Running a hotel involves far more than what guests see. Thereâs a lot happening behind the scenes to keep operations running smoothly, from guest services and property maintenance to workforce management.
At the Hospitality Show 2026 in Miami, the Workforce.com team connected with hotel operators, hospitality professionals, and industry peers to learn more about the challenges theyâre navigating and the improvements theyâre prioritizing.
Here are some observations that stood out.
Simplifying operations remains a priority
Itâs all about making day-to-day operations more efficient.
Many hospitality groups we spoke with are still using separate systems for employee scheduling, time tracking, payroll, and HR. While each system serves a purpose, managing multiple platforms can create additional administrative work for managers and their teams.
For hotel operators, the challenge isnât simply finding ways to complete tasks faster. Itâs also about reducing the extra work that comes with switching between systems, entering the same information multiple times, and managing processes that could otherwise be handled in one place.
Technology is playing a bigger role across hospitality
The variety of exhibitors at The Hospitality Show highlighted just how many different services and technologies go into running a hotel.
From food service, cleaning, and security to property amenities, technology, and software solutions, the show brought together businesses supporting nearly every aspect of hotel operations.
New technology can streamline processes, but itâs just as important to consider how these tools fit into existing workflows and whether they actually reduce staff workload.
Keeping the focus on the guest experience
Hospitality operations are complex, but managing them doesnât have to be. From scheduling to payroll, simpler processes mean less administrative work and more time to focus on guests.
Thanks to everyone who stopped by our booth and spent time with the Workforce.com team in Miami.
77% of diners say that quality of service influences how much they tip, which begs the question: should tips be pooled and distributed to the whole team?
Tip pooling is an arrangement wherein tips earned are pooled together and redistributed among all eligible restaurant workers.
Payroll software simplifies tip and wage calculations, helping employers stay organized and compliant
Tipping in restaurants isnât just about the food; itâs about the entire dining experienceâand it relies on teamwork. Serving food is as important as cooking dishes, cleaning plates, and resetting tables. While a study shows that 77% of diners say the quality of service influences how much they tip, itâs worth considering: should tips be shared beyond servers and also among the broader team of restaurant employees that contributes behind the scenes? After all, a good experience is a collective effort involving both front-of-house (FOH) and back-of-house (BOH) staff. This is where tip pooling comes in.
Tip pooling in restaurants defined
Everyone is familiar with the traditional tipping model: diners pay a voluntary but socially expected tip of at least 15% for good service. This is usually a cash tip directly handed to their server and kept by that server. Tip pooling is a formal arrangement that allows the restaurant to collect all gratuities and then redistribute the total amount of tips between workers.
Tip pooling is based on the idea that a gratuity is given for the overall dining experience, not just how quickly and politely the food was served. This means kitchen staff, bartenders, bussers, and front-of-house hosts all share in the reward.
The way the mandatory tip pool is handled can vary from restaurant to restaurant. There is no legally mandated method of working out how tips are pooled. Common ways of working out the tip split include:
Percentage-based pooling –Tips are pooled and redistributed according to pre-established percentages.
Role-based allocation – Tips are split based on roles, e.g., 60% to servers, 20% to bussers, and 20% to bartenders.
Hour-based distribution – This method is based on the number of hours an employee worked in a shift. The employee will get tips that are proportional to the hours they worked.
Shift-based pooling – Tip pools are created on a per shift basis, and only employees who worked a particular shift are eligible to get tips from the pool.
Team-based pooling – Tips are distributed among teams. For instance, FOH workers get 70% of the pool, while BOH staff receive 30%.
Points system – Staff earn points based on their roles, experience, or contribution. At the end of the shift, points are totaled, and each point is assigned a dollar value calculated from the total tips earned.
Equal distribution – The most straightforward method wherein all tips are pooled and divided equally among all eligible staff. For instance, a pool of $1,000 is equally split among 10 employees. Therefore, each one takes $100 each.
Combination or hybrid method – Itâs the employer’s prerogative how to structure a tip pooling system. Therefore, the option to use a method or two from usual structures may be needed to address specific concerns.
What you need to know about tip pooling laws
Given how central tipping is to the service industry economy, itâs no wonder itâs been a legislative battleground. Federal law governing tips has undergone several significant changes over the years, including whoâs entitled to keep their tips, whoâs eligible for tip pooling, determining tip-facing occupations, recordkeeping rules for employers, and how tip credits can come into play.
