UK Hospitality and Economic Impact

1.0 Introduction

Hospitality is one of the creative industries, which contribute significantly to the UK’s economy. Notably, this industry ranks fourth in the UK, and its contribution to the UK economy is noted to be in excess, at approximately 130 billion (Janta, 2011). It is also evident that the hospitality industry is the sixth largest contributor in terms of export earning, and poses as UK’s fourth largest employer, employing approximately 3million people (Brotherton, 2012). Notably, the hospitality and tourism industry in the UK serves over 46,500 businesses, which include hotels, the shared economy, leisure outlets, serviced apartments, stadia, as well as the private rented sector amongst others. Based on the recently noted growth, it is estimated that the UK tourism and hospitality industry will need to create more employments to approximately 518,000 employment jobs by 2021 (Kusluvan et al., 2010). According to the definition provided by Ramiah et al. (2017), Brexit, a portmanteau, refers to a combination of the terms ‘British’ and ‘exit’, to mean the UK’s withdrawal from the European Union (EU). This pending withdrawal was noted from the 23rd June 2016 referendum by the UK where 51.9% of those who voted significantly supported the withdrawal from the European Union, the referendum represented a 71.8 per cent turn out; more than 30 million people voted (Gifford, 2017). The European Union is an international organization, and thereof being a regional and economic integration. The freedom of movement through the EU led to a higher rate of employment within the UK hospitality sector, and this included recruitment in five-star hotels in Central London. It is evident that it led to a larger number of migrants coming to live and also work in the UK. However, following the vote supporting UK to leave the EU, implied that the UK government would control the entrance of migrant workers from the EU, whilst negotiating the Brexit CIPD (Brotherton, 2012).

1.1 Background information

Since the Schengan treaty was implement, in order to abolish the borders, which existed between EU state, European citizens had the right to move freely, right to work, right of residency, right to education, and they could have significant benefits in the countries, which they chose to live in (Janta et al., 2011). Of importance is the fact that the movement freedom had a positive impact to various industries, including the hospitality industry. However, over the years, there was a rapid increase in the number of EU migrants, and this led to the growth of anti-sentiments, based on migration policies (Campos-Soria et al., 2009). In this regard, many politicians, and a larger percentage of the population in the UK started campaigning, towards leaving Europe. The conservative party made its manifestation in 2015 to involve a referendum regarding the membership of UK in the EU. The referendum was conducted and the UK voted democratically to leave the EU. Notably the UK’s approach towards employment creates a great challenge on the hospitality industry, following the Brexit (Rumney, 2017). Brexit has hindered people’s freedom of movement, and presently, there are no new immigration being allowed in the UK hospitality sector, thus affecting the recruitment in five-star hotels in Central London (Boella & Goss-Turner, 2013). The challenge is then presented as the industry should purpose on recruiting an addition of approximately 63,000 UK workers yearly, in order to maintain their activities and to enhance significant growth. It is seen as implausible, when five-star hotels in London face low unemployment, and thus, record a higher level of the rate of employment (Sumption, 2017). It is evident that five-star hotels in Central London are presently experiencing the lowest levels, in terms of labour productivity in the UK economy. However, since the UK started experiencing an economic downturn, there has been a higher growth of labour productivity in any industry, and this is double, the overall UK economy’s growth rate. The hospitality industry has had an improved capital use, even during the times when the capital efficiency in the UK economy deteriorated (Tilford, 2015). Notably, labour productivity improvements are key to wealth creation, as well as economic progression, thus indicating that labour-intensive industries play a significant role in employment, in a bid to preventing social harm, which are connected to high rates of unemployment. In order to improve labour production in five star hotels in Central London, the Brexit immigration system should purpose on enabling the hospitality sector to be able to recruit a high number of EU workforce, in order to meet the present requirements, and to enhance significant growth (Kyambi, 2018). Moreover, whilst the numerical numbers cap through sector work permit is regarded as necessary, it should be made that the process involved in obtaining the permits needs to be inexpensive and also speedy. In line with this, work permits ought to be for 5 years, and they could be extended through drawing upon future allowances (Wadsworth et al., 2016).

1.2 Aim

The impact of Brexit is noted to have brought forth significant impacts on the process of recruitment in five-star hotels in Central London, owing to the fact that these hotels are forced to adjust to the changes, in order to maintain the stability of their businesses. The various impacts will be discussed deeply in this study, thereby, making the primary aim of this study to be as follows:

Primary aim of the study:

To assess the impact of Brexit on recruitment in five-star hotel in Central London

1.3 Objectives

In a bid to meeting the aim of the study, it is evident that is was wise for it to be broken down into achievable objectives. These objectives are as provided below:

To explore literature reviews on Brexit and staff recruitment, to aid in identifying the key concepts highlighted.

To investigate Brexit impact on the issue of staff recruitment in five-star hotels London

To evaluate the impact of Brexit on staff recruitment in five star Hotels in Central London

1.4 Research Questions

Furthermore, the objectives of the study, were formulated into significant questions, which if effectively answered in the study, would aid in meeting the study objectives, and consequently, the aim of the study. In this regard, the research questions are as provided below:

What are the Human Resource strategies in preparation for post Brexit, in five Stars Hotels in London?

What are the key concepts highlighted with the literature on Brexit and staff recruitment?

What is the impact of Brexit on staff recruitment in five star Hotels in Central London?

