One of the most common issues found in the hospitality industry is the high turnover. For a lot of people, it’s either a part time or side job to fund their studies or they just can’t keep up in such a fast and intense environment.
Establishments such as restaurants have a hard and stressful work rate and along with uncertain hours, can result in people leaving.
One of the most common issues found in the hospitality industry is high staff turnover. With many part time and seasonal roles the hospitality industry can often attract students or those looking for additional work. However, the fast paced, high stress environment teamed with uncertain and often unsociable hours isn’t for everyone and can lead to high turnover.
High turnover in turn can create more office headaches, including the time and cost of recruiting and training new staff.
It’s important to ensure that all staff are fully trained so that your business can run as effectively and safely as possible.
Any new member of staff should receive full training whilst in their probationary period. This means that businesses need dedicated members of staff to teach and look after the latest recruitments which can impact on the general day-to-day running of the business. By taking team members off the floor to train, you either have to schedule more staff, which costs more money, or try and work with less staff, which could lead to a lower standard of service.
Because of this, new staff members will occasionally receive less or under-par training in order to get them working; saving the business time and money. This is definitely not the right approach as having untrained staff on the floor could lead to serious accidents, injuries as well as other problems such as breaking of equipment.
This doesn’t just apply to new members of staff either. Before promoting or changing an employee’s job it’s crucial to understand their current skill set and account for any additional training and support they may need. Too often people are pushed into management before they are ready or without full training because they perform well in their current role. This will definitely have a negative effect on the business. It can lower the morale of the employee.
Health & Safety
Shrinkage is a huge issue for the hospitality industry, being incredibly easy to lose track of what’s been reported and what’s been accounted for.
For example, restaurants will tend to have a lot of waste (such as unused or out of date food) and this isn’t a problem, it’s a natural thing and is usually worked into the budget. But the problem lies with waste that goes unreported. Businesses lose a lot of money each month because of unreported waste when it could be easily avoided.
Another huge issue with shrinkage is actually theft. Theft can be defined in many ways; it’s not just ‘stealing’.
If an employee takes any food or drink without permission, it’s classed as stealing and they should be dealt with accordingly. Any food or drink that goes missing and is unaccounted for counts as unreported waste and businesses will lose money. There is also the potential issue of staff members stealing from the tills or safes, which doesn’t happen often but it is always important to have the correct procedures for dealing with this in place.
You can also count time wasting as theft, with employees stealing time from the business. Time wasting includes thinks like taking longer breaks than required or told to, taking a long time getting things or walking off for cigarette breaks. It’s important that the right disciplinary actions are taken when dealing with time wasting.
Morale is something that can easily be affected by working in the hospitality industry. As we’ve previously stated, it’s an intense environment to work in and this will affect the morale of the employees.
Working in a stressful environment can cause friction at the best of times so it’s always best to be prepared and try and ensure a smooth workflow. Having bad morale will affect the standard of work and will leave the employee unhappy, not being able to perform their best and more likely to leave.
It’s important to keep staff spirit up and have frequent employee engagement. This can be in the form of Personal Reviews or just sitting them down for a one on one. Making staff feel valued can boost morale and will show in the quality of work produced.
As with any business, having the correct paperwork and processes in place is crucial.
Running payroll for businesses such as restaurants can be especially complex. The mix of salaried and hourly paid staff combined with irregular hours and additional payments such as tips could make even the most experienced accountant’s head spin. Having a good payroll system in place is therefore key.
As you can see, there is a lot that can go wrong in the hospitality industry if people are not careful. It’s important to look out for these issues and find ways to avoid them, especially in the wake of the Employment Tribunal fees being scrapped. Bad practise is not worth being taken to court for, we are here to help.
Wurkplace offers a complete range of online training courses and health and safety support for the restaurant industry, as well as the hospitality industry.
We can help with everything from occupational health management to payroll to recruitment and training.
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