6 risks to employers when paying below $17 per lead for job applications from hospitality candidates

When employers in the hospitality industry pay less than the typical $17 per application, they risk attracting candidates who may lack the essential skills or experience needed for customer-facing roles. Hospitality jobs, whether in hotels, restaurants, or event management, require strong communication skills, attention to detail, and a service-oriented mindset. Lower-cost job boards or platforms may not effectively target candidates with these specific qualifications, resulting in a flood of irrelevant or underqualified applicants. This creates inefficiencies, as hiring managers spend more time sifting through resumes to find suitable candidates, leading to delays in filling critical roles.

Additionally, paying below the market rate for hospitality job applications can result in unreliable or inflated recruitment metrics. Low-cost platforms might generate a high volume of applications through broader or less targeted channels, but many of those leads may not be genuinely interested in the job or equipped for the demands of hospitality work. In an industry where customer satisfaction is paramount, underpaying for applications can result in a lower quality of hires, negatively impacting service levels, staff turnover rates, and overall customer experience. The long-term consequences of hiring unqualified candidates can easily outweigh the short-term savings from reduced application costs.

Data gathered from hundreds of job boards shows that the effective cost per application when employers advertise a job is $17 if the job function is Hospitality. What quality and other risks do employers face if they pay a small fraction of the going rate to a vendor for these leads? Here is what 6 thought leaders have to say.

• Risks of Low-Cost Candidate Sourcing
• Quality Compromised by Cheaper Leads
• Shotgun Approach Increases Unqualified Applicants
• Compromised Team Dynamics and Culture
• Increased Turnover and Recruitment Challenges
• Caliber and Brand Misalignment Concerns

Risks of Low-Cost Candidate Sourcing

I would say low-cost vendors might not perform thorough background checks, exposing employers to the risk of hiring candidates with falsified resumes or inappropriate backgrounds. This can be particularly dangerous in the hospitality industry, where employees have access to sensitive information and interact closely with guests. A single incident involving a dishonest employee can severely damage the reputation of the company and lead to significant financial losses.

I once came across a situation where a budget vendor placed an unqualified individual in a managerial position at a hotel, resulting in numerous customer complaints and negative reviews. This affected the hotel’s reputation, leading to a decrease in bookings and revenue. Employers must be cautious when hiring for hospitality roles and not solely rely on budget vendors to source candidates.

Well, effective communication and teamwork are the key qualities, but low-cost vendors may not prioritize communication skills during their screening process, resulting in hiring individuals who may struggle to effectively communicate with coworkers or customers. This can lead to misunderstandings, conflicts, and decreased productivity. In the hospitality industry, where customer service is crucial, poor communication skills can have a severe impact on the business’s success.

Daniel Cook, HR / Marketing Executive, Mullen and Mullen

Quality Compromised by Cheaper Leads

Employers who pay a fraction of the $17 rate for hospitality job leads often encounter lower-quality candidates. We once tried to reduce recruiting costs by opting for cheaper leads, and the results were disappointing—many applicants were underqualified or didn’t match our needs. In the hospitality industry, this could lead to higher turnover, longer training periods, and poor customer service, as inexperienced hires may struggle to meet industry demands. Additionally, the vetting process becomes more time-consuming, potentially delaying staffing needs and increasing overall operational costs.

Tornike Asatiani, CEO, Edumentors

Shotgun Approach Increases Unqualified Applicants

Generally, paying less than the $17 industry rate to overcome barriers in obtaining people for hospitality job advertisements is practically tempting applicants to submit bogus applications. Low-cost options often adopt a shotgun approach, which ill-advisedly raises the number of applicants regardless of their qualifications. This can lead to spending more time in screening processes, increase hiring budgets in the long run, and might even cause poor hiring decisions, which are detrimental to hospitality where customer service and how the brand is perceived matter a great deal, as quality interactions are of absolute essence.

More recently, I have come across the same situation in marketing. We have realized that marketing for cheaper options does engage more of the audience, only to utilize more resources to clean up the mess afterward. Employers need to understand that if a quality lead source is invested in at the beginning, the running of the business will be relatively inexpensive, and turnover rates will be low as well, making the process more productive and better.

Chris Dukich, Owner, Display Now

Compromised Team Dynamics and Culture

Paying a fraction of the going rate for hospitality jobs leads can seriously compromise the quality and reliability of applicants, potentially leading to costly turnover and service issues. 

We’ve seen firsthand how cutting corners in recruitment can negatively impact team dynamics and overall organizational culture, which is why we always advocate for investing in robust hiring processes that align with industry standards.

Barbara McMahan, CEO, Atticus Consulting LLC

Increased Turnover and Recruitment Challenges

When employers in the hospitality sector pay a fraction of the $17 cost per application for job leads, they often face significant risks related to candidate quality and recruitment efficiency. In hospitality, where roles require strong interpersonal skills, reliability, and often quick onboarding, opting for cheaper leads can result in a high volume of unqualified applicants. This leads to wasted time and resources as recruiters have to sift through unsuitable resumes to find candidates who meet the role’s basic requirements.

Another key risk is increased turnover. Candidates sourced from low-cost vendors may not fully understand the demands of the hospitality industry or may apply without genuine interest. This often results in candidates accepting roles only to leave after a short period, leading to a cycle of constant rehiring. In a field like hospitality, where consistent staffing is critical to operations, high turnover not only disrupts service but also increases costs related to training and onboarding.

Lastly, paying less for job leads can harm the company’s reputation, both with potential employees and customers. Candidates who feel that a hiring process is impersonal or disorganized may spread negative word-of-mouth, making it harder for the company to attract quality talent in the future. Additionally, consistently hiring low-quality candidates can impact customer satisfaction, as poorly trained or disengaged staff may lead to a decline in service standards. In the long run, these risks far outweigh the short-term savings from cheaper job leads.

Tanya Lamont, CEO, Conversational

Caliber and Brand Misalignment Concerns

One of the primary issues is the caliber of candidates that cheaper vendors might attract. Lower prices typically imply less targeted advertising, which can result in applications from people who aren’t actually qualified or interested in the specific roles. This results in an inflow of applications that HR staff must filter through, adding administrative burdens and slowing the recruiting process. In the hospitality sector, where customer connection and service quality are critical, hiring the wrong person can directly influence guest experience and brand reputation.

Another risk is a potential misalignment of the company’s brand and the candidate’s expectations. Cheaper leads frequently come from sources that do not invest in understanding the employer’s brand or the specifics of the role. This gap might lead to candidates having unreasonable expectations of the position, resulting in higher turnover rates. If an employee leaves after only a few months because the role isn’t what they expected, the company bears not only the cost of rehiring but also the hidden costs of training and onboarding. In an industry with as high turnover as hospitality, this can create a vicious cycle that’s difficult to break.

Reilly James, Marketing Manager & eCommerce Optimization Expert, William Morris Wallpaper