What causes staff shortages in Irish hospitality?

The skills shortage in Ireland isn’t just a minor hiccup. Back in 2012, more than 71% of hospitality businesses increased pay in a bid to attract staff to tackle the issue. An issue that’s still very much top of the agenda in 2024. But first, we need to understand what’s driving it:

1. Demographically Ireland is changing: Ireland's aging population, which is expected to be 1.56m of those aged 65+ by 2051, and declining birth rates are leading to fewer young people entering the workforce. This means that, put simply, there are just fewer employees available to the sector.

2. Trendy job titles and fancy offices are more appealing: The competition for talent here is fierce. Other sectors like technology and finance offer more money and benefits (the Google office effect), taking potential employees away from hospitality. It’s hard for a local pub or a small independent hotel to compete with the perks offered by big tech firms in Dublin!

3. As a workforce, staff don’t stay in roles for long: Hospitality is known for its high turnover rates. The busy nature of the work, combined with lower wages and long unsociable hours, pushes many employees to look for opportunities elsewhere, with many reluctant to return post pandemic. In particular, the retention of chefs, especially experienced chefs whose skills are in high demand. After all, a well-run kitchen is the foundation for F&B success!

4. Ireland only has two seasons: Tourism in Ireland is highly seasonal. Places like Galway and Killarney, a town which generates €410+ Million each year, buzz with tourists in the Summer but slow down significantly in the off-season where room occupancy rates drop to a mere 20%. This makes it tough for skilled workers to nab stable, year-round employment.

5. It costs a lot of money to run a hospitality business: The increasing costs facing hospitality businesses can make it harder for them to attract skilled workers. These include potential changes like minimum wage increases or a shift to a living wage, plans for mandatory pension contributions, expanded sick leave benefits paid by employers, and rising employer PRSE contributions. On top of these, there are the ongoing pressures to fill those high-volume roles and manage other business expenses, such as advocating to keep the 9% VAT rate.

What is the impact of staff shortages on hospitality operators?

The shortage of skilled employees in our sector is hitting hard across the board and its ripple effects are being felt by all throughout our much-loved industry.  

1. The quality of service takes a hit: When there aren’t enough skilled staff members, it’s like trying to keep a ship steady in rough waters. Customers might find themselves waiting longer than usual for their order or the plain burger they requested is not quite, eh plain! It’s quite disheartening to go to your favourite local pub or restaurant and find the service slower or less attentive than usual.

2. The inner workings become much slower: Behind the scenes, in the kitchen and hotel back offices, the crunch is felt too. Tasks that used to run like clockwork now need a little oil. This can mean delays in getting food out to tables, longer queues for check-in, or slower responses to guests’ requests. It’s not just about getting the job done; it’s about having the staff and technology to do it well.

 3. Staff morale can take a dive: For the staff who are holding down the fort, it can be a tough gig. They’re stretched thin, covering for other staff or positions not filled and feeling the pressure. Overworked and stressed, it’s no surprise that burnout becomes a real issue, and it can be upsetting for employers to see their staff frazzled.

 4. Customers are unhappy: When it boils down to it, it’s really about the customer experience. Whether you’re a local dropping by for a coffee or a tourist soaking in the gorgeous Irish countryside, a not-so-great experience can really dampen the mood. When service isn’t good, customers can become unhappy. These days, with everyone connected online, a negative review can hurt the reputation of our much-loved hospitality spots.

Here are our top strategies to address the shortage

Dealing with the shortage of skilled employees in Ireland’s lively hospitality sector requires some practical strategies. Here are a few that we know are making an impact:

1. Investment in training and development: One key strategy is investing in robust training programmes for your team which can help to develop the skills of existing employees and also attract new talent. Access CPL Learning is our comprehensive learning platform through which you can deliver tailored training programmes for your business that help to build confidence and provide opportunities for career development. For example, it can help staff at all levels across all job types in the business, from trainees and new hires to management, to gain essential skills needed to perform their tasks better, to improve service standards and to make the team more engaged with their role, with each other and with your customers.

2. Collaboration with educational institutions: Partnering with schools, colleges and universities can help to create a pipeline of skilled workers. The Merrion Hotel in Dublin does so by offering internships and apprenticeships. Which not only introduces young talent to the industry but also ensures a steady supply of skilled workers.

3. Embracing flexible work arrangements: Offering flexible work schedules can make hospitality jobs more appealing and can help to attract a more diverse workforce including students, parents and retirees. In a study by Failte Ireland, 69% of hospitality businesses responded to the skills shortage by offering more flexible working patterns and nearly two-thirds are guaranteeing staff “predictability” about their working hours.

4. Offering competitive compensation and benefits: To attract and retain skilled employees, the hospitality industry must offer competitive salaries and benefits. This includes not only fair wages but also benefits such as health insurance and pensions and above all notable career progression. The Shelbourne hotel in Dublin is known for its high retention rates, which is needed to maintain the service of a busy 5-star hotel.

5. Harnessing technology for better results: Technology can play a crucial role in helping the shortage of skilled employees. Automation and digital tools can help to reduce the burden on staff and management. For example, The Europe Hotel & Resort in Killarney uses Procure Wizard to streamline procurement processes whilst The Marker Hotel in Dublin uses Rotaready for efficient staff scheduling, both of which helps in optimising operations and enhancing employee satisfaction.

Retain your staff and thrive with hospitality tech

At Access Hospitality Ireland, we are all about helping you tackle the skills shortage with smart solutions. We're committed to helping Irish hospitality businesses thrive, even in demanding times, in times of uncertainty and in times when the pressure is on. Here’s how our tools can make a difference…

Rotaready makes staff scheduling a breeze. This tool simplifies scheduling, cuts labour costs and boosts efficiency. Your staff will be much happier with balanced rotas, allowing them to deliver top-notch service, stress-free, whilst enjoying a better work-life balance.

CPL Learning empowers your staff with tailored learning and career development opportunities. This tool delivers courses that build confidence and skills, offering your staff opportunities to grow and excel, making them feel much more valued and motivated in their role.

By using these advanced tools, you can streamline operations, improve efficiency, and better manage your workforce, making it easier to navigate the challenges of the skills shortage.

Are you ready to tackle staff shortages?

In this article we’ve looked at the shortage of skilled employees in Ireland's hospitality Industry, its causes and impact and practical strategies from training and education and flexible working solutions to embracing technology, helping you to retain a more skilled and motivated workforce.

If you’re ready to take the next step to tackle staff shortages, why not explore how you can elevate career development in your business by talking to our team.