1.5 Purpose and Justification

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This paper purposes to provide a deep insight of how Brexit could potentially affect recruitment in five-star hotels in Central London. This topic is of significant interest because five star hotels in Central London are facing various challenges in recruiting workers, following Brexit, yet they should purpose on recruiting additional workers yearly, in order to maintain their activities and to enhance their significant growth (Boella, 2017). The implications of Brexit on employment needs to be looked into deeply, in order to provide significant justification for the same.

1.5 Structure of the study

This paper is divided into 5 chapters. The first chapter is the introduction chapter, is the introduction chapter, which clearly states the topic, the reason why it is of interests, background information, definition of special, as well as general terms and the aims, objectives, and research questions that guide the research. The second chapter, which is the literature review brings forth theoretical underpinnings that back up the existing evidence on the impact of Brexit on recruitment in five-star hotels in Central London. This chapter will first provide a brief overview of Brexit, then the overview of the hospitality industry in the UK and finally the impact of Brexit on recruitment in five star hotels in Central London. The third chapter is divided into three sections, which include the theory of the research (methodology adopted), a description of what was done (sampling theory and sampling techniques) and finally, the critique of the methods used (reliability and validity of the research). The fourth chapter is the findings and discussion chapter, which provides an analysis of the results, and a discussion of the results, based on the literature. The fifth chapter, which is the conclusion chapter, provides the main conclusions of the dissertation, thus illustrating how the aims, and objectives have been met, and how the research questions have been answered.

2.0 Literature Review

2.1 Introduction

This section of the paper brings forth significant theoretical underpinnings, which aid in backing up the existing evidence on the subject on the impact of Brexit on recruitment in five-star hotels in Central London. The section will first provide a brief literature on the overview of Brexit. Following this, it will provide an overview of the hospitality industry in the UK. Thereafter, this section will provide the impact of Brexit on the recruitment in Central London’s five star hotels. Finally, this section will provide a conclusion that summarizes it.

2.2 Brief overview of Brexit

A regional integration has a number of characteristics. In its formation, the EU gradually and subsequently established a customs union, a free trade area, a monetary union, a free area for trade, and a political federation (Lawless & Morgenroth, 2019). The formation of a free trade area and a customs union leads to the removal of restrictions on trade tariffs and quotas within member states. Portes (2016) points out that the leaving of the UK from the EU, would mean that the leave from restrictions would be lifted, thus affect a number of areas. The UK’s fourth largest industry therefore faces a crisis due to this.

2.3 The hospitality industry in the UK

Scholars such as Sharples & Marcon-Clarke (2019) stress that the hospitality industry is defined to include enterprises, which provide accommodation, meals, as well as drinks in outside-of-home venues. The industry, though overlapping greatly with the tourism, should be distinguished from the tourism industry. Notably, the tourism industry is defined as the activities of people purposing to travel to, and also stay in places that are outside their usual environment, this is often not more than a year, meant for pleasure, business or purposes, other than having to be employed in the places that are visited (Portes, 2016). It is worth noting that despite the rising population in the UK, many employers have raised complaints regarding skill gaps. For instance approximately 28000 employers in UK report that their workers do not have the right skills for the jobs they offer. In this regard, approximately 23% of all vacancies in the UK are owing to the fact that applicants do not have the right skills, whilst almost half of hospitality organizations are not confident that they would be able to recruit workers with high levels of skills, for a period of the next five years (Filimonau & Mika, 2019). Moreover, the sector of hospitality generally impacts the UK economy through three channels: Direct impacts, indirect impacts and induced impacts. According to the writings of Jones (2016), direct impacts involve activities and employment in five star hotels. Indirect impacts are those created as a result of the hospitality firms themselves, for instance, employment into the food and beverages sector, those that supply to the five star hotels in Central London (Allen & Elliot, 2016; cited in Allen, 2016). In other words, indirect impacts aid in facilitating the direct impacts, in that, they aid the direct impacts to become practical. Both are of importance, for they are inter-dependent of each other. Induced impacts are impacts created and supported within the industry’s supply chain itself and it concerns the economical use and proportional use of the wages on various goods and services within the general economy, which eventually leads to a stimulation of economic activity in both inlets and outlets of the economy and the domestic nature of the supply chains. Fundamentally, and in all instances, the factor of employment is greatly affected (Allen, 2016).

2.4 The impact of Brexit on the recruitment in Central London’s five star hotels

While considering the UK’s direct contribution towards the hospitality sector to the economy, the fact that this industry is the largest that provides employment in the UK takes precedent. In the year 2014, the UK’s hospitality industry had 2.9million jobs, in terms of employment, and this was equal to 9% of UK’s total employment (Filimonau & Mika, 2019). The UK has also accounted for 17% of the total UK’s employment growth net in the years between 2010 and 2014. In terms of Gross Domestic Product, the industry has contributed an approximated 57 billion sterling pounds to the UK’s GDP in the year 2014. Kotera et al. (2018) indicates that this equates to around 4% of the total UK’s GDP. Another important fact to note is that the industry has contributed an estimate of 41 billion sterling pounds to the Exchequer in 2014. These and many other factual concepts point out to the direct contribution to the UK’s industry to its economy. In employment terms, the industry has been experiencing significant growth in employment over the years before 2016, with employment rising by more than 331,000 since 2010. In addition to that, the industry has created over 663,000 employment since 1998 (Scarpetta, 2017). However, the effect of the leaving of the UK from the EU has so far impacted the employment sector significantly. The most recent ONS figures show that the number of people working in these service sectors between June 2017 and June 2018 is 18,000 fewer, as compared to the previous year. Furthermore, compared to figures of previous analyses, the industry, as at 2018, only contributed to a significantly reduced 5.5 per cent of the UK’s employment. (Wood, 2015).

