Foreword. Brian Wisdom, Chief Executive of People 1st. Ian Burke, Website Director of Caterer.com

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2 Foreword Brian Wisdom, Chief Executive of People 1st The hospitality industry is vibrant and growing, employing nearly two million people. It s remained relatively resilient and is one of the few sectors that has continued to recruit in substantial numbers during the economic downturn. Indeed, it is recognised by the government as a key sector in contributing towards economic growth. Projections indicate that it will continue to grow even further with demand for new recruits at all skill levels. The figures within this report highlight that now is a great time for industry employers to strengthen their workforce and benefit from the skills of high level applicants. As the sector skills council for the hospitality sector, we will continue to support employers through our work on qualifications, our training programmes, as well as offering advice and guidance on funding and skills development. Ian Burke, Website Director of Caterer.com As a key partner to the hospitality industry, Caterer.com is excited to be working with People 1 st to be able to offer this unique report which offers an unprecedented level of insight into recruitment and employment trends in the hospitality industry. Now in its 10 th year, Caterer.com has played an instrumental role in helping businesses succeed in delivering the quality of talent that they need to be successful. We work with large and small businesses including hotels, restaurants, pubs, bars and food services across the whole of the UK to help them overcome recruitment and retention challenges. With 1 in 5 of the UK s hospitality professionals registered on the site and over 400,000 visitors every month, Caterer.com is pleased to be able to feed back to the industry, up to date recruitment and employment trending information which simply cannot be found anywhere else. Quarterly Hospitality Employment Index Q

3 Contents Hospitality 4 Hospitality employment index 4 Jobs posted and applications 4 Occupational trends 5 Geographical trends 7 Appendix: Competitiveness by job role 11 About 12 Quarterly Hospitality Employment Index Q

4 Hospitality The hospitality industries are one of the UK s largest employers. They employ approximately 1,860,000 workers - around six percent of all jobs across the UK. Hospitality has grown substantially in recent years and continues to grow. Workforce numbers did, like in many other areas, drop throughout the recession but have remained relatively resilient and, in 2009/10, stood at their highest level in five years. Hospitality itself is wide and varied, comprising eight main industries 1. The restaurant industry is by far the largest, employing over a third (35 percent) of the hospitality workforce, followed by hospitality services (mainly public sector catering) and pubs, bars and nightclubs. Selfcatering accommodation, holiday parks and youth hostels combined make up four percent of the total workforce. In recognition of its importance to the UK economy, the hospitality and tourism sector has now been identified as an area for future growth by the government. Through its Tourism Policy document published in March 2010, the government outlined its ambition to improve the sector s productivity to become one of the top five most efficient competitive visitor economies in the world. Jobs posted and applications Summary Whilst the number of jobs posted this quarter has risen, the number of applications made has risen at an even higher rate, highlighting the increased levels in unemployment and greater competition for jobs. The number of jobs posted this quarter rose significantly above the same quarter in the previous year with a nine percent increase on Q This reflects that whilst operators are continuing to find trading conditions challenging, they are better than expected. Fewer employers were recruiting in Q4 2010, largely reflecting the impact adverse weather conditions had on trading conditions in hospitality in November and December. Since Q4 2010, there has been a 10 percent increase in jobs being posted. Jobs posted Q Q Hospitality employment index Caterer.com and People 1st have teamed up to produce quarterly hospitality employment index reports that focus on advertised jobs and applications against a backdrop of the broader labour market trends across the hospitality industries. The reports are written by People 1st based on data from Caterer.com. The data provides an outline of job activity in the hospitality industries, including the number of jobs posted and number of applications made. It also allows for a more detailed analysis of trends across specific job roles and geographical areas. 1 (1) food and service, (2) holiday parks, (3) hospitality services, (4) hotels, (5) pubs, bars and nightclubs, (6) restaurants, (7) self-catering accommodation and (8) youth hostels. Generally speaking, recruitment in the hospitality industries is characterised by high levels of vacancies and lower levels of skill shortages. However, employers are encountering difficulties recruiting skilled chefs and managers. 17 percent of hospitality and tourism establishments in England reported having vacancies, around five percent higher than the average across all sectors. In Scotland, a higher percentage of employers have vacancies (22 percent) and in Wales the situation is more challenging with 31 percent of employers reporting vacancies 2. We would therefore expect that skilled candidates within Wales would be more in demand than across the other home nations. 2 People 1 st, 2010, Sector Skills Agreement for the hospitality, leisure, travel and tourism sector (UK) Quarterly Hospitality Employment Index Q

