hospitality news Autumn 2007
How to attract and retain staff in the hospitality sector
People 1st, the UK Sector Skills Council for the hospitality, leisure, travel and tourism industries, estimates that nearly 600,000 people leave jobs in the sector every year, resulting in recruitment and retraining costs of some £900 million. By 2012 the sector will have lost more than 4 million people and £6.2 billion. These figures are based on a conservative estimate of a 30% staff turnover rate, although in reality it is probably as high as 60%!
According to People 1st, employees are not staying in the sector long enough to develop their skills and experience. The sector has focused on getting more and more people into the sector rather than on retaining the best talent it has. As a result, the sector is now facing a major 'skills gap' in relation to technically skilled chefs, managers with the appropriate level of skills and experience, and a workforce with relatively poor customer service skills. Not good news for the business.
At the recent fifth International Annual Hotel Conference in Rome, I heard the same record play again - in English, I should add. There was widespread acknowledgment among industry leaders at the event that the hotel industry has not been actively addressing the problem of attracting and retaining personnel.
Why is human capital not a priority for hotel investors?
Some delegates who participated in the break-out session felt that many graduates leaving the top hospitality schools nowadays are reluctant to move into the operational side of the business, as they considered it a 'dead-end job'. The reality is that the younger generation is no longer willing to work their way up from pot washer or porter to general manager - the traditional career path for those who have been in the hotel business long enough! Many would, if given a choice, prefer to pursue an alternative career in real estate finance, which is perceived to be more 'sexy' and financially rewarding.
Is the industry not sexy enough for the younger generation? If not, what should be done to change this perception?
While financial reward is a relevant factor, it was felt that it is not the be all and end all for workers joining the industry. In terms of financial reward, pension is not a major attraction to a young workforce. Employees are now looking for meaningful work, opportunities to develop their career and extrinsic reward. Some delegates also felt that the quality of first-line management is paramount. Studies have shown that there is a correlation between the performance of a business and its staff turnover - a happy workforce equals higher productivity! So, in a nutshell, employees need to become more engaged with the business.
I leave you with some food for thought...
- Whose responsibility is it to achieve employee engagement?
- Should employees of hotels be treated differently to their guests?
- Is it time for hotel investors to see the business case for investment in HR, without which it would be difficult for them to expect a financial return on their investment?
- Is the industry attracting and retraining talent?
Visit http://hotels.wedlakebell.com/ and 'Have Your Say' on this issue. If you missed our HR Hotel Forum in October 2007, the key learnings on 'Retention of Staff' can also be accessed from the 'Knowledge Bank' on the website.
Julian Yew
Employment