THE EYES & EARS OF THE INDUSTRY
HAPPINESS IN HOSPITALITY 2O18 A survey of the industry as a place to work by CODE Hospitality In association with
HAPPINESS IN HOSPITALITY 2O18
Contents 3. Welcome 4. Talent
5. Staff turnover
6. How hospitality professionals find their job
7. Mentorship
7. Key takeaways
8.
Mental health and wellbeing
8. Employee welfare
9. Work-life balance
1O. Mental health support
1O. Key takeaways
11.
Remuneration and benefits
11. Top 5 benefits
11. Key takeaways
“THIS VISIONARY SURVEY FROM CODE WILL, I’M SURE, BECOME REQUIRED READING FOR EVERYONE AT EVERY LEVEL IN OUR INDUSTRY. THIS INFORMATION WILL, FOR THE FIRST TIME, PROVIDE TANGIBLE DATA TO IMPROVE AND EVOLVE OUR INDUSTRY IN THE EXACT AREAS IT IS NEEDED.” MATT HOBBS - FORMER MANAGING DIRECTOR, THE GROUCHO CLUB
CODE Hospitality CODE is a community for the hospitality industry. Created to educate, inspire and connect - we champion the industry through our media platforms that provide networks, intel, resources and benefits for hospitality professionals. codehospitality.co.uk
Everyday People Everyday People are employee experience specialists, helping to build thriving cultures within the hospitality industry. Why? Because with a thriving culture, your organisation’s extraordinary vision can become an everyday reality. Providers of Mental Health First Aid training, wellbeing workshops, resilience coaching and bespoke consultancy. everyday-people.co.uk -2-
HAPPINESS IN HOSPITALITY 2O18
A survey of the industry as a place to work by CODE Hospitality
DESPITE ITS CHALLENGES AND OBSTACLES, 78% OF OUR INDUSTRY WOULD RECOMMEND HOSPITALITY AS A CAREER Why do we work? Why do we work in hospitality? Of course, we all need to earn a salary to pay those bills, but there is so much more that motivates people to turn up every day and often to work very long hours. With our industry facing many challenges, how to look after our people remains the most central. Brexit, twinned with the perception of working in hospitality in this country, has made staffing a perpetual headache. If we are to create a sustainable workforce for the industry in the UK, we need to spread a greater understanding of what needs to improve – we need to listen to those working on the frontline. As an industry, we then need to unite and collectively implement these improvements to attract new talent and retain those already working in it. People make a career in hospitality for more than a pay cheque – they do it from a deep-rooted passion. The beauty of the industry is its diversity. Regardless of background, ethnicity, upbringing and education, you can get a foot on the ladder, and by and large progression will come through commitment and graft. What makes the best server or chef is nothing to do with their background – it’s about so much more. It’s that understanding of how to make someone feel special and that chef’s touch to elevate the simplest produce. We have decided to explore the more qualitative aspects of working in the industry with our inaugural Happiness in Hospitality report. We wanted to look beyond the usual, broad stroke reports – and touch upon the more emotional sides of working in hospitality. We’ve broken down the report to look at workforce talent, mental health and wellbeing, as well as remuneration and benefits. People are hospitality’s most important asset. To survive let alone sustain our growth, we need to listen to our peers across all facets of the industry. We hope this annual report will be a useful tool for both employers and employees – and serve as a catalyst to effect positive change. As Max Coltart, head of CODE Careers, put it: “The UK has every element required to set the global standard for hospitality, yet we lag behind the rest of the world in our treatment of people. Only when our industry is seen as a viable career, let alone a sustainable one, will we thrive further.” CODE Hospitality
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DATA SUMMARY • •
Responses were collected in June and July 2O18 across the UK only
•
527 survey respondents
•
48% male / 52% female
•
Majority with 5+ years of experience
•
48 different nationalities
•
All data has been anonymised
Any business is only as good as the people it employs, so what steps can you take to retain your best? The hospitality industry is renowned for being transient, with staff turnover notably high. The results in this report, which focuses on the independent hospitality sector, very much reflect this trend despite the majority of respondents having worked in the industry for more than five years (Fig. 1). So why do people keep moving jobs? What different channels do employees use to find new jobs? And what role could mentoring play in developing and retaining talent?
