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 of sector leaders shows intense competition for team members. Three in five (59%) say they will recruit at a greater rate than usual this year, a jump of 13 percentage points since the last confidence survey in December.
However, nearly one in ten (9%) roles remain vacant and open for applications—though this marks a drop from the figure of 14% in late 2021. Only half (52%) of leaders say they feel confident about their recruitment and retention in the next 12 months.
Staff shortages are leading business leaders to sharpen their HR strategies in a variety of ways. Nearly four in five (77%) say 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 highlights the impact of increases in the National Minimum Wage and National Living Wage from April. Two thirds (67%) of leaders say this is a key challenge in 2022.
Sebastien Sepierre, managing director – EMEA, Fourth, said: “Recruitment continues to be a major challenge for the sector as it builds back after an extremely challenging two-year period. When it comes to labour, it’s more important than ever that sector businesses are continuing to plan ahead, helping them to accurately manage demand and ensure they have the optimum number of staff across each and every shift. Technology can play a key role in helping businesses do this, and also ensures they can hire, train, engage and retain workers, providing smart solutions to manage consumer demand accurately in these testing times.”
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.”
The Business Leaders’ Survey from CGA and Fourth provides many more insights into hospitality issues—including the vital role of technology in engaging both employees and consumers. Two in five (42%) leaders think technology is most useful for managing bookings and payment, 18% for managing workforces, and 14% for controlling inventories and stock.
When considering their business’s technology innovation, just 22% of leaders think their business is ahead of the market average, while 25% think they are behind the market average.
For more information about the Business Leaders’ Survey, including bespoke analysis to help suppliers and operators optimise strategies for recovery, email ted.mulcauley@cgastrategy.com.
