Study Reveals Disparity in Earnings Among Hospitality Graduates in the Workforce
A new research report from OysterLink has unveiled a disappointing reality for those entering the hospitality workforce. Conducted from 2020 to 2024, the study highlights a significant discrepancy between the expected earnings of hospitality graduates and the actual salaries of front-line workers in the industry. According to the data collected, over 75% of these workers earn substantially less than the average early-career salary of $44,000 associated with a hospitality degree.
The report utilized figures from the U.S. Census Bureau and the Federal Reserve Bank of New York to shed light on the earnings landscape for graduates specializing in Leisure and Hospitality. While those holding such degrees can anticipate a median starting salary of around $44,000 upon graduation, the reality for many front-line roles is starkly different. In 2024, key positions such as servers, bartenders, and front desk agents reported median wages ranging from $30,380 to $33,760. Alarmingly, even in the 75th percentile, these earnings remain below the $44,000 mark.
For instance, servers averaged a modest $33,760 in earnings, with 75% of them making $45,350 or less. Bartenders, another critical role in the hospitality field, fared slightly worse, earning a median of $33,530, while the highest earners still fell short of the benchmark, with a $10,470 gap. Additional roles like front desk agents and housekeepers reported median salaries of $30,380 and $34,660, revealing a concerning pattern of underpayment.
Milosh Eric, the general manager and founder of OysterLink, expressed his concern about the findings, stating, "The results underscore a significant disconnect between what hospitality graduates expect to earn and what they actually receive in their first jobs." He added that this discrepancy may contribute to the troubling statistic that over half (54.5%) of hospitality graduates are underemployed, with many opting to further their education by pursuing advanced degrees.
The report did, however, shine some light on the potential for growth and advancement within the industry. It revealed that hospitality graduates who move up the career ladder into management positions can command significantly higher wages. In 2024, restaurant managers made a median salary of $65,310, while hotel managers earned about $68,130, demonstrating that career progression can lead to substantially better pay. Top earners in these roles exceeded $105,000 and $126,000, respectively.
Despite the stark statistics regarding initial earnings, the study indicated that front-line roles serve as stepping stones to higher-paying management careers. Eric elaborated, stating that while entry-level positions may not yield the expected salaries for degree holders, clear pathways leading to lucrative management opportunities exist. He emphasized the role of hospitality employers in promoting these career pathways, which could improve transparency and assist graduates in understanding their potential for career growth.
OysterLink stands as a dedicated job platform for hospitality professionals, attracting over 400,000 monthly visitors seeking opportunities in the sector. The platform also provides valuable trend reports, industry insights, and interviews with leading figures in hospitality to help bridge the gap between education and employment.
In conclusion, the OysterLink study serves as a wake-up call for both graduates seeking entry-level opportunities and employers looking to retain talent in the hospitality industry. By acknowledging and addressing the wage discrepancies highlighted in the report, the hospitality sector can work towards a more equitable compensation structure that aligns with graduates' expectations and promotes well-deserved career advancement.
The report utilized figures from the U.S. Census Bureau and the Federal Reserve Bank of New York to shed light on the earnings landscape for graduates specializing in Leisure and Hospitality. While those holding such degrees can anticipate a median starting salary of around $44,000 upon graduation, the reality for many front-line roles is starkly different. In 2024, key positions such as servers, bartenders, and front desk agents reported median wages ranging from $30,380 to $33,760. Alarmingly, even in the 75th percentile, these earnings remain below the $44,000 mark.
For instance, servers averaged a modest $33,760 in earnings, with 75% of them making $45,350 or less. Bartenders, another critical role in the hospitality field, fared slightly worse, earning a median of $33,530, while the highest earners still fell short of the benchmark, with a $10,470 gap. Additional roles like front desk agents and housekeepers reported median salaries of $30,380 and $34,660, revealing a concerning pattern of underpayment.
Milosh Eric, the general manager and founder of OysterLink, expressed his concern about the findings, stating, "The results underscore a significant disconnect between what hospitality graduates expect to earn and what they actually receive in their first jobs." He added that this discrepancy may contribute to the troubling statistic that over half (54.5%) of hospitality graduates are underemployed, with many opting to further their education by pursuing advanced degrees.
The report did, however, shine some light on the potential for growth and advancement within the industry. It revealed that hospitality graduates who move up the career ladder into management positions can command significantly higher wages. In 2024, restaurant managers made a median salary of $65,310, while hotel managers earned about $68,130, demonstrating that career progression can lead to substantially better pay. Top earners in these roles exceeded $105,000 and $126,000, respectively.
Despite the stark statistics regarding initial earnings, the study indicated that front-line roles serve as stepping stones to higher-paying management careers. Eric elaborated, stating that while entry-level positions may not yield the expected salaries for degree holders, clear pathways leading to lucrative management opportunities exist. He emphasized the role of hospitality employers in promoting these career pathways, which could improve transparency and assist graduates in understanding their potential for career growth.
OysterLink stands as a dedicated job platform for hospitality professionals, attracting over 400,000 monthly visitors seeking opportunities in the sector. The platform also provides valuable trend reports, industry insights, and interviews with leading figures in hospitality to help bridge the gap between education and employment.
In conclusion, the OysterLink study serves as a wake-up call for both graduates seeking entry-level opportunities and employers looking to retain talent in the hospitality industry. By acknowledging and addressing the wage discrepancies highlighted in the report, the hospitality sector can work towards a more equitable compensation structure that aligns with graduates' expectations and promotes well-deserved career advancement.
Topics Business Technology）
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