BEST PRACTICE RESEARCH Attraction, recruitment and retention within the Queensland Tourism Industry
October 2013
Prepared by: Prepared by Norton Rose Fullbright and BDO on behalf of Queensland Tourism Industry Council Queensland Tourism Industry Council PO BOX 13162, GEORGE STREET QLD 4003 Telephone (07) 3236 1445 December 2012
This document has been developed with the support of the Queensland Government
TABLE OF CONTENTS
SECTION 1: EXECUTIVE SUMMARY 2
SECTION 2: WORKFORCE ENGAGEMENT STRATEGY 7
SECTION 3: ENVIRONMENTAL SCAN AND INDUSTRY RESEARCH FINDINGS 14
Workforce Challenges, Programs and Initiatives 16
Career Opportunities and the Skills Passport 21
Recruitment Strategies 23
Retention Strategies 26
SECTION 4: HR PRACTICES AND ENGAGEMENT 36
Employee Value Proposition 38
Appendix 1: Methodology, Approach and Survey Demographics 43
Appendix 2: Summary of Policies & Programs (Commonwealth & State Government) 45
2
SECTION 1: EXECUTIVE SUMMARY
The importance of the Tourism Industry to the Queensland economy
Tourism is one of ‘the four pillars of the Queensland economy’; as a result the State government has
identified the need to continue to invest in the State’s skills system to be more responsive to the needs of
the Tourism Industry.
The Tourism Industry in Queensland directly contributed $10.5 billion to gross state product and supports
approximately 136,000 (5.9%) Queensland jobs1. The Tourism Industry is one of the highest employing
industries in the state. When combined with another 99,000 indirect Tourism Industry jobs it represents
10.1% of total employment in Queensland. Tourism supports 55,700 businesses, representing 12.9% of all
registered businesses in the state.2
The Tourism Industry is made up of a number of sectors including accommodation, adventure tourism,
transportation, travel trade, food and beverage, tourism services, events and conferences, and
attractions. Of all of the sectors food and beverage (cafes, restaurants and takeaway food service etc.)
accounts for the largest share of tourism employment (27%), followed by retail trade (18%) and
accommodation (13.5%)3.
Employment is spread across small, medium and large employers however small businesses represent the
predominant employer profile. Small businesses employing less than 20 employees accounts for 85% of
total Tourism Industry employment. Many of these small businesses (45%) operate seasonally and employ
largely transient and seasonal workforces.
The State Government has laid down a blueprint to help the Tourism Industry achieve a number of key
objectives including an ambition of achieving overnight visitor expenditure of $30 billion by 2020. The
DestinationQ blueprint 2012-2015 also identifies the need to maintain Government’s focus on tourism in
key areas including skills, labour and career development.
Given its current and anticipated contribution to gross state product, it is critical that the industry is able
to present a viable and robust value proposition to attract, retain and engage employees to ensure the
State is best placed to maximise on the contribution of the industry to the broader economic growth and
stability of Queensland.
Industry governance and funding
The Tourism Industry in Queensland is governed and promoted by a significant number of organisations.
This is largely a consequence of the size and importance of the industry to the State. It does however
create a level of complexity that may hinder access to programs for small business owners who make up
the vast majority of employers within the industry.
Collectively there are over 700+ different programs available for employers and employees within the
Tourism Industry. On the whole it would appear that many of the industry programs are under-utilised.
Given the sheer number of programmes and levels of investment made by State and Commonwealth
Governments ($20 million investment package 2012-13 in Queensland, including a $7 million RTO
partnership fund) there is a need to consider the overall effectiveness of these various programs. The
scale and number of programs would also suggest there is a potential for duplication and program
1 Tourism and Events Queensland – Tourism Economic Key Facts 5 July 2013 2 Tourism Research Australia 3 State of the Industry, Australian Government 2012
3
inefficiency. Any such review would allow for improvements in program efficacy and re-direct funds to
areas where they will have the greatest impact.
The lack of program take-up would suggest that more could be done to increase the level of awareness of
the various commonwealth, state, regional and local programs. In addition there does not appear to be a
significant level of collaboration at a local and regional level to help share knowledge and promote
employment opportunities within the Tourism Industry.
Scope and Deliverables of the Engagement
The Queensland Tourism Industry Council (QTIC) called for expressions of interest from potential providers
and engaged Norton Rose Fulbright to conduct research on industry best practice, focussing on the
attraction, recruitment and retention of the tourism industry workforce. Norton Rose Fulbright then
engaged BDO to conduct the research and prepare this report.
The scope of the engagement embraced three key areas, which were to:
Undertake an environmental scan of national and Queensland industry and government initiatives,
associated programs and/or activity related to attraction, recruitment and retention. Identify and
notate best practice activity.
Research and consult with Queensland tourism industry operators, human resource managers and
employees to establish successful attraction, recruitment and retention strategies.
Development of a Queensland tourism industry best practice strategy and plan related and
contextualised to the four tourism sectors (Accommodation, Adventure Tourism, Food and Beverage
and Tourism Services).
The project deliverable was a report that contained:
1. The outcomes of the environmental scan of existing policy/programs in Queensland and around
Australia
2. Recommendations on industry practices, industry needs and recommendations related to attraction,
recruitment and retention of employees within the Queensland tourism industry across the four
sectors
3. A strategy and plan for attraction, recruitment and retention of tourism employees
4. A set of guidelines and tips for industry employers on how to improve employee engagement by
improving HR practices and structures.
Information on the approach and methodology adopted to achieve the deliverables of the engagement is
outlined in Appendix 1.
Section 2 of this Final Report outlines the recommended plan to improve the attraction, recruitment and
retention of the tourism workforce, which has been termed the “Queensland Tourism Best Practice
Workforce Engagement Strategy”. This plan has been informed by our research and consultation findings
and comprises five strategic imperatives and industry required outcomes. Key actions and suggested
priorities have than been devised to achieve each of the five key goals.
Four of these strategic imperatives are related to high-level themes which will mainly require an industry-
wide approach and coordinated action. Industry research and consultation findings pertaining to
increasing workforce engagement, raising the industry profile, fostering industry collaboration and
minimising skill shortages are fully discussed in Section 3 of this report.
The fifth strategic imperative of the plan was to improve HR management practices and structures across
employers generally within the industry, which would contribute at an enterprise level to improving the
attraction and retention of the industry’s workforce. Research and consultation findings more applicable
to tourism industry employers and their staff have been summarised in Section 4 of this Final Report.
4
A booklet prepared for industry employers providing guidelines and tips on improving employee
engagement has been designed as a stand-alone document, and has been provided separately to this Final
Report.
Considerations - The need for Structural Industry Reform
Given the importance of the Industry, the current level of investment by Government and the relatively
low levels of workforce engagement it is recommended that a high level structural review of the Tourism
Industry be considered.
To ensure the Industry is best placed to maximise on its contribution to the economic growth and
sustainability of the State, there is a need for significant structural workplace reforms that will:
Ensure employers are able to meet the future growth expectations of the Industry in a sustained
manner, i.e. Owner/operators are able to meet industry service delivery demands and do so in a way
that doesn't significantly impact their employment cost base
Allow the Industry to shift remuneration arrangements and offerings to be more in line with general
market practice and provide a level of parity with competing industries
Due to not being the focus of this review, these considerations are not further substantiated within the
context of this Report.
It is strongly urged that the recommendations contained within this Report are considered in the broader
context of the need for significant structural reform in order to best place the Industry to achieve a
positive shift in its ability to grow the value of its human capital and increase overall productivity
outcomes.