5 Turning to the number of applications made, these have risen even more markedly than job postings. There has been a 17 percent increase since Q and applications have almost doubled (increase of 45 percent) since Q Applications made Q Q Occupational trends Summary The greatest number of job postings this quarter was for restaurant positions although there was also a large number of roles available within chef positions. In terms of how competitive different job roles are, there are a vast number of applications for front of house roles. Positions which require a greater range of skills, such as positions and, in particular, chef roles attracted far fewer applications. In short, there are some distinct skill shortages within the sector; those individuals with good skills and experience are highly sought after. With the number of applications rising at a higher rate than the number of jobs posted, the ratio of applications made per job posted has risen to its highest level since Q Q saw 21 applications per job posted. This is up from 20 in Q and 16 in Hospitality and retail have a number of similarities. For example, they both employ a relatively young workforce and both have a sizeable proportion of relatively low skilled jobs. In spite of these similarities, it is interesting to note that, at 16, retail had a lower level of applications per job postings and therefore appears to be attracting less interest from jobseekers. The increase in applications reflects the wider levels of unemployment and tighter labour market across the UK. The number of people claiming unemployment benefit rose to 1.45m in March 2011, the highest rate since October Research by People 1 st found that over half (55 percent) of employers have found it easier to recruit staff since the economic downturn 4. Talking point The figures suggest that the skilled employee will be finding it relatively easy to secure work in the prevailing economic climate. By the same token, employers and recruitment agencies in the sector will be seeing a higher calibre of applicants emerging. The challenge now for employers to ensure this influx of high quality workers stays with their business is to introduce strategies to improve staff retention. One area worth looking at is the career development of existing employees. If there are prospects for advancement within a business, the employer is much more likely to retain committed staff. In terms of the areas in which jobs were posted, the greatest number was made for restaurant roles. Of those in the top ten, four fall within the broader category of chefs and three are positions. People 1 st s research has continuously identified that employers are finding it difficult to recruit skilled chefs and managers 5. Top ten job postings Ranking Sector/job Q Q change 1 Restaurant -17% 2 Chef de partie 13% 3 Sous chef 15% 4 Head chef 15% 5 Reception/concierge 64% 6 Sales and marketing 61% 7 Catering -33% 8 Chefs 27% 9 Hotel 20% 10 Waiting staff 75% 3 4 People 1st, 2010, State of the Nation 5 People 1st, 2010, State of the Nation Quarterly Hospitality Employment Index Q

