Paying the price - pay in the hospitality industry

A report by the HTF reveals that barstaff are the third lowest paid workers in the country. Phil Mellows takes a look at the figures

Somehow, people have got it into their heads that you can't make much money working in a pub.

Researchers have delved into why this might be the case, speculating on the influence of parents, teachers, the media and so on. It's those darned perceptions, you see.

What pubs are less eager to face up to, however, is that basic pay for the vast majority of pub staff really is very poor. While it cannot be denied that image plays its part in the industry's recruitment difficulties, perceptions of low pay must ultimately come down to, well, low pay.

The true extent of this problem is revealed in the latest report from the Hospitality Training Foundation (HTF), the Labour Market Review 2002.

Barstaff are the third worst paid people in the country, making an average of only £198.60 a week. The figure rose by a mere one per cent between 2000 and 2001.

Kitchen hands, also employed by pubs, are even worse off. Only supermarket check-out staff can complain of a lower rate of pay.

There are also two other hospitality jobs in the bottom 10 - catering assistants and waiting staff.

Compared to the rest of British industry, male manual workers in other sectors earn an average 30 per cent more than their counterparts in hospitality. Is it any wonder that 45 per cent of pubs are struggling to recruit good people?

It isn't only pay that staff are interested in, of course. Job satisfaction and the possibility of career development are also important factors. Rewards grow quickly for those able to move up into management positions - although the report shows wide differences in pub managers' pay.

The HTF also points out that the bare figures fail to reflect other benefits that might be included in the remuneration package - accommodation allowances, free meals, tips and so on.

But government research among hospitality staff points to low pay as the biggest reason for leaving a job.

A quarter of those on the jobs market in 2000 blamed the lack of money for their decision to leave their previous employer. Another 13 per cent were only treating the job as a stop-gap before finding something better. About 24 per cent expressed a general lack of job satisfaction.

Surprisingly at first glance, 15 per cent said the hours weren't long enough. But that is a reflection of the high proportion of part-timers in the industry. In the last six years, according to the report, the percentage of part-time workers has grown from 56 per cent to 58 per cent.

Another disturbing revelation is the gap between male and female employees. While men make an average £234.30 a week, women only get £179.70. Among publicans themselves, men earn £356.14 a week while for women the figure is £308.72.

On the positive side, hourly pay rates are above the minimum wage at £4.75 for male barstaff and £4.44 for females. Chefs are doing better for themselves, too. The shortage of kitchen skills has driven their salary up by 12 per cent in the past year.

Chefs are an interesting case. The HTF says "the biggest problem area for employers is finding chefs" and records more than 15,000 chef vacancies across the hospitality industry, nearly twice as many as for barstaff.

Unfilled vacancies, that is those not filled after being advertised for three months, range from 60 per cent to 80 per cent of the total, depending on the region.

"The causes of such a high proportion of unfilled chefs' jobs may have its roots in the skills now needed," says the report. "Several years ago there was a shift in the skills requirements of chefs, particularly in the pub sector with the advent of pre-prepared foods. Since then there has been a move to more fresh ingredients, increased food preparation and cooking on site. Many employers may now be struggling to find candidates who have been trained in specific skills."

So, in accordance with the economics of supply and demand, chefs' wages have risen steeply.

The number of unfilled barstaff vacancies is lower, however, mainly between 40 per cent and 50 per cent, although there seems to be a particular crisis in the East Midlands where the figure rises to 67 per cent.

While recruitment problems don't seem to have had much impact on barstaff pay, pub managers' wages do reflect the battle between major pub companies to hold onto talent.

In the biggest high street venues, managers can earn up to £40,000 at an early stage in their career. The report quotes recruitment agency Berkeley Scott in saying that "the large number of sales and acquisitions has resulted in a number of 'golden handcuff' packages.

"Owing to the skills shortage problem facing the sector there has also been an increase in salary levels to try and attract employers from other sectors," the report adds.

But there are wide variations in managers' pay, which can be as low as £25,000 a year for a manager in a £1m turnover house operated by a regional company, and fall to £16,000 in a smaller pub.

Area managers' pay broadly depends on whether they are looking after managed or tenanted pubs, and there is less discrepancy between national and regional operators.

While it can rise to £45,000 in the managed sector, where area managers, theoretically at least, have a greater responsibility for the success of the business, the highest registered pay on tenanted estates is £35,000.

Similarly, regional managers can earn up to £75,000 at a managed company and £60,000 at a tenanted group.

• The information in Labour Market Review 2002 is designed to help the proposed Sector Skills Council for the hospitality industry develop a workforce strategy for training. The report is available from the HTF's publications department on 020 8579 2400 priced £59.

Source: HTF/Office of National Statistics​

Source: HTF​

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