Best Practice Workforce Engagement Strategy and Recommendations of this Review
The perceived lack of training and development, limited career opportunities, seasonal nature of
employment, and non-competitive remuneration practices all add to lack of overall appeal to the sector
and restricts the potential candidate pool for prospective employers.
Many employers considered that providing more learning and development opportunities, promoting the
benefits of working within the industry, simplified employment conditions and aligning with educational
institutions would assist them to attract more suitable candidates.
Flexibility of employment, job satisfaction and workplace culture are factors that are highly valued by
employees working in the industry. Many employers in the industry are not aware of the value placed on
these aspects of their employment by their employees; and ways for industry employers of all sizes to
develop a more compelling employee value proposition (EVP) have been suggested.
Remuneration, whilst not considered a priority to new recruits, increases in importance after individuals
commence employment within the industry. Opportunities exist for employers to develop salary
structures that have a limited degree of salary progression (perhaps covering the first 2 to 3 years of an
employee’s tenure), implement non-financial reward programs to increase engagement, and perhaps also
to link reward and performance. Although it is acknowledged that such initiatives may also increase
employment costs somewhat, such increases will be more than paid for by reducing unwanted turnover
and hence improving productivity at an enterprise level.
In order to improve the overall attraction, recruitment and retention of employees to the Tourism Industry
it is recommended that the Best Practice Workforce Engagement Strategy plan outlined in detail in the
next section of this Report be adopted and pursued by the Queensland Tourism Industry. The plan
identifies five strategic imperatives for industry to focus on over the next few years, as well as a number
5
of transitional actions to be pursued. A summary and outline version of the plan is shown below, and the
full details are provided in Section 2 of this Report.
Industry and Employment Structure Reforms
Recommendations/Key Actions
1 Government engage key stakeholder groups in a review of the various industry programs to determine
the effectiveness of these programs in promoting tourism as an employment industry of choice
2 Rationalise and redirect funding from ineffective programs to assist with changing the landscape of
the Tourism Industry and its overall attractiveness to the general labour market
3 Undertake significant workplace reforms that allow tourism owners and operators to compete
effectively for skilled and capable employees
3.1 Review of current remuneration practices to determine where and how the industry needs to
improve its overall reward and overall employment offerings
3.2 Review the impact of current award structures and employment terms and conditions on
service delivery expectations
[Refer Section 3; pp 21, 22, 29, 30 and 36]
Raise the industry profile
Recommendations/Key Actions
4 Develop and implement a comprehensive plan that raises the awareness of the various tourism jobs
and career opportunities within the industry. Suggested actions include:
4.1 Develop and showcase actual career profiles of employees working within the industry
4.2 Engaging with key stakeholders and communities to promote awareness of tourism jobs and
careers
4.3 Use appropriate tools and methods to promote employment within the tourism industry to
youth and schools that highlights the various roles and career choices available
[Refer Section 3; pp 32 – 35]
Foster industry collaboration
Recommendations/Key Actions
5 Local and regional support is provided to assist with recruitment and help facilitate collaboration
amongst industry employers. Some of the possible actions would include:
5.1 Develop and establish employer hubs to allow for collaboration and promotion of job
opportunities with the local area and the region more broadly
5.2 Regional Training Organisations (RTOs) facilitate information sharing and collaboration amongst
local industry employers
6 Develop industry “one-stop” regional portals that include tools and resources to assist employers
meet recruitment needs and their employment obligations.
7 Develop and facilitate collaboration amongst industry employers to develop career paths for their
employees that may extend beyond current employment arrangements.
[Refer Section 3; pp 35 – 37]
6
Minimise skill shortages
Recommendations/Key Actions
8 Develop and foster collaboration between industry and educational organisations to ensure an
adequate supply of skills and capabilities to meet industry demands. Collaboration could include:
8.1 Develop an Industry Skills Shortage Priority Taskforce
8.2 Local community and regional meetings to discuss industry skills demands, availability and
training requirements
8.3 Introduce mechanisms for employers and employees to promote skills needs and job
opportunities
8.4 Connect employers, job seekers and students – locally, regionally and nationally
9 Develop and implement strategies to help minimise the impact of workforce shortages and retention
challenges faced by seasonal, regional and remote rural employers
9.1 Foster collaboration and partnerships with summer and winter employers to explore the
possibility of the exchange of seasonal and/or part time workers – for example collaboration
could be through the use of primary industries work programs
[Refer Section 3; pp 24, 25, 36 and 37]
Improve HR management practices and structures at the enterprise level
Recommendations/Key Actions
10 Promote the use progressive of human resource practices and structures by tourism employers. Some
of the initiatives could include:
10.1 Provide coaching and mentoring of owner-operators on progressive HR practices including job
sharing, and how to provide flexibility to employees
10.2 Recognise and showcase employers who use effective HR practices to help attract and retain
their workforces
10.3 Educate employers on their legal employment obligations and the cost benefits of improving
retention through creating and managing expectations, promoting more intangible but valued
employment arrangements and rewarding performance
10.4 Provide a range of practical best practice HR guides to employers related to people
management practices and structures that will help them attract and retain the right workers.
[Refer Section 4; pp 38 – 44]
In addition to the above recommendations and key actions, the researchers were specifically asked to
examine the skills passport concept, including the level of awareness across tourism employee and
employer groups.
On the basis that the Skills Passport has a very low level of awareness and an extremely low usage, it is
recommended that:
The Skills Passport as a stand-alone concept be discontinued and an exit strategy devised
Industry stakeholders making greater use of available Industry forums / aligned strategies and
activities to educate operators and employees of the opportunities to utilise existing social media
infrastructure (such as LinkedIn, Seek, My CV) to fulfil the need to better connect employers and
employees and allow employers and employees to self-promote.
[Refer Section 3; pp 21 – 23]
At the time of publishing this Report the Tourism Industry Workforce Plan was being developed.
Recommendations and key actions arising from this Report will need to be considered in light of the
findings and recommendations identified in the industry workforce plan.
7
SECTION 2: WORKFORCE ENGAGEMENT STRATEGY
The recent global economic downturn, the high costs of living, travel and the reoccurring presence of
natural disasters have all contributed to the limited growth and challenges in the tourism sector within
Queensland. The industry has also experienced significant workforce shortages, restricting future growth
opportunities. Recent economic data points to an increase in international and domestic demand for
tourism services which will further exacerbate the need for capable employees.
The Queensland government has recognised tourism as one of ‘the four pillars of the economy’ and aims
to get the industry back on track as Australia’s number one tourist destination by 2020.
The Government’s “DestinationQ” strategy has identified the need to continue to invest in the state’s
skills system to be more responsive to the needs of the Tourism Industry. In partnership with industry
groups the Queensland Government has also introduced a range of initiatives and programs that aim to
directly contribute to the supply and development of the tourism workforce.
There is a critical requirement to ensure an adequate supply of capable workers are ready to meet the
current and future workforce needs of the sector and in turn help support the achievement of the
DestinationQ strategic imperatives.
A key priority is the need to enhance the development and career opportunities available to prospective
employees and to promote the sector’s overall employee value proposition.
This Report provides a best practice strategy and recommendations to assist in improving the attraction,
recruitment and retention of the Tourism Industry workforce. Details of the plan are provided in the
following pages. Later sections of this Report discuss the environment in which the overall tourism
workforce operates, provide a summary of current best practice initiatives and a high level plan to assist
employers attract, recruit and retain a capable workforce. More practical guidelines and tips for tourism
employers have been collated into a booklet form which is presented in Appendix 3.
