Statistical Trends In The Hospitality Market Commerce Essay

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Hospitality industry is growing all over the world. And the manpower is utmost important for any organisation for growth. Hospitality, leisure, travel and tourism sector has achieved great success for u.k economy. It has enjoyed a sustainable growth from nearly last 30 years and share about 5% of total economic output.


Many changes have been done in HLTT sector from last five years. The restaurant and casinos has increased their manpower up to 9 to 16% respectively. The bar, pub and night club has decreased their manpower by 9 to 3% respectively. In last 1 year bar, pub and night club industry has been going down rapidly. Even as per Britain report bar and pub sector have already started closing 10 times rapidly in 2006. And in 2008 the manpower is decreased by 19% in above sectors.

As compare to hospitality sector other occupational sectors like I.T, Hospitals, marketing etc are increasing the manpower due to the huge demand. Where as in travel industry the travel consultants are decreased the man power by 30% within last three years. As per the research approximately 19% of all sector vacancies are decreased due to of skilled employees, probably in kitchen chefs has no demand because everybody needs for experience chefs.

Even though the world is developing and improving there is huge difference between men and female workers, the number of female worker are less than men worker in hospitality industry. The females working on managerial level drop by 46% in 2008. Also 55% of women working in hospitality sector are doing part-time job where men are just 31% doing part-time job.


In United Kingdom the number of unemployed people is increasing day by day and it is worst now. The number of unemployed people increasing rapidly it was 47,875 in Feb. 2008 and it is 75,345 in Feb. 2009. This huge difference shows that nearly 1.8 people in u.k are searching for work in HLTT sector.

In HLTT sector employers are reducing temporary employee by 23%. And it is worst in food and service management by 29% and pubs, bar and night clubs is more by 30%.

The hospitality industry in the u.k economic the labour turnover is higher than other occupational sectors due to economic downturn it change from 30% in 2005 to 31% in 2008. Because of this downturn the owner has to spend millions of pound on training and developing their employees in the year of 2008/09.

Due to the huge demands of chefs employers find it difficult to recruit new chef, because he is the person who plays an important role for the organisation business. Employer need to find appropriate and skilled chefs to be recruited.


Recession has hampered both organisation as well as the employee. Because of recession the overall size of manpower drops by 1%. It results in to less job vacancies in hospitality sectors.

After long time due to recession employers are having choices to recruit skilled staff, because before vacancies were more and number of people to work were minimum. Although 53% employers from different sectors also agree that more attention would be given on qualification while recruiting.

However recession helped many employers to know about cost cutting by recruiting skilled staff and to decrease unneeded recruitment cost.

As we agree that manpower is so much important for every organisation. Manpower is more effective than technology because we should not forget that technology is also created and handled by man. And how need for manpower has changed in certain years but however manpower is required by every sector and industry.

Reference: (unknown, 2009)


In today world the hospitality sector is improving and developing rapidly, it covers restaurants, hotels, pubs, bars and night club etc. AS hospitality sector is growing the need for employee is also in huge amount. Every sector required manpower for smooth run of the business, so manpower plays an important role for any organisation or sector.

Employee is the one how has the power to makeup and breakdown the profitability for any business, so to retain the employee appropriate and effective management is necessary. The main function of the management is to keep the internal customer happy to satisfy the external customers. Human resource management is responsible for manpower planning and to make sure that employee are safe and sound. However, without manpower no sector or industry can achieve success in the business.

The sector which I have selected is fast food sector, today people are busy with their work and have a limited time to have food so, and many people prefer to have their food in any fast food outlet. The chosen outlet is "BURGER KING" which is known by many people and love to have food from there.

Burger king is most famous outlet in United Kingdom as well as many other countries. In u.k there are 381 outlets as it is chain outlet many more are coming in u.k. They serve nearly 15.7 million customer per day and 2.4million burger king hamburgers. It is third largest chain in the world. The manpower required is in huge amount and manpower planning is utmost important for the management of burger king. The proportions of male and female worker are similar and equal priorities are given to them, they train their staff and recruit skill staff to provide effective and efficient service to their customers. The important thing is even u.k is suffering through recession fast food sectors are not as affected as other sector do. Source: (unknown, burgerking, 2008)


Manpower is the strength and ability of the person, and planning basically decide where should one go and how to obtain there. Manpower planning is use to ensure that right person is selected for specific department and he has the ability to work effectively at specific place for the growth of an organisation.

Importance and Advantages of manpower planning:

Manpower planning is important to determine both over and understaffing can create a huge loss for the business, customers, and profit etc. so to redundant this problem right number of skilled staff should be recruited and specific work should be given to the employees.

Advantages of manpower planning are it helps to identify the expectation of the organisation. It also helps the employer to select the employee through their qualification, skills and experience. And it can help to meet the needs of the employees.

