Hospitality staffing in Indiana—outlook for 2025
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What’s on the minds of Hoosier businesses when it comes to staffing? Topping the list are concerns about the overall labor supply, the effect of possible deportations, wage trends, and the need to fill specialized positions. Here’s a look at those staffing issues and how business owners in Indiana can navigate them to succeed in 2025.
General outlook
The leisure and hospitality industry added 2,700 new jobs statewide in October 2024, and that demand is expected to increase. Food preparation and serving related jobs – the fourth largest employment sector in the state – are expected to rise by 0.8% by 2026. The building and grounds cleaning and maintenance sector, another key component of the hospitality industry, is expected to grow by 1.0% in the same time period.
Given this increasing demand and the white-hot jobs report from January 2025, hospitality managers are likely to see continuing challenges to meet their labor requirements. This pressure may increase further. The National Restaurant Association reported in November 2024 that the Restaurant Performance Index (RPI), a measure tracking the strength of the U.S. restaurant industry, was at its highest since July 2023 and on an upward trend.
Immigration policies
Employers are keeping an eye on actions in Washington, especially as they relate to possible deportation of undocumented immigrants. The American Immigration Council estimates Indiana is home to 104,500 undocumented workers, many of them employed in entry-level jobs such as food service and housekeeping. The mass deportations promised by Donald Trump could pressure the labor supply in the hospitality industry.
Wage trends
Hoosier business owners are no strangers to the climb in labor costs over the last several years, and they’re looking for ways to control those expenses. A report released by Stateline revealed between 2019 and the second quarter of 2023, wages for leisure and hospitality (L&H) workers, the lowest wage category nationwide, outpaced pay growth for the highest wage category (which varies by state), 20% to 29%, in all but 10 states. The growth in L&H wages occurred in states that increased minimum wage and those that did not.
L&H wages in Indiana went up by 29% ($467/week) over the period, compared to only a 9.1% rise for the highest paid worker category in the state. As the minimum wage in Indiana has not been raised since 2010, this increase in wages is fully driven by market forces – a tight labor supply. Hoosier business owners are having to deal with labor costs that are making up a larger and larger part of their total expenses.
Specialized staffing needs
Back-of-house positions, especially chefs and line cooks, continue to be in high demand. Employers are looking for more multilingual employees. In addition to serving visitors from other countries, restaurants need to meet the needs of the growing immigrant population in Indiana, which hails from many countries including Mexico, Venezuela, Congo, Nicaragua, Syria, Myanmar and more.
Meeting labor needs
Employers have several options for meeting the challenges of today’s labor market.
- Direct recruiting from culinary and restaurant management programs – Ivy Tech Community College has a robust Culinary Arts/Hospitality Administration program, and several Career and Technical Education programs across the state offer culinary arts tracks producing well-trained employees for the hospitality industry.
- Deploying technology – In quick-serve restaurants, technology tools like ordering kiosks and robotic fryers allow fewer employees to fill more orders. For full-service restaurants, front-of-house upgrades like automated tableside check pay give waitstaff more time to take orders and serve food. Integrated point-of-sale and inventory management systems free up time for managers to develop staff members and reduce turnover.
- Using temporary staffing – Temporary staffing allows businesses to hire workers to meet periods of higher demand without having to take on permanent employees. It also provides the opportunity for employers to see if a worker is a good fit for the business before making a permanent job offer.
Smart business owners will use strategic staffing to keep cost under control while still providing good service to customers. Many business owners are developing staffing plans to help project their staffing needs down to the day and hour so they only pay for the labor they need. Temporary staffing agencies, especially those that combine in-person customer support with immediate-response apps, can recruit talent to fill openings on short notice.
Remember, the lowest price doesn’t mean it’s the best option when it comes to staffing. The low rates that many 1099-based hiring apps offer can become very expensive very quickly. We’ve seen owners with government penalties, back wages, and workers’ compensation claims resulting from misclassification of employees as independent contractors.
And finally, pay attention to seasonal fluctuations and staff accordingly to control labor cost. In some cases, owners will find that hiring full-time staff (even if temporary) and part-time staff with longer shifts will build employee loyalty while meeting the company’s needs.
George Lessmeister is CEO and founder of LGC Hospitality, a national staffing firm headquartered in Indianapolis. LGC has offices in over 40 U.S. cities. Team members work with hotel and restaurant leadership to place executives and temporary workers.