectations. Here’s what we learned:

Photo: Axonify

August 22, 2024

Employee morale is taking a hit with lower tips, higher frustrations

A significant 61% of frontline hospitality managers have observed a noticeable drop in guest tips this year. This decline in gratuities is not just a minor inconvenience; it’s a catalyst for a series of adverse reactions among workers. Employees, already stretched thin, are feeling the financial pinch, leading to:

Quitting: Nearly half (49%) of the workers have left their jobs.
Abandoning shifts: 47% have left their shifts early due to frustration.
Emotional outbursts: 46% reported crying or yelling as a response.
Social media venting: 41% took to social media to express their grievances.

The consequences of lower tips for workers spill over to managers, increasing the pressure on them to keep both workers and guests satisfied, while also managing the growing dissatisfaction and conflict that arise from these issues. Over a quarter (27%) of managers have had to reprimand staff for their reactions to insufficient tips, while a telling 25% have had to mediate conflicts between guests and workers over tipping issues.

Guests are contributing to the strain on frontline hospitality workers

Evolving guest expectations, coupled with their often volatile reactions, add another layer of complexity to the challenges faced by hospitality workers and managers. Almost half (48%) of managers have had to expel or ban guests due to their poor treatment of workers. Guest retaliations include:

Demanding managerial interventions: 73% asked to speak with a manager.
Negative reviews: 53% posted unfavorable feedback on social media or left bad reviews.
Fired-up reactions: 41% exhibited emotional outbursts.
Violence or threats: 34% resorted to violent or threatening behavior.

Burnout is widespread among frontline workers and managers

The combination of low tips and high guest expectations is driving a severe burnout crisis among hospitality workers. Frontline managers are not spared either:

Leader burnout: 47% of managers report experiencing burnout.
Employee burnout: 68% say their workers are burned out.
Increased difficulty: 69% believe the industry has become harder to work in.
Disappearing workforce: 64% have lost workers to burnout.
Declining productivity and service: 56% noticed a drop in productivity and 43% observed a decline in customer service quality.

Burnout is being driven by multiple factors

Several factors are exacerbating burnout in the hospitality sector:

High stress levels (73%): Workers face constant pressure and high expectations, leading to chronic stress.
Understaffing (70%): Insufficient staffing forces employees to take on excessive workloads.
Long working hours (67%): Extended shifts without adequate breaks contribute to physical and mental fatigue.
Guest volatility (53%): Dealing with unpredictable and sometimes hostile guests adds emotional strain.
Lack of stress management support (52%): Without proper support, employees struggle to manage stress effectively.
Changing guest expectations (52%): Rising demands from guests create additional challenges for workers.

The problem is further compounded by more than half (54%) of frontline managers reporting that their companies do not provide adequate mental health and well-being training.

Training programs don’t meet employee needs

The hospitality industry’s training systems are failing to effectively support frontline workers. Despite the critical need for continuous development, many training programs are outdated and difficult to access, leaving employees ill-prepared to handle the evolving demands of their roles.

Outdated training programs: 54% say training content is outdated.
Inconvenient training schedules: 52% find training too time-consuming.
Lack of measurement: 46% have no way to measure if workers are applying their learnings.
Access barriers: 43% believe employees can’t easily access training.

Interestingly, while 67% of managers think their current training programs help with employee engagement, many acknowledge significant shortcomings that need to be addressed.

Additional issues have come to light

While reduced tips and escalating burnout are significant concerns, they only begin to tell the hospitality story. The survey reveals deeper, more widespread issues impacting the hospitality industry, including persistent staffing issues and a concern about being able to deliver the experiences that guests expect.

Unskilling: More than half (54%) of managers believe that technological advancements are replacing or reducing the skills required to complete certain jobs. For instance, the adoption of self-service kiosks has reduced the need for frontline employees to take orders manually.
Meeting expectations: Over a quarter (28%) are concerned that their team cannot meet current customer expectations.
Top challenges: Managers ranked labor shortages, lack of talent and overworked staff as the top challenges negatively impacting the industry.
Optimistic outlook: Despite current challenges, a third (66%) are optimistic about workforce satisfaction and stability for the hospitality industry.

Next steps for the hospitality industry

While lower tips and increasing burnout are pressing concerns, they are symptoms of broader, underlying challenges.

The need of the hour is a more sustainable, supported and positive work environment. Industry leaders need to update training programs, provide better mental health support and find consistent ways to adapt to changing guest expectations.

Only then can organizations boost employee satisfaction, foster resilience and elevate the guest experience.