But after all of the rigorous changes, from new rules being enacted to some being repealed, here are the fundamental principles of federal tip laws:
Tips are exclusive to employees
The US Department of Labor strictly prohibits employers, including managers and supervisors, from keeping any portion of employeesâ tips, whether the tips are received directly or via a tip pool. They are explicitly not allowed to demand, request, or coerce staff members to surrender their tips outside a legally compliant tip pooling or distribution system.
Tip pooling
Employers can establish a system to manage gratuities and require employees to pool tips. However, managers and supervisors are not eligible for tips from these pools. It could include, however, non-tipped employees such as kitchen staff as long as the employer doesnât take a tip credit and pays employees the full minimum wage.
Tip credit
Employers can pay employees less than the federal minimum wage through a tip credit. For instance, employers can pay as little as $2.13 per hour if tips bring the employeeâs total earnings to at least the federal minimum wage.
If an employee performs dual roles, the employer can only take a tip credit on the job that has tipped tasks such as serving customers. For instance, an employee is working as a server and a janitor. In this case, the employer canât use a tip credit for the hours the employee performs janitorial work because thatâs not a tipped job.
Service charges
Unlike tips, service charges are mandatory fees added to a clientâs bill and are considered as property of the employer. Should restaurant owners choose to allocate a portion of the service charges to employees, those amounts would be classified as wages, and not tips. However, employers can use those amounts to meet federal minimum wage requirements under the FLSA.
Some states impose additional rules around service charges. For instance, in New York, restaurant owners must explicitly disclose how service charges are allocated in contracts, invoices, or menus. If a portion of the service charge will be shared with employees, the allocation must also be disclosed.
The main thing to remember is that unless a formal tip pooling system is in place, tips belong to employees, not the restaurant. While restaurants are allowed to bring in a tip pooling system, best practice says it should be done with the employees’ agreement and clearly explained in their contracts.As always, with any labor legislation, there may be local or state laws relating to gratuities. For instance, California doesnât allow employers to take tip credits. Be sure to check your exposure or seek legal advice in this area before proceeding with any decisions regarding the income of tipped employees.
The pros of tip pooling
The main benefit of tip pooling is that it addresses the imbalance between front-of-house servers and other staff by pooling gratuities and disbursing them to all staff. Although well established, traditional tipping is an erratic way of being paid. Tips can also be vulnerable to discrimination since they rely entirely on social expectations rather than legislation. This means that even for serving staff who benefit from tips, the amount earned can vary wildly depending on myriad factors.
Tips can also create an âus and themâ situation between front-of-house (FOH) and back-of-house (BOH) staff. Most restaurants experience this friction, where cooks and bussers are out-earned by servers simply because one group earns tips and the other doesnât. Hiring kitchen and other backroom staff is easier when theyâre not at a disadvantage compared to tipped front-of-house workers.In theory, tip pooling can strengthen teamwork by encouraging a greater focus on the overall dining experience.
The cons of tip pooling
Anything that impacts how much money staff takes home each shift is bound to cause friction, and tip pooling is no exception. As youâd expect for a system that takes money from one group and hands some of it to others, itâs divisive. Implementing such a system can introduce negativity into the workplace if handled poorly.
While some locations have found a workable tip pooling model, with buy-in from all staff, there is a strong chance that it simply takes a small pool of money and spreads it more thinly. Research has shown that although diners expect and prefer their server to keep all of their tips, a tip pooling system doesnât change the amount people tip.
Tipped employees mostly rely on their tips more than their contracted salary to make ends meet. This means anything that cuts into that income can have an immediate impact on their quality of life and, by extension, their engagement at work. Introduce a tip pooling system to an existing restaurant, and your best front-of-house staff, the ones used to earning the most in tips, may well leave for a restaurant that uses traditional tipping to maintain their income level.
Tips for implementing an effective restaurant tip pooling system
Implementing a tip pooling arrangement is a balancing act. When done right, it can foster teamwork and fairness. However, if mismanaged, it risks impacting employee retention and morale. If you believe every team member contributing to the guest experience deserves a a part of the tip, getting it right from the start is crucial. Here are some practical tips for building a tip pooling system:
Create clear and fair policies.
While thereâs no specific FLSA-mandated structure to building a tip pooling system, creating a system that works for your team is essential. Employers must develop a policy that is fair to all employees. Start by assessing your operations and determining the best distribution method. Should tips be allocated based on roles, hours worked, or shifts? Outline clear factors for determining allocations to ensure everyone understands and agrees on the system’s fairness.
