Leisure businesses plan to increase wages in coming year, according to Barclays survey

Just over half (51%) of businesses said that wage pressure from employees was not an issue, despite inflation and rising costs; 24% said it was a concern to some extent and 25% said it was a major concern.

Staff levels​

Meanwhile, 47% plan to increase staff levels over the next 12 months. There’s more intent to make senior management appointments (27%, up from 20% in the previous year), with slightly fewer targeting staff at middle/junior management level (73%, down from 76%) and at low and unskilled level (66%, down from 83%).

When asked, prior to last week’s falling unemployment announcement, when they thought unemployment would fall far enough to trigger an interest rate rise, 51% of companies said by the end of 2015; 25% think it will happen during 2014 and 16% think it will be in 2016.

Apprentices​

The Barclays Employers’ Survey 2014 also found that 16% of businesses have taken on apprentices over the past year and 31% are looking to take on apprentices in 2014. More than one in four (27%) are likely to hire freelancers/contractors in the next 12 months with the main reason being that they are more flexible (65%); 13% gave the reason that it’s cheaper.In addition, 46% said they’re struggling to get sufficient skilled labour.

Mike Saul, head of Hospitality Leisure at Barclays, said: “As confidence returns, it is encouraging to see that the majority of businesses in the Hospitality Leisure sector are looking to increase wages in the coming year which demonstrates optimism within the industry.

However, whilst wage rises are no doubt welcome news to employees, they will increase inflationary pressure as the year progresses.”