6 Hotel also falls within the top ten with the number of postings rising by a fifth (20 percent) since Q Recent governmental changes to migration policy will make it much more difficult to recruit hotel managers from outside the European Economic Area (EEA). These changes took effect from 6 April and so it is likely that the number of postings will rise as employers find it increasingly difficult to fill these posts. Looking more closely at these top ten areas it is clear that, not only is there a high level of vacancies, but there is also a high level of applications. With restaurant, there were 14 applications on average for each posting. This rose to 76 applications for waiting staff. Occupations which traditionally require specific skills and experience (such as chefs) have received relatively few applications. In contrast, those roles where employers often look for personality then train new recruits up on specific skills (such as waiting staff) receive far more applications. Top ten job listings (competitiveness) Sector/job Postings Applications Ratio Restaurant 7, , Chef de partie 3,969 30,482 8 Sous chef 3,011 27,211 9 Head chef 2,499 32, Reception/concierge 2, , Sales and marketing 2,365 27, Catering 1,809 34, Chefs 1,547 20, Hotel 1,411 39, Waiting staff 1,175 89, Talking point Many employers believe that high rates of labour turnover are part and parcel of working in the industry. However, the amount of money spent on recruiting and training new staff (not to mention the expertise that is lost when experienced staff leave) suggests that many businesses would benefit more from investing in their current staff in a bid to improve retention rates. Chefs Across hospitality roles as a whole, there were, on average, 21 applications made per job posted. Generally speaking, chef roles receive fewer applications. Indeed, the more specialist type of chefs (such as pastry chef) receive the lowest number of applications of any role across hospitality. People 1 st research shows that employers find chef roles the most difficult to fill 7. Such roles require someone who has both developed the appropriate levels of skills and knowledge, but who has also gained experience of working in hospitality. This, therefore, reduces the number of suitably skilled applicants. Sector/job Number of applications per job posting Commis chef 19.2 Executive chef 13.8 Chefs 13.4 Head chef 13.0 Development chef 12.3 Sous chef 9.0 Chef de partie 7.7 Pastry chef 5.7 The high rates of vacancies across the sector is inextricably linked with high rates of turnover. People 1st estimates labour turnover to be 31 percent on average and to be costing the hospitality and tourism sector 33.4m annually across the UK. This high rate of labour turnover and vacancies varies by job role and these differences are explored below 6. 6 People 1 st, 2010, Sector Skills Agreement for the hospitality, leisure, travel and tourism sector (UK) 7 People 1st, 2010, State of the Nation Quarterly Hospitality Employment Index Q

7 Front of house Many front of house job roles experience extremely high rates of labour turnover. With the exception of sommelier, which is a much more specialised position, all of the front of house occupations have a very high number of applications. This can, in part, be explained by the fact that these roles have attracted applicants who are looking for a short-term job, rather than considering pursuing a career in that role. Sector/job Number of applications per job posting Waiting staff 75.8 Porter 69.9 Housekeeping 64.4 Reception/concierge 57.2 Pub/bar staff 54.3 Sommelier 11.9 Management There are large variations in the average number of applications per job posting across roles. Hotel managers receive the greatest number of applications at 28.2, compared to just 5.7 for kitchen managers. People 1 st figures has identified that employers find roles difficult to recruit for, owing in large part to a lack of skilled applicants. Sector/job Number of applications per job posting Hotel 28.2 Events manager 27.5 Food and beverage 25.0 Reservation manager 23.7 Conference/banqueting 22.4 Bar 19.7 Catering 19.1 Operation manager 19.1 Pub 18.0 Chef manager 16.1 Restaurant 14.2 Leisure 8.8 Kitchen manager 5.7 Non-core hospitality roles The hospitality industries employ a large variety of job roles, many of which are found in other parts of the economies. Engineers receive the greatest number of applicants. Anecdotally, many hotels are struggling to find qualified engineers and maintenance staff. Human resources, IT systems, leisure and finance roles also appear popular. Sector/job Number of applications per job posting Engineer 35.9 Human resources 16.7 IT systems 16.3 Leisure staff 15.4 Finance 15.3 Sales and marketing 11.4 Training 9.8 Geographical trends Summary Most regions saw an increase in both the number of jobs posted, the number of applications made and the number of job views. London was the most competitive region overall with the East of England receiving the least amount of applications per posting. Jobs posted In terms of the number of jobs posted, the least active areas in Q were Northern Ireland, Wales and the North East. However, at 15 percent, Northern Ireland saw one of the greatest increases from Q and a huge leap in the number of postings in Q This can largely be explained by the adverse weather in December which saw many Christmas parties and other festivities cancelled or postponed because of the snow. Four areas saw a drop in the number of job postings since Q The most significant was in the North West with a fall of seven percent. Scotland, Wales and Yorkshire all experienced falls of four percent. Overall, the South East saw the greatest increase in the number of jobs posted, up 16 percent on Q On the other hand, the North West saw a decline of seven percent. Quarterly Hospitality Employment Index Q