15+ years (23%)
O-2 years (6%) 2-3 yea rs( 6% )
Talent
4-5 years (17%)
The shortage of trained hospitality staff in the UK is widely documented, and is only set to be exacerbated by Brexit. A British Hospitality Association (BHA) report* on Brexit in 2O16 looked at the effect of the UK leaving the EU on the hospitality industry workforce, finding a potential annual recruitment need in the industry of over 1OO,OOO people.
1O-15 years (24%)
There is general consensus that the industry needs to be more proactive in finding ways to attract new talent and promote hospitality as a viable career path for those leaving school and further education. In recent times there has also been an acknowledgement of the opportunities to attract talent at later stages of their careers. Restaurant groups such as Corbin & King in London, who own The Wolseley and Brasserie Zédel, have implemented an ‘5O+’ programme to target those looking to change careers into hospitality later in life.
6-9 years (24%)
Years of experience in hospitality Fig. 1
“ALL INDUSTRIES ARE KNOWN FOR CERTAIN TRENDS AND IT’S HIGH TIME THE HOSPITALITY INDUSTRY – IF IT IS TO CONTINUE TO THRIVE – CHANGED THE PERCEPTION OF LOW PAY, IMPOSSIBLY LONG WORKING HOURS, ANTI-FAMILY FRIENDLY WORKING CONDITIONS AND ATTRACTING ONLY A YOUNG AND TRANSIENT WORK FORCE.” ZULEIKA FENNELL – MANAGING DIRECTOR, CORBIN & KING
*British Hospitality & Tourism Industry Brexit Strategic Response (2016) British Hospitality Association, p. 3
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Retaining and developing talent is crucial to any organisation regardless of size or industry. According to research carried out by the insurance company LV=, the average UK worker will change employer every five years. In the independent hospitality sector this falls to less than a year (Fig. 2). With the most prevalent
5-1O years
1O+ years
FOH 4O% 24%
26%
8%
8%
BOH
24%
15%
9%
4%
Office 2O% 3O%
33%
12%
6%
48%
1-2 years
2-5 years
Less than a year
Talent
Staff turnover reason to move employer being a search for greater personal development, the need to provide clear career progression for employees is more important than ever. It’s vital employers have structured programmes in place to offer training and other work-place benefits that support employee wellbeing.
ON THE FLOOR 4O% of front-of-house staff move employer within a year IN THE KITCHEN Nearly 5O% of back-of-house staff change employer within a year AT THE OFFICE 5O% of office staff move to a different job within 2 years
Fig. 2 Average staff turnover across all skill sets
Contrary to widespread assumption, hospitality employees are not purely motivated by the size of their next pay cheque. In fact only 7% cited a promise of better pay elsewhere as their reason for leaving their current employer - a stark contrast to the wider UK workforce, where 51% consider this to be the main factor in finding a new job*. Whilst the opportunity
of greater personal development provides the greatest pull (38%), lack of support from employers (22%) and incompatibility with managers (12%) play an alarmingly strong role in driving staff turnover. This highlights the importance of strong relationships between employers, their management teams and their employees.
Other reasons included:
38% MOVED EMPLOYER FOR THE OPPORTUNITY TO HAVE GREATER PERSONAL DEVELOPMENT 1. Business development 2. Wine knowledge and training 3. Finance and accounting 4. PR and marketing 5. Produce knowledge
22% 12% 7% 7% 5% 3%
Lack of support from employer Incompatibility with manager Promise of better pay elsewhere Lack of variety in their ongoing role Headhunted to join another employer Left to start own business
TOP FIVE SKILL SETS RESPONDENTS WANT TO DEVELOP
*Job Exodus Trends 2017, Investors in People
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Talent
How hospitality professionals find their job Even in this digital age, where job seekers can apply for multiple roles with a single click, personal recommendations and word of mouth are pivotal in driving the movement of talent within the independent hospitality
sector. Collectively 56% of respondents relied on these more traditional methods to secure their current role. The time-poor and analogue nature of working in hospitality goes some way to explaining this.
