Does your business strategy focus enough on people?

Recruitment and retention issues have dominated the pages of Caterer in recent weeks, and much of this debate has been inaccurate. Some of the criticism aimed at recruitment agencies is justified, some of it isn't; there are good and bad consultants, just as there are good and bad hoteliers. The important point is not so much the criticism, but the cause of the criticism.

Some employers get understandably upset when an expensive recruit leaves within a short time. Employees get similarly upset when they feel that their employer has not met the promises made during the recruitment process. The real problem is one of expectation and cost.

Recruiting high-calibre individuals is expensive and the average company's recruitment costs are increasing by about 9-11% per annum. For a small- to medium-sized business, this can equate to between £30,000 and £50,000.

At the same time, salaries for middle to senior managers have increased quite dramatically over the past three years. Therefore, the cost of manpower has probably increased at a far faster rate than any other business expense.

Candidate-led market conditions also lead to rapid movement and less loyalty. This is not ideal for the employer, as the cost of losing a middle manager can add up to five times that person's salary when recruitment costs, time, lost team morale, lost customer sales and training and induction programmes are taken into account. Is it surprising, therefore, that employers feel uneasy about recruitment?

If the cost of any other business resource increased at a similar rate, businesses would implement specific plans to deal with the resulting problem.

And yet, for some reason, this has often not happened in the area of recruitment. Most companies have focused sales strategies that aim to achieve 20% growth, purchasing strategies to achieve 5% savings and yet do not adopt recruitment strategies that can add expertise to the organisation or save money.

Employees often feel a great weight of anticipation when they enter a new role, and they are often defeated by their own and their employer's expectation of performance.

There has developed a culture of expected immediate impact, which can become a negative factor. Often, new employees feel they cannot meet the expectations placed upon them and it undermines performance.

Initial support is so important because, if the appointee feels secure and comfortable, he or she is more likely to perform well. Hospitality may demand strong, self-motivated characters but people, however strong, still feel vulnerable in a new role.

Good work performance is often influenced psychologically rather than being skills-oriented. It is important for an employee to feel comfortable within the culture of an organisation or team. A good manager will perform well in one culture but not another.

Culture and core values are extremely important factors in recruitment and yet they are often misunderstood. Recruitment is a very complex business and a successful appointment requires many parts of the jigsaw to fit. Often, time is simply not invested in consideration of the psychology that lies behind a successful appointment.

There is a parallel between good induction programmes, providing time for the newcomer to adjust, and successful appointments. I have often listened to stories of new managers being thrown in the deep end. On these occasions, when the employee has so much choice on the market, is it so surprising that they decide to leave for new pastures?

The economic market is changing and no one is quite sure what to expect over the next 12 months. Each sector is reporting different levels of performance and there is a need to focus on the major influences at play within the marketplace.

One of the real challenges to face is the retention and support of good managers. Hospitality is losing many capable managers to other service sectors, as they are often disillusioned with the industry.

There is a need to reclaim and inspire these lost people, but it will happen only if the industry really focuses on its people, acts on the debate and moves the standard forward.

Chris Sheppardson is the managing director of international recruitment specialist The Chess Partnership