NICs rises: One-in-five hospitality businesses planning redundancies
Research from Zest, the employee benefits technology provider, and Opinium has highlighted that almost one-in-five hospitality businesses (18%) are planning redundancies this year due to National Insurance Contributions (NICs) rises.
The survey also showed that 94% of hospitality employers believe that the increase in employer NICs means that employees are not expecting a pay rise this year.
Among surveyed sectors in the research, hospitality and leisure has the highest proportion of employers who have not been able to afford keep up salaries with inflation over the past 12 months.
In more grim reading, 27% of hospitality and leisure business have lost talent in the past 12 months due to not being able to increase salaries. Although salaries are vital for staff retention in the sector, 65% of employees in the sector say that benefits packages are the most important thing they look for in employment, according to the Zest poll.
The most sought after benefits for employees in the sector include private medical insurance (41%), increased pension contributions (38%), workplace saving scheme (26%) and paid mental health leave (22%).
Matt Russell, CEO of Zest and Epassi UK, believes the industry needs to get wise to the retention potential of benefits packages.
He said: “It’s a hugely challenging time for businesses across the hospitality sector but retaining talent is key to unlocking future growth.
“Benefits are a cost-effective approach to reward and retain employees, but too many packages offer poor value for both employer and employee. It contributes to a more compelling workplace proposition, providing targeted support for employees, making them happier, more productive and more engaged at work, which in turn, provides increased value and a better ROI for businesses.”
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