The hospitality industry has faced two big workforce challenges since the start of the pandemic. The first has been one around costs with inflation driving wages up, putting a strain on the bottom line. The second has been less talked about and is probably more difficult to solve: namely the attractiveness of the industry as a career option.
Many workers across the world were furloughed when Covid-19 first hit and some never returned to work. Unlike other sectors working from home isn’t really an option so working on the front desk or in other positions can seem less attractive than other roles.
So what can the industry do to engage younger people?
Stephen Cassidy, senior vice president & managing director, UK & Ireland, Hilton: “Despite extraordinarily high vacancy levels, our retention levels have improved. There has been a shift away from casual work to more permanent employment and the willingness of workers to take permanent contracts is testament to how attractive an industry it is.”
He added: “You can join with very few skills but develop very rapidly. Two individuals on the leadership team of Hilton in Washington DC started off as banqueting waiters at the Hilton Watford. These examples increase by the year.”
Kate Nicholls, CEO, UKHospitality, agreed that the industry has made dramatic steps forward over the last decade. “We are the ultimate meritocracy where nothing holds you back and whatever skills and experience you start with, we will invest in you to develop you.”
In terms of diversity and inclusion, the industry could celebrate its achievements more. Hospitality has the lowest gender pay gap of any sector, for instance, and 30 percent of c-suite executives are female.
Nicholls added: “The new Labour government has talked about us as a foundational economy, the everyday economy, and it’s these key metrics that we have to keep repeating and hammering home to people: £140bn of revenue means we’re bigger than aerospace, automotive and pharmaceuticals put together; 3.2m in the workforce, the third largest in private sector employer; 1.5m in the supply chain so we are 7 percent of the UK workforce, 12 percent of GDP and £54bn of tax, funding vital public services. That’s the elevator pitch, we just all need to be communicating it.”
Positive culture
Asked by Winston Zahra, founder & CEO, TROO Hospitality, whether hospitality needs to shout louder than other industries, Nicholls had a smart answer: “Nobody’s ever told me to be quiet before.”
Young people tend to view hospitality as a temporary stepping stone before they move into other sectors, but Cassidy did not see this as necessarily a bad thing. Nicholls added that many current Labour and Conservative members of parliament started their careers in hospitality which had given them a foundation to develop strong leadership and people skills.
Speaking of fostering a positive workplace culture, Cassidy said: “We’re fortunate because it’s not difficult to define the purpose of our industry and purpose-driven cultures are crucial to driving inclusive places to work where people feel it’s about something more than just a job.”
In November 2023, Hilton was named the number one best place to work in the world by Fortune Magazine and Great Place to Work. It was the first time a hospitality company has achieved the top accolade.
Building a culture takes time and energy, Cassidy said: “It’s a long game and you need to invest in partnerships and programmes.”
The Hilton Foundation supports several charities, offering work opportunities through the Down Syndrome Association, and Only a Pavement Away, which connects people facing homelessness, prison leavers and veterans with hospitality jobs and training.
Cassidy added: “We don’t do it in isolation just for Hilton. We launched Breaking Barriers that was heavily supported by UKHospitality which was about sharing our stories and practices with other businesses.”
Could hospitality be more competitive in terms of the pay, benefits and conditions that it offers? Nicholls thought not.
“We are primarily an industry of SMEs (85 percent) and therefore you can’t have a one size fits all, but I would question the underlying premise of the question because we are in line with other sectors of the economy. We do have access to digital GPs, sick pay, maternity pay, bonuses.”
She added: “Obviously I’m doing a lot of work with the new Labour government and the unions. Our sector is a beacon of good practice in all these areas. We should be talking ourselves up not down.”
Nicholls said she will be working with the government on the reform of the apprenticeship levy and producing a digital skills passport with a common entry level standard of induction training freely available to all hospitality workers to give them transferable skills and qualifications.
By Ben Walker
