There appears to be a storm brewing in the hospitality industry as claims that the increase to the National Minimum Wage (NMW) next month and the introduction of the National Living Wage (NLW) will negatively impact UK hospitality sector. It is projected that the NLW could increase hospitality payrolls by up to 3.5% by 2020. The retail and care sectors will also be impacted.
What hospitality managers need is good guidance to manage the changes to ensure minimal impact to the workplace. The Institute is providing detailed guidance for employers explaining the NMW and NLW changes and how to manage them styp-by-step. The information is provided by the human resources experts at BusinessHR, a resource that also makes up part of every Institute member’s benefits package. Members can click on the NMW and NLW guidance HERE.
For articles about the forthcoming changes, see the following:
- National Living Wage to add 3.4% to hospitality wage bills by 2020 By Liam Garrahan, 16-Sep-2015
- The businesses that will be hardest hit by the living wage by Szu Ping Chan, Telegraph 15-Sep-2015
Although much of the recent reporting has been negative, it’s important to consider the wage changes as a way to benefit loyal and hard working hospitality employees. The industry’s recent productivity problems, highlighted in a 2015 productivity report from People1st, show that retention and training of current staff can be an effective way of building a better and more productive business. Consider the costs of staff turnover, the replacement and training costs for each new staff person and even the interruptions to service inexperienced staff can bring in the workplace. Improved wages could be a great way to build and retain a skilled hospitality workforce.
Our industry’s growing vacancy rates and ultra-competitive hiring landscape mean retention should be one of the most important methods in every business’s HR process. The up-to-date resources and information provided by the Institute to its members means they can successfully navigate any stormy weather ahead.