The Queensland Tourism Best Practice Workforce Engagement Strategy developed as a key deliverable
of this study starts with the overall desired outcome of increased workforce attraction, recruitment and
retention within the Queensland Tourism Industry. Five strategic goals and associated actions were
believed to be critical in achieving this overall objective. The five strategic goals were defined as:
1. Industry and Employment Structure Reforms
2. Raise the industry profile
3. Foster industry collaboration
4. Minimise skill shortages
5. Improve HR management practices and structures at the enterprise level.
The plan outlined on the following pages defines each goal and outlines the objective sought, and the
current and desired future state. The plan also identifies a number of key actions which will be necessary
to achieve each goal. A timeframe/ priority for each action spanning the next two years has also been
suggested, as well as which organisations could be the lead agency for each activity.
8
Queensland Tourism — Best Practice Workforce Engagement Strategy
The next few pages discuss each of the strategic imperatives and key actions in more detail, including a
suggested priority/timeframe. In addition, agencies which could perhaps take the lead for key actions as
well as other agencies which could support such actions have been identified.
Key D
rivers
to
achie
ve th
e
overa
ll o
bje
cti
ve
STRATEGIC IMPERATIVES TO ACHIEVE THE REQUIRED OUTCOME
1. Industry and Employment Structure Reforms
2. Raise Industry Profile
3. Foster Industry Collaboration
4. Minimise Skills Shortages
5. Improve HR Management Practices and Structures at the Enterprise Level
Short
term
opera
tional outc
om
es
and k
ey a
cti
ons
1-2
years
KEY ACTIVITIES AND OPERATIONAL PRIORITIES FOR INDUSTRY
1. Industry and Employment Structure Reforms
• review the effectiveness of the extensive suite of industry programs
• rationalise programs and redirect funding
• review remuneration and other reward practices compared to other industries
• review award structures, penalty rates and other employment arrangements
2. Raise Industry Profile
• develop an industry plan to raise awareness of industry jobs and careers
• showcase actual career profiles of tourism employees
• engage industry stakeholders to promote awareness of jobs and careers
• youth and schools promotion
3. Foster Industry Collaboration
• local and regional support is provided to facilitate collaboration
• develop employer hubs to facilitate local and regional employer collaboration
• RTOs to facilitate information sharing amongst local industry employers
• develop ‘one-stop’ regional portals to assist industry employers
• encourage industry employers to develop career pathways for employees outside their
current employment
4. Minimise Skills Shortages
• foster > collaboration between industry and educational organisations
• develop an Industry Skills Shortage Priority Taskforce
• local and regional forums to identify skill demands and training requirements
• seasonal employment exchange programs
• promote flexible work practices to improve retention
5. Improve HR Management Practices and Structures
• coaching and mentoring
• showcase best practice leaders
• education - employer legal obligations and the benefits of reducing turnover
• practical and best-practice HR guides for employers
Overall
Objective
INCREASED WORKFORCE ATTRACTION, RECRUITMENT AND RETENTION WITHIN
THE QUEENSLAND TOURISM INDUSTRY
9
Operational Priorities for Execution
Strategic Imperative 1: Industry and Employment Structure Reforms
Objective: Improved workforce engagement and participation
Current State:
Future State:
Large number of industry programs that have
not been properly evaluated and employment
structures that are not competitive
Effective programs are better funded and
industrial structures are affordable, more flexible
and more competitive
Key actions, timeframe and lead agencies:
ACTION PRIORITY LEAD SUPPORT
AGENCIES
Review existing programs to
reduce duplication and
redundancy, and identify those
programs which more
successfully promote tourism as
an employment industry of
choice
Immediate QTIC
National and
State Government
Departments, TEQ, RTO
industry
Redirect funding to key programs
which will have a more
significant impact on changing
the perception of the industry as
an attractive career choice
Immediate
National and
State Government
Departments,
QTIC
Industry, RTOs, LTOs
Review industry remuneration
and reward structures to assess
where the industry needs to
improve its overall reward
offerings compared to other
industries
Medium –
Longer Term
Department of
Education, Employment
and Workplace
Relations,
QTIC
National Tourism
Alliance, Industry,
QTIC Associations Council
Devise workplace reforms
(involving matters such as
penalty rates and working
conditions) which will have a
positive impact on service
delivery in the industry
Medium –
Longer Term
Department of
Education, Employment
and Workplace
Relations
QTIC
National Tourism
Alliance, Industry,
QTIC Associations Council
Note: Immediate- within 3 months, Medium- Long term 6 -12 months
10
Strategic Imperative 2: Raise the Tourism Industry Profile
Objective: Increase awareness of tourism jobs and career choices in the wider community
Current State: Future State:
General perception of limited career and
development opportunities in the tourism
industry
Tourism industry seen as providing a diverse and
unique range of career opportunities for
employees
Key actions, timeframe and lead agencies:
ACTION PRIORITY LEAD SUPPORT
AGENCIES
Develop a comprehensive
industry plan that raises
awareness of the various tourism
jobs within the industry
Immediate QTIC
National and
State Government
Departments, TEQ,
industry, RTOs, LTOs
State, private and
independent schools
Develop and showcase actual
career profiles of successful
employees within the tourism
industry
Medium –
Longer Term QTIC
Tourism and Events
Queensland, Industry
Engage with key stakeholders and
communities to promote
awareness of tourism jobs and
careers
Medium –
Longer Term QTIC
Tourism and Events
Queensland RTOs, LTOs,
Industry
Use appropriate tools and
methods to promote employment
within the tourism industry to
youth and schools that highlights
the various roles and career
choices available
Medium –
Longer Term
QTIC,
Tourism and Events
Queensland
State Government
Departments
RTOs, LTOs State and
independent schools,
industry
Note: Immediate- within 3 months, Medium- Long term 6 -12 months
11
Strategic Imperative 3: Foster Industry Collaboration
Objective: Develop collaborative models to support local needs
Current State: Future State:
Industry collaboration lacks system and
coordinated mechanisms, does not effectively
engage all key stakeholders, and is not part of
an industry master plan
Industry collaboration is planned, purposeful,
involves all key stakeholders and achieves better
attraction and recruitment outcomes
Key actions, timeframe and lead agencies:
ACTION PRIORITY LEAD SUPPORT
AGENCIES
Local and regional support is provided to assist with
recruitment and help facilitate collaboration amongst
industry employers
Immediate
QTIC,
Tourism and
Events
Queensland
RTOs, LTOs,
Chambers of
Commerce,
Industry
Establish local and regional employer hubs to allow
for collaboration and promotion of job opportunities
within the local area and the region more broadly
Immediate
QTIC,
Tourism and
Events
Queensland
RTOs, LTOs,
Local/Regional
Governments,
Tourism and Events
Queensland,
Regional Training Organisations (RTOs) facilitate
information sharing and collaboration amongst local
industry employers
Immediate
QTIC,
Regional
Tourism
Organisations
RTOs, LTOs,
Local/Regional
Governments,
Industry
Develop an industry “one-stop” regional portals that
include tools and resources to assist employers meet
recruitment needs and their employment obligations.
