One of the biggest issues facing the hospitality industry at the moment is staff. High staff turnover, rising NIC costs and an increase in wages are all common challenges that hospitality owners have to juggle. 87% of UK hospitality owners are concerned about rising staff costs, while 27% are concerned with staffing shortages (KAM Insights, 2025).
However, there are ways to combat these common staffing challenges:
1. Staff Shortages
Staff shortages are not a new issue in hospitality, but they’re still a prevalent one. Many businesses operate while understaffed and under pressure.
One way of easing the pressure is adopting technology where possible. There are softwares and tools available to streamline a lot of daily tasks, such as rostering, tipping, and hiring processes. This leaves you and your staff free to focus on other tasks instead of getting bogged down with admin and time-consuming chores.
Another avenue to explore is staffing agencies. There are many agencies in the UK that provide agency staffing specifically for hospitality businesses, giving you access to an entire talent pool tailor-made for your industry.
The most important way to manage staffing shortages, however, is to focus on retaining your existing team. Promoting a good work-life balance, using a strong Tronc system, and promoting internal training and progression are all good ways to keep your staff satisfied in their role.
2. Rising Wages and NIC rates
The minimum wage has risen to £12.21 this year, as well as a rise in NIC rates to 15% for employers. This is putting more pressure on business owners in the hospitality industry. However there are a few ways to plan ahead and reduce costs in the long run.
Revising your roster can help balance out costs, and help avoid understaffed shifts during busy periods and too many idle staff on days when there’s less footfall. This can balance out wages as well and help you manage.
A Tronc system in place can also help save you money, as you nor your staff are liable to NIC payments on tips and service charges with one in place. Find out more here.
3. Employment Laws and the Allocation of Tips Act
The upcoming Employment Rights Bill will mean changes for most businesses. New laws such as day-one rights, notice periods for shift changes and protections against unfair dismissal will all have an effect on how you manage your staff.
The key to managing this challenge is preparation- read up on the upcoming bill and make sure your business is prepared in advance. This will help you to avoid any possible fines, disputes, or even tribunals.
As for the Allocation of Tips act, a good Tronc system in place, such as JustTronc will ensure that you keep on top of legislation to avoid fines and disputes. Not only this, it will save you and your employees NICs on tips and service charges as well.
