Gender balanced management teams make for safer and more engaged employees, Sodexo study finds

Sodexo GenderBalanceStudyInfographic

Study of 50,000 Sodexo employees finds teams with gender diversity achieve better results across the board

International services company Sodexo has found teams managed by a balanced mix of men and women are more successful across a range of measurements including employee engagement and health and safety.

The five-year study of 70 Sodexo entities across different functions represents 50,000 managers worldwide and tested the performance implications of gender-inclusive work culture. The study examined women across all levels of management – not just upper-level leadership positions – in order to investigate the “pipeline” that will ultimately affect gender balance at the top tier of businesses.

Sodexo’s study found that non-financial factors can also significantly benefit from a more equally structured leadership, with benefits including;

Gender-balanced management reported an employee engagement rate that was 14 percentage points higher than other entities

Gender-balanced entities saw the number of accidents decrease by 12 percentage points more than other entities.

Gender-balanced entities had an average client retention rate that was 9 percentage points higher than other entities.

Gender-balanced entities had an average employee retention rate that was 8 percentage points higher than other entities

Operating margins significantly increased among more gender-balanced teams than other teams.

The pattern of results indicated that a near-equal balance of men and women in management was critical to observing gains in financial and non-financial KPIs. Once the proportion of women in management exceeded 60%, the benefits plateaued, confirming that a mix between 40% and 60% is necessary for optimal performance.

Analysts also found a direct correlation between the percentage of women in the total workforce and those in management, indicating gender-balanced workforces and leadership create an environment supportive of career growth for women. This lends support to the idea that gender parity in top leadership is closely related to the pipeline of women in the workforce.

Sodexo, already a leader in diversity & inclusion, is breaking new ground in gender parity. Today, women represent 50% of its board. Thirty-two percent of senior leadership positions are held by women globally – a 6% increase at the very top levels since 2013.

Middle management and site management positions are balanced at 46%. Currently, 59% of the total workforce works within gender-balanced management.

The Sodexo Gender Balance Study originated in 2014 with Sodexo’s desire to improve its gender parity in leadership throughout the management of its 425,000 global workforce and to expand previous outside research on gender parity in the workplace.

The full report can be accessed here: http://bit.ly/2tmBIbm

 

 

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35 of UK’s Top 100 restaurant groups now loss-making – up 75% in just a year

  • Oversaturated market, minimum wage hike put pressure on restaurants
  • Another minimum wage rise just weeks away

35 of the UK’s Top 100 restaurant groups are now loss-making, up 75% from just 20 last year, shows research by UHY Hacker Young, the national accountancy group.
UHY Hacker Young says that trading conditions have become increasingly difficult for restaurant chains dealing with oversaturation in the market as well as rising costs.
The firm adds that this research comes on the back of the high-profile struggles of several major restaurant chains in recent weeks, including:

  • Jamie’s Italian, started by Jamie Oliver, which has closed 12 branches as part of a Company Voluntary Arrangement (CVA) to restructure its £71.5m debt
  • Byron, the burger chain, which may close up to 20 of its 67 branches following a period of paying reduced rent
  • Prezzo, the Italian chain, which is expected to close some of its 300 branches as part of a restructuring
  • Strada, another Italian chain, which closed 11 branches over the festive period
  • Barbecoa, another Jamie Oliver chain, which entered administration in mid-February
  • EAT, the sandwich chain, which was rumoured in early February to be considering closing some of its 100 branches

UHY Hacker Young says that pressures of competing with numerous similar ‘fast casual’ restaurants in an overcrowded high street are a major driver of many large restaurant groups registering losses over the past year.

It adds that the National Minimum wage, which has risen by an above-inflation 19% to £7.50 per hour over the last five years, has added a substantial cost burden to large restaurant chains. From April 2018, the minimum wage will rise even further to £7.83.

Peter Kubik, Partner at UHY Hacker Young, comments: “More than a third of the biggest companies in the restaurant sector are losing money, and there is little respite on the horizon.”

“Pressures on the restaurant sector have been building for years, and the last year has pushed a number of major groups to breaking point.”

“With Brexit hanging over consumers like a dark cloud, restaurants can’t expect a bailout from a surge in discretionary spending.”

“Consumers only have a finite amount of spending power when it comes to eating out, and the oversaturation of the market means that groups that fall foul of changing trends can very easily fail.”

“The Government has ratcheted up costs with a series of above-inflation rises in the minimum wage, and we are just weeks away from another 4.4% rise in April. That will be tough for a lot of restaurants to absorb.”

About UHY Hacker Young:

 The UHY Hacker Young Group is one of the UK’s Top 15 accountancy networks with 110 partners and more than 620 professional staff working from 22 locations around the country. The offices within the Group provide a wide range of accounting, tax and business advisory services, with a reputation for integrity and reliability within the financial community, and particularly with London’s Stock Markets. UHY Hacker Young are also ranked 15th in the ARL Corporate Advisers Rankings Guide amongst other UK audit firms for advising London Stock Exchange listed companies.

