Labour shortages ease but rising wages pressure fragile hospitality businesses: report

The rate of churn dipped by three percentage points to 16%

Labour shortages at Britain’s top-managed hospitality group have started to ease, the 2023 Business Leaders’ Survey from CGA by NIQ and Fourth revealed. 

The survey reveals that one in 11 roles (9%) are currently vacant and open for application, marking a drop of two percentage points since the last survey in October 2022. The rate of churn has also dipped by three percentage points to 16%.

However, despite the improvements since the Brexit and COVID-19 turmoil, vacancy and churn levels continue to cause concern. Only 33% of leaders say they feel confident about their ability to recruit.

The survey also shows that hospitality businesses have raised their pay by 12% and 11% for new and existing staff respectively in the last 12 months, just ahead of the rate of inflation. Attracting and retaining staff has come at a significant cost.

The survey highlights that hospitality businesses are focusing on improving working conditions for their teams. Over half (57%) of business leaders say cultivating the right working culture has been effective in improving retention, while a high level of communication with staff (41%), a focus on staff wellbeing and mental health (33%) and creating learning and development opportunities (33%) have been impactful.