Other methods included:
56% FIND NEW ROLES THROUGH THEIR OWN NETWORK
17% 14% 13%
Leveraging the network of current staff and their commitment to their employer, offers an opportunity to reach both active and passive candidates. With almost half of
Job advert on employer website Recruiter Job-board posting (including CODE Careers)
all respondents attracted to their current employer by the quality of offering being produced, who better to communicate this than current employees?
“I’VE ALWAYS THOUGHT ABOUT RESTAURANTS AS PEOPLE BUSINESSES AT LEAST AS MUCH AS THEY ARE FOOD BUSINESSES. WHEN WE ARE AT OUR BEST – BRINGING IN PEOPLE FROM INCREDIBLY DIVERSE BACKGROUNDS AND VARYING EXPERIENCE, TREATING THEM WELL, TRAINING THEM UP AND HELPING THEM BUILD CAREERS THAT ARE HUGELY REWARDING – WE ARE AS GOOD AS ANY INDUSTRY IN THE WORLD TO WORK IN. STAFF RETENTION AND LONGEVITY IS HOW YOU KNOW IF YOU’RE GETTING THAT RIGHT.” WILL BECKETT - CO-FOUNDER, HAWKSMOOR RESTAURANT GROUP
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Talent
Mentorship The challenges of working in hospitality – beyond the physically demanding, pressurised nature of the day-to-day are numerous and unique. The support provided by a senior member of the industry, with experience and wisdom to impart, could play a vital role in retaining those new to the industry by helping them to overcome the initial challenges of forging a sustainable career in the industry.
It is not only at the junior level where such guidance can be invaluable. As highlighted by CODE Hospitality’s annual 3O under 3O list there is a growing trend for hospitality businesses founded and run by young individuals. More so than ever, this presents an opportunity for a mentorship scheme to help foster and support the next generation of leaders in the hospitality industry.
85% WOULD LIKE TO BE MENTORED
AND 87% WOULD LIKE TO BE A MENTOR Mentorship programs have had success in other industries and given the tight-knit nature of the hospitality community - as well as the overwhelmingly positive response within this report – it is something that CODE will be looking to facilitate. Especially considering the fact that, beyond the clear operational benefits, there is evidence that mentoring can
have positive effects on employees’ mental health and wellbeing. In 2O18 a study by Michael Gill et al. - Mentoring for Mental Health - found both being a mentor and a mentee greatly reduces anxiety. This was a result of the mentor’s role being more rewarding and the added guidance for mentees.
“ONE GENERATION HELPING THE NEXT GENERATION IS ESSENTIAL TO OUR LONG-TERM CHANCES OF ATTRACTING THE BEST AND THE BRIGHTEST TO OUR EXCITING AND DIVERSE SECTOR AND BOTH THE MENTOR AND THE MENTEE HAVE SO MUCH TO GAIN THROUGH THIS PROCESS. WE NEED TO BE MORE PROACTIVE AS AN INDUSTRY TO SET UP THESE PROGRAMMES.” LAURA HARPER HINTON - CO-FOUNDER, CARAVAN
KEY TAKEAWAYS Recognise the role of staff turnover in your business. The majority of staff across all levels of experience and departments will stay at a business for less than 2 years. Get to know your staff beyond
their day-to-day skillset. 38% moved employer to improve their personal development prospects - understand their long-term career aspirations and help them to achieve them. Implement a career development programme for employees, to ensure they do not leave due to a lack of support. -7-
Leverage in-house recruitment referral schemes to drive talent to your business - 56% find new jobs via their own network. Commit to developing staff both professionally and personally. Mentoring can play an invaluable role in guiding them through the challenges of the industry.
Mental health and wellbeing The hospitality industry has been marred by mental health issues due to employee’s work-life balance and the lack of attention to people’s wellbeing. Having long been a taboo topic in society, thankfully the stigma surrounding mental health is starting to be a thing of the past and we’re learning to speak openly about it.