Monitor, evaluate, and adjust.
Like any company policy, your tip pooling rules should not be set in stone. Since they directly affect employeesâ wages, reviewing them regularly is crucial. Is the system meeting your teamâs needs? Are there gaps in fairness or clarity? Gather feedback and make adjustments as needed to enhance employee reception or ensure compliance with legal updates.
Understand the legal framework.
While you have the flexibility to structure your tip pooling policy, it must comply with federal and state laws. It is essential to understand the Fair Labor Standards Act (FLSA) and any applicable local regulations regarding tip pooling and wage distribution. Maintaining compliance ensures that your system is both fair and lawful, helping you avoid costly penalties.
Communicate with your employees.
Transparency is vital to successful implementation. Explain the policy to your employees during onboarding and provide them with accessible resources for reference, such as an employee handbook. Managers should also be prepared to address questions or concerns along the way.
Use technology to stay on top of tip pooling calculations
Managing a restaurant involves many complexities, and handling payroll for various staff and teams is challenging on its own. Adding tip pooling to the equation can make it even more demanding.
The good news is that technology can simplify the process, ensuring that eligible employees receive the tips they rightfully earn.
Workforce.com is a system that can do that and more. Here are some of the ways it can help you manage tip pooling and wages.
Classifying employees – Workforce.com automatically knows whoâs entitled to what. Whether your tip pooling system is based on roles, shifts, or hours worked, it can make accurate and automated calculations based on an employee’s qualifications. This can be easily set as early as onboarding and updated anytime on the system.
Centralized records – Employee profiles created during onboarding sync across scheduling, payroll, and attendance systems, reducing errors and duplication. That means thereâs only one source of truth for wages and tip calculations.
Automated tip pooling– Tips can be pooled and distributed automatically, in line with your chosen method, and integrated directly into payroll. Workforce.com even allows integration with your POS to calculate and share tips seamlessly.
Streamlined payroll – Simplify payroll calculations, even with pooled tips. Payroll computations even with pooled tips are simpler. Workforce.comâs payroll system automates calculations, from hourly wages, deductions, and tip distributions, using employee data and predefined rules. No complications every pay period, just accurate wages, all the time.
Recordkeeping– Employers must adhere to recordkeeping rules regarding tip pooling. Stay audit-ready with detailed records of tip pooling distributions. Workforce.com ensures compliance and provides accessible data for employee inquiries or regulatory checks.
If implementing a tip pooling system feels overwhelming, let Workforce.com simplify it. It can help you comply with wage laws while streamlining the entire process. Ready to see how Workforce.com can help you with tip pooling, payroll, and managing your restaurant team? Book a demo and see it in action.
The hospitality industry is growing at a steady rate. â More
Hospitality businesses face seven supply chain challenges. â More
Unemployment rates in the sector have decreased significantly. â More
Restaurant profit margins and revenue are increasing slightly. â More
Hotels saw record-high average daily rates and revenue per available room in 2022. â More
853 million passengers flew with US airlines in 2022. â More
Leisure travel is a priority for most people. â More
The outlook for business travel is looking similar to 2019. â More
The hospitality industry is one of the fastest-growing industries in the US. With over 15 million people employed in various roles and sectors, this industry plays a critical role in driving economic growth and providing customers with unforgettable experiences.Â
Hospitality covers a number of sectors, including the hotel industry, the travel industry (including business travel), and restaurants. For HR professionals and employers in the hospitality and tourism industry, staying informed about trends and statistics is crucial for making informed decisions that can positively impact their businesses.Â
In this article, we will be presenting some insightful industry statistics and trends that will help you gain a better understanding of the current landscape of the sector.
The hospitality market continues to grow despite inflation
The hospitality industry, like practically any other sector, is experiencing a slow and steady recovery from the effects of the coronavirus pandemic. The market grew from $4,390.59 billion in 2022 to $4,699.57 billion in 2023, presenting a compound annual growth rate (CAGR) of 7.0%.
The Russia-Ukraine war has proven to be a hurdle for economic recovery as the conflict brought about sanctions across countries leading to inflation and supply chain disruptions. Despite this, hospitality sectors are expected to grow to $5,816.66 billion by 2027 at a CAGR of 5.5%.
The industry faces 7 supply chain challenges
Research by the AHLA and Avendra shows that there are seven market forces that have an impact on commodities and the supply chain:
Inflation âhospitality-related products will continue to see inflation rates between 5 and 10% for the next few quarters. This is more than twice the historical average.
