Are Hospitality Workers Getting a Pay Rise?
Are hospitality workers getting a pay rise? A new study from Hari, a company specializing in labor scheduling, shows that the hospitality industry is in a bidding war for top talent. As a result, nearly a third of hospitality companies plan to give their employees two or three pay increases next year, in addition to minimum wage increases. That means that more workers will get a raise this year, and fewer will have to stay put until the next round of hiring begins.
(Looking for innkeepers insurance? Contact us for more information!)
Market wages in hospitality have increased by 3.5% this year
The leisure and hospitality industry posted strong job growth in April, with wages increasing by nearly 3% year-over-year. It has also seen its average hourly wage increase accelerate from 2.3% in April 2016 to 3.44% in February of this year. This increase is a result of stronger demand for employees and increased wages. However, some factors could slow the pace of wage growth in the industry. First, a shortage of workers could lead to a lower average hourly wage.
The growth in wage rates has slowed in recent months, primarily because of faster inflation. The leisure and hospitality industry still faces the largest employment gap in the country, but it is closing the gap each month. Consequently, market wages in hospitality are now 6% higher than the national average. Despite this slowdown, employment growth remains strong and wages are expected to rise further in the coming years. However, there are several idiosyncratic factors affecting wage growth, which are contributing to the current low unemployment rate.
Restaurant industry award wages have increased by 4.75% this year
The increase in the wages of restaurant employees is due to the ratification of the new rule set by the Australian Fair Employment Standards Agency (AFSEA). These rules have been outlined in the new legislation and have been in place for over three years. Under the new rules, employers can set higher “exemption rates” for their employees rather than penalty and overtime rates. This is a big deal for restaurants, which may need to raise their rates to keep up with the growing costs of running the business.
The Restaurant Industry Award covers thousands of businesses, from stand-alone restaurants to those that are connected to a hotel. The award covers employees in restaurants that serve food in locations outside of the point of sale. Restaurant industry award wages have increased by 4.75% this year. But, there is more to the restaurant industry award than just pay increases. The Award includes provisions covering overtime, shift breaks, RDOs, public holidays, and other conditions of employment.
Minimum award wages have increased by 3.4% in 2022
The National Minimum Wage (NMW) will increase from 1 July 2022, but this change will affect only certain categories of businesses. Some award categories will see increases in July, while others will not increase until October 2022. Hospitality businesses will have longer to adjust their payroll and accounting systems to the new rates. Employers can also contact the Fair Work Ombudsman to learn about changes and the new rates.
The federal minimum wage applies to federally regulated private businesses, as well as to interns and those employed by the postal service. It also covers air and interprovincial transportation, as well as courier services. This change will affect about 955,000 workers, primarily minimum-wage employees. Nevertheless, many workers still fall under this threshold. This increase is good news for workers and their families, but there’s no need to rejoice just yet.
Hotel industry award wages have increased by 3.4% in 2022
The race for talent is heating up, and the hospitality industry is no exception. The highest wages will win the race. Operators who fail to keep pace with this trend will lose their talent pool to more accommodating competitors. The hospitality industry must assess its staffing needs and increase wages accordingly. Higher wages will lead to increased turnover and layoffs, putting more strain on day-to-day operations and overall business performance.