Timeshare Management Companies Share Labor Shortage Solutions

How some timeshare companies are overcoming the challenge of recruiting and retaining staff while fostering positive morale

In today’s post-pandemic economy, the hospitality sector must take on its biggest challenge yet — revolutionizing how business is done in a centuries-old industry. The hospitality properties have been battling a labor shortage for years, made worse by a global pandemic. After pent-up demand for vacations, many resorts are at near-maximum occupancy, while staffing may be at 50% with workers expected to provide exceptional customer service in spite of long hours and low pay. Finding and keeping staff is proving to be this year’s monstrous challenge. This is clearly the industry’s most pressing issue and has become a major problem for some vacation ownership resorts.

According to a recent survey by Bloomberg News, more than half of U.S. hospitality workers would not go back to their old jobs and over a third wouldn’t even consider reentering the industry. They want a different work setting (52%), higher pay (45%), better benefits (29%), more schedule flexibility (19%), and remote work opportunities (16%).

Suggested Solutions. Hospitality workers at timeshare resorts have always played an important role in contributing to the guests’ enjoyable experience. So how does it tackle the daunting challenge of labor shortage? We asked these senior timeshare professionals to share their thoughts on this most pressing problem.

• Scott Schreiber Chief Administrative Officer from MasterCorp (suppliers of hospitality housekeepers)
• Scott MacGregor, COO LemonJuice Capital Solutions
• Ann Donahue, Senior VP of Raintree Resorts International (primarily in Mexico)
• Travis Bary, COO of Capital Vacations
• Ada Soriano-Grzywna, Senior VP of Resort Operations for Bluegreen Vacations

Q: How has the labor shortage impacted your company?

MasterCorp. Our business is almost completely labor based, and it has certainly been challenging for the past 15 months. We have stretched our teams to cover for open positions, but it has been taxing on them as well as supervisors and managers. Everyone has had to pitch in to ensure people across the country are able to go on vacation and enjoy a clean villa/unit. We are proud that for the most part we have been able to meet the demands of all our clients.

LemonJuice. Although the labor challenges unfolded as quickly as the pandemic, we were able to adapt quickly and worked to turn it into an opportunity. We worked with our resort boards to prepare them for the impacts on their budgets and adopted the strategy of becoming the best employer in the communities in which we work by offering the highest hourly wage and a substantial benefits package to all resort employees. Lemonjuice contributed to the benefits costs to ease the financial burden on the resorts. As a result, we were able to retain and attract talented people. It’s actually very rewarding to see these hard-working people make a good wage and be able to provide security for their families.

Raintree Resorts. It has presented major challenges for maintaining service levels and requires longer working hours for existing staff to cover short-staffed areas. Now, we must manage our resort occupancy to match the level of existing staff.

Capital Vacations. The change in applicant flow and available prospective employees forced us to adapt. We worked collaboratively with teams in the field and while we absolutely saw roles that went unfilled, we are lucky to have very engaged team members that pulled together and found ways to deliver on our service promise for our owners and guests.

Bluegreen. The current labor shortage has impacted speed of service and cost, but it also brought about a great deal of collaboration among cross-functional teams as well as innovation. At Bluegreen, we have looked at this issue from all angles. We have been addressing labor shortages with a package of solutions that includes process improvement, finessing standards and increasing wages. To attract and retain associates, we have not only addressed compensation but also leverage our associate centric culture by understanding and accommodating their personal family challenges and needs to every extent possible.

Q: What positions are most threatened?

LemonJuice. All levels of the resort teams were impacted but certainly the positions that turn over the most – housekeeping, front desk, and maintenance – were hardest to keep filled. We didn’t stop operating, and everyone pitched in to keep the properties safe and clean.

Raintree Resorts. Mainly line positions such as housekeeping, F&B staff, security, and specialized technicians from maintenance areas.

Capital Vacations. We saw the largest impact on our Housekeeping, Front Desk, and Call Center Teams.

Bluegreen. Hourly wage positions across the board, including housekeepers, engineers, and guest services have been greatly impacted.

Q: Have you increased wages or offered bonuses to attract new staff?

MasterCorp. Yes, depending on the market, our wage rates have increased 12% to 30%. Our clients are tremendous partners and understand the impact the labor crisis has had on their resort teams – they have allowed us to bill them for a significant portion of the increased wages. We all want to be fully staffed and return to business as usual, while our clients continue to work with us as we all try to navigate these challenging times.

LemonJuice. We saw increases in both our wage and benefits costs. We communicated with the Boards and owners on the impacts of maintenance fees, and though higher costs aren’t welcomed by anyone, most people were very understanding and supportive. The hot rental market of the past year has helped to soften the impact.

Raintree Resorts. Mainly line positions such as housekeeping, F&B staff, security, and specialized technicians from maintenance areas.
Capital Vacations. We facilitate regular compensation reviews by the market to ensure our ability to attract and retain our valuable employees. These reviews have been especially beneficial as we’re navigating the current market.