As a result of Brexit, three per cent of the hospitality managers in five star hotels, especially in Central London now believe that they cannot be able to fulfil their staffing requirements over the next five years, hence, would prefer to shut down their businesses, which would lead to loss of the national economy of around 11 billion pounds. In addition to that, 18 per cent (1 in 5), reported in 2017, that recruitment had now been harder (Rahimi & Gunlu, 2016). Brexit now poses a threat to the hospitality industry and many remain to believe that if efforts of creating and maintaining a good relationship with foreign investors and staff are not made, the effects would worsen. Sumption (2017) notes that although negatively impacted by the leaving from the EU, supporters argue that a point-based immigration system would be the key to tackle a negative economic impact. An assumption was made that the findings only display the complexity of the potential impact of the exit of the UK from the EU, with the hospitality sector getting knocked out particularly hard. On the same note, there remains a false assurance in the sector with claims that it is critical that managers in five star hotels in Central London ensure they create the right foundation in place that can involve their subjects and strengthen loyalty within their structures (Lawless & Morgenroth, 2019). Many workers came forth and expressed their concerns over their jobs, with immigration uncertainties at the top of their lists. Around 23 per cent of the UK non-citizens were worried that they would, at one point or the other, be indicted to leave the country, due to the leaving of the UK from the EU. Other uncertainties included expected pay reductions and long working hours in five star hotels in London. However, according to research, salary may rise to attract more employees and retain their services (Portes, 2016). The fact to be highlighted, as a result of Brexit, is that the industry would require support by the government, with more than half of the managers in the sector subsequently requiring specific work permits or visas in order to retain their posts in the industry, and especially in Central London. As required by law however, negotiations between the UK and EU on the terms of exit have already begun (Coldicutt, 2018) and some still believe that more benefit would be available to those foreign workers, by virtue of the EU, who would not leave the UK. A noticeable rise in a variety of job opportunities would also be eventually offered to the British nationals. (Adhikari, 2017). Other benefits pointed out include the fact that there would be an expansion of the job recruitment, and as a result even older people and others who previously did not fit the age job description would be allowed to work. As a result, the increase of a wider experience gap in respective business would probably lead to nourishment in the respective five star hotels in Central London.

The impact of Brexit to the general economy is not really understood by the government. Moreover, the importance of the EU workers in this sector partially shows that following the finalization of the UK and EU agreement to leave the EU, more than half of non-UK EU workers would feel that immigrants would now feel less welcome to live and work in the UK (Eversham, 2017). Interestingly, five star hotels in Central London that recruit immigrants invest much on training and development, and also purpose to seek on recruiting a wide range of disadvantaged group or those that are under-represented. This then indicates that five star hotels in Central London that employ these immigrants are typically engaging in it, in order to have a wider effort, when finding appropriate labour for their hotels, and when they intend of need to build on their workforce skills, not owing to the fact that they have failed in investing in UK-born employees, but rather, they prioritize on cost cutting (Mumford, 2017). In this regard, managers in five star hotels in Central London already taking positive actions, for instance conduction of trainings, up skilling staffs, looking to actively recruit in the market, increasing salaries to attract more employment jobs, creating additional interests at employment institutions and making it flexible to accommodate the workers (Portes, 2016). According to Mumford (2017), for instance, Jumeirah group of hotels has contributed to the the cake by pointing out the fact that they have noticed a fall out in the number of casual employees, for instance, the house keeping department has noticed the drop. In terms of resources however, the impact has not generally been seen but there is uncertainty and ambiguity over what is going to occur at the end of the arrangement. This basically outlays the uncertainty by some other European countries over the UK (Los et al., 2017). Previous research has outlined that the accommodation and food industry greatly relies on workers who are not citizens of the UK (Allen & Elliot, 2016), this constitute EU workers. This outlines only one in fifty applications the hospitality receives for managerial roles are from British nationals. The use of contracts of employment by some enterprises, awards of semi- permanent or temporal natures of work in the sector has proven to be a cost- effective way of conducting business in five star hotels in Central London (Los et al., 2017). Peter Ducker suggested that Brexit would, in fact project significant hurdles and points of concern to the hospitality sector. If these projections about immigration as a concept are confirmed, there would be dire need to advance planning and encouragement so as to display a concrete and up skill level of recruitment to the industry (Cribb et al., 2013). Whelan notes that Europeans, who are not UK citizens, are already worried about their long term future in the UK. He even further states that those EU citizens who are likely to be affected are encouraged to apply for permanent residency in the UK. A research on the same conducted by Gov. uk (2016) also states that the turnout of job applications has dropped. This makes recruitment more expensive extensively in the sector, whilst considering five star hotels in Central London. Moreover, the earners from the sector also front bigger costs through their normal occasional wages (ReadyforBrexit, 2018) Although most five star hotel employers in Central London are already above the minimum leaving wage, there is still an emerging concern to raise the minimum wage, as a result of the cost incurred in the supplies that has consequently risen due to the currency fluctuation.