UHY Hacker Young is a founder member of the UHY International network with offices in every major financial centre in the world. Further information can be found at www.uhy-uk.com

 

Keep Calm and Control Costs in 2018

Melvin GoldThe UK has been a country of uncertainty in 2017, fuelled by the drip-drip of 24-hour news. On a macro level it seems that 2018 will see more of the same: Brexit, terrorism, politics, economics and much more besides, writes leading independent hotel consultant Melvin Gold FIH as he makes some predictions as to what lies in store.

But Britons have proved themselves to be resilient folk as has always been the case. Yes, there is much to complain about and much to worry about, but the country fundamentally keeps calm and carries on.

It is perhaps surprising that hotel markets in both London and the regions are ending 2017 in positive territory, strongly so in the case of London. Nonetheless, the second half of 2017 has been tougher, as economic factors produced headwinds and the supply pipeline increasingly moved from the drawing board to reality. Inbound tourism has boomed, the weak pound having seemingly magnetic properties. For the time being the UK appears relatively cheap. That has benefitted London, Edinburgh and the country’s most popular tourist cities.

The brave souls at PWC put their necks on the line every year in preparing the hotel sector’s most widely available forecast. For 2018 they forecast London’s RevPar growth at 2.4% and the rest of the UK at a similar 2.3%. If those levels are achieved, they are likely to be similar to UK inflation, so not much in the way of real growth, but given the way the news is reported and some of the retail figures, it could be far worse.

Of course there are variances by specific location and market, too complex to discuss here. It is also also worth reminding ourselves that regional UK is not a single hotel market, and neither is London.

Although the uncertainties connected with Brexit have adversely affected the currency to create the tourism boom, most hoteliers are more concerned about its effects on costs rather than revenues. The currency change, perhaps exacerbated by the uncertainties of future rights of work and residency, has seen some European workers relocate to other countries. The value of their remittances home was affected by the currency movement. Increasingly hoteliers and restaurateurs bemoan staff shortages and recruitment difficulties and if this prevails – which it probably will – it is likely to cause a more competitive labour market and wage levels rising. The Autumn 2017 budget saw the announcement of a 4.4% increase in the National Living Wage in any case, which is well beyond sector revenue growth forecasts.

Notwithstanding that, there remains a quantum of new hotels still to enter the market in many towns and cities. PWC took that into account in their forecast but nonetheless those hotels need staff and even if they are supported by demand growth they may imbalance the labour market.

This is not the only cost pressure, though. Pension contributions, imported food and beverage, energy, and property taxes are all likely to rise. Thus it is likely that 2018 will be a year which, if hoteliers have reason to complain, it will be about staff shortages and rising costs. Revenues may give less cause for complaint, other than the fact that they fail to keep pace with costs which impacts margin. In such an environment it is the smartest and canniest operators that will have least grounds for complaint.

One thing sure to distract from the other headlines and create inflows of tourists is a royal wedding and we will have one of those in May 2018. Tourism chiefs and hoteliers will raise a glass to the happy couple.

Melvin Gold FIH, is a leading independent hotel consultant and commentator.
More about him and the range of services offered by his company can be found at: www.melvingoldconsulting.com

Members of the Institute of Hospitality will receive your annual statistical report ‘Spotlight on Hospitality’ at the start of 2018, packed full of informed insights into the year ahead. Remember to renew your membership to secure this and many more benefits in the coming year.

JS137444204
The Royal Wedding will be a welcome boost for hoteliers and tourism chiefs in 2018

Keep Calm and Control Costs in 2018

Melvin GoldThe UK has been a country of uncertainty in 2017, fuelled by the drip-drip of 24-hour news. On a macro level it seems that 2018 will see more of the same: Brexit, terrorism, politics, economics and much more besides, writes leading independent hotel consultant Melvin Gold FIH as he makes some predictions as to what lies in store.

But Britons have proved themselves to be resilient folk as has always been the case. Yes, there is much to complain about and much to worry about, but the country fundamentally keeps calm and carries on.

It is perhaps surprising that hotel markets in both London and the regions are ending 2017 in positive territory, strongly so in the case of London. Nonetheless, the second half of 2017 has been tougher, as economic factors produced headwinds and the supply pipeline increasingly moved from the drawing board to reality. Inbound tourism has boomed, the weak pound having seemingly magnetic properties. For the time being the UK appears relatively cheap. That has benefitted London, Edinburgh and the country’s most popular tourist cities.

