It’s not often that a workforce issue becomes a big media
storm, but few can have escaped the ongoing attention on zero hour contracts.
The debate highlights not only the changing labour market, but also the fact it
has largely gone unnoticed; until now!
Greater flexibility in the labour market is nothing new and has
been increasing gradually over the past forty years. A recent report from the
Work Foundation suggests that across our sector, an estimated 20 percent of the
hospitality workforce were on zero hour contracts, compared to eight percent
across the economy as a whole. Retail came in slightly lower at six percent. What
the report also highlights is the broader picture of flexible working that is
largely being ignored and which, in some forms, may have more serious
implications for the economy and society as a whole.
Much of the tourism and visitor economy has come to rely on
a flexible workforce to cope with fluctuating demand and seasonal patterns.
Today, in hospitality half of the workforce is part-time. A flexible workforce
is not necessarily a bad thing if it meets the needs of the employer and individual. The issue is more about how that flexibility is achieved.
The problem lies with the transient workforce that makes up
a high percentage of sector jobs. Transient labour, such as students and
international workers, make it easier to fill vacancies, but it also increases staff
turnover. As staff are not staying very long in post, they are not developing
the required skills and experience to make a full contribution to the business.
It is unsurprising then that the sector’s productivity levels are lower than
they should be, as staff are not fully proficient in their jobs and training is
instead being targeted at new starters.
This trend is not new and the concerning thing is that given
this huge cost, many employers are not looking at a more efficient approach
given the cost of constant recruitment and initial training. And that does not
even touch on the loss of business because an organisation does not have a full
cohort of skilled staff.
It also impacts the sector as a whole, as the perception of
a low skilled, unprofessional sector begins to stick in some people’s minds. As
a result, it is harder to attract people who are looking for a career in the
sector. After all, how does someone who wants to pursue a career in front of
house in hospitality or a sales position in retail tell the difference between
one job that can offer them a career and another that is being filled by
transient workers? It’s no wonder that many higher skilled roles in the sector
are difficult to fill.
The
irony is that one of the ways employers are tackling this problem is by attracting
skilled workers from outside the UK and the debate about ‘UK jobs and UK
workers’ is another workforce issue that is liable to attract media attention.
Find out more by visiting www.people1st.co.uk/news/policy or by following Martin-Christian on Twitter
