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internal pay equity structure. Hiring and retaining great been added nationally (one million jobs have been added in
people is the number one tool we have to produce results.” the food and beverage industry alone). The hiring contin-
As resorts react to wage pressures, their understanding ues as companies re-open doors for candidates to fill diverse
of competitive compensation should include paying close employment needs. In today’s job market, workers are more
attention to changing political landscapes and social trends. confident than ever about their employment options and are
Resorts also need to consider looking outside the industry as more likely to seriously consider making a move to another
they compete for talent for some professional positions. As position that offers higher wages and better benefits. A recent
business gets more sophisticated and complex it is import- Gallup survey reports that 51 percent of all US workers are
ant to find the most qualified talent in areas such as finance, actively looking for new jobs, with data also showing that the
human resources, marketing, technology—any profession number of people quitting their current job is at a 10-year
that is not specific to ski area operations. high. Also, 68 percent of US workers say they are overqualified
Opportunity and challenges remain. Our overall indus- for their current job, and that the growing economy presents
try wages have remained flat since 2015, remaining at 17 th them with other, more desirable employment options.
percentile ranking (figure 2). We continue to play catch-up
to broader industries and their pay practices. Industries in Minimum Wages & Unemployment
the 25th percentile and below saw average wages move 1 per- Most resorts pay wages above mandated minimums, yet
cent higher than all others. Ours moved 0.8 percent better minimum wage thresholds remain (especially at the state
than the overall average. Despite improvements, these gains level), a challenge for our industry, directly or indirectly.
won’t close wage gaps relative to higher-positioned segments. This is particularly evident in blue states where minimum
Translating percentages to dollars shows we lost an aver- wages outpace other states’ minimums by $1.82 per hour
age of $0.13 per hour to every industry above us, making it (and are expected to outpace other states by $2.39 per hour
potentially harder to attract talent beyond our immediate in 2019). California prohibits reductions, making all tipped
sector. For every $100 we spent in wage improvements, those wage workers subject to the same $11 per hour minimum
industries spent $225. before tips. Vermont, like 17
The recreation industry other states, increased mini-
lost an alarming 4 percent Economic Factors mum wages this year. (Eight
to elite industries such as Directly Or Indirectly states did this based on cost-
financial, utilities, and man- Impacting Wages of-living increases, and 10
ufacturing. With employee states increased wages due
earnings in the industries to previously approved leg-
above us rising much faster • GDP is growing and rising islation or ballot initiatives.)
than ours, we are clearly los- • Consumer spending is up Some municipalities have
ing ground. even greater mandates—
The segments below our • Business start-ups are rising presently up to $15 per hour
NAICS group are also gain- • National hiring rates are elevating and rising.
ing momentum and closing • Unemployment is at a 17-year low You may not think this
the gap. Although we retain • Tax reform is sparking the promise of new impacts us in mostly rural
higher average wages, two- jobs, higher wages, and more opportunity mountain environments,
thirds of these industries • 16 of the 18 states (89%) with minimum wage but in the case of J-1 visas,
are outpacing our success increases are NSAA member ski states many international work-
at an alarming rate—some- ers are opting out, tak-
thing we should be very ing higher paying city jobs
concerned with. Average wages for these segments (which (many with subsidized housing). Domestic staff, who are
include certain transportation and retail jobs) used to be 10 predominantly younger, are being lured as well, citing earn-
percent lower than ski industry average wages; now they are ings and quality-of-life choices—something the ski indus-
only 3.9 percent lower. Not only that, these other jobs are try has long held as a strength. Pressures extend into other
less likely to be seasonal, offering workers the added incen- areas such as prevailing wage along with general fixed index-
tive of year-round employment. ing that are on some states’ books through the year 2022. All
Jobs openings are on the rise, concurrent with a strength- told, minimum wage and the domino effect of competitive
ening economy. In the past three years, 10 million jobs have pressures, compression, and other associated demands will

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