Tight labor market âwhile the unemployment rate might be improving in the hospitality sector, other industries that it relies on, such as manufacturing and the retail trade, are still dealing with labor shortages. They have had to increase wages to retain workers, and this cost will be reflected in the cost of the goods and services they provide to the industry.Â
Product availability â manufacturers and producers are rationing their products to catch up to their demand backlog. To avoid delays, hospitality businesses need to communicate well in advance with distributors.Â
High product demand âhas contributed to increases in the price of energy and items like seafood, beef, cooking oil, coffee, and to-go packaging.Â
Russia-Ukraine war âhas had an impact on inflation.Â
Energy prices âOil and energy prices are volatile due to supply constraints and the possibility of a recession. Â
Transportation challenges and lead times â we are seeing high levels of US national average freight rates. Ocean and freight rates are decreasing but are still higher than pre-pandemic levels. Lead times on equipment and textiles are longer due to delays in the Asia-Pacific region. Â
Leisure & hospitality unemployment rates have reduced drastically
According to data from the US Bureau of Labor Statistics (BLS), the average annual unemployment rate in the leisure and hospitality industry in 2022 was 5.8%. This represents a 43% drop from the previous year and the third lowest in 10 years.Â
The lowest rates were recorded in 2018 and 2019 at 5.7% and 5.2%, respectively. The COVID-19 pandemic saw unemployment rates skyrocket to 19.4% in 2020, largely due to the mandatory closures of many hospitality businesses. Last yearâs decrease means that the industryâs unemployment rate has reached pre-pandemic levels, which is particularly impressive considering the country was also going through labor shortages and the Great Resignation.Â
Restaurant profit margins and revenue have increased slightly since the pandemic
In the past year, restaurants experienced increases in both profit and revenue since the pandemic.Â
Food service establishments reported an average revenue of $1.5 million in 2022 â a 7.4% increase from the year before. This increase was not felt across the board. Restaurants with over 80 seats were more likely to experience a revenue increase. A number of restaurants with smaller capacities actually experienced a decrease in revenue compared to 2021.Â
Average profit margins were at 10% in 2021 and saw a slight increase in 2022 to 10.6%. Once more, higher-capacity restaurants were more likely to see an increase in profits. Establishments of 120 seats or more reported profit margins as high as 13%.
The food service industry is reported to see continued growth in 2023. The National Restaurant Association forecasts $997 billion in restaurant industry sales in 2023. This is partly due to higher menu prices.Â
Hotel industry rates and revenue are reaching new heights
According to hotel industry statistics by STR, 2022 saw record-high average daily rates (ADR is the average paid for hotel rooms in a specific period) and revenue per available room (RevPAR). In 2022, ADR was up 13.6% from the pre-pandemic levels (2019) and reached $148.83.Â
RevPAR is a crucial KPI for most hoteliers and owners in the hotel market. It is calculated by multiplying a hotelâs ADR by its occupancy rate (the ratio of rooms rented to the total available rooms). In 2022, the industryâs revPAR was $93.27, 8.1% higher than in 2019.Â
Hotel occupancy rates, on the other hand, were still 4.9% lower than pre-pandemic levels at 62.7%.Â
The report showed that hotel bookings and overall industry growth were not linear or even. The occupancy rate varied greatly depending on the month and season. In January 2022, the rate was 12 to 14% lower than 2019 levels, while less than 1% lower in October.Â
US airlines carried 853 million passengers in 2022Â
The airline industry is on the road to recovery as domestic and global travel continues to increase, but air travel has yet to reach pre-pandemic levels.Â
In 2019, US airlines carried a record-breaking 928 million passengers right before the onset of the pandemic. Travel restrictions brought these numbers down to just 3 million in April 2020. Â
In 2022, US airlines carried 853 million passengers, a 30% year-to-year increase from 2021 and 8% lower than the record-breaking 2019 numbers. Of these, domestic travel accounted for 751 million passengers, and international travel accounted for 102 million.Â
Most people are prioritizing and planning leisure travel this year
According to the American Express 2023 Global Travel Trends Report, the appetite for travel and tourism is alive and well. Eighty-five percent of respondents indicated that they plan on taking at least two leisure trips in 2023. Seventy-eight percent stated that they consider leisure travel as an âimportant budget priority.â
The research uncovered four major trends in travel tourism:
Tourists want to discover hidden gems and âlesser-known destinationsâ while also supporting local communities.