In order to make the employees feel accommodated and wanted, hence retain their job positions in five star hotels in Central London, the most relevant way is to promote and enhance effective training and open development opportunities to them. On the same note, the employees need to be made to see their jobs not merely as just jobs but additionally as career opportunities (Collier, 2017). Research indicates that since early 2018, 72% of employers in five star hotels in Central London have purposed to dedicate a training budget for employees, yet there has been a slow comparative growth in the sector. More than half of the managers in these hotels claim that UK having left the UK has created no impact on their investments that relate to training and developing their employees’ skills. On the other hand, 20% of these managers claim that Brexit had caused them to reduce the extent of training and development for their employees. This then indicates that some of the employers are dialling back on the issue of training and development, whereas, it is of significance that they should invest heavily, in order to be able to mitigate on the risks of the present skill shortages, that have worsened the post-Brexit (ReadyforBrexit, 2018). The government, together with the persons who recruit these people, should come up with a way in which they would make the employees feel relevant to their respective businesses. According to Portes (2016), the respective managerial bodies should not only make the employees feel accommodated and relevant, but they should also create an amicable and friendly environment for them, which would further foster amicability, loyalty in their professional relationships and strengthen their spirits as a structure, hence developing team work (Grewal, 2018). A close maintenance of the connection between the employee and the business is the most effective way to achieve this. Other thoughts regarding the challenges the human resource departments in London is facing were shared. Mike Butler amplified the administrative crisis human resource may face in recruiting outside the UK (Portes, 2016).He further pointed out the Human Resource department has to be creative in finding their sources of talent. This would be an opportunity for the respective businesses to become a more efficient business and even promote better recruitment in Central London’s five star hotels. Scholars stress that immigration is an essential value to resolve any negative impacts of the Brexit arrangement. The issue of welcoming visitors from the European Community must also be tackled (Mumford, 2017). It is in the open that by the public concerning itself in immigration factors, a motivation factor was established that pushed the majority to vote to leave the European Union through the referendum of 2016. Regardless of how Brexit ultimately impacts the hospitality sector, by implementing recommendations and suggestions outlaid on the key factors to hold on to the non- citizen employees, a cushion would have been created, especially in five star hotels in Central London (Jones, 2016).

Overall, it can be noted that since June 2016, five star hotels in Central London had experienced strong demand for labour, low cases of unemployment, as well as dramatic fall of 95% of all the EU nationals that joined the UK workforce between the years 2016 and 2018 (Jones, 2016). This put much pressure on the issue of recruitment in the course of the year 2018, and also posing as challenge, as 34% of the five star hotels in this region faced the difficulty of retaining their employees. Brexit has created hard-to-fill vacancies in five star hotels in Central London, which then has led to an upward trajectory (Cribb et al., 2013). Notably, as at 2018, during the Autumn, 70% of employers in these hotels confirmed the claim and noted that it was serious as compared to the 51% that was experienced in 2017, during Spring. Based on the idea of resourcing and talent planning, it was indicated that approximately a fifth of five star hotels in Central London purposed to increase their cautiousness in various respective candidates (Allen & Elliot, 2016). A fifth of them anticipated that they would face an increase difficulty whilst recruiting senior, as well as technical employees, and one the other hand, two fifth expected the same when recruiting their operational staff. It is evident that these expectations have proven to be significant with the evidences from the labour market, thus, indicating that the number of candidates across all levels of skills and per vacancy have fallen significantly (Collier, 2017). Notably, in the five star hotels, the applicants’ number fell from 26 in 2017 summer to about 21 in the following year. In a bid to responding to various challenges that are in line with recruitment in five star hotels in Central London, hotel managers have raised the salaries of the employees for starters to 48% (Collier, 2017). Moreover, those that were having a difficulty in retaining their employees had a similar salary increase of 51%. In addition, there is upskilling of the employees, in order to fill various hard-to-fill vacancies, and this provides a popular option towards addressing the difficulties in recruitments (Allen & Elliot, 2016). It is also notable that apart from purposing to provide such attractive salaries, managers in five star hotels in Central London also consider inclusive recruitment, which is building on the offer for employees though providing them with non-financial benefits, and also enhancing their brands. Notably, these not only purpose to address the recruitment difficulties within a short time, but they also they also make the five star hotels to be attractive employers, which lasts for a long term. In addition, measures that include providing flexible working hours also assists in retaining the skills needed (Jones, 2016).

2.5 Conclusion

This section provides significant evidence, which is required in the following sections. The information provided will aid in the discussion section, and would as well assist in formulating the appropriate methodology to be applied. Moreover, it also provides sufficient data, to be used in the analysis section.

3.0 Methodology

3.1 Introduction

This chapter provides the methodology used for this dissertation. These would aid in meeting the research aims, as well as objectives. The chapter is divided into three sections. The first section provides the theory of the research. The second section provides the description of what was done and finally the third section provides the critique of the methods used (reliability and validity of the research). These are as provided below:

3.2 Qualitative research

In order to meet the aim of this study, a qualitative research approach was used, and in line with this, a narrative survey was as well carried out, in order to derive factual results from the human resource manager at Hyatt Regency the Churchill and the executive housekeeper at Hyatt. Generally, qualitative approach was adopted for this study, owing to the fact that in line with this research, its advantages outweigh the disadvantages. The advantages of qualitative research are as follows. First, it provides an in-depth understanding of why things happen, how and the manner in which they affect the concerned individuals (Silverman, 2016). Another advantage is that it avoids pre-judgement, and tries to represent the participants, following their perspectives, in order for the researcher to take note of their views. The third advantage is that it creates a picture that builds upon the reasons why people behave in certain ways and how they perceive certain actions (Lewis, 2015). These reasons assisted in explaining the impact of Brexit on recruitment in five-star hotels in Central London. However, it is also evident that the disadvantages of this approach are that generally, everyone is judgemental to some extent, and as such, they may have pre-conceived opinions, thus, making the research approach to be subjective to some extent, because it may rely on whatever the researcher may prefer to focus on. Another disadvantage of qualitative research approach is that it could be difficult to assess, maintain and even assess rigidity (Flick, 2018).