Source: (unknown,, 2009)


Labour market is consists of employees are looking for work and employer are seeking to fill vacancies. Labour supply is nothing but the total number of hours that employee desire to work at the basic wage given to them and it also the availability of right candidate in the particular labour market. Source: (claydon, 2007)

Current labour market is effective due to the high demand of employees; supply of labour is more beneficial to operate the business smoothly and effectively. Labour supply relates to both the employees who are working and also to unemployed. However, different age group of the workers has different capacity and skill to carry out the required work. As per law the national minimum wages are also similar as per the qualification, skills and post of the employee. Labour force is used to calculate the number of people who are employed or unemployed.

As fast food sector is improving and developing around the world the number of labour required is also growing. Mostly worker working are skillful and having multi tasking. Different age group people are working having different skills and wages. Many part-timers are working in fast food sectors but due to immigration many students are not able work more than 10 hours as per 2010 rule so due to the migration there are many vacancies so the adequate number of labour supply is required to meet the need of an organisation and to provide quality service. Source: (Geoff Riley, 2006)


Political, economical, social and technological factors are important factor for any organisation to understand how to operate the new business.


This factors basically deals with government rules and regulations, it is a law that every industry or sector should know before operating the new business.

So, according to the government law "burger king" need to pay the national minimum wages to their employees as per skills and ages of the employee. Organisation should follow health and safety law regarding their employees and proper attention should be given toward hygiene as per government policies. Taxes should be taken out (i.e. 31%) before handing pay check to the workers and environment should not been affected by any machinery.

The effect of the political factor on u.k is not good, because of visa policies are very strict and student can work only 10 hours a week organisation are affecting due to lack of skilled employees. The wage that organisation should pay as per u.k rule is 5.93p/h.


Economical factor used to identify the financial system of the organisation. The factors that affect the growth are

Inflation rate is the factor that affects the economic condition of the business; inflation is the constant rise in the price level of product and sales. It can be calculated by 'retail price index', and it helps the organisation to incline and decline their sales.

Labour cost will be more due to hiring, wages, training, insurance and pensions etc.

Due to recession, the profitability of the organisation would be affected due to labour turnover and many employees would be fired.


It contract with the demographic features of the society.

Lifestyle of the people are changing every now and then it is becoming better and better. So organisation has to go with them to meet their needs and expectations of the customer. Burger king has the ability to stand in the market and the change has been according to the customers need.

People have some standard and became more health conscious about the food. They want a perfect nutritious diet and many people are attracted toward vegetarian food. So burger king has started to sale a vegetarian diet and every meal with proper fats and calories.


Introducing new technology makes work simple and faster and save time. But due to technology the manpower required for an organisation is reduce up to certain limit and this help to employer to save money in the sense of wages, no necessary to recruit more staff etc.

Technologies factor include internet, machinery and automation etc. all this sources are important for better life. Burger king has huge machinery to save the time and can provide quick service to the customers; even online order is accepted in burger king.

source: (mind tools partner center, 2010)


Labour turnover is basically the number of employees recruited and the number of employees left out of the business. It may cause great if the required employees are not working and it may cause lower productivity and tends.

To calculate the labour turnover a simple mathematical formula is used i.e. the number of people leaver upon average number of employed multiply by hundred

Total number of leavers over period Ã- 100

Average total number employed over period


If 150 people are leaver and average number of employed are 2000, so it can calculated in following way,

150 Ã-100 = 7.5%


The labour turnover figure will be 7.5%for a year. It is also calculated in different ways but this is simplest one.

Effect of labour turnover on organisation:

Improper wages creates employee to move to our competitor.

It creates lack of confidence and motivation to our employee.

Improper recruitment process creates seeking another management.

Local market gives more opportunities to the employee and the cost would be very high in term of additional recruitment, production, and training and placement costs.

Mostly loss of sales and it may affect confidence and productivity.

Benefits of labour market:

The benefits of labour market are to bring some new ideas, skills and enthusiasm to the employees.

A 'natural' level of employee turnover can slightly reduce the manpower cost.

Source: (rilley, 2009)


Manpower is very important for developing the business of an organisation. Effective management is required for better working arrangement and proper staffing should be done.

Job specification:

Job specification is built up by job analysis. It describe the potential employee should be recruited for specific job. It also describe the skills, knowledge, experience and capacity etc are essential to perform specific job.

Job description:

Job description is useful to follow the specific task should be completed by specific employee. It includes responsibilities and duties that should be performed by the specific employee. It also helps to improve the standard and working condition for the employee.

Employment schedule, duty roster and flexible hours:

Employment schedule and Rota is looked after by store manager. Scheduled should be made according to the type and skills of the employee, it should be in systematic manner that who is going to work on which days and should be mentioned by the name and type of job he is going to perform and even at what time he/she has to finish the job. Manager is responsible for all the paper work including his own job. Flexible hours should be given to improve the standard of the service; no one like to work continuous for 8 to 10 hours, break time should be fixed for every employee to improve the productivity.

Source: (unknown, business link,practical advise for business, 2008)

Steps to improve labour turnover:

Employees or workers who are working should be satisfied.

Proper training should be provided to them for improving themselves.

Wage, overtime pay and incentives should be given on regular basis.

Management should be friendly and sufficient hours should be given to the employees.

All this steps are very important to improve our labour turn over.