Travelers are looking toward pop culture when making decisions on where to travel and why.Â
Food is an integral part of the travel experience.Â
Restorative vacations are increasing in popularity, where travelers prioritize mental and physical self-care.Â
These trends were found to be particularly prevalent among Gen Z and millennial respondents.Â
Business travel is nearly back to ânormalâ
In a survey of 100 global corporate travel managers, Morgan Stanley found that business travel has bounced back from the COVID-19 disruptions. Many respondents believe that business travel budgets and expenditures are either back to pre-pandemic levels or, at least, very close. This is despite the fact that the costs of airfare and lodging are higher than pre-pandemic levels.Â
Furthermore, there is an expectation that travel budgets in 2023 will be anywhere between 6% to 10% higher than 2019 levels. Corporate airfare budgets, for example, are expected to be 9% higher.
Three other trends affecting the business travel industry are:
Global hotel room rates are expected to rise by an average of 8%.Â
In an attempt to cut costs, travel managers are looking for cheaper alternatives to upscale hotel brands for business trips. Thirty-one percent of respondents are disregarding hotels altogether and opting for short-term rentals instead.Â
Virtual meetings are still considered alternatives to business trips. It is expected that nearly 18% of business travel will be replaced with virtual meetings. The digitalization of business trips is not just a cost-cutting measure. Sustainability is also a driving factor as companies are looking to be more eco-friendly. Â
Simplify & streamline hospitality operations with Workforce.com
The hospitality industry shows promising signs of recovery after what has been a turbulent few years. It has never been more important for businesses, from neighborhood restaurants to hotel chains, to find ways to improve labor efficiency and maximize profits.Â
From your local community pool to the most lavish condominium complex in your state, the landscape for hospitality services is changing rapidly – and for the Amenity Collective, itâs only the beginning.Â
âThere’s a massive opportunity to leverage technology, to not only provide a better customer experience but also deliver a better employee and owner experience for our subsidiary companies,â says Adam Chen, CIO of the Amenity Collective.Â
The Amenity Collective is a suite of lifestyle and hospitality businesses consisting of three main subsidiaries: American Pool, Heartline Fitness, and LIVunLtd. With thousands of locations spanning the east coast and the Sun Belt, and with up to 10,000 seasonal workers, the Amenity Collective provides a gamut of services including spa and concierge work, pool and gym equipment upkeep, lifeguard staffing, and much more.Â
Their rapid expansion and propensity for success are due mostly in part to a laser focus on curating employee and customer experience.Â
âCustomer experience is one of our core values,â says Brian Buccino, CEO of LIVunLtd. âOur success is directly correlated with best in class experience for our customers. But we also have to balance that customer experience with the experience of our employees.â
CHALLENGE
After experiencing tremendous growth over the past few years, the Amenity Collective began to pinpoint several operational pain points throughout their workforce. One of their biggest challenges was delivering a consistent employee and customer experience across a growing and highly decentralized organization.Â
âWhen we grew through acquisition, we bought really strong companies, but they all outgrew their legacy manual processes,â says Dan Cohen, the Amenity Collectiveâs COO. âOur goal was to figure out how to bring on a workforce management tool that would allow us to operate digitally.âÂ
Inefficient scheduling and attendance practices, in particular, were dragging down employee and customer experience. âOur staff was spending an inordinate amount of time just trying to work our old systemâ reflects Chen. âIt took a lot of legwork.âÂ
These inefficiencies caused high overtime rates, unnecessary admin work, and concerning levels of absenteeism. Something had to change. Â
SOLUTION
Management knew that in order to improve customer experience, they first needed to improve employee experience – and that began with addressing the issues plaguing their scheduling and attendance systems.Â
âWe wanted to find solutions that would adapt to our unique business model – Workforce.com fit that bill,â says Chen. âBeing able to leverage a system like Workforce.com has allowed us to free up time within our employee base to focus on other areas.â
With Workforce.com, the Amenity Collective introduced automation to their scheduling and time tracking practices. Their formerly decentralized workforce management became unified on a single, cloud-based platform, serving to enhance administrative work and improve customer experience across all three subsidiaries.Â
RESULTS
The Amenity Collective is now able to drill down where and when they are overspending on labor and administrative work. Their scheduling and time tracking are combined into a single, streamlined system, increasing the accessibility of actionable data. As a result, both employee and customer experience have greatly improved – hereâs how they got there:
85% reduction in administrative work
Before Workforce.com, managers spent about 20 hours a week on basic administrative tasks like creating schedules, approving timesheets, and managing call-outs. Less than a year into using the software, they have now cut admin time down to 3 hours a week on average, boosting overall employee experience and productivity.Â
âWith Workforce.com, we’ve been able to reduce the time our staffers spend publishing schedules by 85% – that is a huge efficiency gain for our organization and for our employees,â says Chen. âWhat that allows our employees to do is spend more time building stronger relationships.âÂ
50% drop in overtime
In less than a year, the Amenity Collective has reduced the occurrence of overtime across their entire organization, resulting in lower labor costs and fewer cases of employee burnout.Â
âWe were floating around a 10% overtime rate with our employee base. Not even a year into using Workforce.com, we’ve already reduced that 50%,â says Chen. âThat is a massive savings for us.â
70% decrease in absenteeismÂ
Once all staff began checking schedules and clocking in and out on the Workforce.com app, missed shifts dropped from 10% to a mere 3% throughout all three subsidiary companies.
