Seasonal hospitality and tourism employment

Seasonal hospitality and tourism employment

SEASONAL WORKERS

Seasonal employment is often associated with the hospitality and tourism sector, but is it still prevalent and what impact does it have on businesses ability to recruit and retain their staff? Changing consumer demand brings changing employment 2013 figures from VisitBritain suggest that the majority of holiday visits were taken during the key summer months with nearly a third (29 %) of visits taken between April and June and 35% between July to September. In contrast, business visits were more likely to be taken between April and June and October and December. 1 With changing consumer demand, comes changing employment patterns. This is evident in the number of job posts over the last five years, with figures showing some cyclical trends. The first quarter of each year saw an increase in job posts, and with the exception of 2009, the peak months of quarter 2 and quarter 3 showed further increases. This was always followed by a fairly sharp drop in the quieter winter months of October to December. A study undertaken in 2014 found that coastal tourism, which is often associated with seasonal employment had risen by 14,000 employees between 1998/2000 and 2006/8. 2 Far from being a thing of the past seasonal tourism continues to have a significant impact on sector employment. Traditionally, rural and coastal areas have had seen peak demand during the summer months, with many businesses closing over the winter. Similarly, travel and tourism companies often employ UK nationals during peak summer and winter months in overseas destinations. Destination Management Organisations, for example, have focused heavily in recent years on extending the core season by hosting a series of different events and festivals. However, for many destinations seasonality continues to be a fact of life and they need a workforce that reflects this peak demand. 1 Inbound Tourism Facts: Visit Britain s Corporate Site (viewed 18 March 2015) 2 The Seaside Tourist Industry in England and Wales Employment, economy output, location and trends (June 2010), Centre for Regional Economic and Social Research, Sheffield Hallam University 3 www.people1st.co.uk

What makes a typical seasonal worker? According to recent figures, over 142,000 people in the sector are employed on seasonal, temporary or fixed term contracts. 3 While seasonal workers span a wide age range, the decision to work in seasonal roles often comes down to a lifestyle choice for the employee. As a result, seasonal workers are often younger and tend to fill front facing positions, such as bar and waiting roles. They are likely to be attracted to short, fixed term contracts to enable them to pursue personal or work related interests once their contract is completed, such as winter sports activities. According to the Labour Force Survey, 72 % of these seasonal workers are under 25. These figures reflect the experience of key employers such as Eurocamp where approximately 70 % of their seasonal staff are aged 18-25. 4 Of these young people, a large percentage are full-time students who work during the summer months and who tend to be found in bar and waiting roles. Latest figures suggest that 42 % of waiting staff and 27 % of bar staff are full-time students. Impact of seasonality on recruitment and retention Despite being an attractive option for some young people and especially students, anecdotal evidence suggests that recruitment can be especially challenging for hospitality and tourism businesses in seasonal destinations. This was supported by recent research by People 1st, which found seasonal recruitment to be a key human resource challenge for a number of companies. 5 A resort hotel in rural Scotland experiences peak levels of demand for up to nine months of the year, and as a result employs seasonal staff during this period. However, because of its location, recruitment proved to be problematic. It s hard to get people in at the start and then get them trained up in time, so that s the challenge in the critical months just prior to the start of the peak season getting people in, trained and ready to meet customer expectations. But the key to that is having the right people running the department and conducting the training. The same research found that in order to combat this problem some businesses were retaining staff during the winter season, with staff working more hours during the peak periods and less during the winter months. 3 Labour Force Survey, (2014), Office for National Statistics 4 Labour Force Survey 2013 5 Recruitment and retention in the hospitality and tourism sector (2014), People 1st 4 www.people1st.co.uk