9 OUT OF 1O HOSPITALITY STAFF HAVE EXPERIENCED OR WITNESSED ABUSE IN THEIR CAREERS
“MY WORK IN DOMESTIC VIOLENCE MEANS I HAVE A ZERO-TOLERANCE POLICY ON ANY AGGRESSION OR BULLYING. THE TYRANNICAL MOTTO OF THE AGGRESSIVE CHEF IS “I SHOUT BECAUSE I CARE, BECAUSE I’M A PERFECTIONIST”. THAT IS THE MANTRA OF THE DOMESTIC ABUSE PERPETRATOR AND IS UTTERLY INDEFENSIBLE. IT IS THIS THAT HAS KEPT WOMEN AND MEN OUT OF KITCHENS AND OUT OF SENIORITY.” NISHA KATONA – FOUNDER, MOWGLI
Employee welfare The hospitality industry is in the early stages of ridding its reputation as an intimidating place to work. As in any industry, a first step is to implement clear policies that take staff
Our report reveals that women in hospitality are more to likely to experience sexual discrimination and sexual harassment in the workplace than their male colleagues. However, men are more likely to suffer racial, physical and verbal abuse in the workplace. With one in six respondents having experienced or witnessed physical sexual harassment in the workplace, basic workplace facilities such as designated gender-separated changing rooms are vital in protecting the wellbeing of the workforce.
OVER ONE-THIRD OF RESPONDENTS HAVE EXPERIENCED VERBAL SEXUAL HARASSMENT
Only 6O% of staff have changing rooms - of which only 5O% are gender separated
welfare into account. To ensure effectiveness, it is vital that employers consider the hospitality specific challenges raised in this report when setting policies.
59% of staff don’t have a designated breakout area
29% of back-of-house staff have received unwanted communications from colleagues, however the rate rises to 48% for front-of-house. Communication methods such as team WhatsApp groups expose personal information and give rise to opportunities for unwanted communication. Protecting staff contact details will play a role in helping to mitigate these risks. Employers should look at a number of alternative solutions to WhatsApp for groups to communicate at all levels across the business. -8-
4 out of 1O don’t feel that staff areas are kept to an acceptable standard
THE MOST COMMON WAY – 47% – FOR STAFF TO CONTACT EACH OTHER IN THE INDUSTRY IS ON WHATSAPP
Mental health and wellbeing
Verbatim feedback revealed a shocking prevalence of senior management and owners being either directly responsible for instances of bullying, discrimination, harassment and abuse or creating a culture of fear of reprisal. To quote one respondent when asked whether they would feel comfortable informing their employer of the situation - “the senior managers were the perpetrators. It would put my career at risk.”
4O% OF RESPONDENTS DON’T FEEL COMFORTABLE TURNING TO THEIR EMPLOYER FOR HELP
“IN THE CURRENT SCENARIO OF CHRONIC STAFF SCARCITY AND LACK OF YOUNG TALENT I BELIEVE THAT A FORWARD-THINKING APPROACH TO EMPLOYEE WELLNESS IS NECESSARY IF WE WANT TO CONTINUE BEING AT THE FOREFRONT OF OUR INDUSTRY – WE NEED TO ALIGN OUR STANDARDS TO THOSE OF OTHER, MORE CUTTING-EDGE SECTORS.” ANDRÈ MANNINI - OPERATIONS DIRECTOR, M RESTAURANTS
Work-life balance AVERAGE RATING FOR WORK-LIFE BALANCE WAS 6 OUT OF 1O The hospitality industry has historically held a reputation for being both physically and mentally demanding. It’s perhaps unsurprising then that almost three-quarters of the industry have experienced or witnessed burnout.
Unfortunately for the seven out of ten who have experienced or witnessed burnout, less than half of those feel comfortable turning to their employer for help, with some citing the stigma around mental health as the reason for this.
“I AM IN A POSITION OF HUGE RESPONSIBILITY WITHIN THE BUSINESS. I CAN’T BE SEEN TO SHOW WEAKNESS.” On the face of it unmanageable workload is the clear dominant cause of burnout in the industry (cited by 71% of respondents). In reality, a busy workload alone is rarely the full picture - a lack of support network (53%) and reward (52%)
are evident contributing factors; however, there also appears to be a direct correlation between abuse and burnout. 85% of those who reported having experienced abuse had also experience burnout at some stage in their career.
Top 3 causes of burnout 1. Unmanageable workload 2. Lack of support network 3. Lack of reward
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Mental health and wellbeing
Mental health support Having a clear policy and approach for managing mental health helps organisations ensure consistency but in practice this may look different across a range of workplaces. For example, small businesses may not have formal policies for every situation but they can still develop a clear positive culture and policy on mental health which can be communicated to staff.