3.2.1 Narrative Method

This research also used a narrative survey method in interviewing the participants, in order to enable them to speak uninterrupted, until the time that they finish telling their story. The narrative method uses a semi-structured interview. As such, structured interview was not adopted, because it could not provide the participants with ample opportunities of letting out their ideas, thoughts and opinions. Generally, narrative method aids in recording and interpreting stories, where subjects are asked questions, which relate to the research topic, in a bid to explaining the phenomena related to the life of the subject (Clandinin, 2016). The advantages of narrative method are that first, it is useful in creating new hypotheses that aid in explaining shared or even different perspectives, and also explaining how the perspectives purpose to evolve over time. The second advantage is that narrative method provides participants with the opportunity of telling a story to the researcher, in order to understand the existing inter-dependency between various social factors and the changes underpinning various complexities (Bell et al., 2018). Thirdly, it is evident that system perspectives can be noted using qualitative research method, and for them to be understood in a holistic way, the researcher is required to investigate various human dynamic, which impact, and also the processes, systems, as well as feedback loops. In this regard, narrative method enables the researcher to investigate a great range of issues to test or explain a given hypothesis. On the other hand, it is also evident that narrative method entails disadvantages, which are as provided below. First, it requires other research methods, in order to support the whole analysis, based on a given subject. Secondly, it is notable that in the qualitative method, narrative method is related to the experiences, as well as interpretations of subjects. In line with this, data is derived from a small number of participants, thus, making it difficult in generalizing and comparing results (Smith, 2015).

3.3 Research approach

3.3.1 Sampling

In conducting this survey, sampling approach was used, in order to collect factual data from the human resource manager at Hyatt Regency the Churchill and the executive housekeeper at Hyatt. A random sampling strategy was used in order to avoid any form of biasness (Gentles et al., 2015). There are two different sampling techniques, which could be applied in this case, and they included probability and non-probability sampling. In this case, probability sampling was used, owing to the fact that the respondents would be representing a large cross-section of hotels in Central London, as opposed to the non-probabilistic technique (Morse, 2015).

3.3.2 Data collection procedure

As aforementioned, qualitative data was used, whereby qualitative primary data was collected by sending the survey questions to the human resource manager at Hyatt Regency the Churchill and the executive housekeeper at Hyatt. The questionnaire entailed semi-structured questions. The interview was conducted through face to face, and the respondents were recorded, given they had all consented to it. Each interview took 45 minutes to be completed. In addition, the interview was conducted at the convenient time of the participants. The data collected were then interpreted and further analysed.

3.4 Survey pilot

Prior to starting the research survey, significant and extra measures, where taken in ensuring that its validity could be improved through significant piloting. Prior to submitting the research, the questions were tested through drafting a sample and conducting it on friends and family and engaging the supervisor (requesting for ethical approval for specific students on the teaching programmes) (Gentles et al., 2016). These aided in deriving a sense of the entire questionnaire, and as such, any concern was permissible to be addressed. In engaging in piloting, it is evident that the benefits derived were multiple and significant. Firstly, the questions in the questionnaire were checked for clarity, comprehension, and for determining whether there was any additional information needed. Moreover, piloting aided in determining whether the research questions were completed and whether the respondents would answer the questions in the manner they were supposed to answer them and whether the questionnaire had a logical flow (Silverman, 2016).

3.5 Validity and reliability

It is significant to take note of the fact that reliability purposes to question whether the extent of a research purpose to produce significant and consistent results in an instance where the same was repeated. Based on a factual point of view, reliability is concerned with the elimination of variables and also ensuring that the researcher is not sensitive to the research method adopted. In this case, it is evident that the research conditions, respondents, or the research instruments were free from any form of bias (Noble & Smith, 2015). Moreover, based on this research, the incorporated survey questions, which were asked were similar for all participants from the four five-star hotels in Central London, and of importance is also the fact that significant measures were taken, attached with the consent form, which addressed any concern regarding the research project. Moreover, the questions asked were in line with the set aims and objectives of the research. Taking all these factors into account, it can be deduced that the research was reliable and valid (Zimbardo & Boyd, 2015). In improving future research on the same subject, it would be significant for the researcher to increase the sample size used, as this research used only 4 participants.

3.6 Conclusion

The methodology used in this research adopted a qualitative approach and used a random sampling strategy, where the technique used was probability sampling. Moreover, a narrative method was used in interviewing the participants, using semi-structured questionnaires. Overall, it is evident that this research was reliable and valid, owing to the fact that it purposed to meet the set aims and objectives and avoided any form of biases.

4.0 Analysis and Discussion of Findings

4.1 Introduction

This chapter purposes to discuss whatever has been derived from the primary data that was used in the study. In this regard, it will cover three areas, which include the analysis of the results, the discussion of the results of the analysis, and a discussion of how the findings relate to the literature that had been provided in the previous chapter. Notably, this chapter will aid in answering the research questions, thus meeting its objectives and consequently, the aim of the study.

4.2 Analysis of the results

The researcher interviewed two respondents; Mrs Dasislava Petrovoka, who is currently working for Hyatt Hotels Corporation, as the executive housekeeper and the Danita, who is the HR Manager at Hyatt Regency the Churchill. These are five-star hotels, based in Central London. Both participants were asked what Brexit mean for their companies at the moment and they provided the following responses:

Dasislava Petrovoka – “so with Brexit in general, there is a lot of uncertainty at the moment, as no one knows what is going to happen at the moment. That is a problem, as a company I can say, everywhere is a bit worrying what is going to happen. As we have quit a lot of people from EU working and now is challenging. I can say from my experience as I been working in hospitality for 18 years, in the pass we use to have more skilled candidates than know, in all hospitality. I think the major problem for Brexit, is the uncertainty no one knows what is going to happen. And people want to know what is going to happen, what type of deal we will have and what we need deal with it!! In the future and regarding the free movement how it will be.”