8 Quarterly comparison of job posts Job views All areas saw an increase in job views per ad. At 52 percent, the South East saw the largest increase in job views since Q Similarly, London saw an increase of 49 percent. As with the number of applications made, this reflects the increased numbers of people currently out of work. Quarterly comparison of job views Applications made With the exception of Northern Ireland which saw a fall of 19 percent in applications since Q1 2010, all regions saw an increase. The greatest increase was in the East Midlands and the West Midlands (both with rises of 27 percent). People 1 st research has identified that employers in Northern Ireland are reporting higher rates of hard-tofill vacancies than previously, owing to the fact that employment in hospitality and tourism continues to increase against a backdrop of a shrinking labour pool as emigration out of Northern Ireland increases. Quarterly comparison of applications made Talking point Occasionally a job posting will receive a huge amount of views but very few applications. This is often a sign that the posting has been placed in the wrong category or the job title is misleading. In order to maximise the quality of applications received in response to particular job postings, it is essential to make sure the advertisement accurately reflects the job. Similarly, salary scales can differ significantly depending on the location of a business and the type of business. It is therefore helpful to give clear indications of potential remuneration along with a description of the business. Quarterly Hospitality Employment Index Q

9 Geographical competitiveness The most competitive area this quarter is London where there were 33 applications for each job posted. This represents a rise of ten percent on the same quarter last year and a 30 percent increase since quarter one in At 10, East Anglia had the fewest applications made per job. These figures largely reflect the relative concentration of hospitality in those areas. Average number of applications for jobs posted Catering England Northern Ireland Scotland Wales Chef de partie Chef manager Chefs Food and beverage Finance Hotel Housekeeping Leisure Leisure staff Operation manager Porter Pub/bar staff Reception/concierge Reservation manager Restaurant Sales and marketing Home nations comparison at a glance The table below shows a selection of job roles and their varying levels of competitiveness (ie number of applications received per posting) across the home nations. Waiting staff Talking point There is some variation between the nations in terms of the job roles which are popular within them. However, all nations receive high levels of applications to lower level positions. To avoid receiving applications from unsuitable candidates it is useful for employers to be as specific as possible when putting together their job advertisements. Quarterly Hospitality Employment Index Q

10 Applications per job by region Quarterly Hospitality Employment Index Q

11 Appendix: Competitiveness by job role Number of applications per job posting Waiting staff 75.8 Porter 69.9 Housekeeping 64.4 Reception/concierge 57.2 Pub/bar staff 54.3 Catering staff 42.3 Engineer 35.9 Hotel 28.2 Other 27.8 Events manager 27.5 Food and beverage 25.0 Reservation manager 23.7 Conference/banqueting 22.4 Bar 19.7 Commis chef 19.2 Catering 19.1 Operation manager 19.1 Pub 18.0 Human resources 16.7 IT systems 16.3 Chef manager 16.1 Leisure staff 15.4 Finance 15.3 Restaurant 14.2 Executive chef 13.8 Chefs 13.4 Head chef 13.0 Development chef 12.3 Sommelier 11.9 Sales and marketing 11.4 Training 9.8 Sous chef 9.0 Leisure 8.8 Chef de partie 7.7 Kitchen manager 5.7 Pastry chef 5.7 Quarterly Hospitality Employment Index Q

12 About People 1 st is the sector skills council for hospitality, leisure, travel and tourism. People 1 st is a government recognised, industry focused body established to support the development of skills and training within the sector. It works to transform skills in the sector and is committed to ensuring that public funds support the industry to develop only those qualifications and programmes that meet the needs of employers. People 1st regularly conducts surveys for other organisations such as trade associations and public sector agencies. If you would like to use its expertise and have it conduct surveys on your behalf please contact Karen Roberts of People 1st ( phone: ) to discuss your requirements. To download the latest Hospitality Employment Index go to Caterer.com is the UK s leading hospitality recruitment website. Since its launch in 2001, Caterer.com has pioneered online recruitment for the hospitality industry. Working with hotels, restaurants, pubs, bars and food services companies across the UK it has developed a strong reputation as a leader in its field, helping both small and large businesses to improve its recruitment and retention processes. If you are interested in finding out more about how Caterer.com can help you and your business, contact them on or dial to speak to one of their experts. To register to receive Hospitality Employment Index updates go to Technical notes Caterer.com data is based on job postings displayed on the website. Postings are made by recruiters placing an advertisement within one of 27 job categories and 15 locations including the Republic of Ireland and Europe. Quarterly Hospitality Employment Index Q

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