Report: Labor Shortage Will Require Hospitality Industry to Rethink Compensation and Technology

A new report by Todd Montgomery (Executive in Residence / Instructor, Oregon State University) and Tyler Spragg (Research Assistant, Oregon State University Hospitality Management Student) delves into the hospitality industry's labor shortage, which is impacting business operations and impeding investment and growth. The authors conducted a mixed-methods study to answer two questions: Why is there is a labor shortage in the hospitality industry? And, what are some possible solutions to this labor shortage?

The study findings show that Millennials (age 18-29) are the primary reason for the labor shortage. Among all age groups surveyed, Millennials were the least satisfied with their job and most likely to leave the industry within a five-year period. The study also found that Millennials view compensation differently and value workplace culture, professional growth, and task variety. The authors conclude that the issues are unlikely isolated to the Millennial generation but an emerging trend of the future workforce. Authors therefore recommend a two-pronged approach to building an authentic and dynamic culture that leverages technology to automate repetitive, mundane tasks.