Three-quarters of hotel companies raise wages due to staff shortages – survey



Hotel bosses said they were raising wages in response to staff shortages (Damien Eagers / PA) (PA Wire)

Three-quarters of pub and restaurant owners say they are increasing wages to attract staff, according to a survey, as labor shortages continue to hamper the sector’s recovery.

A survey of 200 senior hospitality industry executives found that one in six positions is currently vacant and that 96% of business leaders see staff shortages for certain positions.

CGA’s Business Confidence Survey, conducted by the research firm with technology specialists Fourth, found that the staff shortage was driving bosses to redouble their efforts to attract and retain workers.

About 76% of those surveyed said they had offered better pay as part of their retention strategies, while 75% had stepped up levels of communication with staff in an attempt to increase retention levels.

Thousands of companies are now sorely understaffed

Karl Chessell, CGA

Meanwhile, 18% of executives surveyed said they were confident in their recruiting and retention over the next 12 months – a drop from 67% who felt confident in the last business confidence survey there was. three months.

Karl Chessell, Director of Hotel and Restaurant Operators for Europe at CGA, said: “These numbers illustrate the extent of the recruitment and retention crisis in the hospitality industry.

“Thousands of businesses are now sorely understaffed, while many of those with enough manpower struggle to keep them.

“Gaps in the front and back of the house and rapidly rising labor costs threaten to derail the industry’s recovery, and sustained and targeted government support is now urgently needed to ensure that the industry is in good shape. tackle the problem. “

The jobs crisis has hit businesses in the hotel industry, with Pan-Asian chain Wagamama recently revealing difficulties hiring chefs in one-fifth of its restaurants.

Managing director Thomas Heier told the PA news agency that Brexit is having an impact on the number of European workers looking for jobs in the UK and the company is struggling to fill vacancies of chef on about thirty sites.

We urge the government to implement a long overdue reform of corporate tariffs

Kate Nicholls, United Kingdom Hospitality

In its full-year update on Friday, pub chain Wetherspoons also said that despite increasing the number of employees from 39,025 to 42,003, it had faced shortages on vacation hotspot websites across the country.

Kate Nicholls, chief executive of UKHospitality, called on the government to ease immigration rules to fill the shortages this week and urged it to review the sector’s tax rates.

She said: “With the right support and the right conditions, the sector has the potential to be at the forefront of economic recovery.

“In order to stimulate job creation, we urge the government to implement a long overdue reform of business tariffs and a permanently lower VAT rate for hotels and tourism to help fragile businesses to get back on your feet. ”


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