Following the release of a report on the challenges facing hospitality recruitment, I ask on the Htoo Htet Tayza blog, how do potential employees view the hospitality industry?
Without the Staff, Your Hospitality Venture is nothing
Employees are the life blood of business. Without the right employee, with the right skill set, your business will go under quicker than you can say the word ‘business.’ Without your staff, you are nothing.
That holds especially true in the hospitality sector. At its core, the industry relies on person-to-person interaction. This means finding and keeping skilled staff matters more to the average hospitality venture, then it does to almost any other business.
Hospitality Has a Serious Turnover Problem
That’s why if you are a budding entrepreneur who is thinking of making their fortune in hospitality, you need to know about the industry’s recruitment difficulties. That way you can ensure you do everything you can, to attract and maintain a staff roster that has the necessary skill set to bump up your bottom line.
Specifically, M&C Report analysed three new policy insight reports by People 1st, a leading skills and workforce development charity. This analysis showed that there is a 20% labour turnover in UK hospitality. It went on to suggest that hospitality needs to attract 843,000 more staff by 2020; 700,000 alone to replace existing staff members.
People See Hospitality as a Low Paying Sector
Of course, these figures only apply to the UK, but look at other hospitality markets and you’ll see similar patterns. It has something to do with the way potential staff sees the hospitality industry. Essentially, they see it as a low paying sector – full of menial jobs – that lacks the opportunity for career progression.
Let’s go back to the UK to illustrate the point. The average staff wage in accommodation and food service is £13,930. Compare that to an average of £27,174 across the UK economy, and you’ll soon see why a position in hospitality doesn’t appeal to a large proportion of job seekers.
You Have to Invest Money to Make Money
If you’ve learned anything on the Htet Tayza blog this week, let it be that you have to invest money to make money. If you want potential staff to see your business as a long-term career option, think about what you’re willing to pay them.