The portal could include:
list of local and regional vacancies
Access to social media to better promote job
opportunities
Links to existing skills and candidate matching systems
such as LinkedIn and seek.com
Tools and templates to assist with advertising and
recruitment processes
Sample job descriptions to assist with promoting jobs
and defining skills and capability requirements
Access to relevant industry employment programs
including mature age, indigenous and disabled worker
programs as well as foreign or international
student/worker programs
Medium –
Longer
Term
QTIC,
State
Government
Departments
Tourism and Events
Queensland,
Regional Tourism
Organisations,
Employment and
Jobs
Agencies/Network,
Industry
Facilitate collaboration amongst industry employers
to develop career paths for their employees that may
extend beyond current employment arrangements
Medium –
Longer
Term
QTIC,
Regional
Tourism
Organisations
Tourism and Events
Queensland,
State Departments,
Note: Immediate- within 3 months, Medium- Long term 6 -12 months
12
Strategic Imperative 4: Skills Shortages
Objective: Develop strategies to minimise skills shortages
Current State Future State:
Skills shortages are impacting on the ability of
organisations to service some tourism markets
There is an adequate supply of labour to meet
industry demands across the State
Key actions, timeframe and lead agencies:
ACTION PRIORITY LEAD SUPPORT
AGENCIES
Develop an Industry Skills
Shortage Priority Taskforce Immediate QTIC
Tourism and Events
Queensland,
Regional Tourism
Organisations,
National and State
Departments, Industry
Foster collaboration amongst
seasonal employers and other
industries
Immediate QTIC
Tourism and Events
Queensland,
Regional Tourism
Organisations, Industry
Promote various job and career
opportunities aimed a wide range
of target audiences, not just
school leavers.
The ‘one-stop’ portal(s) also
enable employers to:
Access relevant industry
employment programs including
mature age, indigenous and
disabled worker programs as
well as foreign or international
student/worker programs
Immediate
QTIC,
Tourism and Events
Queensland,
Regional Tourism
Organisations
National and State
Departments, Industry
Promote the use of better HR
practices (such as flexible work
practices and career models) to
assist with retention
Medium –
Longer Term
QTIC (QTIC, Tourism
and Hospitality - Best
Practice Guide)
Regional Tourism
Organisations.
Tourism and Events
Queensland
State Departments
Note: Immediate- within 3 months, Medium- Long term 6 -12 months
13
Strategic Imperative 5: Improved HR Management Practices and Structures at the
Enterprise Level
Objective: Improve people management practices and structures across the industry
Current State: Future State:
Many employers are unable to attract the
right staff and retain staff as a result of
inflexible working arrangements, not
promoting the career opportunities that do
exist and not making the most of all the
advantages of working for their business
Employers will have the knowledge and tools to
improve and better capitalise on their
employment offering. Improved retention will
decrease costs, improve productivity and fund
improved benefits
Key action, timeframe and execution path:
ACTION PRIORITY RESOURCES
Establish local and regional
coaching and mentoring programs
for owner operators on
progressive HR practices
including job sharing, providing
flexibility, rewarding
performance
Immediate QTIC Industry, RTOs, LTOs
Showcase best practice leaders
and provide support via local and
regional tourism organisations
Immediate
QTIC,
Regional Tourism
Organisations
Tourism and Events
Queensland
Provide additional people
management and employment
law education
Immediate
QTIC,
Regional Tourism
Organisations
Tourism and Events
Queensland
Develop best practice guidelines
for employers to use all their
attractive employment features
to recruit, retain and engage
their workforce by developing an
attractive employee value
proposition (EVP)
Immediate
QTIC (QTIC, Tourism
and Hospitality - Best
Practice Guide)
Tourism and Events
Queensland,
Regional Tourism
Organisations
Note: Immediate- within 3 months, Medium- Long term 6 -12 months
14
SECTION 3: ENVIRONMENTAL SCAN AND INDUSTRY RESEARCH FINDINGS
The Tourism Industry in Queensland directly contributed $10.5 billion to gross state product and supports
approximately 136,000 (5.9%) Queensland jobs4. The Tourism Industry is one of the highest employing
industries in the state. When combined with another 99,000 indirect Tourism Industry jobs it represents
10.1% of total employment in Queensland. Tourism supports 55,700 businesses, representing 12.9% of all
registered businesses in the state5.
The Tourism Industry is made up of a number of sectors including accommodation, adventure tourism,
transportation, travel trade, food and beverage, tourism services, events and conferences, and
attractions. Of all of the sectors food and beverage (cafes, restaurants and takeaway food service etc.)
accounts for the largest share of tourism employment (27%), followed by retail trade (18%) and
accommodation (13.5%)6.
Employment is spread across small, medium and large employers however small businesses represent the
predominant employer profile. Small businesses employing less than 20 employees accounts for 85% of
total Tourism Industry employment. Many of these small businesses (45%) operate seasonally and employ
largely transient and seasonal workforces.
Employees in the Tourism Industry engage in little formal training in comparison to the economy as a
whole. 61.4% and 60.2% of all workers in retail trade and accommodation, cafes and restaurants
respectively, had no formal education beyond school. This is relatively high when compared to the
national figure of all employees of 44.2%. Tourism also experiences a high percentage of part-time or
casual workers 44.5%, in comparison to around 25% of employees across all industries7.
Due to the contingent and seasonal nature of employment in the industry, employee turnover is very high
(54%). Although employee turnover in the Queensland Tourism Industry is high when compared with other
industries, it is still marginally lower than the Australian tourism figure of 64%.
Remuneration in the Tourism Industry is coming in below the average across all industries with workers
only earning an average weekly wage of $956 (accommodation & food services), compared to $1,348 in all
industries. The mining industry, which competes for labour directly with tourism, boasts a staggering
$2,267 weekly average8, although it should be noted that roster arrangements (such as 21 days on and 7
days off) require many more working hours per year than most other industry sectors.
The age profile of Tourism Industry workforce is kept relatively low due to the high number of youth
employed by the industry (45.7% between 15 and 24). As age is also correlated with remuneration, the
high proportion of younger workers in part contributes to lower average wages in the Tourism Industry.
This Section of the Final Report presents the research findings based on a study of the many programs
offered to industry employers, as well as direct consultation with industry employers and employees
through the survey and focus groups.
The findings are discussed under the headings of:
Workforce programs and initiatives
Career opportunities and the skills passport
Recruitment strategies
Retention strategies
4 Tourism and Events Queensland – Tourism Economic Key Facts 5 July 2013 5 Tourism Research Australia 6 State of the Industry, Australian Government 2012 7 Australian Bureau of Statistics 2006 8 State of the Industry, Australian Government 2012
15
Table 1: Tourism Industry Workforce Overview (source: Deloitte 2011, ABS 2011/12, Tourism & Events Qld 2013)
Queensland Australia
Total employees 136,000 531,900
Gross Value Added (revenue contribution to the economy) $10.5 billion $37.6 billion
Number of businesses 55,700 293,419
Small Businesses (employing less than 20 employees) 85% 90%
Seasonal businesses 45% 47%
Industry employee turnover rate 54% 64%
Jobs in greatest demand9
The following tourism occupations are experiencing the most common deficiencies - in terms of skills
and/or experience: -
Waiters
Chefs
Bar Attendants
Cooks and
Commercial Housekeepers
Adventure Guides
Projected forecasts predict that the following tourism and hospitality occupations will be in greatest
demand: -
Kitchen hands
Waiters
Café & Restaurant Managers
Any initiatives introduced to assist with attraction, recruitment and retention across the Tourism Industry
will need to consider specific job family demands and be further contextualised to meet specific regional
requirements to be successful.
