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By: Ellie Burgueno, Writer and Journalist.
In today’s labor market, companies across various sectors are grappling with an increasingly pressing issue: the struggle to find talent and retain committed employees to fill their vacancies. This challenge is particularly pronounced in industries like hospitality and restaurants, where high turnover rates have become the norm. Business owners are finding it both frustrating and costly to train new hires, only to see them leave shortly after.
The problem can be partly attributed to shifts in generational attitudes toward traditional employment. Millennials and Generation Z, who make up a significant portion of the current workforce, often view the traditional 9-to-5 job through a different lens. The allure of social media and the dream of becoming a multimillionaire influencer or popular YouTuber has fundamentally changed career aspirations for many young people. Platforms like TikTok, Instagram, and YouTube have created a space where fame and fortune seem attainable without the need for formal education or years of hard work in traditional jobs.
According to a recent survey by Morning Consult, nearly 54% of Gen Z respondents expressed a desire to become social media influencers, citing flexibility, creativity, and the potential for financial independence as primary motivators. While these aspirations are valid and reflect the evolving nature of work, they also lead to a disconnect between the labor market’s needs and young people’s career preferences.
For companies, particularly those in customer-facing industries like hospitality and retail, this shift poses significant challenges. Restaurant and hotel owners report difficulties not only in hiring but also in retaining employees. The cost of recruitment, onboarding, and training can be substantial, and frequent turnover disrupts operations and impacts customer experience.
“Finding dedicated staff has become one of the most challenging aspects of running a restaurant,” says Juan Carlos Ramirez, owner of a popular bistro in Southern California. “We invest so much time in training new hires, but many leave within months, either to try their luck on social media or because they find the work too demanding.”
This issue is echoed across the border in Mexicali, a city in Baja California, where the Liaison Committee of the city’s Economic Development department works to connect industries with educational institutions to better prepare and train students in trade schools and universities. As a member of the board serving as Public Relations Director, I have witnessed firsthand the committee’s efforts to bridge this gap. Despite these initiatives, many business owners continue to struggle with high turnover rates. One such example is Araiza Mexicali, part of a hotel chain operating five and soon to be six locations in different cities. The company has faced challenges in retaining personnel, citing the rotation crisis as a major obstacle to stability and growth.
Beyond the allure of social media, broader societal and economic trends are also at play. The COVID-19 pandemic fundamentally reshaped work priorities for many people. Remote work and flexible schedules became the norm, leading many workers to re-evaluate their professional and personal goals. Younger generations, in particular, are prioritizing work-life balance and meaningful work over financial stability alone.
A report by McKinsey & Company highlighted that flexibility and a sense of purpose are among the top factors employees consider when choosing a job. Traditional employment models that demand long hours and rigid schedules are increasingly falling out of favor.
For businesses, the financial implications of high employee turnover are stark. According to the Society for Human Resource Management (SHRM), the cost of replacing an employee can range from six to nine months of their annual salary. This includes expenses related to recruiting, training, and lost productivity during the transition period.
“It’s not just about finding someone to fill a role,” explains Maria Lopez, a human resources consultant. “It’s about finding the right person who will stay and grow with the company. That’s becoming harder in today’s labor market.”
To address these challenges, some companies are rethinking their approaches to employee engagement and retention. Offering flexible work arrangements, competitive salaries, and professional development opportunities are some strategies gaining traction. Additionally, fostering a strong company culture and ensuring employees feel valued and supported can make a significant difference.
In the hospitality sector, some businesses are experimenting with innovative solutions like employee profit-sharing programs or mentorship initiatives to encourage long-term commitment. Others are leveraging technology to streamline operations and reduce their reliance on human labor, such as self-service kiosks in restaurants.
While companies are working to adapt, experts argue that bridging the gap between employer expectations and employee aspirations requires collaboration across sectors. Educational institutions, policymakers, and businesses must work together to align workforce training programs with the needs of the modern economy. Encouraging entrepreneurship and social media success as viable career paths is important, but so is highlighting the value and opportunities that come with traditional employment.
As the labor market continues to evolve, the companies that will thrive are those that can adapt to the changing landscape and find innovative ways to attract and retain talent. By understanding and addressing the needs of the modern workforce, businesses can turn this challenge into an opportunity for growth and resilience.