âWorkforce.com lets us immediately see when somebody doesn’t clock in for a shift,â says Chen. âWe are able to fill those gaps in the schedule and make sure that our gym or pool doesn’t stay closed. Workforce.com has given our teams that insight, that visibility, and we’ve been able to meet our employees where they are.â
Guaranteeing staff coverage in this way has kept locations up and running, client obligations fulfilled, and facility users satisfied.Â
Comprehensive API integrations
To ensure business operations flowed together seamlessly, the Amenity Collective required strong integration capabilities from all their software. Workforce.com fit perfectly within the organizationâs software stack, syncing data in a way that optimized employee experience.Â
âWorkforce.com is an incredibly powerful tool, especially with its integrations,â reflects Chen. âWe have an integration with Salesforce ⌠simultaneously, we have an integration with Workday as our HRIS platform. Workforce.com sits in the middle, where we can really auto-schedule to our demand.âÂ
Together, the Amenity Collective and Workforce.com are scaling amenity management services to new heights. âWe can now be more confident that as we scale and get more business, we’ll actually get it in a more profitable way,â Cohen says.Â
By overhauling their approach to scheduling and attendance, the Amenity Collective now leads a rapidly expanding market. Successfully lowering labor costs and boosting admin efficiency has, in turn, improved both employee and customer experience tremendously.Â
âThis is a very fragmented industry,â says Chen, âbut there’s a huge opportunity ⌠and we’re at the forefront of that change. Using best-in-class technology providers like Workforce.com allows us to get new clients to market faster. It gives us a standardized process to implement best practices across all of our markets.â
Employee time theft is when employees are paid for work they did not do
Employee time theft can come in various forms
Restaurant managers can prevent time theft with workforce management software
As a manager of a restaurant, when you think of employee theft in the workplace your mind may automatically go to blatant examples, such as staff stealing equipment, cash from the register, or even snacking on supplies. However, thereâs a less blatant form of workplace theft: employee time theft.
While employee time theft is not always easy to spot, the impact is. Employee time theft directly impacts labor costs, and sadly, itâs not uncommon. Time theft can be prevented by investing in innovative time tracking software that ensures maximum employee productivity at all times.
What is time theft?
Time theft is when an employee is paid for time they didnât work. It typically applies to hourly employees rather than exempt employees. Therefore, as a restaurant manager, you are at a high risk of being a victim of employee time theft.
What does the law say about time theft?
Unfortunately for employers, there are no explicit federal time theft laws, which puts businesses in a vulnerable position. While there are ways some businesses may be able to recoup losses through a civil suit, there is no guarantee this will be successful. So, employers need to make sure theyâre doing everything they can to prevent time theft in the work environment.
Recognizing time theft in restaurants
There are different forms of time theft. Here are the major ones to look out for:
Falsifying timesheets: This is when employees misrepresent work hours. For example, an employee only worked 30 hours in a week, but they doctor their timesheet and say they worked 45 hours. If your restaurant uses temporary staff from staffing agencies, this is something to watch out for. A restaurant in Florida found it had $10,000 added to its payroll costs when a temp agency worker fraudulently misrepresented his work hours.
Buddy punching: This is when an employee clocks in and out for a coworker. If an employee is running a few minutes late and doesn’t want this to be recorded, they may ask a coworker (who’s already in the restaurant) to clock in. The reverse can also be true, employees can leave their shift earlier than scheduled, but have their buddy clock out for them.