9 Australian Tourism Labour Force Report - 2011
16
Workforce Challenges, Programs and Initiatives
The industry is perceived to support a mainly transient and seasonal workforce. This perception presents a
significant challenge to employers wishing to attract, recruit and retain employees within the industry.
There are moves to increase the profile of jobs within tourism and to increase the potential career
development opportunities within the industry. The majority of tourism organisations are not of a size or
scale to support extensive training and development of their employees. At the enterprise level, career
opportunities within the company are generally more limited for small businesses – irrespective of the
industry such businesses are part of.
The perceived lack of training and development, limited career opportunities, seasonal nature of
employment, and non-competitive remuneration practices all add to a lack of overall appeal of the sector
and restricts the potential candidate pool for prospective employers.
Some of the more common perceptions around tourism employment and the challenges faced include: -
Social and cultural perception of employment within the industry
Non-competitive remuneration relative to other industries – i.e. mining sector
Limited career pathways and development opportunities
Shortage of skilled employees
Difficulty in providing adequate training and development
Very seasonal nature of employment
Visa or migration issues – many tourism roles are considered unskilled occupations
Additional challenges recruiting in rural or remote areas.
The Tourism Industry outlook is positive with international visitor arrivals increasing over the second half
of 2012.10 Continued and sustained industry growth will have a direct impact on the workforce needs to
support this growth.
Organisations will need to look for innovative ways to attract, engage, develop and retain employees
within the sector. An available, capable and engaged workforce will be critical to the future success of
Tourism Industry organisations. The research findings discussed in this section also discuss career and
skills progression at an industry level, as well as providing feedback and suggestions on the concept and
implementation of a skills passport for the Tourism Industry.
The State Government has laid down a blueprint to help the Tourism Industry achieve a number of key
objectives including an ambition of achieving overnight visitor expenditure of $30 billion by 2020. The
DestinationQ blueprint 2012-2015 also identifies the need to maintain Government’s focus on tourism in
key areas including skills, labour and career development.
Currently there are nine key project areas identified in DestinationQ that focus on improving the quality,
skills and capacity of the tourism workforce. At the time of writing this Report the projects are proceeding
as planned with only a few reporting on ongoing progression.
The projects include:
1 Investigating career development pathways through the concept of a “Skills Passport”
2 Promoting language skills and cultural awareness – of the workforce to meet the needs of visitors,
particularly Asian languages
3 Industry led training - for all jobs in the Tourism Industry
10 Deloitte Access Economics – Tourism and Hotel Market Outlook Q1/2013
17
4 Improve career pathways – starting at school level working through training and education to further
career progression and advancement
5 Review of industrial workplace issues including penalty rates
6 Extending the number of apprenticeships and traineeships – continue to contribute to national efforts
to harmonise the Australian Apprenticeship system and increase awareness of these arrangements
amongst Queensland tourism operators
7 Visas – reviewing 457 Visa (employer sponsored) conditions and arrangements, Worker Holiday Maker
Visa and Guest Worker Visa
8 Operator support and accreditation – improve business performance and service quality amongst
tourism operators through a range of operator support and accreditation programs such as the T-QUAL
tick accreditation
9 Workforce planning - addressing labour and skill shortages within the industry.
Within the Tourism Industry there are a number of initiatives that have been implemented to help
overcome workforce challenges particularly in relation to attraction, recruitment and retention. A
comprehensive summary of Commonwealth and State government policies and programs can be found at
Appendix 2.
Examples of practices specific to the Tourism Industry currently being implemented are listed below.
Attraction & Recruitment & Retention Programs
Program State
Discover Tourism – A portal aiming to target labour and skills issues in the industry. One-stop-shop for
employers and employees
Australia
wide
Works.TV – A new career destination that takes the hard work out of looking for work by providing the
latest employment opportunities and career information across the hospitality and Tourism Industry QLD
Tourism Connect – A website developed for the ACT Tourism Industry that supplies accurate and
relevant information. It provides valuable information for a diverse range of industry members
including an ‘Action Kit’ that allows access to resources and tools to help start and maintain a
successful tourism business
ACT
Queensland Government Tourism Business web portal – Webpage that can assist tourism businesses with
general information on the industry, operations and support QLD
Pacific Seasonal Worker Scheme (PSWS) – Allows Australian employers in the horticulture industry to
employ workers from eight Pacific island countries and Timor-Leste, when they cannot find enough
local workers to meet seasonal demands. A trail of this program has been extended to the
accommodation sector, encompassing jobs such as bar attendants, waiters, housekeepers, kitchen
hands etc.
Australia
wide –
Pilot in WA
Indigenous Small to Medium Enterprise Tourism Strategy – Develop and distribute a set of resources and
tools targeting SMEs in the industry to support and increase awareness and confidence in relation to
employing
QLD
Mature Age Employment Project – Raise industry awareness of the benefits of older workers QLD
Indigenous Champions Network – Purpose is to champion the employment of indigenous people in QLD
18
Program State
mainstream tourism roles
Australian food and beverage skills passport – Developed due to the need for greater connections
between industry and training providers in creating a pool of talented employees whose skills are
relevant, recognised and transferrable across the wine, olive and beverage industries. The Skills
Passport contains a base set of skills and training required by industry for their seasonal workers
including OH&S and HACCP
VIC/
Australia
A Taste of Broome- A multi-arts performance and cuisine based project that brings focus to Broome and
the multicultural community. It encourages local involvement in the Tourism Industry above all
providing employment and training to the indigenous community
WA
Salute to Excellence Awards – Recognition program for senior school students studying hospitality and
tourism. Encourage school leavers to join the Tourism Industry
QLD
Training & Development
Program State
National Workforce Development Fund - $700 million over five years to the industry to support training
and workforce development in areas of current and future skills needs
Australia
wide
Industry-based Training Experience - Wine, Food and Tourism, Students participate in intensive, hands-
on and experiential programs which deliver QCE (Queensland Certificate of Education) recognition and
competencies in carious nationally recognised certificate level qualifications in winemaking, cookery,
food & beverage service and wine chemistry. Part of the Gateway schools program
QLD
Language and Cultural Capacity Building Project – Provide training to up-skill existing workers and new
entrants in Mandarin language and Chinese cultural awareness. QLD
Echo Entertainment Group (Casinos) – provide qualifications for 1,306 new entrant and existing workers
addressing skills needs generated by expansion of properties. QLD
P.R.O Management – Provide qualifications for mature age entrants to the caravan park sector
addressing skill development needs of the industry to fill gaps in skills and labour supply in
rural/remote Queensland
QLD
Wet Tropics Tour Guide Training – Aims at enhancing guide knowledge about the World Heritage Area,
skill sharing techniques and networking opportunities to improve visitor experiences QLD
Culinary Career Start – Paves the way into hospitality with pre-apprenticeship training, encouraging
school leavers to join the industry QLD
Many competing sectors are exploring ways to accelerate the development and capability of their
workforces as well as enhancing the attractiveness of their sector to potential employees. Some of these
initiatives may also be useful for the Tourism Industry once their outcomes are more fully known.
Examples of some initiatives both in Australia and abroad are listed below.
