HOTEL & CATERING OUTLOOK 2023

The data gathered for our most recent Hospitality salary guide shows some interesting information along with large wage increases in certain areas, particularly in the area of Chefs. Statistics point to the fact that the largest sector with vacant positions across 2022 was the hospitality industry. Long before the Covid 19 pandemic, the industry was facing a shortage of Chefs and the big question was how to address this.

To put it simply, people did not want to enter an industry that is hands-on and physical while receiving a relatively low salary in comparison to other, similar laborious sectors. Towards the end of lockdowns and restrictions during Covid 19, the complexion of Hospitality had been forever changed and this led to a mass exodus of industry professionals into other career paths. We tend to believe it was because of uncertain times during the pandemic, but in reality, the pre-existing work conditions and salaries were a huge factor, leading to a steady decline of chefs entering the sector.

As a result, rates of pay from entry-level commis Chefs all the way to Chef de Partie have increased and the average Chef de Partie salary will soon reach approximately €40,000 per year to try to attract & retain talent. This is a more realistic salary when taking into account the increased cost of living and the hands-on strenuous work in comparison to the average wage of similar labour intensive industries.

Overall, the staffing situation in hospitality is quite dire and the increases that are being paid to attract new hires and retain current staff are putting businesses under severe pressure. With the national minimum wage increasing to €11.30 in January coupled with the statutory sick pay bill that will see all employees receive three days in 2023, five days in 2024, seven days in 2025 and ten days in 2026, there is no end in sight in the short to medium term for the industry. Some clients contacted during the course of this survey have been trying to do new things to help attract and retain candidates, the four day week for example would be very attractive for people working in hotels and quite easy to manage in certain areas as having a seven day a week operation means it is feasible, however the shortage of staff in the market place have hindered this as people were signing up to a four day week but then being called in at the last minute to fill the gaps.

WHERE WILL STAFF COME FROM?

Some Job boards and the Stamp 2 visa issue are two important topics worth mentioning. Certain client surveys reported that when advertising jobs for various roles, there would be up to 200 applications submitted (which sounds great right?). However, when you look at the applications in various circumstances, 189 out of those 200 applicants were coming from outside the EU and had no chance of getting a visa even if the skills that they had listed were a perfect match, and in a time when the jobs boards are increasing their charges at an exorbitant rate, the relevance of applications in many situations is lower than ever seen before.

Subsequently, the stamp 2 students are back in force with more than 35,000 having returned since covid restrictions ended. This has given a bit of relief to the workforce along with the increase of Ukrainians that has now started to slow down due to lack of accommodation.

However, the way the Government has structured the stamp 2 working hours from September each year until the 15th of December, it means that the students can only work 20 hours a week. With this being the busiest time of the year in the retail and hospitality industry. It makes absolutely no sense and again our MD, Shane McLave, has called on the government to see sense and extend the permitted hours up to 30 hours per week to help both employers and Stamp 2 students who are struggling like the rest of us to meet rising costs.

In short, the current market in Hospitality is very much a candidate-driven market, and employers should take heed and try their best to look after current employees before they are tempted to go elsewhere. Covid may seem like a thing of the past, but one thing that has stuck with many candidates is the importance of work-life balance and the significance of feeling valued and appreciated.

If you wish to discuss the findings of this guide or how we can assist with your recruitment needs, please feel free to contact us at www.excelrecruitment.com. Alternatively, you can call us on 01 871 7676 or email Shane at shane@excelrecruitment.com.