There are now a number of operators with mental health initiatives in place but our report shows that the industry as a whole still has a long way to go when it comes to staff welfare. Whilst 4O% of all UK employers across all sectors have a mental health policy* this falls to just 21% of hospitality employers (Fig. 3). A mental health and wellbeing policy should be clearly set out by employers detailing how the organisation will promote wellbeing for all staff, tackle work-related causes of mental health problems and support staff experiencing them.
An organisation-wide mental health strategy is essential and it should signpost support available to aid employee wellbeing and manage stress. Mental health and wellbeing policies are there to ensure employees experiencing mental health problems get the support they need straight away, but crucially these policies should exist, where possible, to prevent issues arising in the first place.
Yes (21%)
I don’t know (3O%)
No (49%)
Fig. 3 Existence of mental health support policy in the workplace
72% OF JUNIOR STAFF HOLD A NEGATIVE OPINION OF MENTAL HEALTH SUPPORT, WHEREAS 63% OF SENIOR STAFF FEEL POSITIVE ABOUT THE QUALITY OF SUPPORT OFFERED
KEY TAKEAWAYS Employers need to improve their overall workplace environment - making them safer and more hospitable places to work, for both men and women.
Staff facilities should be improved, including the provision of genderseparated changing rooms, as well as a clean, safe space where staff can “switch off” during their breaks. Internal methods of communication need to be reviewed to protect
* Mind’s Workplace Wellbeing Index 2016/2017
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employees’ personal data and reduce potential avenues for unwanted communication. Clear, tailored mental health and wellbeing policies should be implemented across the board.
Remuneration and benefits Money, money, money! The level of pay in hospitality is one that needs to be addressed – as does the wider discussion on whether the current business model surrounding restaurants is viable for the future – but here we’ve decided to largely focus on the more qualitative aspects of employee remuneration and benefits. We asked employees what they want when it comes to benefits, as well as getting industry feedback on the tronc system.
Whilst salary cannot be overlooked when reviewing job satisfaction in the industry, the highest rated factor was, perhaps surprisingly, a manageable commute. With very early starts and late finishes a common feature of the industry, how staff get to and from work plays a significant role in their overall wellbeing. Other highly rated factors contributing to job satisfaction include: personal development, recognition from management, and clear career progression.
A key component of the overall remuneration package (for front and back of house staff especially) is tronc. Of those who receive it 6O% feel they get a fair share and there is a general consensus that tronc is a fair method of sharing service charge and tips. However, despite this,
there is underlying uncertainty. Two thirds of employees wanting more clarity around how tronc is divided in their workplace and almost all respondents (91%) admitted that they don’t believe customers have a clear understanding of how tronc and service charge work.
THE HOSPITALITY INDUSTRY IS ONE OF THE MOST EXPENSIVE INDUSTRIES TO WORK IN*. A MANAGEABLE COMMUTE WAS THE HIGHEST RATED FACTOR AFFECTING JOB SATISFACTION ACROSS ALL LEVELS
More than 6O% of staff at all levels (rising to 7O% across those earning less than £35k p.a.) would be happier if they had financial help towards their commute
Top five benefits We asked respondents to choose the most important employee benefits to them. Junior staff
Management
Senior management
1. Flexible working hours 2. Internal discounts/perks 3. Staff meals 4. Team trips 5. Meeting suppliers
1. Flexible working hours 2. Staff meals 3. Team trips 4. Internal discounts/perks 5. Private medical insurance
1. Flexible working hours 2. Staff meals 3. Team trips 4. Private medical insurance 5. Internal discounts/perks
KEY TAKEAWAYS
Employers need to educate staff on the tronc system and how it works. Staff want more clarity on how tronc is divided, even though it is generally accepted as a fair method of distributing service charge.
flexible working hours, team trips and meeting suppliers.
Given hospitality working hours, employers must recognise the importance of a manageable commute to staff’s happiness. Introduction of tax exemption programs such as season ticket loans and cycle to work schemes are encouraged.
Employers should pay particular attention to qualitative benefits such as
* Hospitality Worker Trends 2018, CV Library
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There is demand for cross-training staff in other departments within the business such as wine knowledge and commercially focused skillsets
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