On the other hand, Danita provided the following as response:

Danita – “With Brexit obviously there is a lot of uncertainty, but the number one thing we learned is not to panic because we all know there will be sufficient time given to everybody to make a plan. So, this is the number one message. How is impact us a company? We have realise, that people are a bit intimated to come to UK, so for people who don’t leave here yet and they are looking for jobs, there is always a question in the interview, what about Brexit I am going to be okay? Can I come there and apply for the pre settle states? We assured them for now we will help you through this process and we will insure everting is okay. Because at least for next one year is it easy to apply for the settlement status for the time been is not a challenge.

When Brexit was first announced, some people we have the turnover here of course, like in any other five-star hotel of course doesn’t matter any hotel will have turnover. With Brexit announcement there was a small turnover because of Brexit, recently there is been no turnover because of Brexit, I think everyone understands that even though this will take place, there is a process for people to apply in order to stay.”

The participants were also asked about how the hospitality industry is dealing with skill shortage

Dasislava Petrovoka- “we can see that there was allot of people applying for one position, in the pass you have for example one position for 300 people. We have vacancies no one is feeling in, it not just in hyatt all hotels in London having the same difficulty. It not just in hospitality, but all the businesses in London experiencing the same thing. There is a hunger of recruiting people, as I mention before we use to have a lot skilled candidates with great English and the right skills , now is not happening we don’t have that on the market the level of the recruitment is totally different now.”

On the other hand, Danita provided the following response:

Danita- “our company is not feeling that impact yet, we do looking forward because we know is getting more challenge to recruit people, for the roles our company has created the talented acquisition team, this is not only regarding Brexit it was our recruitment plan for this year, however it will be a benefit considering Brexit. We have two people just for proposes of conducting interviews in all our properties in London. I thing is great advantage as you said there is more and more shortage of skills and we need the right skills set and we need to find those people, how you do that by having more resources and by using different platforms to recruit and I think the more resources you have, the more platform you can use to find candidates.”

The participants were as well asked about how they dealt with lack of staff in the last summer, owing to the fact that it had been reported that Central London was facing crisis in recruiting. These were the responses that they provided:

Dasislava Petrovoka- “I can’t said much regarding hyatt as I just started recently in the company, but is definitely all Brexit situation affecting the hospitality, We have a strategy plan and I can’t disclose it, Hyatt is preparing the team for Brexit ang get ready for the next summer. Staff retention and development for high staff turnover is all part of Hyatt action plan.”

On the other hand, the other participant provided the following response:

Danita- “at Hyatt we did not feel that impact, of Brexit however as every summer it was just another busy summer with many challenges. We always try to get prepared for summer with extra staff, increasing agencies staff and casuals workers.”

Danita was asked if there is any different way that Hyatt is using to be fully prepared for this summer After Brexit and this is the response she provided

Danita – “We have our talent acquisition in London, especially for hiring for our London properties which is fantastic we never have that before, as well we are attending more career fairs we are going overseas for recruitments in order to recruit there and we are also gong in our communities centre to recruit on spot. We are fully preparing for high season if is Brexit or not we will be ready for it. Been more prepare it will be easier for us.”

Particularly, Dasislava Petrovoka was asked about the experience that she had, whilst taking into consideration what is happening with Brexit. In this regard, she was asked whether the consideration is taken in terms of skill wise, or for the need to feel the existing gaps. In responding to this question, she provided the following answer:

Dasislava Petrovoka- “as a five star hotel we still need stick with skills, for five star hotel we can’t just get anyone. We need people with right attitude and right skills and will to do the job, although we are short of candidates but our company still following the company principles for the recruitment. Maybe other hotels can compromise, but our company can’t compromise to do that, we have so many vacancies and we can’t feel then in if your bar is low you can easily feel your vacancies because you will have people with luck of language or skills. However sometimes we must give people without experience a chance as well, but people with right attitude. For example, when I started in my carrier, I didn’t have any experience I was given the chance to start somewhere as many other people. I think that a lot of hotels they just been just feeling in the positions and we are not one of them, our recruitment process is very serious.”

Both participants were asked whether their companies are aware of how the staff feel regarding Brexit and the following are the responses they provided:

Dasislava Petrovoka- “I don’t think our employees will have lot of issues, I said we are fortunate in this company, most of our employees are working with us for many years. Maybe with our agency staffs will rise uncertainty as we don’t know what going to happen yet.”

Danita- “for the moment we believe everyone is okay, but we are here to help, we will be doing a survey to reach our employees on how they feeling regarding Brexit, we are working on it now, prior to 29 of March. For the moment our strategy is on how to communicate with people and what will be the process, this is what we been working on because on the 29 of March things will change. We will be identifying a very simple steps to people who need apply for pre settle status and what they need do. I think many people have applied already because you can do it from your smart phone.”

Dasislava Petrovoka was also asked whether the current employees are being supported regarding Brexit fear. The following is the response that she provided:

Dasislava Petrovoka- “there will be a session to assist everyone who need help.”

Danita was asked whether it is not just Hyatt that is preparing for Brexit and whether it had already been indicated in the company plan. In response to this, Danita provided the following response:

Danita – “yeah, I think for Brexit as we will have enough time to apply for pre settlement, so people are okay no panic when that period finish them, we may go in different circumstances.”