19
Initiatives in other sectors (Attraction, Recruitment & Retention)
Program Jurisdiction
UK tourism skills passport – One-stop shop for careers, jobs, training, qualifications, employers and
training providers in hospitality, leisure, travel and tourism
United
Kingdom
Safe Work Australia – The National Occupational Health and Safety Certificate for uses and operators of
industrial equipment is a general requirement of competency based training that is recognised across
the industry thus avoiding duplication, saving time and money
Australia
wide
Dairy Australia Business modules – Dairy operators across Australia can easily follow various modules
that assist in a variety of business improvement areas including recruitment and retention
Australia
wide
British Columbia Go2 organisation – Go2 supports the BC tourism and hospitality industry with a large
number of initiatives that encourage successful growth and development. Programs include industry
promotion, skill training and accreditation and employee resources that assist with recruitment and
retention
Canada
Wal-Mart discounted degrees – Wal-Mart in America subsidises employee’s online university degrees as
a way of improving the quality of their workforce and reducing employee turnover USA
The Gateway to Industry School program (Gateway Schools) is aimed at improving industry-school
engagement, focussing on educating students and providing career opportunities. Supported by
contributing industries, the skill areas emphasised and example programs include:
Equipping students with industry accreditation – Industry aims to ensure that school-based
education and training equips students with the right level of industry recognised skills and
experience to ensure they are ideal candidates for work or further training. For Example the Food
and Wine Tourism project that trains and assists students in completing the Wine and Sprit
Education Trust (WSET) Foundation level awards.
Building local school and industry networks – Local industry – school partnerships allow for the
development of work experience projects, contextualised curriculum, industry visits, professional
development activities, opportunities for school-based apprenticeships and traineeship. For
example the Coal Seam Gas High Schools Project which aims to build awareness and create
knowledge of career opportunities in the industry.
Developing industry-focused Curriculum – Queensland Studies Authority (QSA) endorsed projects
that allow students to engage in industry specific curriculum while working towards their QCE
(Queensland Certificate of Education). For example ‘Cotton in Curriculum’ which is a science based
curriculum situated in the cotton growing regions that relates material to cotton as much as
possible.
Lifting the industry’s image – Promotes the industry’s image and attempts to improve people
perceptions by creating heightened awareness of career diversity and opportunities. The
construction industry has developed a ‘Constructive Kids DVD’ program that provides practical
information about the industry and potential rewarding careers.
QLD
These examples are a sample of the current Policies and Programs that are being implemented in the
Tourism Industry and across other sectors both in Australia and abroad. A more comprehensive summary
can be found at Appendix 2.
20
Summary of observations
When determining the current best practice strategies and formulating future recommendations very few
lessons can be learnt from the long list of current policies and programs. Many of the existing programs
are either in a pilot phase, or have been operational for only a short period of time and consequently little
about their success can be ascertained.
Of the programs that have been running for a more substantial length of time if is often difficult to gauge
their success due to a number of factors:
a) Little to no investigation is done into the direct outcomes of the programs
b) Due to the number of programs and other external factors (economic and environmental) it is
extremely difficult to categorically claim or prove that a change in events is due solely to the
influence of one particular program
c) Of the initiatives that have reported on outcomes and successes, the judgements are almost
always coming from the instigator of the program (government, industry etc.) which can lead to
self-promotion and may cast some doubt about the full validity of the claims being made.
There is no doubt that reform is needed to assess the most effective best industry programs and direct
funding from programs that are not succeeding into programs that demonstrate better value for money.
On the whole it would appear that many of the industry programs are under-utilised. Collectively there
are over 700+ different programs available for employers and employees within the Tourism Industry.
Given the sheer number of programmes and levels of investment made by State and Commonwealth
Governments ($20 million investment package 2012-13 in Queensland, including a $7 million RTO
partnership fund) there is a need to consider the overall effectiveness of these various programs. The
scale and number of programs would also suggest there is a potential for duplication and program
inefficiency. Any such review would allow for improvements in program efficacy and re-direct funds to
areas where they will have the greatest impact.
The Tourism Industry in Queensland is governed and promoted by a significant number of organisations.
This is largely a consequence of the size and importance of the industry to the State. It does however
create a level of complexity that may hinder access to programs for small business owners who make up
the vast majority of employers within the industry.
The lack of program take-up would suggest that more could be done to increase the level of awareness of
the various commonwealth, state, regional and local programs. In addition there does not appear to be a
significant level of collaboration at a local and regional level to help share knowledge and promote
employment opportunities within the Tourism Industry.
Actions and recommendations to address these observations are summarised below. Numbering of the
recommendations reflects the consolidated list of all recommendations shown in the Executive Summary.
Industry and Employment Structure Reforms
Recommendations/Key Actions
1 Government engage key stakeholder groups in a review of the various industry programs to determine
the effectiveness of these programs in promoting tourism as an employment industry of choice
2 Rationalise and redirect funding from ineffective programs to assist with changing the landscape of
the Tourism Industry and its overall attractiveness to the general labour market.
21
Career Opportunities and the Skills Passport
The research has clearly indicated that there is a perception that exists within the Tourism Industry that
employees working in the industry have limited career opportunities available to them. Whether it is a
result of lack of promotion of careers on offer or the poor communication of the opportunities available,
the general view is that if you want to progress you are better off in another industry. Although
employees working in owner-operator environments might support this belief to some degree, there are
definite pathways across the industry more broadly that can be promoted and highlighted to prospective
and existing employees.
Research indicated that from the sample of employees surveyed (70%) believe that career opportunities
existed both within their own organisation and the industry as a whole. Unquestionably, some sections of
the industry are tailored to brief tenures, and the industry needs to learn to embrace that fact. However
industry also has to promote the long-term, stable, rewarding positions that are on offer by across
industry and the opportunities for training and development that already exist.
Skills Passport
The skills passport is a system that attempts to match employee’s skills and capabilities with the skills and
capability requirements of organisations in the Tourism Industry. Whether it is a physical ‘passport’ that
can be produced or an online profile, prospective employees would list qualifications and achievements
that can be presented to employers. Employers could also utilise the system to advertise for roles, and
identify suitable applicants by matching role specific skill requirements with employee skills and
experience.
This Skills Passport system has been introduced in other industries within Australian and overseas. There is
little or no evidence to indicate the level of success of these alternative programs.
The idea of matching an employee’s recognised skills to a particular advertised role is a worthwhile
endeavour and could provide much needed assistance in the recruitment phase for many organisations and
employees seeking employment. The majority of employees (90%) do not have any knowledge or
awareness of the Skills Passport concept. Employers familiar with the system rated it poor or ineffective
(11%), and many (69%) where not familiar or did not comment on its usefulness.
Figure 6: Use and Effectiveness of Skills Passport
22
Most employees (96%) had not used an online skills matching system. Employers did not consider the Skills
Passport system would be very effective at attracting suitable candidates. There are a number of existing
skills matching systems in the marketplace such as LinkedIn, Seek, My CV. These alternative systems
where cited by some employees surveyed as skills matching systems they had used. The Skills Passport
system could be considered a duplication of these existing systems.
Figure 7: Would you consider using a Skills Passport? (Employee Perceptions)
Only 37% of employees surveyed considered using an online Skills Passport with many (45%) being unsure if
they would use an online skills matching system.
The costs and effort involved in developing and maintaining a new online Skills Passport system may
negate the benefits from such a system. A possible viable alternative would be to use existing systems
such as LinkedIn or My CV to help promote the Tourism Industry and search for individual skills and
capabilities using the existing infrastructure. Increasing the awareness and understanding among the
employer and employee groups, of any system is vital for its overall success and acceptance.
Additional concerns were raised with respect to the validity of accreditation and qualifications registered
with online systems (i.e., there is no vetting of information recorded on LinkedIn).
