The struggle for staff

Soaring Demand

Recent analysis of ONS data (experimental analysis of labour demand changes, split by profession and local authority, and other geographies) by online staffing platform for temporary work, Indeed Flex, has revealed that the demand for UK hospitality workers has soared by 46% compared to pre-pandemic levels, confirming the ongoing struggle to fill vacancies.

In particular, the number of online job adverts for hospitality workers in the North East has more than doubled since 2019, they report, with the highest demand for hospitality staff being at the end of 2022 in London, when more than 10,000 positions were advertised in one month, they also report.

It’s a pattern repeated across the country, as employers in many sectors struggle to find staff, and with the biggest jump in demand for hospitality workers being seen in the North East, say Indeed Flex, while Scotland saw a 61% increase in job adverts towards the end of 2022, and why Indeed Flex says that it is trying to help bridge the gap in demand by connecting employers with temporary workers in the hospitality sector.

Then And Now

London had the highest total number of job vacancies, with 10,460 positions advertised online in December 2022, an increase of 26% compared to prepandemic levels, and with soaring supply costs and rising wage demands amid the cost of living crisis, businesses in the hospitality sector are really feeling the pinch.

It was recently anticipated that hospitality job roles might be added to the government’s shortage occupation list, which would make it easier for businesses to recruit from abroad. However, according to BBC news coverage (16 March 2022 – Immigration rules relaxed for builders and carpenters), the Migration Advisory Committee only added roles in construction, although some hospitality roles did make the cut.

Additional recent research from Indeed Flex (they surveyed 300 HR, operations and procurement professionals) found that 58% of businesses will be turning to temporary workers to support their permanent teams this year. Indeed, a quarter (28%) of HR professionals whose business already uses temporary workers expect to make increased use of temps during 2023, they claim.

“The hospitality sector is not alone in its struggle to fill positions — it’s a problem facing most sectors right now. But during the pandemic, hospitality was one of the sectors hit the hardest,” says Novo Constare, CEO and co-founder of Indeed Flex.

“Many businesses were forced to close for long periods and thousands of people were furloughed or made redundant.

“The uncertainty in the hospitality sector made many workers look for other employment. Unfortunately, not all staff have returned.

“On top of rising costs and stretched budgets, it’s a difficult position for companies to be in and many businesses have come to see temporary staff as a vital resource.

“Indeed Flex gives employers access to a pool of skilled temporary workers, many of whom will work regularly for the same company, plus the flexibility to dial staff numbers up or down as the business’s needs change.”

Overseas Team Members

“The skills shortage felt in every corner of the UK is most acute in the hospitality sector and is reaching critical levels,” confirms Daliah Sklar, CEO & UK

immigration solicitor, Borderless Jobs.

“Over 40% of businesses in the sector face skilled worker shortages. While it is true that the UK is feeling the lack of employees from the skills shortage across the whole economy, only 14% of businesses have reported worker shortages, showing the depth of this issue facing hospitality.

“The skills shortage in the UK is felt more acutely in the lower-wage ‘blue collar’ sectors such as hospitality. With jobs often paying relatively low wages, it is harder for restaurants to attract new staff and retain the ones they have, especially following Covid. With some positions, such as chefs and sommeliers, requiring a significant level of skill and experience, failure to maintain new staff throughout the training process leads to the lack of skilled workers that this sector relies upon.

“To counter the shortages, it has become crucial for the sector to recruit skilled workers from abroad. In fact, according to Bloomberg (UK Reliance on Overseas Workers Rose Since Brexit, Census Shows, 21 March 2023), the UK’s reliance on overseas workers actually rose after Brexit, showing there is still appetite from foreign talent to work in Britain.

“Additionally, foreign workers in the UK tend to have far higher retention rates than British-born ones, meaning that restaurants can find reliable staff who will stay with them for at least five years. Unfortunately, there are numerous hurdles preventing this from being a smooth process.

“The government’s announcement of the ‘shortage occupation list’ was welcome news, as it makes it cheaper to hire from outside the UK and streamlines the process for foreign workers moving to the UK for specific roles. However, it was both surprising and disappointing to find that many key restaurant roles had been excluded from this list.

“According to Kate Nicholls, chief executive of trade association UKHospitality, ‘Ongoing labour shortages are crippling hospitality businesses, forcing them to reduce their hours and costing the industry billions in lost trade.’

“The treasury spokeswoman for the Liberal Democrats, Sarah Olney, also commented, ‘the government immigration approach post Brexit is haphazard and nonsensical. I fail to understand why the building trade can get work visas but not hospitality.’”

SIMPLIFICATION NEEDED?

Despite the doom and gloom from some commentators, obtaining skilled, talented employees from abroad is possible, though it is perceived as expensive, time consuming and complicated, feels Daliah Sklar.

“This includes applying for and managing a sponsor licence to hire from outside the UK, audited by the Home Office and new hires requiring a UK work visa. To be eligible for a Skilled Work Visa, each applicant must obtain a Certificate of Sponsorship (CoS) from their registered employer,” says Daliah Sklar.

“Obtaining the necessary licences, certificates and visas can be timeconsuming and confusing to those unfamiliar with the process, with cashstrapped employers having to pay the Home Office, recruitment agencies, consultants and visa experts to verify the legitimacy of the foreign worker and their skill set. A lot of companies won’t or can’t bother, leaving them without vitally needed workers and overworked existing team members.

“To overcome restaurant industry shortages these procedures should be simplified for both employers and job seekers, cutting red tape and being able to match the best person to the open roles.

“Fortunately, there are some hospitality jobs that have been included on the shortage occupation list. This means they’re eligible to come and work in the UK as long as they meet a certain salary threshold. These include many chef positions, especially within baking such as a pastry chef, and managers of almost all stripes, from bar manager, to catering managers, floor managers and kitchen managers.

“Once taught how to navigate these procedures, we believe that quality non-UK applicants will help save the hospitality sector in its time of crisis, connecting potential applicants from across the globe with unfilled positions in the UK in a process that is fair and balanced, and that promotes diversity and skills wherever possible. The issue here is not immigration but integration, which is currently hampered only by bureaucracy of borders.”