Danita was also asked whether there is any support for current employees if the company decides to leave London regarding Brexit. She responded as follows:

Danita- “well we will be doing our best if is regarding berxit, we will try to convince people to stay but first we need find out their concerns. And as company will do something about it. We will have specialized people who they can talk to about Brexit concerns but so far, we didn’t have any challenge of employees coming to us asking questions regarding Brexit. We are planning already for next three weeks to do some pre works regarding Brexit to inform our employees what happening.”

4.3 Discussion of the results of the analysis

Based on the responses of the participants, it is evident that there are lots of uncertainty in the recruitment process in five-star hotels, owing to the impact of Brexit. Notably, Brexit has brought forth various challenges, which make it difficult to predict the future of five-star hotels, owing to the fact that following the vote supporting UK to leave the EU, there was an implication that the UK government would control the entrance of migrant workers from the EU. Uncertainty crops in, as the future of the recruitment process cannot be easily predicted in five-star hotels in Central London (Brotherton, 2012). Putting into consideration, how the hospitality industry is presently dealing with skill shortage, it is evident that first, five-star hotels are hungry to recruit skilled personnel, which is notably lacking. However, the companies have resorted to conducting interviews, in order to get the right skills, owing to the fact that these companies purpose to create a talent acquisition team, as their recruitment plan (Campos-Soria et al., 2009). In achieving this, these companies ensure that they have enough resources, and also have varied platforms for recruitment, majorly because the more resources and platforms they opt to have, the more they get skilled personnel, and this aids them in avoiding skills shortage in their companies (Cribb et al., 2013). Based on the experiences of the participants, it is evident that five-star hotels in Central London consider the skills that the personnel have, rather than just purposing to fill the existing gaps (Filimonau & Mika, 2019). This is owing to the fact that majorly, the hotels need individuals with the right skills, as well as attitude to do the jobs that they offer. An evident to support this is that presently in Central London, five-star hotels have less employees, yet there are many people applying for job positions (Cribb et al., 2013). This is because the five-star hotel managements do not just accept any individual to work for them, rather, people with the right skills and attitude. In dealing with the lack of staff in the last summer, owing to the fact that many five-star hotels in Central London were facing crisis in recruitment, it is worth noting that hospitality industry as a whole was affected. Hotels such as Hyatt purposed to introduce an action plan that aimed at ensuring staff retention, as well as development for high staff turnover (Cribb et al., 2013). Other companies have an earlier preparation, and with this, they acquire extra staff, casual workers, as well as agencies staff, in order to counter the negative impacts that summer could bring to the company. Moreover, after Brexit, companies in Central London purpose to hire competent workers through engaging in talent acquisition, and also attending career fairs, this would enable these companies to maintain a smooth running of their operations, in terms of employee retention (Gentles et al., 2016). Most of the employees in five-star hotels have worked with them for many years, and as such, the impact of Brexit has influenced them greatly, as some of them are opting for better pay, owing to shortage of a skilled workforce in these companies (Gentles et al., 2016). Although some of them fear the impact of Brexit, five-star hotels have purposed to engage in activities that aim at retaining them. In this way, these hotels communicate regularly with their employees, to get their opinion regarding the impact of Brexit. In an instance where the current employees decided to leave London regarding Brexit, it is evident that most companies will purpose to convince their employees to stay, in order to prevent the issue of skill shortage (Janta, 2011).

4.4 How the findings relate to the literature

Brexit has impacted lots of uncertainty, owing to the fact that it has hindered people’s movement, as presently, there are no new immigration being allowed in the UK hospitality sector, which consequently, is affecting the recruitment in five-star hotels in Central London (Boella & Goss-Turner, 2013). This challenge is then presented, and it will affect the future of five-star hotels in Central London, as the industry should purpose on recruiting an addition of approximately 63,000 UK workers yearly, in order to maintain their activities and to enhance significant growth. It is seen as implausible, when five-star hotels in London face low unemployment, and thus, record a higher level of the rate of employment (Sumption, 2017). The hospitality industry is presently dealing with skill shortage as it is presently experiencing the lowest levels, in terms of labour productivity in the UK economy. In this regard, employers in five-star hotels in Central London are dialling back on the issue of training and development, and they are also investing heavily, in order to mitigate the risks presented by skill shortages, which had been worsened by the post Brexit (ReadyforBrexit, 2018). Five-star hotels are also purposing to come up with ways in which they would make the employees feel relevant to their respective companies. Reviews from the literature notes that despite the increasingly rising population in the UK, five-star hotel employers have often raised complaints regarding the skill gaps. Most employers report that most workers do not have the right skills, as well as right attitude for the works that they offer (ReadyforBrexit, 2018). As such, about 23% of the vacancies in the UK hospitality sectors are because they are no right skills, whilst almost half of hospitality organizations are not confident that they would be able to recruit workers with high levels of skills, for a period of the next five years (Filimonau & Mika, 2019). Overall, in a bid to responding to the challenges of recruitment in five star hotels in Central London, most hotel managers purpose to increase their employees’ salaries to approximately 48% (Collier, 2017). Additionally, there is upskilling of the employees, in order to fill various hard-to-fill vacancies, and this provides a popular option towards addressing the difficulties in recruitments (Allen & Elliot, 2016). In line with providing such attractive salaries, five-star hotels in Central London put into consideration, the concept of inclusive recruitment, which aim at providing employees with non-financial benefits, and also enhancing their brands. Notably, all these aid in making five star hotel to be attractive employers, thus, aiding to counter the negative implications posed by Brexit (Jones, 2016).

