How Hospitality Businesses Can Tackle Rising Costs Through Smarter Recruitment

Autumn Budget 2024: How Hospitality Businesses Can Tackle Rising Costs Through Smarter Recruitment

The hospitality industry is under increasing pressure following the Autumn Budget 2024. Rising wage bills, a 1.2% National Insurance increase, and soaring energy costs are adding strain to already tight margins. With turnover rates exceeding 30% in some sectors, strategic recruitment and workforce planning are more critical than ever.

Here are three practical ways hospitality businesses can leverage recruitment expertise to remain resilient and profitable.

1. Optimise Workforce Agility to Match Demand

Staffing accounts for nearly 50% of hospitality operating expenses, meaning flexibility is essential. With wages rising, businesses must adopt smarter models:

• Demand-driven rostering: Partnering with agencies like KSB Recruitment ensures access to temporary or part-time staff during peaks, cutting overstaffing in quieter periods. A Midlands hotel reduced payroll by 22% using this approach.

• Skill-specific hiring: Targeted recruitment for specialist roles like revenue managers or hybrid F&B supervisors can streamline operations. One Surrey resort reduced training costs by 35% by hiring pre-skilled staff through an agency.

• Tech-enabled matching: AI-driven profiling (such as KSB’s dynamic talent pool) reduces time-to-hire by up to 40%, filling gaps quickly without compromising quality.

2. Invest in Retention to Reduce Turnover Costs

Replacing a hospitality employee costs between £3,000 and £5,000. Proactive retention strategies can reduce this significantly:

• Upskilling partnerships: Working with recruiters to identify candidates looking for long-term growth lowers churn. A coastal hotel cut turnover from 45% to 18% by using KSB’s “Career Pathway” screening.

• Cultural fit prioritisation: Behavioural assessments ensure candidates align with workplace values. A London boutique hotel improved employee satisfaction by 30% after refining its recruitment process.

• Competitive benefits packages: Agencies can advise on cost-effective perks like flexible hours or loyalty bonuses. One restaurant group retained 90% of seasonal staff by implementing tailored retention incentives.

3. Navigate Compliance with Expert Support

The Budget brings new compliance challenges, including wage increases and NI changes. Recruitment partners help you stay ahead:

• Legally vetted contracts: Specialist recruiters ensure contracts align with updated labour laws, reducing risk. A Devon hotel group avoided £50,000 in fines by working with KSB’s HR advisors.

• Efficient onboarding: Automated right-to-work checks and digital training modules (via KSB’s onboarding portal) cut admin hours by 25%.

• Diversity and inclusion frameworks: Inclusive hiring expands talent pools while meeting ethical and legal requirements. A Manchester venue increased diverse applicants by 60% with bias-free recruitment tools.

For a full breakdown of budget measures, see the UK Government Autumn Statement 2024.

Key Takeaways

• Flexible staffing models help reduce payroll costs and boost efficiency.

• Retention-focused recruitment strategies save thousands in rehiring and training.

• Compliance support from recruitment partners reduces legal and financial risks.

Future-Proofing Through Strategic Recruitment

The Autumn Budget highlights the need for proactive workforce planning, not reactive hiring. By partnering with experienced hospitality recruiters like KSB, businesses can turn these challenges into opportunities—optimising costs, improving retention, and building resilient teams.

Contact KSB Recruitment on 0121 828 9840 or email info@ksbrecruitment.co.uk to discuss how we can help your hospitality business adapt and thrive in 2025.