Hotel Cost Management Support – labour shortages & payroll costs
The cost-of-living crisis has grabbed all the headlines and indeed everybody’s attention, and whilst all of the current challenges are linked, labour shortages and controlling payroll costs have dropped down the media’s priority list of importance.
Labour shortages and payroll costs remain significant challenges which won’t just disappear. The lack of personnel with the right skills and experience directly increases the cost of attracting and retaining the right people. We can see in the graphic below that the hospitality sector in the UK is fairing the worst by some distance amongst other similar-sized service-based sectors. As a result, we have seen some businesses forced to limit operating hours or even close facilities due to shortages.
In the current climate, limiting revenue-earning capacities can’t be a strategy of choice.
There are initiatives we can advise on and support hospitality and hotel businesses with, which include:
- Attracting more workers from the UK workforce, for example by raising wages, improving working conditions, or being more flexible on hours and contracts;
- Recruiting workers from abroad, usually by sponsoring them on a work visa*;
- Reducing the need for workers, for example by introducing automation by streamlining operations and administrative controls.
UK businesses are able to implement all of these initiatives now, including using immigration rules. Assured hotels can assist in assessing all available opportunities which could make a big difference in maximising income and controlling the highest cost in most trading businesses, ultimately converting better margins.
*Government policy post-Brexit means there are limitations however sponsorship is available as it stands.
Additional reading and resources on recruitment, retention, and labour costs in the UK….
- Staff shortages in the hospitality & retail sector – What help is there under the UK immigration rules? | Anderson Strathern
- How is the End of Free Movement Affecting the Low-wage Labour Force in the UK? – Migration Observatory – The Migration Observatory (ox.ac.uk)
Welcome to Assured Hotels
Assured Hotels offer specialist support to hotel owners and stakeholders, especially in Hotel Advisory and Asset Management capacities. We have been engaged in turnaround and restructuring projects, trading insolvent businesses and in the acquisition or disposal of hotels on behalf of investors.
We maintain impartiality and independence free of any fixed portfolio, offering support services across all disciplines. This includes sales and revenue growth, marketing, finance and reporting, procurement, and compliance. Our flexible contracting ensures affordability, with additionally an emphasis on the development of the hotel’s senior management team. We believe this creates better returns for investors and stakeholders.
Please click here to book a meeting, email mgriffin@assuredhotels.co.uk or call 0203 916 5658.