Contingent Labor and Hospitality: A Guide to 2023

The hospitality industry has long marched to the beat of a seasonal drum. Urged on by events, pilgrimages and weather patterns, travelers have typically vacationed – and worked – around the world in only semi-predictable patterns. And in the aftermath of the pandemic, the ebb and flow of tourism-driven business has been as mercurial as ever, which should prompt decision-makers to consider how contingent labor and hospitality jibe. 

What we do know is that global travel is coming back. U.S. travel in 2022 had nearly matched 2019 levels by May, and hotels had already outperformed 2019 numbers by midyear. And while some of 2022’s bounce-back can be attributed to revenge travel, Economist Intelligence projects that global tourism arrivals will increase by 30 percent in 2023.

Making up a significant portion of that surge will be the travel of digital nomads. Already an upwardly trending lifestyle pre-COVID, the practice of travelers combining tourism with remote work – which increased almost three-fold, to 15.5 million, from 2019 to 2021 –  has become big business for the hospitality space. In fact, some of those workers will wind up being critically important to helping hotels and other service businesses meet their workflows in the coming months. Here’s how the hospitality sector can benefit from contingent labor in 2023:

A seasonal workforce.

Travel and tourism demand may be up, but it is anything but steady. Predictability in the hospitality industry is relative even during the most stable of times, but Covid surges, a volatile economy and shifting societal tides are making it more difficult than ever for companies whose business hinges on travel and tourism to appropriately staff up at any given moment.

Contingent labor allows hospitality businesses to quickly add contractors for short-term projects, seasonal work, and unanticipated demand without overcommitting long-term payroll and benefits to positions that may not be needed tomorrow. A pipeline to talent that can be turned on and shut off as needed may be the difference between insolvency and profitability in the sporadic hospitality space.

Mix and match.

Hospitality businesses seeking contingent labor would do well to work with a third-party partner like PeopleCaddie to help fulfill their contractor needs. A talent cloud teeming with qualified contract workers, PeopleCaddie offers its clients access to a network of vetted talent – and can accommodate a hospitality sector that tends to break down labor by verticals.

PeopleCaddie provides white glove service that helps connect your business – which may include multiple locations and complex staffing needs – with skilled contingent professionals such as accountants, auditors, developers, cybersecurity specialists, CMS experts, and more. Contractors with whom you’ve already worked, or would like to work, can even be added to our network to help you secure the exact talent you have in mind. We’ll even take care of all the admin work surrounding that engagement. Which brings us to…

Fewer admin responsibilities.

Because PeopleCaddie handles payroll and related administration, the best contractors are attracted to our network by bi-weekly paychecks and access to insurance and other benefits (a rarity for contingent labor).

Your business is then bolstered not only by a dynamic pipeline of top talent, but also by the time and energy it saves. As the circumstances around W-2 and 1099 classifications become more muddled, you can count on PeopleCaddie’s team of experts to comb over the fine print – and free you up to focus your efforts on taking care of your guests. No more getting bogged down by administrative tasks made more complicated by the seasonality of your business. PeopleCaddie has you covered.

Reach out to a PeopleCaddie representative today to learn how we can help you meet all your workforce needs and optimize your business operations.

sgruenContingent Labor and Hospitality: A Guide to 2023

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