Recruitment Challenges and Strategies in the UK Hospitality Sector

The hospitality industry in the UK plays a crucial role in the economy, employing 3.2 million people. However, the sector faces significant recruitment challenges that have intensified in recent years due to various factors, including the aftermath of Brexit and the COVID-19 pandemic.

The UK hospitality sector is currently handling a severe labour shortage. According to a report by UKHospitality from early 2023, the industry faced a vacancy rate of over 400,000 positions, significantly impacting operations and service delivery. This shortage can be traced back to several influencing factors.

The departure of the UK from the European Union in 2021 resulted in the loss of a substantial number of EU workers who previously contributed to the hospitality workforce. A study conducted by the Centre for Entrepreneurs indicated that over 80,000 workers with EU citizenship left the sector in 2021 alone.

The COVID-19 pandemic led to mass layoffs and closures, resulting in many workers finding employment in other industries or choosing not to return to hospitality. Research from the Office for National Statistics (ONS) highlights that 25% of hospitality workers cited better job opportunities in other sectors as a reason for leaving.

To combat recruitment challenges, hospitality businesses are adopting innovative strategies. Many hospitality businesses are focusing on increasing their appeal to potential candidates by enhancing their employer brand. According to Glassdoor, 77% of job seekers consider a company’s culture before applying. Companies that successfully communicate their values, work environment, and commitment to staff development will likely attract more talent.

With rising labour costs, businesses are reevaluating their pay structures and benefits. Research from the Restaurant Association found that 70% of hospitality businesses have increased wages or enhanced benefits to attract staff. Also, flexible working hours and sign-on bonuses have emerged as effective tools for recruitment.

A diverse workforce enriches the hospitality experience. A report from the British Hospitality Association stresses the importance of diversity in attracting talent. Employers who implement inclusive recruitment practices have witnessed improved employee satisfaction and retention rates.

The UKHospitality "Skills for Jobs" report indicates that over 63% of hospitality employers are now investing in skills training as a recruitment tool. Providing career progression opportunities through apprenticeships and learning programs attracts potential employees seeking long-term careers.

London Town Group of Companies has adopted a multi-faceted approach to recruitment for its hotels, focusing on both innovative strategies and traditional channels. To attract a diverse talent pool, the group emphasises its commitment to staff development, showcasing career progression opportunities within its range of properties.

‘We actively use a variety of recruitment platforms, including LinkedIn and industry-specific job boards, to reach potential candidates effectively. Furthermore, London's hospitality scene has been leveraged through partnerships with local educational institutions, offering work experience and workshop programs to attract entrants to the sector. By combining modern recruitment techniques with an emphasis on benefits and perks of working in the industry such as access to heavily discounted hotel stays worldwide, dining opportunities and so much more. We aim to address the ongoing staffing challenges while fostering a robust workforce for our properties.’ Said Koolesh Shah, founder London Town Group of Companies.

The pandemic accelerated the adoption of technology in recruitment processes. Many hospitality businesses are leveraging platforms like LinkedIn, indeed, and specialised job boards to reach potential candidates. A survey by the Recruitment & Employment Confederation (REC) revealed that 78% of recruitment firms in the hospitality sector report an increasing shift to online recruitment methods post-pandemic.

The recruitment landscape in the UK hospitality sector is currently a complex challenge, with significant workforce shortages exacerbated by Brexit and the pandemic. However, with concerted efforts in enhancing employer branding, offering competitive incentives, fostering an inclusive environment, and adopting technological advancements, hospitality businesses can better navigate this landscape. As the industry continues to recover, implementing these innovative recruitment strategies will be vital for building a skilled and dedicated workforce to thrive in a competitive market.