More than two thirds of hospitality businesses expect to increase their employees' wages in the year ahead.
That's according to the Barclays Employers' Survey 2014, which questioned 684 businesses across all sectors.
A total of 69% of businesses in the hospitality and leisure sector are planning a wage increase. Despite inflation and rising living costs, just over half (51%) of businesses in the Hospitality & Leisure sector said that wage pressure from employees was not an issue, whereas 24% said it was a concern to some extent and 25% said it was a major concern.
When it comes to hiring, almost half (47%) of respondents said they are planning to increase staff levels over the next 12 months.
Looking the roles hospitality and leisure businesses are looking to fill over the next year, the survey shows a jump in intention for more senior management hires, to 27% (2013: 20%), indicating an interest to hire top talent to drive strategy. A slight drop in the number of employers looking to recruit at middle/junior management/skilled levels was reported, 73% (2013:76%), and also in the number looking to increase jobs at the low and unskilled workers level, 66%, down from 83% last year.
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 in the Hospitality & Leisure sector think by the end of 2015, 25% think it will happen during 2014. While, 16% think it will be in 2016.
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 and 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."
Key findings in the hospitality and leisure sector include:
• 16% of businesses have taken on apprentices over the past year and 31% are looking to take on apprentices in 2014.
• 27% are likely to hire freelancers/contractors in the next 12 months with the main reason being that they are more flexible, 65%, as well as for the reason that it is cheaper, 13%.
• 46% of businesses are struggling to get sufficient skilled labour.