Summary of observations
There are a wide variety of career opportunities within the Tourism Industry. The industry does however
suffer from negative perceptions (perhaps unfairly) that jobs within the industry are transient and do not
provide a “real” career.
The Industry needs to do more to promote careers across the industry and showcase employees who have
been able to effectively manage a career and lifestyle across a variety of roles. Many of the employees
who responded to the online survey felt they had ample opportunities within the industry with many
aspiring to management positions or considering starting their own tourism business venture.
The Skills Passport concept is not well known or understood within the Tourism Industry. The initial
feedback from employers and employees is uncertainty about how it could be best applied and whether it
would actually provide anything further than what is currently available through existing online systems
such as LinkedIn, Seek and My CV.
Skills Passport- Recommendation
The Skills Passport as a stand-alone concept be dispensed with or discontinued
Industry stakeholders making greater use of available Industry forums / aligned strategies and
activities to educate operators and employees of the opportunities to utilise existing social media
infrastructure (such as LinkedIn, Seek, My CV) to fulfil the need to better connect employers and
employees and allow employers and employees to self-promote.
“I haven't used on-line recruitment methods”
“none - have usually been recruited by word of mouth”
“I uploaded my resume onto seek.com profile”
“I have updated my Linked in profile and connections”
“I have used recruitment agency- sent resume”
“ I have used My Cv with Seek and on-line vacancies”
Employee Comments
45%
18%
37%
YesNoNotSure
23
Recruitment Strategies
Methods of Recruitment
Various recruitment methods are adopted by organisations in the Tourism Industry in an attempt to source
suitable candidates. The approaches taken by the organisations that participated in the consultation
ranged from basic and conventional through to more innovative and leading practices. The following table
provides a summary of these current practices and observations.
Table 6: Current Market Practice - Recruitment
Current Practice Research Findings
Word-of-mouth Generally considered the most effective way to recruit suitable candidates. 30.5%
of employees considered Word-of-Mouth as effective or very effective, the second
most noted method was newspaper advertising with 21%
Participant comments and observations
Very cost effective and targets specific individuals
Offering incentives to current employees to spread the word and successful
placement was also common (i.e., recruit a friend or spotters fee)
Organisational websites 20.5% of employees considered advertising vacancies on company websites as an
effective
Participant comments and observations
The benefits included extending the reach outside of immediate vicinity and helps
to promote the organisation itself
Social media Social media is a key way the younger generation communicate, 15-24 year olds
make up 45.7% of the working population in the Tourism Industry in Australia
Doesn’t appear to be greatly utilised, only 8% of employees claimed to use it more
than occasionally.
Participant comments and observations
Effectively online ‘word-of-mouth’
Online recruiting
E.g., Seek.com, MY CV
Participant comments and observations
Used widely by the employee group, however not a common method for employers
Ability to screen and filter searches for both employees looking for work, and
employers trying to find the right candidate
Relationships with education providers
Participant comments and observations
An effective way of recruiting and targeting specific skills
Offering internships and apprenticeships has been popular for some employers
Establishing relationships between institutions and industry will help minimise skills
shortages and develop work related skills for candidates
Targeting mature aged and indigenous groups
Only 19% of employers surveyed involving it in their recruitment processes more
than occasionally
Participant comments and observations
A number of organisations had developed successful programs
24
Barriers to Recruitment
Many employers cited difficulty recruiting employees for specific occupational groups such as head chefs
and specialist managerial positions. On the whole most employers suggested they had little or no difficulty
recruiting for un-skilled positions. The following table provides a summary of some of the challenges faced
by employers recruiting suitable candidates.
Table 7: Barriers to effective recruitment
Barrier Research Findings
Attitude Participant comments and observations
Applicants poor attitude and work ethic was often cited by employers as a problem in
recruiting suitable employees
Employers reinforced the need to focus on recruiting for the right attitude and less so on
specific job skills. “Recruit for attitude and train for skill” was a mantra held by many
employers
Mismatched
Expectations
Participant comments and observations
Employees often have the view that working in the Tourism Industry will be easy and
Mature workers often have a good attitude and work ethic and can fill many of the
part-time/casual roles
Indigenous workers often add to the authenticity of the ‘tourist experience’ when
working at organisations that are involved in that area of the industry particularly
in regional areas
Targeting foreign workers
Participant comments and observations
Very effective for lower skilled, physical roles (i.e. Cleaning & fruit picking) and for
roles that require specific language skills
Migrant workers usually more willing to take on more menial and mundane roles
Regional Sponsored Migration Scheme (RSMS 119) has been useful in obtaining
suitable workers for some organisations and overcome 457 Visa limitations
Selection surveys and probation periods
Participant comments and observations
Assists to reduce applicant numbers through online screening
Probation periods allow the employer to assess employee suitability
Candidate management systems also used to help with screening
Recruitment agencies Only 3% of employers and 19% of employees used recruitment agencies more than
occasionally
Participant comments and observations
Used mainly for skilled and specialised positions such as head chef and accountant
Not considered effective for unskilled roles as applicant numbers usually outnumber
vacancies.
“Young employees have a sense of entitlement and think that they are owed something.
They don’t want to do the ‘dirty’ jobs”
25
Barrier Research Findings
highly enjoyable. Although this is true for some positions, many others do not live up to
the applicants expectations
Some employers find that being transparent about role requirements during the
recruitment process helps to manage prospective employee expectations
General Industry
Perceptions
Participant comments and observations
Perceptions that the Tourism Industry does not offer career paths is hindering efforts to
attract suitable candidates
Some prospective employees view a vast majority of the jobs as ‘not serious’ and
‘something to do to earn money while travelling or studying’
Location Participant comments and observations
Many individuals are not willing to relocate or travel large distances to work in regional
and remote locations
Employers similarly noted large numbers of applicants not turning up for interviews after
discovering the distance needed to travel
Skills shortages Participant comments and observations
Some roles attract a large number of applicants, however the skill levels of many
applicants is not at the desired level
Certain skilled roles are proving more difficult to fill than un-skilled positions for example
head chef or museum curator
Restrictive Employment
Conditions
Participant comments and observations
Access to hard working, eager foreign workers is seen by some employers as essential to
the industry, however the process is far too difficult
The time and cost involved in visa applications particularly the Temporary Skilled Work
(457 Visa) is hindering employment for some operators
Concerns that many of the roles within the Tourism Industry in which migrant workers are
required have been taken off the 457 skilled occupation list
Minimum wage requirements for the 457 visa also don’t align with wages on offer for the
positions needed to fill
Agency Costs Only 3% of employers stated using agencies more than occasionally
Many of the tourism operators are small businesses (85% of total industry) with limited
budgets unable to meet agency costs
Participant comments and observations
Some of them claiming to only use the service as a last resort due to high agency costs
Lack of Employee
Suitability from External
Recruitment Programs
Only 5% of employers surveyed used external recruiting programs more than occasionally
Participant comments and observations
Some employers feel that government employment programs are solely concerned with
placing candidates and filling roles without due consideration of an individual’s suitability
“I organise interviews & half of them don’t turn up – they realise where we are”
26
Barrier Research Findings
for the role
Many applicants are not qualified or even interested in securing the position and are
simply attempting to meet their unemployment benefits requirements.
Retention Strategies
Organisations in the Tourism Industry often find it difficult to attract and retain appropriately skilled and
capable employees. The industry also has to manage the perception of limited career opportunities due to
the very seasonal and transient nature of employment within the industry.
The research indicated clear misalignment between what employers perceived to be effective retention
methods and what employees say they value about employment.
