The New Year has already sprung, and it looks like 2016 will be another record employment year for leisure and hospitality industries. The Accommodations Sector of the BLS reports 20 straight months of record employment levels for hotels across the country. The Food Services Sector has had 54 straight months of record employment growth. Finally, the Healthcare and Social Assistance sector employment has grown every month this century increasing from 12.7 million employees in January 2000 to over 18.8 million as of November 2015.
What we at WageWatch have been watching and speaking with our lodging and healthcare customers about for the past year are the increasing competition for employees at all levels of the service industries. We have identified 22 job positions that hotel management companies and healthcare systems are in direct competition for hiring employees. We will be adding these crossover jobs to our wage surveys this year so that the two industries will be able to compare wages for these 22 job positions. This should be a great help to HR Managers around te4h country.
This week, we will also be surveying the gaming and lodging sectors for their budgeted wage increases for 2016. Our Forecast of Wages for 2016 reports will issued the end of January. Our survey last January for 2015 budgeted wage increases resulted in a forecast of 3.4% on average for hotels and slightly less for gaming properties. Based on our PeerMark™ wage survey of over 5,100 properties last year, our forecast was accurate.
We anticipate that by the middle of this year that the Department of Labor will issue its new rules on overtime. Nationally, it is estimated that over 5,000,000 middle level managers across all industries who are now exempt under the EAP (or so-called “white collar” exemption), but would fall under the proposed 40th percentile of earnings for full-time salaried workers ($50,440 in 2016 dollars). WageWatch analyzed the impact on the lodging sector last July and estimated 190,000 exempt salaried employees would be affected by the rule change.
Finally, with the record employment and added pressure on wages and salaries this year, Wagewatch should another very busy year assisting its customers with their wage and salary analytics. In 2015 the WageWatch Consulting Team successfully completed numerous compensation and human resource projects for many of our Hotel Industry Customers. Our consulting assignments included individual hotels and resorts, large national independent hotel companies as well as large hotel brand management companies. We assisted clients with benchmarking for their hotels, creating salary ranges and salary programs for both hourly and management employees. We also partnered with clients this year to manage projects working with their hotel human resource representatives on the proper execution of their wage policies.
At WageWatch our compensation consultants are focused on your organization’s compensation needs and ready to help you ensure that your compensation programs are supporting your company’s business strategy and objectives and that your pay practices are fair, equitable and non-discriminatory. We can provide your business with compensation surveys and salary reports to help you establish a budget for your merit pay program, including bonuses and incentives. Our innovative company is a leader in the collection of data for surveys and salary reports, which allows us to provide services to a wide range of industries in both the private and public sector. To learn more about our compensation surveys, salary reports and other services, please call 480-237-6130 or contact us online.