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Hospitality workers cash in on higher wages, outpacing national average

22 May 2023 By Eloise Feilden

Hospitality wages have risen by 9.5% over the last year, compared with the national average of 6.6%, new research has shown, as the industry struggles with a shortage of skilled workers.

Pub wages are growing at the fast rate within the sector, according to hiring website Caterer.com, increasing by an average of 11.3%. Employees working in Greater London and the northwest of England also reported the highest pay increases.

These figures on the hospitality sector come from a survey conducted by the company across 500 hospitality employers and 750 UK hospitality employees.

Caterer.com found that hospitality employers considered competitive salary (46%) and flexible & competitive working hours (36%) to be the most important factors in driving employee retention.

The website said that there are now more than 1,700 jobs being advertised that offer an annual salary of £50,000 or more.

So what is causing this rise? A combination of near-full employment and a crackdown on foreign workers in the wake of Brexit has left restaurants, bars and hotels fighting for labour, The Telegraph reported this morning.

Hospitality is also the industry that has seen the highest wage inflation over the last 10 years, according to research from chartered accountant Hazlewoods, with wages having risen 53%.

Pubs, bars and restaurants are facing ongoing challenges due to inflation and rising energy prices, meaning that further cost hikes due to wage increases could negatively impact employers.

However, UKHospitality Chief Executive Kate Nicholls told db that “ensuring staff are paid a fair wage” should remain a “priority for businesses to both recruit, reward and retain employees”.

She said: “At its heart, hospitality is a people business and the millions that work in the sector to make that happen deserve to be paid a fair wage, particularly during the challenging circumstances many now face.”

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