Why is
hospitality recruitment
so challenging?

Hospitality faces a
unique combination of challenges that make recruitment an uphill battle.

From seasonal peaks and high turnover to rising costs and evolving legislation, these challenges have shaped hospitality recruitment.

Seasonal peaks

Each year, seasonal peaks force hospitality businesses to quickly recruit and onboard new staff.

During these periods, customer expectations and demands skyrocket, all while numerous businesses battle for a limited pool of talent.

These seasonal peaks create a unique set of challenges that can stretch even the most prepared teams.

You're not just competing with other hospitality venues; retailers, logistics companies and pop-up events are all looking for temporary staff.

The window for festive trade is concentrated, meaning you have very little time to get new starters trained and ready.

To meet seasonal demands, you might need staff with specific skills, like cocktail-making for festive parties or even ice-skating marshals for a temporary rink.

The festive season is demanding for everyone, with long hours and high pressure taking their toll on both new and permanent staff.

INTENSE COMPETITION

A SHORT AND SHARP SEASON

SKILL REQUIREMENTS

MAINTAINING MORALE

Staff retention

The high turnover rate in hospitality disrupts team cohesion and places additional strain on remaining staff.

Why does hospitality struggle so much with staff retention?

Well, unsociable hours, irregular shifts, demanding work conditions and challenging customers all take their toll.

Combine this with a perceived lack of job security and progression opportunities, and it's no surprise that many workers view hospitality as a stepping stone rather than a long-term career.

The result? A revolving door of staff that creates
constant pressure.

Every employee departure triggers the same costly recruitment and onboarding cycle, only for it to all begin again when the next person leaves.

From April 2026, the National Living Wage increased to £12.71 an hour – for an industry that relies heavily on hourly workers, the impact is significant.

Our Director of HR Consulting,
Dan Grace, commented:

Cost-pressure doesn't stop with salaries.

ICAEW research revealed that many businesses feel it is too expensive to do business in the UK, with the inflexible business rates regime, more businesses being pushed over the VAT registration threshold and costly red tape.

The cost of doing business creates a painful tension for hospitality businesses.

The demand for staff doesn't slow down, but the budget to recruit and retain them continues to be squeezed tighter with each passing year.

Rising costs

Across the UK, the cost of doing business continues to climb.

"A further rise to the NLW and NMW sees costs for businesses in the UK continue to grow.
"This may lead to further economic impacts and possible changes to the cost of living
due to prices increasing to account
for higher wages."

Legislative pressure

The Employment Rights Act 2025 represents the most significant shake-up of employment law in years, introducing reforms such as:

Collective redundancy protection
Day-one paternity leave
Day-one Statutory Sick Pay (SSP)
Fair Work Agency
Trade union recognition

While these changes commendably aim to create a fairer workplace, they also create significant operational complexity.

For some businesses, this added complexity can act as a deterrent to hiring as fears of non-compliance loom.