Are you in the Hospitality Industry and struggling with Staff issues? Here’s how we can help you!


Recently, there has been a lot of noise in the media in relation to the vulnerability of people who work within the Hospitality Industry. Such people within the industry have come out to say that this vulnerability has been created due to a lack of Union presence within the industry.

One of this biggest challenges within the industry at the moment is the growth with the industry with more and more competition being created. This, in turn, creates another challenge for those within the Industry the finding and keeping of valued customers. So how do you as a business owner cope with these challenges? In short, you need good staff who have excellent customer service skills so your valued customers keep coming back and spending their discretionary dollars.

One of the major factors within the industry which can cause staff to have poor attitudes to their work and their customers, is their rate of pay. Most people who work within the Hospitality Industry receive minimum wage, or not far off minimum wage, with the rate of pay within the industry has been steadily decreasing since the 1980’s where back then, most people within the industry were earning around $27.00 per hour (figure has been adjusted to factor inflation). Given the Hospitality Industry is usually a stressful environment to work within, with food and drink needing to be prepared in a timely manner while still looking atheistically appeasing and tasting great.

You would have heard the common expression “I don’t get paid enough for this” and maybe that is what the problem is. Maybe staff within the Hospitality Industry are not being paid enough to care about the work that they do, given the high stress environment. So you could take Paula Bennetts view and implement a tipping based incentive system in your business in an effort to increase the quality of service, where “if you receive excellent service, you should tip.”

However, implementing a tipping system may not prompt your Employees to provide better service. Tipping is not common practice within the New Zealand culture when compared to countries such as the United States of America or the United Kingdom. As such, most customers probably would not know how to tip, or how much to tip. Then if you are using a communal tipping jar, a system has to be implemented in respect of how the tips will be shared between your staff, which could create even more drama in your workplace.

So you’re probably saying to yourself now, if tipping is going to create problems, maybe less problems will occur if the Union just comes in and sorts it out. Well actually, we would beg to differ on this point. Given the upcoming changes to employment legislation (see more articles about these changes on our website), it is clear that Unions will possess more power than Employers in terms of workplace access and bargaining power. So if the Union is involved in negotiating a change for your workplace after the employment law changes come into force, it is more likely that you will end up in a position that you are not 100 percent happy with.

This is where we step in. We are able to provide advice in respect of what policies and procedures you could implement in your workplace that may lift staff morale which in turn, may spark better service. We can also help you with updating your employment agreements, not only to ensure legal compliance, but in a manner that could lift staff performance and morale.

Don’t leave it to the Unions or tip jars to dictate how improvements could be made in your workplace, take the power back and call us so you can implement improvements that will be right for your business and your staff. Give one of the team a call on 07 838 0018, we look forward to hearing from you.

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