The brave souls at PWC put their necks on the line every year in preparing the hotel sector’s most widely available forecast. For 2018 they forecast London’s RevPar growth at 2.4% and the rest of the UK at a similar 2.3%. If those levels are achieved, they are likely to be similar to UK inflation, so not much in the way of real growth, but given the way the news is reported and some of the retail figures, it could be far worse.

Of course there are variances by specific location and market, too complex to discuss here. It is also also worth reminding ourselves that regional UK is not a single hotel market, and neither is London.

Although the uncertainties connected with Brexit have adversely affected the currency to create the tourism boom, most hoteliers are more concerned about its effects on costs rather than revenues. The currency change, perhaps exacerbated by the uncertainties of future rights of work and residency, has seen some European workers relocate to other countries. The value of their remittances home was affected by the currency movement. Increasingly hoteliers and restaurateurs bemoan staff shortages and recruitment difficulties and if this prevails – which it probably will – it is likely to cause a more competitive labour market and wage levels rising. The Autumn 2017 budget saw the announcement of a 4.4% increase in the National Living Wage in any case, which is well beyond sector revenue growth forecasts.

Notwithstanding that, there remains a quantum of new hotels still to enter the market in many towns and cities. PWC took that into account in their forecast but nonetheless those hotels need staff and even if they are supported by demand growth they may imbalance the labour market.

This is not the only cost pressure, though. Pension contributions, imported food and beverage, energy, and property taxes are all likely to rise. Thus it is likely that 2018 will be a year which, if hoteliers have reason to complain, it will be about staff shortages and rising costs. Revenues may give less cause for complaint, other than the fact that they fail to keep pace with costs which impacts margin. In such an environment it is the smartest and canniest operators that will have least grounds for complaint.

One thing sure to distract from the other headlines and create inflows of tourists is a royal wedding and we will have one of those in May 2018. Tourism chiefs and hoteliers will raise a glass to the happy couple.

Melvin Gold FIH, is a leading independent hotel consultant and commentator.
More about him and the range of services offered by his company can be found at: www.melvingoldconsulting.com

Members of the Institute of Hospitality will receive your annual statistical report ‘Spotlight on Hospitality’ at the start of 2018, packed full of informed insights into the year ahead. Remember to renew your membership to secure this and many more benefits in the coming year.

JS137444204
The Royal Wedding will be a welcome boost for hoteliers and tourism chiefs in 2018

Hospitality Managers: new #IoHWebinar helps you get to grips with forthcoming wage challenges

This operations-focused #IoHWebinar outlines how hospitality managers can prepare for – and reduce the impact of – several forthcoming pay challenges affecting UK businesses.

The experts from BusinessHR will discuss what these wage challenges mean for hospitality owners and operators. The changes begin with the mandatory National Living Wage, effective on 1st April 2016, followed by successive wage increases over the next four years. Modifications to holiday pay, overtime, equal pay and working time are covered, too.

Make sure your business can handle the NEW wage challenges with our #IoHWebinar
Make sure your business can handle the NEW wage challenges with our #IoHWebinar

In this #IoHWebinar, scheduled for 1st March at 3pm, BusinessHR’s experts will explain how the wage challenges require careful planning and systems changes to ensure compliance and to avoid penalties. Webinar attendees will also receive a FREE pdf guide explaining the necessary steps to prepare for the National Living Wage and further wage increases whilst safeguarding the business and its employees.

Attendees will have the opportunity to have their questions answered by the BusinessHR experts during the webinar.

Managers, are you certain your business knows all it needs to about these changes and how to manage them? If not, this new #IoHWebinar is a ‘must-attend’ event.

Book HERE to ensure you have a seat at the #IoHWebinar on Tuesday, 1st March 2016 at 3pm and be ready for the wage changes coming our wage.

Look after the pennies: a new FREE online training to help manage employee pay

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Learn how to handle payroll and pay with the new ACAS online training

Payroll is a key part of the employment relationship and it’s important to comply with applicable laws and employee contracts. Handling staff payroll issues correctly can have a positive effect on staff morale and productivity and ensure that, should any disputes occur, the matter can be resolved quickly. When pay issues are mishandled or left unresolved, it could lead to court cases or employment tribunal claims.

To ensure your UK business meets its legal obligations and stays on the right side of the law when processing pay, ACAS is offering a new free guide to train any supervisors or managers handling the payroll function.

The ACAS guide is aimed at small firms and line or team managers in larger organisations and makes convenient online training for any staff responsible for payroll and human resources. The online training guide offers steps that can help staff prevent pay problems from arising so if you look after the pennies, the pounds will look after themselves!

Find Help for small firms: Handling pay and wages on the ACAS website.

Further support on payroll and employment issues are available to Institute members through BusinessHR. Institute members can obtain FREE customisable employment contracts for use in their own businesses by logging in to the Institute’s home page and going to the BusinessHR link.