How can hoteliers retain staff

The UK hospitality industry is still facing significant  recruitment challenges with hospitality currently facing 132,000 vacancies – 48% above pre-pandemic levels, according to UKH Hospitality.  

Some reports also suggest that Brexit has made the situation worse due to the industry’s reliance on EU migrants. 

The All-Party Parliamentary Group (APPG) for Hospitality and Tourism has recently announced it is launching an inquiry into ‘recruitment and retention of staff in hospitality’. The inquiry into ‘recruitment and retention of staff in hospitality’ is aimed at exploring the reasons behind high vacancy rates, ask what more the sector can do and make a series of recommendations to the government.

Attracting and retaining employees in the hospitality business has always been challenging, but it’s become even harder in recent years. In a survey by Nisbet of over 900 people currently in work while looking for another job, the average tenure before looking further afield was four and a half years. For hospitality, this number drops to just over two years.

It is important to retain hospitality staff to avoid the cost of re-hiring and loss of productivity. 

Listed below are a few ways in which the industry can attract and retain staff

Accurate job descriptions

Once employees have been hired, how do you ensure they stay with your business? It has been estimated that around 30% of hospitality employees leave within the first 90 days because the job doesn’t meet their expectations. However, if the business successfully retains its staff beyond the first 90 days, there’s a 50% chance they will stay with the business for the long-term. 

Therefore, it is important that businesses communicate the challenges and expectations of the job in advance and not sell a falsified version of the job. Overselling a role or giving inaccurate information creates unrealistic expectations. 

Open work culture

To encourage employees to make a long-term commitment to the business, it is crucial to create an open, positive work culture where staff feel valued.

Businesses should allow their employees to come up with their own ideas and try to implement the ones that could work for the business. Additionally, it is also imperative to openly communicate with their staff and have one on one conversations to build a good rapport.  It will also give employers the chance to address any concerns before they have the chance to grow into something bigger.

Offering flexibility is also a good way to retain staff. According to Nisbet, millennials value flexibility in their working life and don’t want to be tied down to the same set of working hours every day. Although this can be tricky in hospitality, offering flexible hours – whether that’s a later start or working longer on a busy day and getting that time back later – will possibly attract and retain more staff. 

Competitive wages and benefits

Making sure your employee is well-compensated for their work is essential for employee retention. It goes without saying wages must be in line with industry standards. Access’s 2024 Salary Survey unsurprisingly revealed that a fair salary was the most important employee benefit to employees (95% of respondents). Though it’s not the sole factor, pay is undoubtedly always at the forefront of employees’ minds. 

Tips received by businesses should also be fairly distributed among employees. The Department for Business and Trade recently published an updated Code of Practice on Monday (22 April 2024) on the fair and transparent distribution of tips that will have legal effect under the Employment (Allocation of Tips) Act 2023. The Act and secondary legislation make it unlawful for businesses to hold back service charges from their employees, ensuring staff receive all of the tips they have earned. These new measures are expected to come into effect in October and will apply to England, Scotland and Wales once they have been approved by parliament.

Additionally, a great way to get people invested in company performance is offering a bonus based on how well their company did the previous year. Staff will be more engaged and tuned in to how the business is doing and realise how their performances can make a difference. Other perks could include offering free meals or free membership of the hotel gym, health insurance, paid time off from work, or help later in retirement. 

Offer career progression

According to Access’s 2024 Salary Survey, the impact of offering career development opportunities in retaining staff in hospitality with 88% rating training and development as an important work benefit. To support employees’ learning and professional development, hoteliers should always provide training and opportunities for skill enhancement. Furthermore, staff are more inclined to set goals for themselves and put in more effort to move up the career ladder when they see a clear path to progress. When staff know you support and encourage their career advancement, they are more likely to work long-term.

HR professionals can suggest educational courses for career advancement through hospitality graduate programmes to encourage employee retention. Moreover, businesses can establish partnerships with institutions to provide employees with access to these educational opportunities. 

Reward hard-working employees 

Staff retention will improve by creating a positive culture of recognition and reward. This could take the form of an employee of the month programme, where management or colleagues can nominate outstanding performance for reward. Promotions are also a great way of retaining staff. Receiving a promotion boosts an employee’s career and productivity.

In addition, hoteliers should also consider celebrating the achievements of their employees outside of work and a company newsletter can be a great way to do this. This positive acknowledgment helps your staff feel appreciated and valued and will mean they stay with you for longer.