Pulse April 2020 | Page 57

impact within the spa industry. This approach is defined by a set of Opportunity Employment Principles that prioritize opportunity and mobility for entry-level and frontline workers while generating business value for companies. This strategy can help the spa industry build a more inclusive workforce and give spa establishments access to talented individuals that can drive their future growth. Why Diversity? Traditional hiring and recruiting practices often focus on credentials instead of skills, which means talented individuals who can successfully contribute to companies can be excluded from the process. However, there are several diverse groups – including veterans, people with disabilities, formerly incarcerated individuals and young people who have not completed post- secondary education – who could help address this talent gap. Case in point: there are currently 7 million available jobs, and 5.9 million people looking for work. Additionally, the unemployment rate for disabled workers is twice the national rate, while it is even historically higher for the formerly incarcerated. Eleven percent of young adults between the ages of 18 to 24 are neither enrolled in school or working, which equates to five million young people who could help to fill workforce shortages in many industries. Many apprenticeship programs, workforce and skills development organizations provide valuable training for these groups, but what is missing are innovations in the typical approach to hiring and mechanisms that encourage more employers and hiring managers to consider these talent pools for entry- level and frontline roles. As of 2019, there were more than 28,000 available service provider positions and more than 4,300 open spa director and manager roles. These workforce shortages will affect how the industry serves customers and, ultimately, how much revenue the industry generates. Small local businesses may feel the impact even more, which is why it is so critical for businesses to take steps now to address this challenge. However, along with the talent gap, there is another pressing reason spas should focus on diversity and inclusion: customer experience. According to Nielsen, African Americans spend more than $1 billion annually on hair care, grooming, personal care and skin care products. Asian Americans and Hispanic Americans also are dedicated beauty consumers, spending more on skin care and health and beauty products, respectively, than the general population. A more diverse and inclusive workplace may lead to a more diverse and larger customer base. Some health and wellness companies are already moving in this direction by making inclusion a key part of their ethos. HealHaus, a wellness center in Brooklyn, New York, offers “an inclusive space fo- cused on holistic health and wellness,” with many diverse practitioners. When people see themselves represented in the staff and products offered, it creates a more welcoming environment and may drive repeat business and more revenue. “Traditional hiring and recruiting practices often focus on credentials instead of skills, which means talented individuals who can successfully contribute to companies can be excluded from the process.” How to Achieve a More Diverse Workforce Diversifying the industry will take dedicated effort and the approach will be different depending on whether a business is small, a large corporation or a national chain. Our organization, Grads of Life, has worked with both large and small employers for several years to change their perceptions and build a more inclusive workforce. We have distilled all this learning and experience into several Opportunity Employment Principles and strategies that can be effective for a range of companies, including those in the spa industry. APRIL 2020 ■ PULSE 41