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Solving Recruitment & Retention Issues: ICHRA for Hotel Industry

A hotel experience for guests is only as good as the talent of the team of back of house and front of house staff making the magic happen. That's why it's critical to keep those employees happy. Discover how ICHRA is revolutionizing health benefits for hotel employees while saving hotels money in recruitment and retention challenges.

In this post, we'll cover:

  • How the hotel industry can combat high turnover rate
  • What health insurance options there are for hotels
  • How hotels can maximize health benefits to help with recruitment and retention
  • How hotels can decide which health benefits model is best for their hotel employees 

The challenges of recruitment and retention in the hospitality industry

The Great Resignation and the Pandemic may be over, but that doesn’t mean that high turnover rates have ceased to wreak havoc on hotel management across the country. In fact, the Bureau of Labor Statistics reports that the hospitality industry has about twice the turnover of other industries. With the need for skilled workers like customer service, housekeeping, and management, this spells trouble for hotel brands. This is only compounded by inflation and economic uncertainty. 


It’s easy to understand why turnover is such a challenge. Jobs in the hotel industry tend to be seasonal and they are often perceived as temporary positions while someone applies for other jobs or takes classes. Other perceptions for job seekers? Hotel jobs often are typically not eligible for remote work and lack the flexibility that other employment opportunities bring. Hours can be long and the work can be strenuous. 


Recruitment and retention have always been major issues in the hospitality industry. Whether it's an independently owned hotel or a major hotel chain, finding and keeping talented employees has become increasingly difficult in a tight labor market. With the demand for skilled workers and the competition between hotels, it has become crucial for hoteliers to address these challenges effectively.

One of the main challenges in recruitment and retention is the complexity of the workforce in the hospitality industry. 

Hotels often have a mix of part-time workers, a combination of hourly and salary employees, and workers located in multiple properties. Traditional group health plans have proven to be difficult to work with in such situations. These plans are often designed for full-time employees with a fixed schedule, making it challenging to provide suitable health benefits for the diverse workforce in the industry.

To overcome these challenges, innovative hoteliers have started exploring alternative solutions that can better meet the needs of their employees while addressing the recruitment and retention issues. One such solution that has gained popularity is the Individual Coverage Health Reimbursement Arrangement (ICHRA). This innovative approach to health benefits is revolutionizing the way hotels provide healthcare coverage to their employees.

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The limitations of traditional group health plans for hotels

Traditional group health plans have several limitations when it comes to meeting the specific needs of hotels and their employees. These plans often have rigid structures that make it challenging to accommodate the unique workforce composition of hotels.

With a mix of part-time and full-time employees, hourly and salary workers, and employees spread across multiple locations and properties, traditional group health plans fall short in providing comprehensive coverage for all employees.

Moreover, traditional group health plans are often based on a one-size-fits-all approach, which may not be suitable for the diverse healthcare needs of hotel employees. This can lead to dissatisfaction among employees who require more personalized coverage or have specific healthcare needs.

Additionally, the administrative burden of managing traditional group health plans can be overwhelming for hoteliers. The complexity of enrollment, eligibility, and coordination with multiple insurance providers adds to the operational challenges hotels face. This administrative burden takes valuable time and resources away from focusing on recruitment and retention efforts.

Given these limitations, hotels are seeking a more flexible and tailored solution that can provide comprehensive health benefits to their diverse workforce.

Introducing ICHRA: A game-changer for hotel health benefits

ICHRA, or Individual Coverage Health Reimbursement Arrangement, is a game-changer for hotel health benefits. It offers a more flexible and customizable approach to healthcare coverage, making it an ideal solution for the unique needs of the hospitality industry.

With ICHRA, hotels have the freedom to design health benefit plans that best suit their employees. 

They can tailor the coverage based on the employee's status (part-time or full-time), employment type (hourly or salary), and location. This flexibility allows hotels to provide comprehensive coverage to all employees, ensuring their healthcare needs are met.

ICHRA also eliminates the one-size-fits-all approach of traditional group health plans. Hotels can offer different levels of coverage based on the specific needs of their employees. This personalized approach increases employee satisfaction and helps in recruitment and retention efforts.

Furthermore, ICHRA simplifies the administrative process for hotels. Instead of dealing with multiple insurance providers and managing complex enrollment procedures, hotels can set a fixed reimbursement amount for each employee. Employees can then use this amount to purchase individual health insurance plans that best fit their needs. This streamlined approach reduces the administrative burden and allows hotels to focus more on recruitment and retention strategies.

Overall, ICHRA is revolutionizing health benefits for hotel employees by providing a flexible, customizable, and simplified solution that addresses the recruitment and retention challenges faced by the hospitality industry.

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Benefits of implementing ICHRA for hotel employees

Implementing ICHRA offers several benefits for hotel employees. Firstly, it provides them with more options and flexibility when it comes to choosing their health insurance coverage. Instead of being limited to a single group plan, employees can select individual plans that best suit their needs. This empowers them to have more control over their healthcare decisions and ensures they receive coverage that meets their specific requirements.

ICHRA also allows employees to carry their health insurance coverage even if they switch jobs within the industry or move between different hotel properties. This portability of coverage is particularly beneficial for hotel employees who often have transient employment due to seasonal or temporary work arrangements. It provides them with continuity of coverage and eliminates the need to navigate complex transitions when changing jobs or locations.

Additionally, ICHRA promotes transparency and empowers employees to make informed healthcare choices. By receiving a fixed reimbursement amount, employees can compare different insurance plans and select the one that offers the best value for their money. This encourages employees to actively engage in managing their healthcare and promotes a culture of health and well-being within the hotel industry.

Moreover, the implementation of ICHRA can enhance employee satisfaction and loyalty. By offering personalized health benefits that cater to the unique needs of each employee, hotels can demonstrate their commitment to employee well-being. This, in turn, can improve employee morale, reduce turnover rates, and contribute to a positive work environment.

Overall, implementing ICHRA for hotel employees brings numerous advantages, including increased options and flexibility, portability of coverage, transparency in healthcare choices, and improved employee satisfaction and loyalty.

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