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Long-term incentives key to retaining hospitality employees beyond the Christmas period.

6 December 2013: With hiring activity in the hospitality and leisure sector expected to be positive in the next six months, employers are shifting their focus from short-term bonuses and low salary bases to a focus on long-term financial and non-financial incentives to attract employees over the festive period and beyond.

According to the 2013/14 Michael Page Salary & Employment Forecast – Hospitality & Leisure, 74% of surveyed employers state flexible work arrangements as the most popular employee support option. While 66% expect staff turnover in the next six months, only 7% believe their employees will leave for a higher salary and most employers, 33%, expect employees will leave to broaden their work experience.

Key survey findings and industry insights
(Source: 2013/14 Michael Page Salary & Employment Forecast – Hospitality & Leisure)

  • 74% of surveyed employers state flexible work arrangements, followed by 48% for team building activities as the most popular employee support options.
  • 52% of employers believe a strong company culture is a critical factor in candidate attraction and retention
  • 66% of surveyed employer expect staff turnover in the next six months
  • An increase in opportunities for individuals at the senior management level is expected, particularly National and General Managers
  • From a state perspective, most recruitment activity is occurring within NSW and VIC with high demand for talent also being seen in WA, while employers in the ACT struggle to secure top talent.

In light of these findings, employment within hospitality and leisure is expected to remain steady over the coming Christmas period. This is a typical trend for this industry, and translates into an increased requirement for Christmas casuals.

According to Richard Wynn, Regional Director of Michael Page, “There is some good confidence in the hospitality and leisure sector with regards to hiring activity for professional talent over the next six months. In particular, business growth in the areas of Quick Service Restaurants (QSR) and contract catering is expected to continue, leading to a pick-up in hiring activity for skilled hospitality professionals.”

“General Managers, Operations Managers and Event/Operations Managers will also be in strong demand over the coming six months,” Mr Wynn adds.

Employers have also identified the need to pay their employees better salary packages. Based on the survey findings, 81% of employers state that 3-5% is the average salary increase but many recognise the need to pay above this bracket to attract the best talent.

Hospitality and leisure employers can also anticipate a stronger talent pool as experienced professionals continue to return to Australia following the close of major international events, to seek domestic opportunities over the Christmas period and beyond.

Go behind the service with a smile for the full Michael Page Salary & Employment Forecast for hospitality and leisure, including a comprehensive market analysis and salary guide, here www.michaelpage.com.au/salarycentre.

About the Michael Page Salary & Employment Forecast

The Michael Page Salary & Employment Forecast, completed by over 1,800 employees across a range of industries, combines quantitative and qualitative research with extensive involvement in senior executive and professional employment market.

Providing useful insights into salary forecasts and expectations, hiring intentions, in-depth market analysis and observations, as well as recruitment challenges, the Michael Page Salary & Employment Forecast includes a comprehensive salary guide for 18 industries.

In the lead-up to Christmas, Michael Page unveils key findings, market observations, employment trends and related topics on hiring in the hospitality and leisure sector for discussion on our social media channels.

Join us in the conversation on our BlogFacebook and LinkedIn pages or read the full report on the Michael Page Salary Centre as we go in-depth behind the service with a smile.