The US hospitality industry is evolving faster than ever. Operators face rising labor costs, shifting guest expectations, and an increasingly competitive talent market. While many of these issues exist globally, the US market carries its own unique complexities - from regional wage discrepancies to rapidly changing immigration policy.
Success in 2025 requires more than “post a job and wait.” It will demand strategic recruitment, deep industry knowledge, and a compelling employer brand.
Here are five recruiting challenges hospitality businesses in the United States must navigate this year, and how working with a specialist partner can help.
Persistent Labor Shortages
Despite economic fluctuations, the US hospitality sector continues to struggle with staffing shortages. Bureau of Labor Statistics data shows hospitality employment is still below pre-pandemic levels in many regions, particularly in food service and lodging. Restricted immigration pathways, fewer seasonal workers, and a smaller candidate pool overall have left hotels and restaurants competing fiercely for talent.
What this means for employers:
Expect longer time-to-hire for frontline and mid-management roles.
Salaries and benefits will trend upward as competition intensifies.
Passive candidates those not actively looking but open to change, will drive successful hiring.
High Turnover and Wage Pressure
The industry’s turnover problem is well known. Replacing a single hourly worker can cost thousands in recruitment, training, and lost productivity, while replacing managers and GMs can reach six figures. In 2025, turnover is amplified by wage escalation and cost-of-living pressures. Employees can often find a higher offer just by looking across the street.
Best response:
Conduct stay interviews and track why people leave.
Build retention strategies into hiring, career growth paths, flexible schedules, culture alignment.
Benchmark compensation accurately to stay competitive without overpaying.
Changing Candidate Expectations
The modern hospitality professional wants more than a paycheck. Flexibility, inclusion, sustainability, and a sense of purpose weigh heavily in career decisions. Gen Z, now entering mid-management roles, is especially values-driven and tech-savvy.
What to do:
Clearly communicate your culture and values in job ads and during interviews.
Offer development programs and clear advancement routes.
Create a positive candidate experience, timely feedback, transparent process, respectful communication.
Skills Gaps in an Era of Digital & Experiential Hospitality
Guest experience is increasingly shaped by technology: mobile check-ins, digital menus, sustainability tracking, data-driven upselling. Yet many candidates lack exposure to these tools. Upskilling existing teams and hiring new talent with digital competence is now a competitive differentiator.
Employer actions:
Consider in-role training to fill gaps rather than holding out for the “perfect” hire.
Seek candidates who demonstrate learning agility, not just existing tech expertise.
Partner with recruiters who understand which skills can be taught vs. which must be pre-existing.
Employer Branding in a Transparent Market
Online reviews (from Glassdoor to TikTok “day in the life” videos) have made every employer’s culture public. Candidates research heavily before applying. A weak or inconsistent employer brand can quietly undermine your entire hiring effort.
Practical steps:
Audit your online reputation and employee reviews.
Feature employee stories and career progression on your website and social channels.
Deliver a recruitment experience that matches your stated values.
How Specialist Recruiters Help You Compete
Niche recruiters bring more than a contact list. They:
Map the talent market and know where passive candidates are hiding.
Benchmark pay and benefits so offers are competitive but sustainable.
Act as brand advocates, telling your story credibly to candidates.
Accelerate hiring, reducing costly vacancy time.
For operators, that translates directly to revenue protection and growth.
The right partner can mean the difference between a rushed hire and a long-term asset.
If you are scaling or rethinking your talent strategy, contact Hastings People to discuss how we can help you navigate these challenges and secure the people who will drive your success.