Practical strategies for managing labor shortages and maintaining high service standards with fewer resources — Source: Unifocus

Labor shortages in the hospitality industry have evolved from a temporary challenge to the new normal. Strikes, absenteeism, and staffing gaps are pushing hotel operations to their limits, and the pressure to maintain service levels without burning out employees is intensifying. Hotel owners need quick, effective strategies to keep operations running smoothly while protecting their workforce.

The good news is that with the right technology, hoteliers can adapt, streamline processes, and maintain high service standards, even with fewer staff. Here are practical solutions that can help hotel owners manage through labor shortages and keep operations efficient during challenging times.

Real-Time Operational Adjustments

Navigating labor shortages can be tricky. The ability to pivot quickly with real-time adjustments is key when unexpected issues arise—whether it’s an influx of guests or a sudden drop in available staff. Workforce management systems give managers the ability to shift employees on the fly. For example, if housekeeping is overwhelmed due to a high volume of call-outs, you can cross-utilize staff by reallocating front desk or food service employees based on their skill sets and certifications to assist where they’re needed most.

Additionally, workforce management systems provide the flexibility to scale services up or down based on staffing levels. If staffing is especially tight, reducing housekeeping frequency or streamlining non-essential services like room service allows the hotel to continue operating smoothly without sacrificing the quality of essential services. Real-time adjustments allow hotel managers to make the most of their available resources without overburdening employees.

This flexibility not only keeps operations running but also helps ensure compliance with labor rules, avoiding overtime costs within your existing labor pool. By balancing demand with available staff and adjusting services efficiently, you reduce the need for expensive last-minute staffing solutions while maintaining control over labor expenses.

Dynamic Shift Posting and Employee Availability

Scheduling gaps are inevitable during labor shortages, but workforce management systems can help ease the pain. These tools allow your managers to post open shifts in real time, enabling the right employees to pick up extra hours when they’re available. Staff can also submit their availability, so shifts can be automatically filled based on who’s ready to work, skills, and fair work week rules. This reduces the burden on managers and ensures that shifts during high-demand periods are covered. 

Giving employees the opportunity to manage their own schedules not only fills shifts faster but also boosts morale. Happy, engaged employees are less likely to burn out, which is a major concern in today’s high-pressure environment. Financially, happier employees are also more likely to stay, which means hotels can take measures to avoid the high costs associated with turnover, recruitment, and training. Filling shifts quickly also keeps operations running smoothly, protecting revenue by ensuring consistent service levels.

Predictive Analytics for Occupancy and Staffing

One of the biggest challenges during a labor shortage is predicting staffing needs. Hotels can’t afford to be overstaffed during slow periods or understaffed during busy ones. This is where predictive analytics comes in. By analyzing historical data, seasonality trends, and local event schedules, these tools can forecast when your hotel will experience peaks in occupancy.

This advance notice allows you to accurately predict and adjust staffing levels, so you have the right number of employees on hand without scrambling to hire temporary workers or pay for costly overtime. Predictive analytics not only optimizes staffing but also supports smarter financial planning. By anticipating labor needs, managers can reduce the risk of last-minute staffing expenses that could strain labor budgets.

By optimizing staffing as a long-term strategy, hotels can reduce wasted labor hours and maintain a healthy bottom line.

Contingency Planning for Labor Disruptions

The current labor market is unpredictable, with sudden walkouts, strikes, and absenteeism becoming more common. Hotels need to be prepared for these disruptions. With the right labor software, hotel managers can create contingency plans that simulate different staffing scenarios. This foresight allows hotel managers to quickly adjust service offerings, bring in temporary workers, or reallocate resources before the situation impacts operations.

Implementing a tiered service model, where non-essential services are reduced during labor disruptions, helps keep operations running smoothly even when staffing levels drop. By focusing available staff on necessities like housekeeping for check-out rooms and maintaining public areas, guests still receive a high level of care despite labor shortages.

Labor Cost Management and Budget Forecasting

Labor shortages come with significant financial strain. Whether it’s increasing overtime, hiring temporary staff, or adjusting service offerings, every decision affects your bottom line. Hotel labor management systems simulate cost scenarios, allowing you to forecast the impact of various staffing strategies on your overall budget.

Armed with this data, hotel managers can make informed decisions about resource allocation and balance labor costs with service needs. Additionally, real-time labor cost tracking allows you to monitor your spending and ensure that costs remain within budget, even when unexpected labor expenses arise.

Reducing Administrative Burden with Automation

One of the hidden costs of a labor shortage is the administrative burden it places on managers. Keeping up with scheduling changes, union rules, and labor law compliance can be overwhelming, especially during a crisis. Automation tools simplify these tasks by automatically matching available and qualified staff with open shifts, tracking compliance with labor laws, and ensuring that union rules are followed.

By automating these processes, managers can focus on guest-facing tasks rather than scheduling logistics. Automation not only reduces administrative overhead but also ensures compliance, protecting your hotel from potential legal issues while maintaining trust with employees.

A Data-Driven Future

The hospitality industry is no stranger to challenges, but successfully navigating labor shortages requires proactive strategies and the right tech stack. Leveraging real-time operational adjustments, predictive analytics, and automation can help hotel owners stay agile in an ever-changing labor landscape.

Using data to forecast demand, streamline operations, and empower employees ensures that you’re not just surviving labor shortages—you’re positioning your hotel for long-term success. Choosing partners who help you stay current with labor regulations is essential. As labor negotiations evolve, new rules or adjustments may be required when agreements are finalized. Having systems in place that can quickly adapt to these changes ensures compliance, reduces operational risk, and helps your hotel stay ahead of potential challenges.

The time to act is now. Incorporating these strategies will help you manage today’s challenges while preparing for a more sustainable, resilient, and profitable future.

About Unifocus

Unifocus is a global leader in workforce management technology, serving properties in 68 countries and 31 languages. Designed for hotels, Unifocus boosts hotel performance with intelligent analytics that automate labor budgeting and forecasting, delivering precise staffing levels and workloads by streamlining Planning & Scheduling, Time & Attendance, and Operations Management tools. Employees love the mobile app for seamless communication, with features like effortless shift swaps using the award-winning Shift Genius, and real-time prioritization of guest requests, housekeeping and maintenance tasks. Operational efficiency is accelerated with compliance alerts that allow managers to focus on what truly matters: maximizing guest satisfaction and fostering a productive, engaged workforce. Discover the future of hotel operations with Unifocus. Visit Unifocus.com today.