Extended breaks: Employees may take too long on lunch breaks or go for unauthorized breaks like smoke breaks. This is likely to happen where there’s easy access to a back door.
Doing personal tasks during the workday: Instead of clearing tables, wait staff are surfing social media on company time or sneaking off to the restroom to take personal calls. A 2020 Digital Distraction & Workplace Safetysurvey revealed that the average employee spends 2.5 hours each workday looking at digital content that is unrelated to their job.
Uncovering time theft in your restaurant
While time theft can be difficult to prove, here are a few pointers that you may realize at your workplace:
Employees are consistently absent from the restaurant floor. The floor manager might realize some employees are absent or are taking longer breaks than allowed.
Check your restaurant employee time & attendance software for any discrepancies. If you see your labor costs are unexpectedly higher than what you forecasted, this could indicate a problem. If your business finds itself in this situation, cross reference hourly employees’ wages with attendance.
Someone may whistleblow on buddy punching
 How to prevent time theft
Prevent time theft by using innovative scheduling and timekeeping software that ensures there’s no lost productivity from employees.
Use accurate scheduling software
According to the Fair Labor Standards Act (FLSA), employers must pay staff according to whatâs recorded on the timesheet. Therefore, it’s important that your scheduling software creates the right shifts in the first place. Moreover, all schedules should properly align with hours reflected on timesheets, as this will prevent paying employees for hours they didn’t work.
Use an automated time clock solution
Eliminate the risk of falsifying time cards with a time clock app. Hereâs how it works:
Staff clock in and out in an app with their personal IOS and Android devices.
Managers can guarantee the right worker is in the right shift, at the right place, at the right time with unique clock in/out passcodes, electronic photo verification, and GPS location data. This will directly eliminate buddy punching.
All clock-in data is automatically recorded, and the app generates electronic timesheets â the perfect solution for business owners who are tired of using stacks of binders full of paper timesheets.
Give your managers the ability to manage operations during the day
Provide your managers with a time and attendance system that stays on top of employee productivity. Managers should be able to monitor employees remotely â all from a computer or mobile device. This kind of monitoring should take the form of a live timeclock feed and tardiness notifications.
Managers should also receive notifications when employees clock in and clock out for breaks. With these instant notifications, itâs possible to cross-reference clocking in and out with the shift schedule to make sure there are no discrepancies in break times. Giving managers the ability to manage operations during the day ensures they can easily spot time theft.
Create and enforce firm time and attendance policies
Create attendance policies and communicate them clearly to your staff. Your staff might be unaware of their actions and how they can be perceived as time theft, so itâs important they know what time theft is and how they may be breaking company policy.
Make sure time and attendance policies include clocking in and out procedures, break periods, and cell phone and social media usage when on the clock. Itâs crucial that employees know what time theft is and understand that it will not be tolerated. If necessary, make sure policies are enforced with disciplinary actions, as they may act as a deterrent.
Provide an enjoyable work environment
Burnout, low pay, and minimal benefits may make employees more likely to commit time theft. Employers should provide staff with enjoyable working environments where they feel valued, taken care of, and respected – this always helps reduce time theft. Consider implementing something like an employee reward system to create a culture of positivity and motivation. You could also regularly grant time off â or add in an extra shift â for workers who excel in their roles.
Prevention is better than a cure
While you canât go back in time to stop prior time theft, you can certainly take steps to prevent it from continuing. Use automated workforce management software to empower employees to make the most of the hours they’re scheduled for. Contact us today to learn how you can get started.
We live in the time of âThe Great American Labor Shortage.â The leisure and hospitality industry faced a high unemployment rate of 39.3% in 2020, which, combined with the high number of job openings, reveals just how understaffed the sector is.
The World Travel & Tourism Council estimated a labor shortfall of 690,000 workers in the tourism and travel industries in 2021. Vail Resorts is one of many resort companies facing this problem. A shortage of chairlift operators, lift engineers, and snowcat drivers has delayed the resortâs ability to open doors to its skiing visitors.
Why has COVID led to a shortage of talent?
According to the Colorado Sun, lots of resorts in the country are in the same predicament as Vail Resorts. This widespread lack of active workers in the industry can be attributed to several reasons â all tied to the COVID-19 pandemic:
COVID fears: Staff doesnât want to return to work because theyâre scared of catching the virus.
Poor management: Resort management let go of many people last year, and one of the possible reasons they may not be hiring anyone back is to help recover from the profit lost during shutdowns.
