UKHospitality report highlights ‘realities of pay within the hotel sector'

Nine of 10 of the lowest grade roles within the hotel sector offer salaries 10% to 20% above the minimum wage, a new report into pay conditions in the sector has revealed.

The report by accounting and advisory firm Moore Stephens in partnership with Buell Consulting Group and UKHospitality, confirmed that general managers and head chefs are the highest earners in the hotel industry.

It also showed that employees in hotels are likely to earn 24% more working in rural areas compared to those in town centres.

However bonuses, where offered, paid by town centre hotels tended to be twice those paid by hotels in rural areas. General managers in town centres were found to be paid bonuses of around 50% of salary, whereas general managers in rural locations were typically paid bonuses of up to 25%.

Kate Nicholls, UKHospitality chief executive, said: "Jobs in the hospitality industry are often dubbed as low paid. However, this report highlights the realities of pay within the hotel sector.

"With our sector facing a well-documented skills shortage in the wake of Brexit, it is vital that we show just how rewarding hospitality jobs can be.

"We are encouraging school leavers, returners to the job market or anyone considering a change of career to apply for a role within the hospitality industry. As this report shows, it is entirely possible to end up earning a salary of £75,000 as a hotel general manager or £50,000 as a head chef, with many more jobs paying above the national average."

The survey covered roles in general management, banqueting and events, food and beverage, kitchens, rooms, engineering, gardening, sports and fitness, human resources and finance, sales and marketing.

The report also explored gratuities and hotels' policies as to how service charges are distributed amongst employees, as well as the percentages of the split. 50% of hotels levy a F&B service charge; out of them, 80% distributed 100% and 20% distributed 95% of the amounts collected after a deduction for administration costs.

When it came to cash tips, 83% of hotels allowed staff to keep the entirity while 75% of hotels that permitted credit card tips distributed 100% to employees. 8% did not share any credit card tips with employees.

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