Women Directors Still A Rare Breed In Hospitality

Women in hospitality are still a rare sight in the boardroom and in senior management, a new report reveals today (13 May 2009).

‘State of the Nation 2009' carried out by sector skills council, People 1st, found that despite making up nearly two-thirds of the workforce (59 per cent), very few female employees reached top positions. Only six percent became company directors. Worryingly, the proportion of female managers has also dropped from 49 per cent in 2004/05 to 46 per cent.

In the biggest research project undertaken by the sector skills council into the hospitality, leisure, travel and tourism labour market in the UK, the report provides a definitive snapshot of how the sector has fared over the past five years and forecasts what the future might hold.

The report identifies that four out of ten (41 percent) of respondents agreed that women's progress within the sector was hampered by a lack of mentors and female role models.

It emerged that, in some cases, the existence of a male culture and the attitudes of some managers seemed to be holding women back. Career breaks following childbirth and childcare as well as combining work with family and personal responsibilities, were seen as the main explanatory factors for relative female under-representation.

‘This is a grave issue for hospitality businesses as they stand to lose out by not tapping into the skills that female employees have to offer,' said Brian Wisdom, chief executive of People 1st.

‘Many women in hospitality work in part-time and operational positions often below their skill level in lower paid roles due to the restricted availability of part-time work in more senior positions. Indeed, those who do progress to supervisor or unit manager level, few are able to make the step up to the next level.'

To remedy the situation, People 1st has secured funding from the UK Commission for Employment and Skills (UKCES) through the Women and Work Sector Pathways Initiative to develop management and leadership talent within the hospitality, leisure, travel and tourism sector and ensure career development and enhancement for women.

The report also highlights that half of respondents (51 percent) plan to cut back on training during the current economic climate. ‘This is a false economy,' claims Wisdom. ‘Companies that grow their staff and provide good value for money without compromising on quality, should be in pole position when the economy picks up.'

While the industry has grown substantially in the past five years, there is evidence that employers are cutting back. 26 per cent of businesses in hospitality, leisure, travel and tourism froze recruitment during the 12 months to March 2009 and 24 percent have cancelled plans to expand their workforce.

Yet, the industry still sufferes from skills shortages and the highest labour turnover of all sectors of the UK economy, standing at 31 per cent in 2008.

• Employers spent £414 million on recruiting and developing new staff in 2008/09 with an average recruitment cost per vacancy of £673 including incurred costs.
• A fifth of all sector vacancies (19 per cent) are proving hard to fill due to a shortage of skilled applicants.

Despite the current impact of the recession in certain sectors of the industry, the report concludes that in the long term, the sector is still predicted to grow and remain an important contributor to the UK economy as long as the industry has the right people with the right skills in place to provide a first-class customer service and experience. Total employment is predicted to grow by nearly 10 percent (208,000 additional jobs) by 2017. When replacement demand is taken into account, projections indicate that a total of 1,063,000 additional people will be required to work in the sector between 2007 and 2017.

However, the sector appears to be making some inroads in improving the skills of the current workforce. More employers are also training their staff than previously (66 per cent in 2007 compared to 61 per cent in 2005). Slightly fewer businesses are reporting that their staff lack skills than a year ago.

Management skills appear to be improving with 26 per cent of employers reporting that their managers lack the required skills – a fall of four percent between 2005 and 2007.

Overall, qualification levels have risen over the last five years. The proportion of the workforce with at least a level 2 qualification rose from 60 per cent in 2003/04 to 64 per cent in 2007/08.

The State of the Nation 2009 is the definitive overview of the hospitality, leisure, travel and tourism labour market, and includes comments from industry experts. Hard copies of the report are available to purchase from People 1st for a fee of £75 VAT. The executive summary is available for download for free.

To obtain a copy of the State of the Nation report for a media outlet, please contact our press office.