Outsourcing Can Boost Growth in South Africa's Hospitality Industry
The South African tourism industry offers a ray of light in the country’s otherwise rather subdued economy.
Image Courtesy Innovative Staffing Solutions
With a 12.8% increase in overnight foreign visitors in 2016 – in stark contrast to the 6.8% decline in 2015 – and guest nights expected to increase from 13.7 million in 2016 to 15 million by 2021, it’s one industry that is experiencing notable growth.
With an unemployment rate of 27.7%, joblessness in South Africa reached a 13-year high in the first and second quarters of 2017. Even though there is a massive pool of unemployed people in the country, they lack the necessary competencies to fulfil various roles in several industries, including tourism. This lack of skills is regarded a key factor hindering growth of the economy.
This is where the tourism industry and related sectors have significant potential to both boost the economy and address unemployment through job creation and upskilling people to fulfil critical roles.
Supporting this growth is the rise of FET Colleges, which offer vocational training in catering, tourism and hospitality, with a view to addressing the shortage of skilled employees in the industry.
Innovative Staffing Solutions MD, Arnoux Maré, says a highly effective way for the tourism and related industries to address the skills shortages and ensure operations remain focused on their core business is to outsource their non-core functions.
“The lack of skilled workers in the catering industry, for example, has seen many organisations make the decision to outsource their employees. This allows them to focus on their growth strategies and core competencies.”
With the hospitality industry set to grow by 6%, finding the right people to fulfil various roles such as cleaning and catering has become a challenge for many operators in the industry.
Maré says Innovative Staffing Solutions are in the business of outsourcing services, not people.
“Clients buy a service from us, which means they are assured of professional staff who are qualified and trained to provide the required service. Employees on the other hand, are assured of secure and permanent employment with Innovative Staffing Solutions, regardless of the lifespan of the client’s contract. As our permanent employees are placed at a client’s site, we coordinate the relevant training for staff across various sectors including the catering and cleaning industries, and handle all associated human resource and industrial relations issues. As we are responsible for the staff placed at our clients, they do not have to deal with industrial action, dismissals or staff development. By not having to deal with the nitty-gritty issues surrounding their workforces, hospitality bodies can focus on ways to grow their businesses, attract tourists and make a more significant contribution to the country’s GDP.”
Innovative Staffing Solutions currently manages more than 7 500 employees and has not experienced any labour unrest incidents to date.
