The long periods of closure during the COVID-19 pandemic led to a significant staffing shortage in the hospitality industry. Several UK hospitality workers were furloughed, leading many to seek employment in other sectors.
Additionally, over 40% of foreign hospitality staff, including EU nationals, left for their home countries post-Brexit, according to a poll from CV-Library.
Furthermore, potential talent has been discouraged over the years by the view of the hospitality industry as a low-wage sector with few career advancement opportunities and low job security.
Although the sector’s sales have recovered to pre-pandemic levels, hospitality businesses across the UK are still experiencing stiff competition in hiring staff. Many service providers in York have had to cut down trading hours, with a few even closing for at least a day.
Future Shock reports that labour shortages, in addition to soaring inflationary costs, could impact 16% of company revenues. However, the CV-Library poll revealed that 60% of former hospitality employees would consider returning to the industry under the right work conditions.
But how can businesses sponsor workers into the sector? Besides making a sponsor licence application and recruiting foreign staff, what other essential steps must they take to attract and retain staff?
We’ll share some top tips to fill critical hospitality roles amid the challenges in the labour market.
Upskill Talent
One effective way to tackle staff shortages is to upskill existing talent.
Traditional educational paths often neglect the specialised skills and competencies needed in the hospitality industry, leading to a wide skills gap among the workforce.
However, hospitality organisations can close the skills gap by offering their staff additional training and development opportunities. This can range from formal courses to on-the-job mentoring and cross-training that enhances their knowledge and enables them to take on more responsibilities or fill vacant roles.
Businesses willing to provide training will have a larger pool of potential talent. They can hire candidates with relevant skillsets, such as interpersonal skills, without previous hospitality experience and offer training where needed.
Furthermore, upskilling can provide clear progression paths towards management and career growth opportunities, which in turn increases employee satisfaction and retention. It can also improve service quality and operational efficiency, which is crucial for maintaining a competitive edge in the hospitality industry.
Diversify Workforce
According to the Migration Observatory, the UK hospitality sector is one of the country’s largest employers of foreign workers, a clear indication of the industry’s heavy reliance on migrants to meet operational needs.
Hospitality service providers in York can take advantage of the Skilled Worker Visa program to recruit more foreign nationals to fill critical roles in their organisations. Besides simply filling up vacant roles, a diverse workforce provides access to unique skills, perspectives, and experiences not available in the local labour market, which can bring value to the team.
According to an MIT study, highly diverse teams demonstrate greater productivity and, consequently, higher revenues compared to less diverse teams.
However, employers must obtain a sponsor licence from the Home Office to hire foreign workers legally. The application process for the sponsor licence includes providing evidence of the organisation’s ability to manage sponsorship duties and demonstrating compliance with immigration regulations.
Once the sponsor licence application is approved, the sponsoring organisation can issue Certificates of Sponsorship (CoS) to eligible foreign workers. The potential employee will then use the CoS to apply for or update their Skilled Worker Visa.
Diversifying a workforce remains one key way to address immediate staffing needs in the hospitality industry and the general labour shortage in the UK.
Ensure Good Working Conditions
The hospitality industry is known for gruelling hours, low pay, and little regard for employees’ personal lives and mental health. However, a positive work environment is essential for attracting and retaining top talent.
Hospitality owners should focus on creating a supportive and inclusive culture that values employee well-being. This includes offering competitive wages, flexible working arrangements, opportunities for career advancement, and a focus on work-life balance.
According to Deloitte, a good work-life balance and learning and development opportunities are top priorities for individuals when choosing a new employer. While the hospitality business may not be able to provide a remote work setting, employers can incorporate flexibility into their schedules by offering part-time or contractual positions and shorter or well-rotated shifts.
They can also incorporate hybrid working models where possible. For instance, marketing, customer support, and event planning roles may be suitable for hybrid settings.
Additionally, a work environment that encourages open communication, feedback, and better employee engagement is essential.
In terms of low pay, RotaCloud stated that some businesses are already combatting this by paying rates higher than the National Minimum Wage and the National Living Wage. More businesses could do the same to make hospitality roles even more attractive. Other effective measures include introducing paid sick leave and lucrative overtime where possible.
Businesses with a tight budget that can’t afford to increase wages should consider offering perks such as a 50% discount when restaurant staff order for themselves, free drinks during lunch breaks, or a couple of free stays annually for hotel businesses.
Prioritising employee wellbeing and making work more enjoyable for them can help business owners create an attractive workplace, which makes it easier to retain current employees and attract new talent to fill any staffing gaps.
Conclusion
Staff shortages in York’s hospitality sector have left many hotels, restaurants, pubs, cafes, and bar owners competing to hire skilled staff. It has also led to reduced operating hours, limited services, and decreased customer satisfaction.
To effectively tackle this issue and ensure the industry’s long-term sustainability and success, hospitality business owners must adopt proactive strategies such as training existing talent to take on more responsibilities, diversifying their workforce by recruiting skilled foreign talent, and fostering a positive work environment to attract and retain employees.