May 2020

Hospitalitypulse

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To help the hospitality industry effectively plan forthe future of their organizations, Hosco isconducting a monthly sentiment survey focusedon recruitment. The survey is called theHospitality Pulse, and it assesses the impact ofCOVID-19 in the hospitality industry. This short but insightful questionnaire coverstopics from the extent to which recruitment planshave been affected by the global health crisis tohow long this disruption could last. Hosco compares the month-by-month benchmarkand shares how the Hospitality Pulse evolves. The following findings are based on the responsesof hospitality HR specialists, business owners, andGeneral Managers from the EMEA region. Allresponses were collected between the 14th andthe 29th of May, 2020.

HOSPITALITY PULSE:COVID-19 SENTIMENT SURVEY

INTRODUCTION

MAY'S HOSPITALITY PULSERESPONSES

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On the 12th of March, the World HealthOrganization (WHO) announced theoutbreak of a global pandemic, and sincethen, most regions and economic sectorshave been negatively impacted. TheCOVID-19 crisis has tremendouslyaffected hospitality organizations aroundthe world, and hence their hiring plans. As the graph shows, in May's pulse, 80%of respondents declared that theirhiring plans were affected "to a greator extreme extent" (-10 ptts vs. April'spulse). The most noticeable differencecan be appreciated in the number ofemployers that were moderately affected(11% vs. 4% in April's pulse.)

IMPACT ON HIRING PLANS

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67%

23%

4%

Q1: To what extent has COVID-19 affected your recruitment plan?

In May's Pulse, we asked the question "Whatpercentage of your team have you had toterminate?" to assess the impact that theoutbreak has had on overall headcount. In response, 21% of the employerssurveyed let go of 10% to 25% of theirstaff. This was followed by 13% that terminated85% to 100% of their employees. And, in third place, 10% had to dismiss 25%to 40% of their team.

IMPACT ON THE TEAM

Q2: What percentage of your team have you had to terminate?

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Q3: When do you plan or expect to hire again?

In April, 57% of respondents expected tostart hiring again during 2020, the majorityof which between July and September (48%).This prediction has slightly changed inMay's Pulse as 50% of respondentsexpect to reactivate their recruitmentplan during this year (-7 ppts). However,they still plan to hire more intenselybetween July and December 2020 (45% vs.48% in April's Pulse). The most significant difference is in Q22021, with 24% of respondents expecting tohire during this period (vs. 16% in April'sPulse.)

RECRUITMENT PREDICTIONSH

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Q4: When do you expect to reach a normal headcount (pre-outbreak regular operations and team volume)?

HEADCOUNT RECOVERY

In April's Pulse, 32% of employers wereoptimistic about regaining their pre-COVID-19 headcount before the end of2020. Now, in May's Pulse, only 15%believe that they will regain theirheadcount between Q2 and Q4 of 2020(-17 ppts vs. April's pulse.) Employers still envision an 18-monthrecovery timeline, but that has now shiftedtowards the second half of that period(65% vs. 46% in April's Pulse.) The staffheadcount will recover later than April'sestimation.

KEY PRIORITIES

4%

2%

2%

Q5: What are your key priorities over the next few months?

The main priority for employerscontinues to be financial management(27%), followed by the health and safetyof their staff (24%), and then, workforceengagement (15%). This was followedvery closely by the importance employersgive to upskilling and reskilling theiremployees (13%). The biggest difference between April'sand May's Pulse is offering COVID-19support (E.g. providing accommodationto healthcare workers), -3 ppts comparedto the previous month.

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HOSPITALITY PULSE:COVID-19 SENTIMENT SURVEY

OUTLOOKS

The Hospitality Pulse May 2020 report covers, in general terms, the impactCOVID-19 has had on recruitment in the hospitality industry. We advise you toobtain professional guidance before acting or changing your action plan basedon this report's content. Hosco accepts no liability for any measures taken orceased as a result of any information provided in the Hospitality Pulse.

50% of respondents expect to reactivate theirrecruitment plan during this year (-7 ppts vs. April'sPulse.) Despite the differences between the pulses,respondents still plan to hire more intenselybetween Q3 and Q4 2020 (45%).

The staff headcount will recover later than April'sestimations. Employers still envision an 18-monthrecovery timeline, but that has now shifted towardsthe second half of that period (65% vs. 46% in April'sPulse.)

Based on the above, Q2 2021 is foreseen to be thepeak of recruitment when 93% of employers expectto be actively recruiting and 61% of them expect tohave already recovered their original headcount.

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HOW CAN WE HELP?

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| May 2020

Please reach out to us if you have any questionscontact@hosco.com