6 million Boost For Tourism

Scottish tourism related businesses are being invited to participate in a programme that will deliver an estimated 6 million in reduced recruitment costs and increased sales.

The key to the pilot projectís success will be expert advice and assistance on what they need to do to retain their employees.

The Scottish Enterprise funded initiative follows new research that shows the poor perception of the tourism industry in relation to pay and its ability to recruit employees is based on myths not facts.

A detailed study reveals that the industry which employs 215,000 people does not offer the lowest wages.

The same report also confirms that tourism, which is worth 4 billion a year to the Scottish economy, finds it no more difficult than any other sector to recruit new staff.

The in-depth analysis of labour market intelligence relating to the tourism industry, which supports one in ten Scottish jobs, was undertaken by Futureskills Scotland.

The study was commissioned to help the industry understand the issues and challenges it faces in a tight labour market in order to compete effectively with other industries for new employees and then hold onto them.

The research reveals:

turn-over of staff by tourism businesses is double that of other industries

it costs the average business in the sector 40,000 a year to replace staff

The high turn-over rate can be explained in part by the fact that tourism has twice as many employees in the 16-24 year old age bracket than any other industry while almost one fifth of staff are fulltime students.

The reportís findings have been used to develop the new Recruitment and Retention programme that will be delivered by Springboard Scotland over the next 15 months.

Eddie Brogan, head of the Scottish Enterprise Tourism Team, said: ìImage and perception are crucially important to any industry in its recruitment efforts. This report indicates that in the key areas of recruitment and reward tourism is perceived more harshly than it deserves.î

ìIn terms of retaining staff the industry does perform badly. Staff turn-over is an issue of concern that must be addressed. It damages reputation, undermines the excellent career options available, lowers morale and affects customer service and visitor experience.î

He added: ìThis new programme offers the opportunity to reduce the numbers leaving the industry saving millions of pounds in recruitment costs for reinvestment in improved facilities and staff training. Most importantly successfully tackling the issue will help remove a serious constraint on the growth of a vitally important industry and raise Scotlandís reputation as a must visit destination.î

The programme will involve:

A series of 17 interactive workshops across Scotland that will highlight best practice techniques, management and staff development, provide an overview of the industry including labour market information and recruitment costs

Establishment of local recruitment partnerships

Provision of a Recruitment and Retention resource pack

A national Recruitment and Retention Conference to raise awareness and highlight solutions

The workshops will run from January to May and be held in Dundee, 23 January; Renfrew 24 January; Lockerbie, 26 January; Bridge of Allan, 1 February; Newton Stewart, 7 February; St. Andrews, 13 February; Aberdeen, 15 February; Clydebank, 21 February & 10 May; Peebles, 28 February; Glasgow, 7 March & 16 May; Perth, 9 March; Edinburgh,15 March & 18 May; Kilmarnock, 21 March; Lanarkshire, 9 May.

A small charge of 25.00 VAT will be made for attending the workshops.

Marlyn Howitt, Director Springboard Scotland, commented: ìThe tourism industry in Scotland has demonstrated in the way it has adapted to overcome the impact of events like foot and mouth and acts of terrorism, that itís innovative, dynamic and embraces change.î

She added:î With this programme we will work with the industry to apply the same innovative approach it has embraced in offering visitors a quality experience, to enhancing the career experience of its staff and potential employees. If we are really serious about people being our key asset we have to ensure they have a quality work and career experience. Only enthusiastic and committed people will deliver the excellence of experience todayís visitors demand.î

It is estimated that the Recruitment and Retention programme will boost turnover among the companies who participate by a total of 3 million a year and save them another 3.25 million on recruitment costs. The increased growth in business is expected to lead to 300 new jobs being created.