Recruitment and retention remain ‘major concern’ for hospitality

Staffing issues continue to set back hospitality’s recovery from Covid-19, according to new research from CGA and Fourth’s Business Leaders’ Survey.

The poll shows “intense” competition for team members. Three in five (59%) say they will recruit at a greater rate than usual this year, an increase of 13 percentage points since the last confidence survey in December.

However, nearly one in t10 (9%) roles remain vacant – though this is a drop from the figure of 14% in late 2021. Only half (52%) of leaders said they feel confident about recruitment and retention in the next 12 months.

According to the CGA, staff shortages are leading business leaders to sharpen their HR strategies in a variety of ways.

Nearly four in five (77%) said they have offered better pay to try to retain staff, increasing their levels by an average of 11%. High numbers are meanwhile “stepping up” levels of communication with staff (85%), creating more learning opportunities (82%) and focusing on staff wellbeing and mental health (72%).

The Business Leaders’ Survey also highlighted the impact of increases in the National Minimum Wage and National Living Wage from April. Two thirds (67%) of leaders said this is a “key challenge” in 2022.

Phil Tate, CGA Group CEO, said: “Our survey highlights the level of concern that the scramble for staff is causing across hospitality. While there are some signs of improvement in the first quarter of 2022, major shortages and severe upward pressure on pay are likely to continue throughout the year.

“On top of other rising costs, supply issues, the end of VAT relief and fragile consumer confidence, it is yet another challenge to the recovery of the sector, which needs and deserves sustained support from government.”