The firm, which is one of only 15,000 Real Living Wage Employers in the UK across all sectors, is calling on industry peers and bosses to join them in investing in staff by doing more than paying minimum wage to its youngest team members to be more in line with many of the UK’s supermarkets and other sector competitors.
The move comes off the back of the National Living wage increasing to £12.21 per hour for workers aged 21 and over, and the minimum wage for 18+ year-olds and 16+ year-olds increasing to £10 and £7.55 per hour respectively.
Fosters Events says it is now paying all 18+ year-olds the Real Living Wage of £12.60 per hour and staff aged 16+ £10 per hour, the same rate as the minimum wage for 18+ year-olds.
The catering company says the hospitality industry faces ‘significant’ challenges. Turnover rates are at 52% (CIPD) and over 100,000 vacancies are open at any given time according to trade body UK Hospitality.
Neil Lodge, chief executive at Fosters Events, said: “Investing and valuing people at all levels, from entry-level positions to senior roles, is crucial for the industry's sustainability and future success. High turnover rates and low job satisfaction can lead to substantial financial losses and despite the significant challenges the sector has faced since the pandemic, we have to demonstrate a commitment to those wishing to join and remain in the industry and that starts with paying properly.
“We are the poor relation when compared to the supermarket chains and some other sectors – why would you want to work in hospitality for £7.55 per hour when you can earn over £10 per hour in Tesco at the age of 16? We have to get real and pay in line with the market otherwise it’s a race to the bottom and we want the best staff providing the best customer service and experience.
“By prioritising fair wages and investing in our workforce we are committed to setting a positive example for working in hospitality which often gets a bad reputation compared to other sectors. This investment not only enhances employee morale and retention, but it’s going to ultimately drive business growth and customer satisfaction, a win-win situation.
“We also pay all breaks and provide free meals for those working for more than hours. High turnover rates and low job satisfaction can lead to financial losses, with the cost of hiring new staff ranging from £3,000 to £6,000 and even higher for senior roles.”