Parental caregiving during the pandemic: The COVID-19 pandemic led a number of schools across the country to shut down. Parents without access to childcare are forced to remain home and are unable to rejoin the workforce.
In order to prevent the loss of customers whose needs are unmet, resort managers must optimize their scheduling while short-staffed.
To optimize scheduling while being short-staffed, you need to:
1. Use labor forecasting
Estimate sales demand by using labor forecasting software to look at historical sales data and then schedule shifts accordingly. Youâll be able to schedule your scarce labor smartly to meet sales demand. For instance, you might be able to schedule more experienced employees when the sales demand is high.
Sales demand is likely to fluctuate post-pandemic, and managers need to ensure that worker scheduling can adapt easily to meet sudden demand shifts.
You can also forecast labor demand by individual departments and monitor whether, say, more employees need to be scheduled in mountain operations versus lodging at a ski resort. For instance, a lot of people may be coming to ski for the day but not booking rooms for the weekend, meaning the level of scheduled labor needed will vary between the two departments.
2. Make schedules agile and adaptable
Prepare schedules in advance, two weeks at a minimum, to give employees the ability to communicate their need for coverage in the event of unforeseen scheduling conflicts.
Use hospitality employee scheduling software to centralize scheduling and increase your staffâs commitment to shift adherence. By using mobile technology like shift swaps and replacements, you minimize any last-minute scheduling changes, increasing both administrative adaptability and staff agility.
You must also manage leave requests in a timely manner to avoid being short-staffed. You donât want too many employees taking leave at the same time. Discuss leave requests with each staff member to avoid any scheduling surprises down the road. Staff members should be encouraged to put in leave requests by giving at least a few daysâ notice, so you can plan schedules in a timely manner.
3. Increase employee engagement
Focus on improving your overall staff experience. If your employees feel engaged, they are more likely to show up and do their best work and provide the best service.
With a centralized communication tool, itâs possible to quickly notify staff of timely updates or important company announcements. Getting your message out there efficiently on a unified system properly engages staff, makes them feel valued, and solves issues in disconnected communication with management.
Another way to increase employee engagement is to open up more avenues for staff to provide shift feedback. Employees may feel inclined to report on how various aspects of their shifts, from coworker cooperation to issues in staffing levels. Having the ability to give management feedback like this empowers employees, making them feel more valued. This leads to engaged and productive resort staff, even in the face of a shortage in labor.
You should also offer incentives to engage employees and boost their morale. Workers are happier when theyâre well compensated. A lot of restaurant and hotel owners are offering higher wages to attract and retain employees. For instance, an ice cream parlor raised wages to $15 an hour and filled all of their 15 open positions immediately. As per Hotel Tech Report, higher pay rates can decrease absenteeism and control employee turnover, which is good news for short-staffed hotels and resorts.
Replicate these successes and improve employee motivation by offering a higher pay rate during busier shifts and during peak season.
Between multiple departments with varying needs, resort management already spends too much time preparing employee schedules manually â up to 12 hours a week. Short staffing levels only add to this time, causing even more headaches for management. In the midst of all these hurdles, scheduling and enforcing breaks might slip between the cracks.
Solve this by implementing employee scheduling software that automatically applies legally compliant breaks to every employee’s schedule. These breaks should be easily monitorable by both employees and managers alike, ensuring short-staffed teams stay well-rested and productive. Leadership should receive notifications when employees miss breaks, and they should be able to track a live timeclock feed to know when and where workers are taking their breaks.
5. Cross-train employees
Train employees to handle a broad range of tasks so theyâre more well-rounded and well-equipped to deal with short-staffing challenges. The best way to do this is to encourage your staff members to mentor and train each other.
Start by making a list of everyone on your team and include their job descriptions. Think about the expertise each role requires and then pair positions that share similar skill sets. For instance, you can pair up wait staff with those working in the front office team, both client-facing roles. The wait staff team members would learn how to perform check-ins, check-outs, and make reservations, and the front office team members would learn how to serve customers at the restaurant.
If all of your staff are cross-trained and multi-functional, theyâll be able to fill in for each other. It will become possible for you to rotate your staff across different departments to meet varying customer needs.
Workforce management can be quite complex for individual departments to handle, especially while short-staffed. By uniting staff on one platform and deploying the tips above, itâs possible to have executive oversight on staffing needs. If youâd like to overcome the challenges of the short-staffing problem at your resort, get in touch with us today!
