The hospitality and leisure sector’s post-pandemic recovery, in the UK, could be severely hampered by the lack of staff, a new report from a British bank has revealed.
“UK Hospitality’s Next Challenge”, a study from Barclays Corporate Banking, shows that the release of pent-up consumer demand for socialising, holidays and experiences following the pandemic has given a boost to the sector. Over three quarters (77%) of H&L operators are confident of growth this year, and had predicted an average 30.5% uplift in revenue compared with pre-pandemic levels. This equates to a £36bn² rise in annual turnover over 2019, and a £54bn increase on 2021.
However, the predicted growth could be stifled by soaring supplier costs and a scramble for talent. Hospitality and leisure businesses report that their transport costs have already spiked by over 38% year-on-year on average, and their utility bills by 37%.
Meanwhile, over nine in 10 (94%) hospitality and leisure businesses are struggling to recruit personnel, with vacancies for cleaning staff (20%), front of house staff (18%), and delivery staff (16%) causing the most issues. There are particularly acute shortages of cleaners in the East Midlands and the East of England (28%).
Almost a fifth (16%) of bars and restaurants are finding it difficult to hire waiting staff, and over two fifths of gyms and leisure centres (42%) cannot find fitness instructors. Recruitment issues also extend to back-of-house and C-suite roles: 17% of operators are having trouble sourcing finance staff and 16% said the same about senior management positions.
“Crucially for the industry, our research shows that talent shortages are also a major concern, with businesses in every vertical finding it challenging to fill their vacancies. It means there is now an added imperative for hospitality and leisure firms to find new and novel ways to recruit, reward and retain their staff.” – says Mike Saul, Head of Hospitality and Leisure at Barclays Corporate Banking.
Hospitality and leisure operators are already establishing new incentives to recruit and retain talent, including permanent work flexibility, the introduction of bonuses, and an increase in staff welfare budgets.
Almost one in five employers (19%) have also increased wages given to staff. Senior managers are set to receive the biggest boost to their pay packets, with an average increase of 7.7% – equivalent to £2,014 a year for a full-time worker. Delivery riders, housekeepers and kitchen staff are also expected to see their wages rise in 2022.