Going the extra work mile
The Scottish Tourism Alliance reported last year that record staff shortages had caused the UK hospitality industry to lose £21 billion in trade.
Brexit and Covid-19 restrictions were key contributing factors, but now the cost of living crisis is also having a major impact.
Catriona Aldridge, partner in CMS’ employment team, says many businesses in the sector are not in a position to significantly increase wages but that there are other ways to be attractive to potential employees.
She explains: “Flexibility is hugely important to today’s workforce. Employers who are able to operate a variety of shift patterns that can fit with a range of lifestyles are likely to be more attractive and also more likely to retain their staff in the long-term.
“Showing that you put staff wellbeing at the heart of your business is also a key draw and differentiator. For example, there are various factors that mean employees working in hospitality have higher exposure to potential harassment than other industries.
“However, there are clear and simple steps that employers can take to protect their staff in this respect. The checklist and action plan developed by CIPD and UK Hospitality is a useful reference point here.
“Mental health is also a big issue. Those currently working in the industry bear the brunt of the staff shortages, meaning they are often over worked and left to deal with dissatisfied customers. Organisations who can put in place support, such as counselling services, or who partner up with campaigns such as the Burnt Chef Project are more likely to create a supportive environment where staff want to remain in the long-term despite the short-term pain.”
A key issue surrounding staff levels across the tourism industry is Brexit and the subsequent lack of free movement.
Employers wishing to bring in staff from Europe now have to contend with the UK’s points-based immigration system, which could cost them thousands for each individual.
Finlay McKay, who is also a partner in the CMS employment team, says: “When you look at the cost of the applications for skilled workers visas, they are really quite expensive. There is the added problem of some roles not satisfying the points based requirements meaning an employer can’t get a visa for certain jobs.
“We have seen businesses for example looking to hire chefs on visas and it is really expensive to do that and there is no guarantee they are going to stay, so employers are investing money into something that is not guaranteed.”
In order to retain such members of staff, McKay maintains that businesses should have strong values for employees to buy into.
“We have seen examples of businesses showing some real leadership and a willingness to share the pain with their staff. During the pandemic we have seen examples of senior management teams taking pay cuts without reducing staff pay,” he adds. “If employers show that they are part of a team and everyone ‘is in it together’, people are likely to go that extra mile when they are working. In the tourism sector, that is very much needed.”
A strong commitment to the environment and ESG (Environment, Social and Governance) strategy, backed up by action is also an attractive feature for current and prospective staff. In 2022 an IBM survey reported that 71 per cent of employees believed that environmentally sustainable companies are more attractive employers, underlining the changing dynamics in today’s workforce.
Aldridge, who works with employers to advise on all aspects of the employment lifecycle, suggests that employers can take steps such as implementing travel policies which encourage reduced or sustainable travel or benefits packages which focus on locally sourced benefits, as a way of including employees in the transition to net-zero. Looking to a sustainable workforce of the future it will also be key to train up employees with the necessary green skills.
Another consideration is zero hour contracts. McKay, who represents clients at employment tribunals, believes zero hour contracts have recently been demonised due to employers not implementing them correctly.
“I think there is actually quite a lot of flexibility for employers if they use these contracts in the right way and there are certain cohorts of worker for whom they work well.
“For example, students and people who have more than one job, provided the contracts are implemented correctly, I can see of benefits for those employees, as well as those who have childcare or other similar responsibilities.
“For those who want to do a seasonal role for example and are happy to be flexible where and when they work there are benefits to zero hour contracts.
“The employee has the opportunity to choose when they work and the employer has flexibility within their workforce, but doesn’t have to offer the work, and can flex at times where demand requires additional staffing.”
However, Aldridge stresses that employers should be mindful of not having casual staffing of this nature at the core of their resourcing strategy. This is particularly the case when the direction of travel for regulation in this area is towards ensuring predictability and regularity of work – the Workers (Predictable Terms and Conditions) Bill is currently working its way through parliament and has government backing.
She concludes: “Our team works with a lot of clients who are implementing diversity and inclusion initiatives and the recurring theme is that the best way to “sell” what the organisation is doing is from employees promoting their [positive] lived experience.
“That means not just having a policy in place but having people who can say their experience is that this is a great place to work and advocating for the business.
“It’s the same when it comes to attracting workers into Scottish hospitality and tourism industry. It is a hugely varied, interesting and vibrant place to work. You can’t beat having employees who feel valued and will shout about how great the industry is to pull people in and get them to stick.”
See cms.law/Scotland for more