Reading through the latest hospitality report from the Caterer.com job website released this week unfortunately doesn’t make particularly happy reading. Whilst the Governor of the Bank of England talks about signs of recovery, it is clear that the Hospitality sector is still having a challenging time which naturally impacts on the people that work within it. So what are the numbers telling you about the sector and your employment prospects?
Looking at the numbers from the Caterer report there is a clear decline in the number of vacancies with a fall of some 10% on the previous year. Unfortunately for job seekers, this was matched by a 4% increase in the number of job applications. This reinforces what we are seeing in the market, that the job market in hospitality remains extremely competitive. In fact, looking at the previous caterer report we can see that in fact the decline in roles has actually accelerated from an 8% decline to a 10% decline and that the increase in applications has also accelerated, moving from a 2% increase to a 4% increase. Such dramatic falls can be reconciled by a number of factors, firstly that due to the on-going economic uncertainty people are “sitting tight” which is actually reducing “churn” in the market. However it can also be attributed to the continued economic challenges that are causing businesses to remain cautious about their investment in people. Without doubt though over the last four years, many businesses have chosen to invest in developing and retaining their existing staff as the most cost effective people strategy.
Across the sectors, there has been mixed performances. Some sectors have fared better than others with the Pub sector continuing to face very challenging times. According to figures from the Office of National Statistics, over the last 5 years there has been a 14% decline in the number of pubs. Interestingly according to those statistics in 2011 5,505 new pubs opened but some 6,115 closed indicating the significant churn and instability in that sector. This also reflects the changing nature of the market as pubs adapt to trends in the market with many now diversifying into more food-led operations.
However, there are some good news stories out there and reading the M & C report each day certainly gives me some hope. As expected, there are always winners and losers and in this highly competitive sector, those businesses that have their proposition right and are able to communicate this effectively to their customers are prospering. Whitbread for instance recently released some stellar results with like-for-like sales up 3.7% and yesterday The Restaurant Group’s shares reached an all time high on the back of the strong results they released yesterday showing a 4.5% increase in their like-for-like sales.
The Hospitality sector continues to be an incredibly dynamic and exciting industry. Trends and customer needs are constantly changing. New concepts, designs and formats are constantly being designed and launched and those that satisfy and capture the needs of the market will reap strong rewards.
So what do these statistics say about your career in Hospitality?
Firstly, it shows the sector continues to face challenges and that the competition for roles remains as intense as ever. This reinforces the need for candidates to prepare effectively for their job search and to ensure that, when they do secure an interview, that they are able to perform exceptionally well. By conducting thorough research into the brand including site visits and SWOT analyses when appropriate, ensuring that you are able to provide tangible examples of your achievements and by giving evidence that you possess the capabilities required for your target role, you will have an edge over your competition.
It also shows that different sectors are performing better than others and within each market there are clear winners and losers. With rapidly changing customer needs, businesses need to change, adapt and evolve and those that do will outperform the market strongly. By keeping in touch with developments in the sector as a whole, you will be able to assess where the growth areas are likely to be and which businesses will offer you the most career development. Industry publications such as the Caterer and the M&C report are invaluable however, keeping in touch with your personal network of contacts is also hugely effective in keeping tabs on what is happening in the industry and what opportunities this could present for you.
To be successful in your job search in the current market, you must focus on those roles where your skills are most transferable and where your experience is most relevant. By doing this, you will maximise your chances of success when a precious vacancy arises.