Managing the UK’s forthcoming National Minimum Wage and the introduction of the National Living Wage

Learn how to manage NMW and NLW with Institute resources
Learn how to manage NMW and NLW with Institute resources

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:

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.


Author: Institute of Hospitality

Established in 1938, the Institute is the international professional membership body for managers and aspiring managers who work or study in the hospitality, leisure and tourism industries. We help more than 10,000 hospitality professionals in 100 countries grow their knowledge, professional profile and expertise offering a wide range of high quality membership services such as targeted and regular industry networking events, hospitality qualifications and extensive online quality resources such as free management guides, Hospitality magazine, webinars, ebooks and ejournals. To learn more about our many member benefits, view our website or email