4.5 Conclusion

From the above provision, it is significant to note that the results and discussion chapter have provided significant information, which have aided in answering the research questions, thus, meeting the research objectives and ultimately, the aim of the study. The subsequent chapter (conclusion chapter) will then provide a summary of the content in the study.

5.0 Conclusion

The hospitality industry in Central London are presently facing a perfect storm, owing to labour shortages, excessive costs, as well as security fears due to the impact imposed to them by Brexit. The biggest concern is associated with cost pressures, and this is particular, because five-star hotels in Central London have to increase the salaries of their employees, in order to retain them in their businesses (Janta, 2011). Moreover, they are mandated to engage in training and development, which imposes additional costs. The training and development majors on acquiring the best skills from the employees in the companies, and the participants took note of this and mentioned it in the interview. Secondly, the issue of uncertainty is also brought forth by the impact of Brexit (Janta et al., 2011). This arises, due to lack of clarity over various immigration policies, as well as what may have happened or will happen as shared by the executive housekeeper and the HR manager at Hyatt Company and Hyatt Regency the Churchill respectively. Evidence from the literature indicates that Brexit has hindered people’s freedom of movement, and presently, there are no new immigration being allowed in the UK hospitality sector, thus affecting the recruitment in five-star hotels in Central London (Jones et al., 2016). The challenge is then presented as the industry should purpose on recruiting an addition of approximately 63,000 UK workers yearly, in order to maintain their activities and to enhance significant growth. However, five-star hotels in Central London are facing skills, as well as staffing crisis, especially now that there is insufficient flow of EU workers (Kotera et al., 2018). Moreover, replacing the European workers would notably take many years, and it will also be very difficult to implement, thus, making it a major struggle. This then brings forth the implication that the unemployment level is presently in its lowest and this would then force the hospitality industry to face a long-term unemployment crisis, as well as economic inactivity (Kusluvan et al., 2010). Overall, it is significant to take note of the fact that there is need for five-star hotels in Central London to continue staying competitive, despite the challenges, owing to the fact that the plunging in sterling pounds would significantly attract more business visitors, as well as tourism into the UK. It should be noted that the key battleground for five star hotel operators would be the recruitment of over 50,000 new job each year (Kyambi, 2018). However, this is challenges in this era of post-brexit, yet Central London still poses as an attractive place for establishing a five-star hotel. Moreover, there is a war on talent, which poses as another challenge to five-star hotels in Central London. Owing to the shortage of skills, five-star hotel managers have established strategies that aid in recruitment, through training and development, and also coming up with innovative ways that aid in attracting and also retaining significant talents across the industry (Lawless & Morgenroth, 2019).

5.1 Recommendations

Of significant to take note of, is that this study has brought forth recommendations, which if effectively taken to action, would aid five-star hotel managers to counter the impacts of Brexit. These are as presented below:

Five-star hotels in Central London should focus on targeting the under-represented groups in Central London labour market, and this includes women returners, ex-offenders, as well as old workers, in order to offset the prospects, associated with skill shortage and labour. Notably, a potential opportunity is presented that can aid in improving the current practices that are in relation to recruiting, as well as training and development that purpose to attract the domestic workforce. Generally, this kind of forward-thinking plane poses as a recommendable strategy that plans the future employment map in the hospitality industry in Central London (Lawless & Morgenroth, 2019). Five-star hotels in Central London should start new apprenticeship projects that aim at attracting young talents, to work in the hospitality industry in Central London, thereby, providing opportunities, as well as recognizing the investment benefits in the recruitment, and development of new talents. Significantly, the apprenticeship projects should ne majorly for chefs, as well as maintenance technicians that aid in the provision of high-quality services. Notably, the programme can significantly be extended, to aid in filling the skill gaps, in other departments that are faced with the crisis of having the highest EU migrants (Los et al., 2017). Five-star hotels in Central London should purpose to make their voice heard through engaging with the Migration Advisory Committee (MAC), as well as the British Hospitality Association (BHA) regarding the impact of any form of migration policy on their businesses (Portes, 2016).

In addition, there are measures that should be recommended, which the five-star hotel employers can purpose to get their voices heard, in order to shape the skill gap policies. These are as provided as follows:

The conclusion derived from this study survey poses an important fact, which is the need for enhancing a safety net that aids in recruiting low-skilled EU workers, in order to ease the impact of labour shortage An immigration system that will enhance an easy working with them Review of the migration policy, as well as data collection, which underpins any future policy Allocation of a percentage (5%) of the £23 billion government national productivity investment fund, thus, aiding in supporting the development of skills, as well as lifelong learning Broadening the levy on apprenticeship, into a wide training levy, to aid in perfecting and boosting skill investments (Ramiah et al., 2016).

Overall, the BHA has over the past months, campaigned to be granted the opportunity to have a say, regarding the enhancement of a better system of migration, as well as policies that are aligned with the needs, as well as concern of the hospitality business, and skills shortage. Without having to address these issues, it is evident that the hospitality industry is most likely to sustain a considerable damage (Rumney, 2017). In this regard, five-star hotels in Central London main product is service, and this is a service delivered by people, owing to the fact that it is a people industry. Sustainable employment is then noted to be critical towards the success of five-star hotels in Central London, and as such, there is also a need for these companies to have an effective and significant future recruitment plan of the post-Brexit, which will purpose of fulfilling that objective, and also maintaining the supply of significant workforce, and delivering of continued success (Scarpetta, 2017).

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