4.1.1. Human Resource Management Issues
Human Resource Management (HRM) is a crucial aspect of managing foodservice enterprises. The complexity of HRM in healthcare and the food industry stems from various factors, including workforce shortage, high turnover rates, the need for a diverse workforce, and the demands of managing both full-time and part-time employees.
Workforce shortage is a significant challenge in the healthcare and the food industry, exacerbated by various economic, demographic, and industry-specific factors. This issue impacts the ability of foodservice enterprises to maintain operational efficiency and deliver high-quality service. Similarly, healthcare facilities are struggling to meet patient needs and maintain quality care due to insufficient staffing levels. According to recent data from Statistics Canada and industry reports, the foodservice sector has been one of the hardest hit by workforce shortages. The COVID-19 pandemic significantly worsened this situation, with many employees leaving the industry due to uncertainty and health concerns (Statistics Canada, 2023).
As of the latest data, the job vacancy rate in the foodservice sector has reached record highs. In the third quarter of 2023, there were over 130,000 vacant positions in the accommodation and food services sector, reflecting a vacancy rate of approximately 8%. The labor force participation rate in the hospitality and foodservice industry has declined, with fewer individuals willing to take on jobs that are perceived as low-paying and high-stress (Statistics Canada, 2023).
Another issue that the food service industry faces is a demographic shift in the country, with an ageing population and declining birth rates that have reduced the overall labor pool available for the industry. Younger workers, who traditionally filled these roles, are pursuing careers in other sectors that offer better pay and working conditions. Additionally, there is a growing shift in values among the workforce, with many prioritizing flexible work arrangements, comprehensive benefits, and more free time over traditional employment structures. These changing priorities make it increasingly difficult for the food service industry to attract and retain talent, especially when competing with industries that can offer more of what these workers value most (Government of Canada, 2023a).
The foodservice industry is often characterized by low wages. According to a 2023 report by Restaurants Canada, the average hourly wage in the foodservice sector is significantly lower than the national average, making it challenging to attract and retain workers. The average hourly wage in the foodservice sector is around $14, compared to the national average of $28 (Restaurants Canada, 2024).
The working conditions of the foodservice industry are physically demanding, coupled with long hours and irregular shifts, making these positions less attractive. Employees often face high levels of stress and burnout, leading to higher turnover rates. The intense pace and customer-facing nature of the work contribute to job dissatisfaction.
Effectively managing a diverse workforce is a critical aspect of modern organizational management. Embracing diversity brings numerous benefits, including a wide range of perspectives, ideas, and experiences that can greatly enrich the work environment. However, it’s necessary to implement effective communication channels and conflict resolution strategies to ensure a harmonious and inclusive workplace. This involves fostering open dialogue, promoting cultural understanding, and implementing fair and equitable practices to support and empower all employees, regardless of their background.
Ensuring high levels of employee engagement and retention is essential for operational stability. This involves creating a work environment where employees feel valued, motivated, and connected to the company’s mission and values. Providing career development opportunities such as training, mentorship programs, and clear paths for advancement is crucial in ensuring that employees feel invested in their long-term growth within the organization. Furthermore, recognizing and rewarding employee contributions through various means, such as performance bonuses, employee appreciation events, or public acknowledgment, is instrumental in boosting morale and reinforcing a positive work culture.