A visitor attraction in Northern Ireland has seen significant benefits with this approach: We run an annualised contract so you do more hours in the summer and less hours in the winter. Originally we had very seasonal staff so there was no continuity but we realised we needed to employ a good, solid, core base on annualised contracts so we have continuity. I have training, I can invest, I have retention, I have knowledge, everything that is so valuable. If you are training seasonal staff every year you are losing out and that s a cost to a business. We still have turnover and loss as not everybody is going to stay forever, but it is much easier to manage. At least you have got a core base to work from. Other employers actively engage seasonal workers to encourage them to return for consecutive seasons. PGL, which specialises in educational activity courses, school trips, children s activity holidays, summer camps and ski trips in the UK and mainland Europe sees half of their seasonal staff returning each year. PGL employs on average 2,700 seasonal workers on top of their 400 permanent staff in entry level roles right through to management positions. On average they receive 11-12,000 applications each year, therefore finding recruitment easier than many employers. PGL made the decision to offer training to all staff whether or not they were on a seasonal contract. The company offered a programme accredited by the Institute of Leadership and Management (ILM) so that their employees could achieve a nationally recognised qualification to help them progress in the future, whatever direction they took. As a result of this investment, the organisation has seen seasonal staff return year on year, with 95 per cent of senior positions in PGL being filled by returning seasonal staff. PGL explain that while seasonal employees may work for a stretch of six to ten months they will then take a break during the low season, typically returning home or to pursue work related interests. It was stressed that these individuals are in an intense residential working environment for long spells, therefore the employment breaks can prove beneficial to help them rejuvenate and return enthusiastically and fresh to the business. PGL is not alone, as a result of good retention methods, Eurocamp, which employs around 600 seasonal staff each year sees 96 % of their team leader positions being filled by returning seasonal staff. 5 www.people1st.co.uk

Impact of seasonality on recruitment and retention A number of hospitality and tourism businesses have traditionally offered Apprenticeships to seasonal staff, citing Apprenticeships proven track record in helping to retain staff, as well as develop the essential skills needed within a business. Companies such as Thomson, Eurocamp and PGL have invested heavily in Apprenticeships, but recent changes mandating that they last a minimum of 12 months have introduced a barrier for seasonal staff. As a result seasonal staff are unable to benefit from the same opportunities as permanent staff, which disadvantages individuals but also means that some employers are unable to offer consistent training to their workforce. It also removes the retention tool that Apprenticeships offer many businesses. The issue of Apprenticeships for seasonal staff is being discussed within the Tourism Council *, with hospitality and tourism businesses seeking a pause button for seasonal workers in order for them to take a break and complete their apprenticeship the following year. Further information There are many options to help your businesses make the most of training and developing staff whether they are full time, part time, or employed on a seasonal basis. Apprenticeships, for example, delivers training that develops the skills and knowledge needed by businesses and ensures employees are prepared to embrace the latest in technology and industry working practices. A review of Apprenticeships means that in the future they will be even better with new standards set by employers that give equal focus to the behavioural development of apprentices, that is so important in employment. To find out more about employing an apprentice go to: http://www.people1st.co.uk/apprenticeship-services People 1st offers a range of tailored research and consultancy services to help your business and employees thrive. By assessing your current employee engagement levels and business culture, we can identify areas for improvement and the solutions you need to create a workforce that delivers for your business. * The Council, is co-chaired by the Minister for Tourism Helen Grant, the Minister for Skills Nick Boles and Simon Vincent, President EMEA, Hilton Worldwide. Other representatives on the Council include: VisitBritain, VisitEngland, The Tourism Alliance, Whitbread Hotels and Restaurants, InterContinental Hotels Group, Dudley Zoo, Expedia, Parkdean Holidays, easyjet, English Lakes Hotels, Google, First Group, Eurostar, JAC Travel, Continuum, John Lewis, Shepherd Neame, West Dorset Leisure Holidays Ltd and TUI Travel PLC. Simon Tarr, MD People 1st sits on the Tourism Council Working Group on Future Workforce, Skills, Qualifications and Apprenticeships 6 www.people1st.co.uk

Training Evaluation Training evaluations can help you to establish clear objectives, improve the effectiveness of your training, and show the return on investment that training has had on your staff performance and business. We use questionnaires, knowledge and skills assessments, and look at changes in performance and behaviour to identify business impacts. We also work out the cost and benefit of training, including non-financial benefits, to give you a complete picture. Employee Engagement Surveys Our employee engagement surveys can help you measure your staff satisfaction and address these questions to make your workforce feel more engaged, motivated and productive. To find out more: http://www.people1st.co.uk/talent-management/employee-engagement-surveys About People 1st People 1st is the skills and workforce development charity for employers in the hospitality, tourism, leisure, travel, passenger transport and retail industries. For more research and policy insight reports and to find out how we can help support your recruitment, training and talent management, visit www.people1st.co.uk E W info@people1st.co.uk www.people1st.co.uk @P1stgroup Member of: