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The hospitality industry has long been known for its fast pace, customer-focused ethos, and dynamic working environments. Yet today’s market presents employers with an increasingly difficult challenge: how to attract and retain the right talent in a sector that is both highly competitive and deeply affected by economic pressures, labour shortages, and shifting employee expectations.
At STEP, we work closely with businesses across the hospitality sector, helping them tackle these people-related challenges head-on. Whether you’re running a hotel, restaurant, visitor attraction or catering company, one thing is clear:
recruitment alone is no longer enough.
Retention and development must be just as high on the agenda.
Hospitality employers are competing for talent not only with one another but also with other industries that offer more traditional hours, perceived job stability and clearer progression pathways. This shift was already on its way but there is no doubt the pandemic accelerated it, prompting many workers whilst on furlough to reassess what they want from their jobs—and more often than not, hospitality hasn’t come out on top.
Add to that rising wage expectations, a national shortage of skilled candidates and the implications of Brexit on the availability of international workers and you’ve got a perfect storm for recruitment difficulties.
But it’s not all doom and gloom (I promise!). With the right strategies in place, hospitality businesses can still stand out, attract talent, and – critically – keep it.
Employer Brand Matters More Than Ever
Today’s jobseekers are looking beyond pay packets. They’re considering company culture, flexibility, wellbeing policies and the opportunity to grow. Your employer brand—how people perceive what it’s like to work for you—plays a huge role in attracting applicants.
Are you communicating your values clearly? Are you showcasing real employee experiences on your website and social media channels? Are you demonstrating that working in hospitality can be a career, not just a stop-gap?
Recently, our HR team worked with a local family-run hotel that was struggling to attract quality applicants despite offering competitive pay and benefits. After an employer brand audit, we discovered that none of their values, progression opportunities, or team culture were visible externally. Together, we helped them build a ‘Work With Us’ section on their website, launched a social media series introducing team members and their stories, and supported the creation of an internal staff development plan they could confidently promote during interviews. Within just a few months, the business saw a noticeable increase in applications—not just in volume, but in quality and alignment with their values.
This is the power of a strong employer brand: when people can see what it’s really like to work for you, the right candidates are far more likely to apply—and stay.
Within six months, not only had their staff retention improved, but one of their junior team members had successfully stepped into a supervisor role. It was a great example of how even small steps in training and progression planning can have a big impact.
Invest in Training and Career Progression
A lack of career progression is one of the top reasons hospitality workers leave their roles. Flip that on its head: employers who show genuine commitment to skills development are more likely to retain staff.
Providing clear training pathways, upskilling your team and promoting from within where possible not only motivates employees but helps to address the industry-wide skills shortage. It also builds a more resilient workforce – something many businesses realised they needed during recent years of upheaval.
Training doesn’t have to be expensive or time-consuming. On-the-job mentoring, job shadowing and short online courses can all help individuals feel like they’re moving forward.
We recently supported a café in the region that was facing high staff turnover, particularly among younger employees.
Through working with their Leadership Team, we helped introduce a simple progression framework—outlining how front-of-house team members could grow into supervisory roles, and eventually assistant manager positions.
We also introduced a buddy system and short monthly training sessions covering customer service, food safety and leadership skills.
Make Flexibility Work in a 24/7 Industry
Hospitality can’t always offer the 9-to-5, but that doesn’t mean flexibility is off the table.
Whether it’s job sharing, four-day weeks or flexible shift rotas that accommodate personal commitments, the businesses that get creative with scheduling are the ones attracting a wider talent pool—including returners to work, parents, and those with portfolio careers.
One size doesn’t fit all, and understanding the individual needs of your team is key. Take the time to check in with staff regularly—not just through formal reviews, but through open conversations. People’s circumstances and ambitions change; your approach should evolve with them.
We recently supported a busy restaurant that was finding it difficult to retain front-of-house staff for late evening and weekend shifts. In response, we helped the Management Team introduce a higher pay rate specifically for those working unsocial hours. This not only showed appreciation for the team’s commitment but also improved rota coverage during peak periods, as staff were more willing to volunteer for those shifts.
