New research has revealed that the hospitality industry has been placed in the high risk category, with a quarter of all jobs in the sector being paid National Minimum Wage (NMW).
The results emerged from a study from the Department for Business, Innovation and Skills and revealed that hospitality businesses who pay their staff less than the NMW could risk damage to their company through loss of reputation, low staff productivity and high employee turnover.
Eight of 10 people "would not use the services of a business if they found it paid less than National Minimum Wage", while 90% called those employers a "disgrace". The survey also highlighted the hospitality businesses that pay the right rates see a better attitude in their staff; eight in 10 admitted to "not working hard" if they are being underpaid.
The survey findings come as the government begins to ramp up its scheme to ‘name and shame' employers who don't comply with the law and pay their workers at least the National Minimum wage.
Nick Holmes, chair of the British Hospitality Council and owner of Rockliffe Hall in Darlington said: "Staff retention and continuity are important for any good business, but particularly in the hospitality industry. Where we sit, at the five-star end of the market, customer experience is crucial. I don't think our clients would get the high-end experience they expect from a resort like ours if our staff weren't valued and well-treated.
"Lots of our business is repeat business, and the number of returning customers we have means staff retention is very important – if staff were paid less than National Minimum Wage, I think it would create a feeling of ‘I'm not here for the long term'. There is a lot of demand for good, loyal, staff, and a business needs to be competitive to attract the best.
"I also feel strongly that the hospitality industry should be taken seriously as an industry of choice for young people when they are considering their career. To do this, we need to demonstrate good standards of living, good career paths and opportunities for young people – so it's important to make sure we pay at least National Minimum Wage."
Source: Hotel Business
