HR Hospitality A Complete Guide for Employers

Restaurants, take-aways, pubs... There are so many businesses that make up the hospitality sector. Despite the numbers, the industry faces all kinds of HR challenges that need to be managed.

From new tipping laws to day-one rights, employers must ensure their hospitality business follows all legislative and regulatory rules. Any step in the wrong direction could lead to detrimental consequences. Like, paying fines, losing talented workers, and causing serious business disruption.

For more information on hospitality HR, speak to one of our expert HR advisors today. Now, let’s look at ways employers can improve their HR services to encourage success in their hospitality business:

Create a tailored onboarding process

According to the Office of National Statistics (ONS), there were 107,000 vacancies in the hospitality sector in April 2024. Numbers like this are what fuel the epic labour shortage and skills gaps in the industry – impacting overall revenue and economic output.

Hospitality employers should create a tailor-made onboarding process. It shouldn’t just be about finding suitable candidates, but ones that are interested in progressing within the industry.

Let’s look at ways hospitality HR teams can help improve their businesses:

Job adverts: Working in a hospitality business requires specific expertise and qualifications. From food safety credentials to alcohol licences… Make sure your job advert states what specific requirements are needed for working with your business.

Recruitment methods: Some hospitality businesses run on a 24-hour basis. And they even have busy peak seasons to plan for. HR teams should have recruitment methods that ensure the right people, roles, and responsibilities are adhered to.

Seasonal workers: Some businesses require additional staff during busy seasonal periods, like Christmas or summer holidays. Employers need to invest in people who not only can work during these times, but are interested in staying on for longer.

We have created a free hospitality employment contract template ready for you to download and use in your onboarding process.

Improve employee turnover rates

Employee turnover rates within the hospitality sector were expected to increase but dropped due to inflation, according to UK Hospitality.

Since the COVID-19 pandemic, the industry struggles to return to its past trading levels, and the progress is slow. It falls on employers to reverse their turnover numbers by working on improving their employee retention rates.

Let’s look at ways hospitality HR teams can help improve their businesses:

Staff development: If you provide hospitality staff with the chance to enhance their skills or position, they’re more likely to stay employed in their role. Focus on staff development, like online eLearning, peer mentoring, and lateral staff training.

Employment contracts: Many hospitality workers are on casual, temporary, agency, or even zero-hour contracts. The government aims to introduce better statutory rights for such workers. Until then, employers should plan to make contractual changes to demonstrate their compliance.

Work benefits: Recognising and rewarding employees for their hard work is a great way to improve turnover rates. Work benefits don’t just include cash bonuses (although, this isn’t frowned at!) Company cars, health insurance, free meals, childcare support… Offer work benefits that are both enticing and accommodating for your staff.

Show compliance to legal duties

With the passing of the epic Employment Rights Bill 2024, hospitality workers are set to receive an abundance of statutory rights. Some of these will even apply from their first day of work.

From safe working conditions to protection from unfair dismissal… Employers need to show compliance for all legal duties that apply to their hospitality workers.

Let’s look at ways hospitality HR teams can help improve their businesses:

Employment law: A large portion of your hospitality staff will class as casual workers. Meaning, they’ll have their own types of statutory rights under employment law. Some to look out for include working hours, annual leave, sick pay and family leave. It also includes day-one rights, like protection from discrimination, unfair dismissal, and even redundancy in some cases.

Pay and benefits: Many hospitality workers are paid either the National Minimum Wage or the National Living Wage, etc. This means it’s easy for them to leave should they not feel satisfied working in their role. Employers can offer a higher contractual rate to minimise the chance of them joining rival competitors.

Safeguarding: Hospitality workers can face altercations with customers on a daily basis. From verbal threat to workplace violence – employers must implement processes to both minimise and manage such safeguarding issues.

Promote a positive workplace environment

The Institute of Hospitality found that more than ¾ of hospitality workers reported mental health issues in 2024. Working overtime, burnout, and career stagnation are just some contributing factors that could lead to these numbers.

Employers have a legal responsibility to promote a positive workplace environment. One that protects both their physical and mental welfare equally. With the right moves, this can help encourage a happy, healthy workplace.

Let’s look at ways hospitality HR teams can help improve their businesses:

Employee assistance programmes (EAPs): Long hours, low wages, job insecurity – any one of these can affect your staff’s wellbeing. Introducing EAPs can help promote positive work practices and open doors to support for your workers.

Health & safety compliance: Employers must provide a safe environment and work practices for all staff. This responsibility includes a number of things; like, safe working practices, safe equipment, risk assessments, and so much more.

Equality and inclusion: All employers should have work practices, processes, and procedures that are inclusive for all. Equality is crucial in all areas of the business. Not only does this promote fair treatment, but it also excludes any cases of discrimination and prejudices.

Plan for economic influences

The government found that a fall in demand for consumer services, high energy prices, and taxation were the biggest economical challenges for the hospitality sector.

Employers need to plan for both economic and societal influences. This allows you to acknowledge challenges, as well as make plans to navigate around them.

Let’s look at ways hospitality HR teams can help improve their businesses:

Sustainability: The government plans to implement sustainability laws for all businesses, including those in hospitality. From digitising paper-processes to reaching carbon-zero emissions… You’ll soon be running an eco-friendly business.

Tech and AI: It’s 2025 and there’s no escaping from our current digital era. Employers need to embrace technological and AI advancements or risk falling behind with the times. From payroll to customer services, technology advancements are beneficial in all areas of your business.

Customer satisfaction: The hospitality sector relies on positive customer services. Without them, your business can be brought to a halting stop. Support, respect, and value your staff. They will reciprocate this through producing hard work and customer satisfaction.

Get expert advice on hospitality HR with Peninsula

The hospitality sector is struggling to tackle labour shortages, high turnover, and limited statutory rights compared to other sectors. It falls on employers to face these issues directly – helping to grow a business that succeeds through difficult economic struggles.

Peninsula offers expert advice on hospitality HR. We offer specialised guidance on HR contracts and documentation – ensuring your business meets all its HR compliance. Stay compliant with our free hospitality employment contract template, access yours now.

Want to find out more? Contact us on 0800 028 2420 and book a free consultation with one of our HR consultants today.