Solutions for the hospitality recruitment crisis

The hospitality industry has lost 84,000 jobs since last October’s budget announcements, according to the Office for National Statistics (ONS), accounting for almost half the job losses across the economy. While the sector remains a crucial and dynamic part of the UK economy, rising costs, inflation and the recent Budget changes have made it harder to keep a full rota of happy employees on the payroll.

Yet hospitality still offers unique advantages, such as flexible hours, sociable roles and varied career paths, that make it very attractive for many. The challenge for businesses is to adapt their approach so they can fill roles, keep staff engaged, and create long-term careers.

Across the country, many employers are already taking proactive steps to do just that. Here we share practical, proven strategies hospitality businesses are using to attract and keep talent.

Pay and working conditions

At the core of staff retention lies a simple truth – people want to be fairly compensated for their time and effort. With recent rises in NI contributions and the rises in the National Living Wage, it is ever harder for employers to pay anything above the minimum. It’s important employees feel treated fairly by their employer, so benchmarking salaries against other industries such as retail is the first step to making sure staff don’t look around for other work and beyond that offer overtime, bonuses, equal distribution of tips, and potentially even profit-sharing options. 

Equally important are working conditions. Businesses that do well with staff retention tend to have flexible scheduling, particularly for those who have other responsibilities such as parents or those who are students. It’s often the little things that can make a substantial difference in staff satisfaction, such as respecting time off with no calls or texts, understanding health and mental health issues, and unexpectedly rewarding extra effort. 

Invest in career development

One of the key reasons hospitality struggles to retain talent is the perceived lack of career progression. Some businesses address this by offering structured training programmes, mentorship and clear pathways for advancement. Investing in upskilling not only boosts employee morale but also enhances service quality.

Many workers in hospitality start in entry-level roles. Giving them the opportunity to learn new skills, whether that’s in management, finance or accounting, marketing or operations, can inspire loyalty and reduce staff turnover. Apprenticeships can also create a pathway to a professional career, allowing a business to take a young, motivated person and develop their skills to suit a particular business and its needs. 

Embrace technology and automation

Technology can ease staffing pressures by automating repetitive tasks, and allowing staff to focus on higher-value, more engaging responsibilities. Tools like self-check-in kiosks, mobile ordering apps and AI-powered scheduling have helped many businesses streamline operations and reduce dependence on a large workforce.

However, technology should be seen as an enabler, not a replacement. Many hotels have begun to implement AI screens for things like quick queries or check-in, but there are still staff on hand for those who want them. The human touch remains vital in hospitality, so automation should enhance and not diminish the customer experience.