The latest research insight report from People 1st shows that the labour turnover for the hospitality industry is 20%. This means that approximately 365,675 people leave the sector each year, costing the industry approximately £274m.
The report also reveals that the hospitality industry currently rely on young workers with 34% of the employees aged under 25, compared to 12% in the economy as a whole.
There are significant differences across the industry, but typically pubs, bars, clubs and restaurants seem to attract a younger workforce, with 66% of waiting staff and 60% of bar staff aged under 25.
Hospitality facing major recruitment problems
According to the European Commission, by 2030 the European working age population will have shrunk by 13m, the equivalent of 4%. The trends suggest that from a labour market prospective this could means that the working population will not be big enough to support economic growth by as early as 2020.
For an industry such as hospitality, that in recent years has grown more than the economy as a whole, this poses a major problem. Unless hospitality employers take a different approach to their recruitment, the industry may soon start facing major recruitment problems
International workers not an option?
Martin-Christian Kent, executive director at People 1st, said: “The hospitality industry has traditionally targeted and employed a young workforce, but with current demographic changes this is no longer a sustainable strategy.
“As we highlighted in our recent Insight Report on migrant workers, the industry relies heavily on international workers to address current recruitment needs. However this might not be an option in the future, as the rest of Europe will experience similar challenges, and recent changes to the migration policy make it much harder to recruit from outside the European Union.”
Attracting and retaining workers
Martin-Christian continued: “Attracting and retaining older workers could prove to be a sustainable option, thanks to the changes in the retirement age. Some hospitality businesses are actively doing this as part of their policy to recruit a more balanced, diverse workforce.
“Employers should also make a real effort in retaining their existing staff by developing more career progression opportunities, which in return will help address skill shortages for higher skill and management roles.
“Some businesses are actively supporting women returning back to work and pursue their career after periods of childcare. This is an excellent solution as it will bring a skilled and flexible workforce back into the industry. I would recommend businesses to take a look at The Little Book of Diversity part of the Women 1st campaign, for practical advices and guidance in supporting their female workforce.”
The full report can be downloaded from the People 1st website here