No Hospitality Experience – Dilemma in Hiring

This blog post delves into four facets of this issue: No Hospitality Experience – Dilemma in Hiring, the aspirations of inexperienced job seekers, the nationwide staffing crisis, and the concrete challenges currently striking restaurants and hotels in their daily operations. Join us as we explore the intricate dynamics shaping today’s hiring landscape.

Many employers find themselves in challenging decision making: they must choose between hiring inexperienced staff or sticking to the tried and tested. The dilemma is not about stifling young dreams with the ‘no experience, no job’ notion. Rather, it’s a complexity heightened by industry-wide staff shortages.

Overview – UK hospitality industry

“As of October 2023, around 9.7% of businesses in the United Kingdom were grappling with worker shortages. Notably, over 25% of businesses in the accommodation and food sectors reported a deficit in staff, marking this sector as the most affected. According to the Office for National Statistics (ONS), there were 112,000 vacant positions in the hospitality sector by the end of 2023, an increase from 89,000 vacancies recorded before the pandemic.”

For years we have been experiencing a severe shortage of workers, with front-of-house staff and chefs being in particularly high demand.

The hospitality sector faces multiple challenges including labor shortages, changing consumer spending patterns, and increasing operational costs.

What Are the Challenges in the Hospitality Industry?

The primary objective for any hospitality company is to deliver exceptional guest experiences while ensuring profitability. Achieving a balance between capacity and demand, as well as revenue and costs, requires addressing numerous factors. The four main sectors of the hospitality industry — hotels and lodging, food and beverage, travel and tourism, and events and recreation — share several common challenges.

These include limited human resources, supply-and-demand fluctuations, evolving customer expectations, rising operational costs, regulatory changes, and new sustainability and personalization demands.

To thrive, hospitality firms must manage these issues effectively to optimize revenue and costs, differentiate themselves in the market, and offer high-quality guest experiences.

Any disruption or sudden change in areas such as food costs, labor availability, regulatory mandates, guest expectations, or discretionary spending can significantly impact a hospitality company’s operations. For instance, a restaurant facing high employee turnover may struggle to serve as many diners, potentially affecting food quality and service, and harming its reputation. Additionally, the restaurant might need to invest more in training and offer higher wages or other benefits to attract and retain staff, thereby impacting both revenue and expenses.

Beyond talent shortages, effective management of operating costs is also crucial. Inflationary pressures on items like food and energy can impact profitability. Maintaining product or service quality while managing rising expenses is essential for growth. These are those challenges that we have always had to co-op with.

New Key Challenges in the Hospitality Industry

In addition to the above mentioned challenges, in the past few years, new ones have come upon board to deal with. For example Cybersecurity Threats. The hospitality industry has been a target for significant cybersecurity attacks, making it essential for companies to invest in massive cybersecurity processes. Similar challenge in the online world is the Direct Bookings vs. OTAs: Online travel agencies (OTAs) are a double-edged sword for the hospitality sector, driving bookings but also increasing commissions and imposing stringent terms that can reduce profit margins.

Last but not least, Online Reputation Management has also become part of our daily operations. Maintaining a positive online reputation is crucial as travelers increasingly rely on reviews. Hospitality firms must monitor and respond to online feedback diligently to address customer concerns and maintain their reputation.

Difficulty in Finding Qualified Staff – Why not hire and train inexperienced candidates to solve the problem?