The Hospitality Employment Index shows that while the hospitality sector as a whole loses 23% of its total workforce each year due to poor staff retention, the labour turnover rate for the food service management industry, which includes contract caterers, is almost one-third of the national average at just 9%.
Arran McDowell, HR director of contract caterer Elior UK, said that he takes simple and easy steps to make sure staff want to remain with the company.
“We always start by keeping recruitment processes simple, straightforward and honest from the very beginning. It is also important to keep the lines of communication open with all teams and try to get them involved wherever possible.”
Brian Wisdom, chief executive at People 1st, added that the nature of food service management can affect working conditions, retention rates, and ultimately allow businesses to plan for demand with a greater degree of accuracy.
“Food service management is unique in the sector as it presents different working environments to the rest of the hospitality industry. Many companies have moved beyond simply food and drink, and now offer services such as facility management, security services or housekeeping. These services are being offered in many different types of establishments ranging from businesses and manufacturing units, to schools, government departments, prisons, and leisure venues.
“Given each individual workplace dictates when these services are demanded, working hours are significantly different and as businesses make long term agreements with their clients, the food service management industry can predict demand more accurately and develop their business accordingly.”
While there are lessons to learn from business such as contract caterers, the report does show that there is positive news for the hospitality industry as a whole.
In quarter three of 2012, hospitality continued to flourish within the economy, contributing a 1.6% increase to the country’s GDP. Job demand also continued to be high, with an average of 19 applications per position, although advertisements decreased slightly when compared to previous periods.
Ian Burke, director at Caterer.com said employers should work on staff retention to improve the sustainability of their business: “Labour turnover can have a great impact on productivity, and has been a longstanding issue for hospitality employers. Although there is a clear interest in jobs in our sector, we are still failing to sell the benefits of the long-term career opportunities available within it. This needs to change if we want to ensure our businesses continue to remain competitive.”