REC Hospitality Sector Group - Priorities for 2016

 

The hospitality industry is one of the biggest job creators in the UK economy. Between 2010 and 2015 the sector created 331,000 new jobs - 17 per cent of all jobs created in that time frame. People 1^st predict that 993,000 additional staff will be needed in the sector by 2022.

This is great news for the 300+ REC members operating in hospitality, and the REC Hospitality sector group has been thinking about how to make the most of opportunities available. The group kicked off 2016 with a roundtable of members to assess the market chaired by Andrew Thompson from Blue Arrow Hospitality. Here are my four takeaways messages from the discussion.

Supply of skilled candidates struggling to keep up with demand  

One of the most pertinent issues is the increasing difficulty of finding suitably skilled candidates to meet increasing demand. The REC’s most recent Report on Jobs found that demand for temporary staff in the 'hotel and catering' category was highest out of the nine sectors polled. The data is seasonally adjusted to account for the anticipated boom in hospitality recruitment over Christmas – meaning that the level of demand we have seen in recent months goes well beyond the usual pattern we would expect.

Members say there are simply not enough skilled candidates in the sector to fill vacancies. According to People 1^st, one in five (21 per cent) hospitality and tourism businesses think that candidates lack essential skills, and this has in part led to the labour turnover rate for hospitality being one of the highest in the UK at 20 per cent per year - compared to the average 13 per cent across all industries. This problem costs the sector £274 million annually. 

Training and apprenticeships playing an important role

One way of reducing skill shortages is through training new entrants. Recruitment agencies can and do provide training, with some of our members at the meeting providing exemplar cases of this. However, clients don’t always appreciate the cost of this training, and agencies can end up absorbing the cost themselves.

There needs to be more discussion between agencies and clients about training responsibilities and the benefits, especially in the wake of the new Apprenticeship Levy which will be introduced in April 2017.

Career pathways need to be promoted

As highlighted recently in the REC’s report Getting On, which looks at career progression in low-pay sectors, there is a general lack of awareness about the career opportunities available in hospitality. Members want more career mapping in the industry so that people understand how they can progress from an entry level role to a management position.

Members also pointed out that opportunities go beyond working as a waiter or a chef, such as in marketing of back office roles. The British Hospitality Association (BHA) and the Department for Work and Pensions (DWP) are currently running a campaign “Hospitality Works” which aims to give 80,000 reasons to pursue a career in hospitality - this is a great opportunity for members to get involved.  

Members agreed that in order to attract more people the industry needs to develop its reputation. Hospitality can be a creative and exciting sector to work in, and in many other countries a career in this field is recognised as offering good prospects. Improving career mapping would help to promote opportunities in hospitality and would go some way to addressing reputational issues.   

Clients need to work collaboratively with agencies

Members commented that clients’ expectations are generally much higher today than in previous years. One member reported that they spend up to half their time working on complex tender proposals and contracts, which contain tough penalties for agencies. It seems that in some cases clients don’t fully appreciate the service that agencies provide.

With skill shortages across the sector, it is crucial that clients and agencies work collaboratively to attract and retain the best talent. Further, with the introduction of the Modern Day Slavery Reporting Requirements, any business with a turnover greater than £36 million a year will have to confirm that every part of their supply chain is slavery free. You can read our guide on this here.

REC Hospitality are keen to work with other sector bodies as well with clients to ensure mutual understanding for the different parts of the supply chain.

REC would like to thank those members who attended the roundtable and contributed to the discussion. The meeting proved to be very useful and hope this will lead to an active sector group in 2016. If you would like to find about future events and /or be involved with the group please email me at philip.campbell@rec.uk.com