A Resurgent Hospitality Company Finds Innovative Ways to Grow Its Workforce

BY Erika Riley | May 18, 2023

Three years after the onset of the coronavirus pandemic in the United States, most industries have recovered their lost employees or brought their workforce close to how it was pre-pandemic; except for the hospitality industry.

The hospitality and leisure industry has the highest share of jobs lost from the pandemic (6.5%) of any industry except for mining, with 1.1 million jobs still lost

Hyatt Hotels, the multinational hospitality company headquartered in Chicago, has been leaning into new innovative ways to grow its workforce since the COVID-19 pandemic. Jin Ivacic, global head of talent acquisition at Hyatt, spoke about workforce solutions with Edward McClelland, contributing editor at Chicago Magazine, during a fireside chat that closed out From Day One’s Chicago Conference.

“During the pandemic, one in three [hospitality workers] left their jobs and 45% went outside of industry altogether,” Ivacic said. “So we knew we had to focus on retention of those that we still had, and reaching out to different talent pools.”

The unemployment rate for hospitality and leisure workers has improved significantly from its highest point in April 2020 at 39.3% to 5% in May 2023, according to Bureau of Labor Statistics (BLS) Data. But job openings in the industry have steadily remained around 1.5 million per month after jumping from 900,000 in February 2021, when vaccines became more widely available in the United States. In the pre-pandemic years, job openings rarely entered the seven-digit range. 

Now, the challenge is filling those job openings.

Hyatt, Ivacic explained, has taken an innovative approach to fill those openings in both its corporate offices and on-site at its hotels.

Prioritizing Immigrants and at-risk Youth

Hospitality and leisure is a unique industry in that most jobs do not require a high school diploma or equivalent. With so many avenues to choose from, including front desk work, food and beverage, housekeeping, and management, employees who come in for an entry-level job can easily find themselves rising through the ranks.

“It’s really a special industry, because you’re able to really discover a career that you didn’t know 
existed,” Ivacic said. “When you came in the door, you were just looking for a job, and now that has evolved into a career.”

Hyatt has initiatives to prioritize communities with fewer diplomas or formal certifications, such as at-risk youth or immigrants. For example, Hyatt’s Rise High Initiative aims to employ 10,000 at-risk youth before 2025 (with “at risk” described as not in school and not employed).

“So this is a typically forgotten about population…but we found that when we invest in them, we get back so much in gains because they’re more loyal. We’ve been able to promote them, and we’ve been able to retain them at higher levels than other employees,” Ivacic explained. “So it takes a little bit more work on the front end with the development, but it’s really hiring that sticks.”

She also spoke about immigrants’ historical role in the hospitality industry, especially because many positions do not require a working knowledge of English.

The vital part, Ivacic stressed, isn’t whether or not these employees have a specialized skill set yet. When hiring, she often looks for a growth mindset and a willingness to learn so the employee can scale up.

“So if they have that growth mindset, then we can really kind of take somebody and move them across a wide variety of positions, again, that they didn’t really know existed,” she explained.

Hyatt has also worked to remove barriers to employment for at-risk populations. One of the biggest barriers, Ivacic said, is the lack of access to reliable transportation. So to help, Hyatt launched a pilot program allowing new hires in certain roles to work from home as they grow and learn in their role.

Jin Ivacic, the global head of talent acquisition for Hyatt Hotels, was interviewed during the fireside chat session (photo by Tim Hiatt for From Day One)

 

“And it was so successful that we’re doing another [cycle]; we’re actually recruiting for it now. So we’re excited to see that continue to be a pipeline for us,” Ivacic said.

For employees who cannot work from home, Hyatt has been testing flex and compressed schedules to take some of the pressure off of employees who do not have access to reliable transportation.

Ivacic is also a board member at BUILD (Broader Urban Involvement & Leadership Development) Chicago, a nationally respected gang intervention, violence prevention, and youth development on Chicago’s West Side.

Retaining Talent Through Upskilling and Workplace Culture

Another recent challenge, faced by all industries, has been retaining talent. Although Ivacic thinks this will be less of a concern as employees seek more stable jobs in the face of massive layoffs (such as in the tech industry), retaining talent is still one of Hyatt’s primary goals. 

One of the ways Hyatt aims to retain talent is through its workplace culture, which Ivacic calls the company’s “secret sauce.”

“Our purpose is to care for people so they can be their best at Hyatt. We can’t get to the point of caring for people if we don’t know who they are,” Ivacic said. “So, you know, it’s really built in that we have to know people, we have to meet them where they are, we have to support them, we have to develop them along the way.”

Some examples of employee development include diversity business resource groups, heritage celebrations, wellness weeks, and gratitude days. Ivacic also explained that she and her colleagues have seen many people return to the company after time apart.

She also noted that new hires are especially interested in company culture when interviewing for a new role. They want to know what the company stands for, both in terms of its relationships with its employees and its greater impact on the world. 

Investing in employees is a considerable part of company culture. Ivacic sees it as intrinsic to keeping talent invested in the company and creating a pipeline where they can work their way up. 

“So we’ve really just seen that organically happen,” Ivacic said. “And I think a lot of companies are starting to really put action and intentionality around that upskilling theme.” 

Future Advice for HR Professionals

Ivacic recommends three pieces of advice for HR professionals working through this challenging time. First, she noted that time is everybody’s most valuable resource. And because hiring is so busy right now, it’s best to save time wherever possible. That might look like using automation tools to cut out some recruiting, hiring, and onboarding work. 

The second piece of advice is that there’s no one-size-fits-all solution for recruiters or HR teams, so testing solutions on a small scale before fully diving in is advisable. Having proof of what works and what doesn’t can help professionals adjust their processes.

Lastly, Ivacic stressed that HR professionals need to take time for themselves.

“I think this has been a really tough time for all of us. And you know, HR tends to take care of everybody else before themselves,” Ivacic said. “So I think it’s good to kind of pause and protect your personal time as much as you can. Perhaps go on vacation.”

Erika Riley is a Maryland-based freelance writer.


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