Once upon a time, the wider hospitality industry within the UK had an easy time recruiting from a pool of European employees. But since Brexit, finding employees (and filling roles quickly) has become harder. While staff turnover within the industry has always been high – the highest of any sector, in fact, at 35% – Brexit has certainly contributed to the current talent shortage. So how exactly can hospitality give itself a change of image and fix its reputation as a pit stop, rather than a career path?
A survey last year by the Office for National Statistics set out the damage that has been done to the hospitality sector by leaving the EU. It found that the largest fall in total employment was seen in accommodation and food services. In just two years, the number of jobs held by EU nationals has fallen by 25%.
In light of this, UKHospitality has urged Labour to deliver on its manifesto commitments to replace business rates and reform the Apprenticeship Levy in its first 100 days of government.
In its manifesto, Labour committed to replacing the business rates system in England and levelling the playing field between high street businesses and online giants. It also aims to reform the Apprenticeship Levy by creating a ‘Growth and Skills Levy’.
Meanwhile, UKHospitality Scotland has added its voice to growing calls for the specific needs of Scotland to be recognised in the UK’s immigration system. Recruitment challenges continue to affect Scottish hospitality’s ability to grow, as new figures showed that vacancies in Scotland increased by 60% in April 2024, compared to January 2024. The research, conducted by recruitment website Caterer.com, found that chefs, front-of-house staff, and restaurant management were the three most difficult roles to fill in Scotland.
UKH has stressed the need for an employment plan to meet the needs of the economy. Sir Keir Starmer told the Sun during the election campaign that “a future Labour government will bring down net migration”. He also said that Labour would crack down on bosses who break employment law by banning them from hiring workers from abroad.
Training will also be linked to immigration, so sectors applying for foreign worker visas must first train workers from within the UK to do the jobs. Hospitality roles can be eligible for the Skilled Worker visa. The roles that meet eligibility requirements include hotel and accommodation managers and proprietors. This could include positions such as caravan park owners, landladies, hotel managers, accommodation managers, and so on.
Given the current landscape, here are some strategies hoteliers can use to attract and retain home-grown talent:
Use the sector’s non-traditional schedules to your advantage
It’s no secret that businesses in the leisure and hospitality industry often require employees to work weekends, nights, part-time, or seasonal, and irregular shifts. One of the best ways to attract candidates willing to work such hours is to target job seekers who need non-traditional schedules. Such people include teachers who don’t work during the summer, university students who attend classes during the day but wish to work in the evenings, and even retirees who seek part-time employment.
Your services could be perks for employees
Hotels have a unique advantage when considering perks and bonuses as recruitment and retention incentives. Employees in the leisure and hospitality industry – and their friends and families – enjoy access to VIP experiences at the restaurants and hotels where they work, or discounts for meals and lodging. Even offering generous food allowances, like free meals during a shift, can go a long way so including these perks in the compensation and benefits portion of the job description can attract more applicants.
Offering job-related perks also has an upside for business owners, as it saves the business from paying traditional employment taxes, since discounted room rates, free meals, or complimentary admission to entertainment venues are considered non-payroll compensation.
Emphasise your workplace culture
While pay remains a top consideration when evaluating employment options, company culture fit ranks high on the list of criteria. Culture consists of shared beliefs and values established by leaders and then communicated and reinforced through various methods, ultimately shaping employee perceptions, behaviours, and understanding. Culture tends to be implied and not expressly defined, and develops organically over time from the cumulative traits of the people the company hires.
Like employees in corporate settings, leisure and hospitality workers also want to be part of a company culture where they enjoy their work and feel valued and supported. In pursuit of this, in-person hiring events and job descriptions are effective places to highlight your business culture, so if you offer a high-energy, fun work environment, flexible schedules, or are committed to creating a diverse and inclusive business (for example), be sure to emphasise it when writing your job description and talking to applicants at in-person events.
Do you have an employee referral programme?
Creating and managing an active employee referral programme significantly reduces the time and cost of recruitment because employee-referred job candidates are usually a good cultural fit, which may mean less turnover. Leisure and hospitality employees who work late nights frequently form bonds from hanging out after shifts. That social camaraderie often turns into a de facto professional network, and a great resource for employers who can successfully engage their employees and leverage an active referral program. Cash bonuses for the new hire and the employee after a predefined time on the job is also a common reward for high-quality referrals.
Get creative with your compensation model
Leisure and hospitality employers often have to increase wages to attract and retain workers, especially during peak seasons. Given this competition for talent, it may be worth considering a more sustainable compensation model for service industry workers. For example, minimum wage plus tips is a standard pay model in the restaurant industry. Although it may feel like too risky (or expensive) a proposition, owners who consider a salaried front-of-house staff immediately gain an advantage for attracting top talent.
It is thought that salaried staff give better customer experiences, which mean more referrals and repeat customers – which in turn result in a more profitable business. For hotels, compensation models that include profit sharing or bonuses for meeting business goals also serve as incentives that attract and retain employees who work hard and serve customers with the highest standards.