Hospitality industry must invest in improving employee productivity

Productivity report infographic

Improving productivity in hospitality by just 1% would add £1.43 billion to the income of the UK industry, according to a report by People 1st.

The workforce development charity is focused on improving employee productivity, but major restaurant chains, particularly QSRs know that investment in equipment is also vital to generate more revenue per person.

In response to the Treasury’s productivity plan released last week, People 1st launched a new campaign to tackle the low productivity that threatens the sector.

It specifically wants to hear from employers on what works best to aid retention and how the industry can collaborate to find solutions.

Per employee, the hospitality and tourism workforce contributes only £21,600 to the industry, 53% lower than an employee in retail at £46,000, 39% lower than someone working in construction at £35,000, and 58% lower than a manufacturing worker at £52,000 per head.

People 1st calculates that 993,000 new staff will need to be hired by the hospitality industry by 2022, with the vast majority, 870,000, needed to replace existing employees as continuously revolving doors create skills gaps.

Simon Tarr, managing director, People 1st said: “The causes of low productivity are complex and diverse. It is clear that parts of our industry are trapped in a revolving door of high turnover, increased skills gaps, and reliance on resorting to further transitional, non-permanent staff, to plug those gaps. We believe diversifying recruitment to include older workers and maternity returners as well as putting in place strategies to reduce turnover with a greater focus on career progression, will have a positive impact on productivity.

“However, we want to tackle this challenge in collaboration with the industry, and are keen to share the best practice of those who know the industry best. That’s why we are launching a consultation today to gather the views of employers to reveal how to tackle this together, head on. The good news is that even incremental improvements can lead to substantial benefits to business and indeed the nation in terms of increased productivity.”

 

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