Bluegreen. We continue to examine our compensation strategy to ensure we remain competitive and able to attract top talent. We have increased wages and offered sign-on bonuses where warranted. We have also adjusted wages for existing associates, recognizing, and rewarding their tenure and past performance.

Q: Why do you think the resort industry represents a desirable career path?

LemonJuice. The timeshare industry and our unique strategic approach to resort management and reimagination provide many long-term career and professional development paths to people interested in hospitality, finance, and project management jobs. (Read Lemonjuice Capital and Solutions’ Story)

Raintree Resorts. There is nothing more rewarding for people who have a passion for the hospitality industry than knowing they can help create a place where people love to visit and can leave refreshed with great vacation memories. The fun and upbeat environment of a resort is a happy place to work.
Capital Vacations. I believe the resort industry is a wonderful career path, enabling employees to have a positive impact on the lives of those we serve. We ultimately set the stage that allows guests the ability to create some of the moments that matter in their lives.

Bluegreen. Over the years, the timeshare industry has remained resilient to changing economic conditions, bouncing back quickly when other sectors are severely impacted. For those with hospitality career aspirations, we represent tremendous job security and opportunity for growth.

A sincere thank you is extended to all the industry leaders who shared their thoughts and ideas on this most important industry issue.

Here are more of their ideas:

Q: What can be done to address labor shortage in the resort industry?

LemonJuice. Recruiting in tight labor environments is a challenge for everyone, and with the interruptions, in the working visa job channels, it has been particularly challenging for the hospitality sector. As a company, our goal is to over-emphasize the value of employee retention through professional and personal development, reward and recognition programs, and diversity in recruiting – so seeking to invest more in the people and reduce the high cost of turnover.

Raintree Resorts. We need to do a better job of recruiting, retaining, and recognizing our existing employees so they will become recruiters. Ideally, we should pull together as an industry and build a recruitment campaign that will demonstrate industry opportunities.

Capital Vacations. Like other industries, if we want to attract the best talent, we need to offer a compelling work experience. While compensation is important, it is just one factor. Others include the company’s mission and the employees’ ability to contribute to that mission, plus benefits and work environment. Today’s employee wants to feel valued and know that the work they are performing is valuable. (Read How one timeshare software company helped Capital Vacations expand revenue by 5X!)

Bluegreen. We need to shine a light on the timeshare sector as a great career opportunity and a legitimate growth industry. We must also create a better applicant experience and leverage emerging trends in the talent acquisition arena such as social media platforms. We operate HOAs dependent on maintenance dues which demands that we continue to seek efficiencies to be able to manage wages and implement strong retention strategies.

Q: Do you believe labor shortage is a short or long-term threat to the resort industry?

MasterCorp. Unfortunately, we believe the labor shortage will be with us for a while, but we hope this is not the new normal. As unemployment benefits, child tax credits, and stimulus checks taper off, we hope people will return to work. We are adjusting our operating model and recruiting strategy to be prepared if the labor crisis continues long term, but certainly hope we see some of our former family members returning to work soon.

LemonJuice. The challenges associated with attracting and keeping good people are here for the long term, and because of the seasonality in many of our locations, it will be particularly challenging for the resort industry. We’re also competing for more than ever with the STEM industries. We’ll just have to work harder to find and keep great people.

Raintree Resorts. I believe the pandemic has created a different mindset in many people about jobs and work. We were told that resorts and the jobs within fall in the category of “non-essential,” leaving a distinct feeling of insecurity among workers. Since the pandemic created a realization that many jobs can be done from home, some are now seeking those opportunities.

Bluegreen. Sadly, I believe labor shortage is one of the greatest threats to the industry. The U.S. employment landscape has forever changed, and we are now dealing with a new normal.

Q: What suggestions can you provide for resorts to cope with these challenges?

MasterCorp. Given how difficult it is to recruit and hire new Associates, it is imperative that you take care of your existing team members. Our long-term Associates – which we call our CORE team – CORE team also achieves the best quality results. If it wasn’t for our CORE team, we would not have been able to handle the Spring and Summer as well as we did – they are incredible people and the heartbeat of MasterCorp.

LemonJuice. We need to be cognizant at the industry level of the employment challenges we face and make it a priority in our legislative and communication efforts.

Raintree Resorts. I believe we must recultivate excitement for jobs in our industry. We should build an environment where employees enjoy coming to work, where they are rewarded and recognized for their contributions. We should create industry awareness campaigns and target high schools, colleges, and tech schools. We should continue to use what we have learned from the pandemic to reinforce marketing efforts by emphasizing health and safety, important not only to guests but employees as well.

Capital Vacations. Necessity is the mother of invention. The demand for quality employees doesn’t appear to be decreasing. We must focus on ways to become more efficient while not sacrificing our service standards.

A sincere thank you is extended to all the industry leaders who shared their thoughts and ideas on this most important industry issue.

Marge Lennon has been a publicist for the timeshare industry forever. Contact her at [email protected].