The high turnover of women working in the hospitality, leisure, travel and tourism industries is costing companies £2.8 billion in replacement recruitment and initial training.
A report by skills sector council People 1st estimated that 310,000 female workers a year are leaving the industry.
It identifies five key barriers preventing women’s advancement to senior roles:
• the difficulty of combining work with caring responsibilities;
• a dominant macho culture;
• preconceptions and gender bias;
• a lack of networking, and
• a lack of visible women in senior positions.
The percentage of women working in the sector has continually declined over the past six years from 61% in 2004/05 to 56% now.
This comes at a time when the sector continues to grow and is expected to recruit an additional 290,000 managers up to 2017. On average, a quarter of the male workforce is employed in management or senior positions, compared to 18% of females.
Women are more likely to fill part-time roles with 54% of females working in the sector on a part-time basis, compared with 46% of men, according to the ‘Women 1st – the case for change: Women working in hospitality, leisure, travel and tourism’ report.
People 1st has launched the search for the Top 100 Most Influential Women in hospitality, leisure, travel and tourism – and the accompanying Shine Awards – to recognise and celebrate female excellence within the sector.
The organisation’s policy and research director Martin-Christian Kent said: “Employers in the industry are losing a valuable resource when talented women are unable to achieve their career ambitions.
“If we are able to develop and retain more women in the industry, it would help ensure that we have the number of skilled managers we need for the future.
“The report also demonstrates a clear link between women’s representation in senior management and business performance indicators such as financial performance and shareholder value.
“It makes sound financial sense for sector businesses to develop women for senior positions and consider the appointment of more women on their boards, “ said Kent, speaking at the launch of the Women 1st Top 100 Most Influential Women and Shine Awards nominations in London on Tuesday.
Women 1st chair Natalie Bickford, human resources director UK and Ireland for Sodexo, said: “Through the Women 1st programme developed by People 1st, we have a real opportunity to address the problem head-on by building on international best practice that provides practical solutions for individuals and businesses in our sector.”
The People 1st report stated that:
- Having at least one female director on the board appears to cut a company’s chances of going bust by about 20%. Having two or three female directors lowers the risk even more.
- Research has shown that the Fortune 500 companies with three or more women on the board gained a significant performance advantage including a 73% higher return on sales, an 83% higher return on equity and a 112% higher return on invested capital than those with the fewest female board members.
- In the UK, women are expected to own 60% of all personal wealth by 2025 and there are now more female millionaires between the age of 18 and 44 than male.
- Businesses that do not represent and respond to the demands of female customers at senior decision-making level may lose out commercially. Only 12.2% of FTSE 100 directors are women.
Further details on the nomination process can be found at www.people1st.co.uk/top100 The Top 100 list and awards winners will be announced next spring.