UK Hospitality Faces Fierce Recruitment Challenges for SMEs

UK Hospitality Faces Fierce Recruitment Challenges for SMEs

I’m thrilled to sit down with Katarina Railko, a seasoned expert in the hospitality industry with a deep background in travel and tourism. Katarina has honed her expertise through years of navigating the ever-evolving landscape of entertainment, events, expos, and conferences. Today, we’re diving into the fiercely competitive job market within the UK hospitality sector, where small businesses face unprecedented challenges in recruitment. We’ll explore the implications of having over 100 applicants per job opening, the unique struggles of sifting through resumes, and how this intense competition impacts customer service and business growth. Join us as Katarina shares her insights on navigating these hurdles and offers strategies for small hospitality businesses to thrive in such a demanding environment.

How would you describe the current state of the job market in the UK hospitality sector, and what stands out to you about the sheer volume of applicants?

The UK hospitality job market is incredibly intense right now, with around 112 applicants vying for every single opening. That number alone paints a picture of just how saturated the field is. What stands out to me is the desperation and determination of job seekers, but also the immense pressure this puts on employers. For small businesses like cafes or family-run hotels, this volume turns hiring into a daunting task. It’s not just about filling a role; it’s about finding the needle in a haystack while keeping the business running smoothly.

What are the biggest challenges small hospitality businesses face when dealing with such a high number of applications?

The primary challenge is time. Most small hospitality businesses don’t have a dedicated HR team, so owners or managers are often juggling hundreds of resumes while still running daily operations. On top of that, many applicants are either overqualified or underqualified, which means sifting through to find the right fit takes even longer. This mismatch can lead to frustration, delays in hiring, and sometimes settling for candidates who aren’t ideal, just to fill the gap.

How does the level of competition in hospitality compare to other industries, and what do you think drives these differences?

Hospitality is right up there with retail and HR in terms of competition, with over 100 applicants per role in each of these sectors. Compare that to industries like IT or design, where you might see fewer than 15 applicants per job, and it’s clear hospitality is in a league of its own. I think a big driver is accessibility—hospitality roles often have lower barriers to entry, so more people feel they can apply, even without specific experience. Meanwhile, specialized fields like IT require niche skills, which naturally limits the applicant pool.

In what ways does this tough hiring landscape impact the day-to-day operations of hospitality businesses?

It can have a real ripple effect. When hiring drags on, businesses are often short-staffed, which directly affects customer service. You might see slower service in restaurants or less attentive staff in hotels because teams are stretched thin. There’s also the risk of stalling growth—owners can’t expand or take on new projects if they’re constantly playing catch-up with staffing. Over time, this can erode customer trust and hurt the business’s reputation.

What strategies would you recommend to small hospitality business owners to manage the overwhelming number of applications and find the right talent?

First, I’d suggest leveraging simple tools like applicant tracking software to help filter resumes based on key criteria—it’s a lifesaver for small teams. Beyond that, crafting very specific job descriptions can deter unqualified applicants from applying in the first place. Finally, I think building a network—whether through local industry groups or even past employees—can help. Referrals often lead to better fits than sifting through a mountain of applications. It’s about working smarter, not harder.

Looking ahead, what is your forecast for the future of recruitment challenges in the UK hospitality sector?

I believe the competition will remain fierce for the near future, especially as economic pressures push more people to seek work in accessible industries like hospitality. However, I also see potential for small businesses to adapt by embracing technology and refining their hiring processes. If they can streamline recruitment and focus on retention—keeping good staff once they’ve got them—I think they can weather this storm. But it won’t be easy, and we might see some smaller players struggle to keep up if they don’t evolve.

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