At the same time, the business was struggling to fill a full-time Head Chef vacancy. Rather than compromise on quality, we worked with them to structure the role as a job share between two experienced chefs—one looking to return to the industry part-time, and the other seeking a better work-life balance. The arrangement has been a huge success, bringing stability to the kitchen and creating a sustainable setup for the long term.
These kinds of flexible solutions are helping hospitality businesses remain competitive in a tough labour market—without compromising on service or quality.
Recognise and Reward
The fast pace of hospitality means it’s easy to focus on the next shift, the next guest, the next event—without stopping to recognise the efforts of your team. But recognition is a powerful retention tool.
That doesn’t mean big awards ceremonies or expensive bonuses (although they have their place!). Small moments of appreciation—thanking someone for stepping up, giving positive feedback or spotlighting team achievements—can go a long way in making people feel valued.
When it comes to financial reward – transparency matters. With new regulations like the Employment (Allocation of Tips) Act now in force, ensuring that employees understand how tips are handled is vital for both trust and compliance.
We recently worked with a hotel and events venue that was experiencing low morale during a particularly demanding summer season.
Through staff feedback sessions, it became clear that while the team felt they were working hard, their efforts weren’t being acknowledged. Together, we introduced a simple but effective “Star of the Week” scheme – nominated by peers and highlighted during team briefings—as well as small, unexpected thank-yous like handwritten notes and coffee vouchers after particularly busy weekends.
At the same time, we reviewed their tipping policy and supported them in developing a clear, fair approach that was communicated openly to staff. Once employees understood exactly how tips were being allocated, any lingering frustrations disappeared—and trust began to rebuild.
It’s a good reminder that recognition doesn’t have to cost much, but it can make a big difference to how people feel about where they work.
Prioritise Wellbeing
Hospitality work can be physically and emotionally demanding. The best employers in the sector are now placing equal focus on mental health and wellbeing support – offering access to resources, encouraging open conversations, and actively working to reduce burnout.
Simple initiatives like mental health first aiders, quiet spaces, or regular wellbeing check-ins can make a real difference. When employees feel genuinely cared for, they’re more likely to stay.
One independent B&B we supported was seeing a spike in short-term absences and stress-related sick leave across its front-of-house and housekeeping teams. Working closely with management, we helped them introduce a wellbeing plan that included monthly 1:1 check-ins focused solely on employee welfare – not performance – as well as dedicated mental health first aider.
They also repurposed an underused room into a “calm staff room,” giving staff a space to decompress during busy shifts. It wasn’t a huge investment, but it sent a clear message: your wellbeing matters here.
Since then, absence levels have stabilised, and employee feedback in their internal survey shows a marked improvement in how supported people feel at work. When employers take the time to look after their people, the impact is felt across the whole business.
Make Recruitment Personal
Finally, the recruitment process itself needs to be clear, engaging, and human. Automated systems can help, but don’t lose the personal touch. A quick follow-up call, a friendly interview process, or even a welcome email from the team before someone starts can set the tone and build a positive connection from day one.
Think about how you’re advertising your roles. Are you speaking to the kind of people you want to attract? Do your job descriptions highlight the culture, flexibility, and growth opportunities you offer?
We worked recently with a small but growing café chain that had been relying solely on online job boards with very standard job descriptions. Applications were few and often not a great fit. We helped them rewrite their adverts to better reflect their vibrant, values-driven culture—highlighting staff perks, flexible working patterns, and real career progression stories from their own team.
They also introduced a simple but powerful change to their process: every shortlisted candidate received a short welcome video from the team before their interview, giving a glimpse into the working environment and personalities they’d be meeting.
The result? An increase in applications within the first month—and far better alignment between new hires and company culture. Recruitment doesn’t need to be flashy, but it does need to feel human.
Key Takeaway:
Compete with Culture, Not Just Cash
Attracting and retaining talent in hospitality isn’t just about offering more money—though competitive wages do matter. It’s about offering meaningful work, career development, flexibility, and respect.
Businesses that prioritise people, invest in their growth, and create environments where staff feel valued will not only weather the storm—they’ll thrive.
If your hospitality business is struggling to recruit or retain staff, our HR team at STEP is here to help. From recruitment advice to staff development plans, we support businesses of all sizes. Get in touch with us at HR@stepscotland.co.uk to explore how we can work together.
