Bob Cotton OBE, former chief executive of the British Hospitality Association and hospitality advisor to Wellers Accountants, discusses the lack of uptake in funded training for the hospitality sector and why more independent operators need to invest more in their staff.

　　The hospitality industry employs 2.3 million people in the UK, however, staff turnover remains high averaging at 50% per annum. This figure is surprising when considering it is the staff who are the key component in hospitality businesses. They are also essential in ensuring the business drives through difficult trading conditions. To achieve long term growth and success their skills have to be continually updated and nurtured.

　　According to the government, the aim should be to spend 1% of your payroll cost on training your staff. The reality is that while the very best companies in the UK spend about 1%, the majority of operators are spending just 0.5%. As a comparison, in Germany the average company spends 4% of their payroll on training and re-investing in staff.

　　Bob explains: “While there is normally no financial cost to an employer for training their staff, there is an investment in terms of time and mentoring. Many employers are worried about undertaking that investment only for the member of staff to leave at the end of it all and take their new skills to a competitor. The thing to remember is, if you have someone good and they stay at your company for two or three years then you will have got something from this investment. If you have them for the good years then should they leave, you will most likely have obtained a return on investment. You should also then have the process and systems for training successful new employees.”

　　So what funding and schemes are available to independent hospitality businesses? When it comes to apprenticeships, as well as having the main training paid for, an employer also receives £1,500 for each apprentice they take on under the age of 24, provided they haven’t taken on any in the prior 12 months and don’t employ more than 1,000 staff.

　　“The consequence is companies should be able to turn their training department into a ‘no cost’ centre or even create revenue through it.”

　　However apprenticeships are somewhat unsung and unknown within the industry. There are half a million apprentices working with employers in the country today. Of that only 55,000 are in the hospitality industry. Government spending on apprenticeships stands at £5.1bn and this is set to increase next year.

　　“It is also important to note that apprenticeships have been extended to all ages and are now delivered individually to the employer’s requirements. No employer should have to put their hand in their pocket to fund training – the government provide this and yet many companies are unaware. Just about all training can be classified as ‘apprenticeship’ training so long as it is structured and done in the right way.

　　“Many hospitality operators employ youngsters from countries such as Italy, Spain and France. This is because they have an ingrained service culture that is seen as superior to ours. They have good service skills and they love doing the work. Admittedly, the entry level salary in the sector is comparatively low so it is important for employers to sell the career opportunities. Staff commencing their careers need to see where the job and training can lead to, an end goal. It will help them accept the pain of a lower initial starting salary. The hospitality trade needs to attract the talent out there, not just those who couldn’t make it in other sectors. It is up to both employers and educators to make sure people are kept excited, passionate and want to stay in the industry.

　　“Another persistent problem is getting buy in at management level to accept that losing their staff for chunks of time (sometimes during busy periods) will lead to long term improvements in productivity. The ethos has to be a top down led approach where owners instil in line managers the concept that it is worth investing in some staff going away for one day a week.”

　　Most apprenticeships training is delivered by private training providers. In every area of the UK there will be a company that can provide for an operator’s needs. There are programmes for all adults and young people who want to gain a qualification and recognition through their employer. One scheme from the Perceptions Group aims to create 15,000 work placements for young people in 2013/14. It includes a two-week work placement with an employer at no cost. Operators offering the two week placements will benefit from engaging with young people who will have been through a pre-employment programme and will be work ready.

　　“If training is dynamic, exciting, engaging and can demonstrate real impact on the culture and performance of an organisation then it becomes a positive activity. It is as important to put money into human performance as it is into bricks and mortar. If you don’t get the people bit right in hospitality, then you quite simply you won’t have a successful business.”