Key retention themes include training and development, flexible work arrangements, and recognition
programs. Competitive remuneration would appear to be a key retention strategy, however employees
were also likely to favour intrinsic benefits derived from flexible working conditions and hours of work.
Figure 2: Effective Retention Strategies
Although considered relatively important from an employee perspective, superannuation and health and
wellness programs where not considered effective methods by many of the organisations surveyed. This
misalignment might represent an opportunity for employers looking to differentiate their employment
offering.
Interestingly, remuneration was not initially seen as important to attract individuals to the industry, it
takes on greater importance once employed within the industry. This needs to be balanced with what
employees felt they valued most about their work. The predominant response was workplace culture,
team members, flexibility, and job satisfaction.
RemunerationIncreases
Promotion
CareerDevelopmentOpportunities
Bonuses&PerformanceIncreases
AdditionalTraining&Development
FlexibleWorkConditions
AdditionalSuperannuation
FlexibleSalaryPackaging
HoursofWork(Flexibility)
Health&WellnessPrograms
InvolvingtheminDecisionMaking
Employer Employee
Low HighImportance
27
It is often argued that remuneration is a hygiene factor (Herzberg) and needs to at least be competitive.
In other words, employees need to be paid fairly for their work so that it doesn’t erode the value they
derive from the work itself and supporting workplace culture. A key challenge for government and the
Tourism Industry is how to provide remuneration equity relative to other industries, in an environment
dominated by small business owners limited in their capacity to provide market competitive
remuneration.
The research also examined why employees leave the industry. Unsurprisingly, employers felt that many
employees leave to pursue work in another industry and/or pursue career opportunities elsewhere. The
perception by many employers was that the mining boom had in fact driven many employees to leave due
to the higher levels of pay available within this industry.
Some employers also commented that due to recent declines in the mining sector some past employees
are now seeking re-employment within the Tourism Industry.
The current market conditions, which are seeing employees returning to the tourism sector, may be
masking an underlying remuneration imbalance. As industry growth and downturn cycles continue to play
out, the Tourism Industry can expect to continue to experience varying (but present) degrees of
competition for its employees in the future. Government policy and investments need to focus on
redressing any potential market imbalance ahead of increased demands and constraints in
capacity/supply.
Figure 3: Why employees leave - Employer perceptions
Figure 3 findings would suggest that employers feel that any employees leave for work in an unrelated
industry and/or as a result of limited career opportunities. The scope of the research did not allow for
further analysis of these reasons however it would speculate that lack of competitive remuneration could
in part be responsible for many exits. Employers also did not perceive employees would leave due to lack
of workplace flexibility (hours of work) but this is cited by many employees as an important element of
why they choose to work with an employer.
Non-competitiveRemuneration
LackofFlexibleWorkingConditions
LimitedCareerOpportunities
LimitedTraining
SeasonalityofWork
StabilityofEmployment
ReturnHome
RecruitedtoAnotherIndustry
QualityofSupervision
HoursofWork(LackofFlexibility)
Low HighImportance
28
Methods of Retention
Employers within the Tourism Industry are using various retention strategies in an attempt to retain skilled
and talented employees. The approaches taken by organisations range from basic and conventional
through to more innovative and leading practices.
The more successful practices have been summarised below. The following table provides a summary of
these practices and observations.
Table 8: Current Market Practice - Retention
Current Practice Research Findings
Outlining career
development
opportunities
59% of employers believe that a main reason people leave their organisation is limited
career opportunities
Participant comments and observations
Outlining possible career opportunities and pathways to current employees is being
used by some organisations to persuade people to stay
Flexible work conditions
& hours
Participant comments and observations
Consistently mentioned as one of the most valued aspects by employees, offering
flexible work conditions and hours can play an important role in retaining talented
staff
Although offered by some employers, many don’t consider this as an important
retention factor
Remuneration increases 87% of surveyed employees claim that a pay increase would probably or definitely have
an impact on their decision to stay with their organisation.
44% of employers believe that employees regularly leave their organisation because of
remuneration issues
Participant comments and observations
Noted by both employee and employer groups, competitive remuneration is shown to
be a key retention factor
Employees claim they value a number of factors ahead of pay however consistently
mention it as a key retention method
Rewarding & recognising
performance
Participant comments and observations
Individual recognition is commonly cited by employees as a way to make them feel
wanted and appreciated
Examples include; employee of the month, awards nights and publicly acknowledging
their achievements and positive customer feedback
Some employers have embraced the need to offer rewards and recognise good
performance amongst their employees
Training and
development
opportunities
Training and development is quoted (19%) by the employer group as the single most
effective retention initiative
Participant comments and observations
Employees don’t appear to value training as highly so there is an obvious mismatch
between employer and employee perceptions
29
Current Practice Research Findings
Training and development should be part of an overall employment offering however it
needs to be balanced with flexible work arrangements and competitive remuneration
to be effective
Creating a positive
workplace culture
Creating a strong workplace culture is valued (15%) highly by the employee group
Participant comments and observations
A large number of employees claimed a “love and passion” for their work and having a
great relationship with co-workers as important to them
Organisations who embrace a positive workplace culture are more likely to retain key
employees than those who don’t
Organisations that promote a sense of ‘family’ would also appear to be able to better
retain key employees. These same organisations cite the need to ensure appropriate
cultural fit for new employees for this strategy to be successful
Promoting organisation
values
Participant comments and observations
Organisations that communicate their values where sought after by employees
Some employees stated that they enjoyed being part of something that is “making a
difference” and this was often reflected in the values and behaviours of senior leaders
within the organisation
Mentoring programs Participant comments and observations
Mentoring programs are being used to provide employees career guidance and advice,
assisting them in their career and personal development
Mentoring and cultural awareness programs have proved particularly successful with
indigenous groups for some employer groups.
Barriers to Retention
The following would appear to have the most impact on the industry’s ability to retain skilled employees.
Some barriers are common across all industries however there are some that are peculiar to tourism.
Table 9: Barriers to Retention
Barrier Research Findings
Competing industries The number one reason employers claim employees leave is to move to another industry.
59% of employers surveyed believed that it was a regular reason for leaving
Participant comments and observations
Mining has been the one obvious competitor for labour
A move by employees “to another industry” may be masking the lack of competitive
remuneration & career opportunities within the Tourism Industry
“We have created an environment where each and every member of the team is
respected and valued and we celebrate our successes”
“Everyone is leaving to the mining industry. We can’t compete with them, I can’t offer $150,000 for someone to drive a truck”
30
Barrier Research Findings
Negative perception of
tourism careers
Participant comments and observations
Some employees use jobs within the industry as ‘something to do’ while they study or
before taking on a ‘real’ career - “This job is just something I am doing while I am
studying”
Many employers don’t adequately demonstrate possible career options to their employees
Some employees believe they need to leave their organisation or the industry to progress
in terms of pay and career
Inability to offer
competitive
remuneration
44% of employers believe that non-competitive remuneration levels pose an enormous
barrier to retention, and is a major determining factor if an employee decides to leave
Only 29% of employees claim competitive remuneration had a high influence on their
decision to join the industry. However their views alter once they commence working
within the industry, with it being the biggest influence on their decision to stay, with 87%
stating it probably or definitely would influence them to stay
Participant comments and observations
The low margins for some operators make increasing remuneration challenging and
unsustainable. Their inability to offer competitive remuneration has an impact on the
calibre and skill levels of recruits and impedes their ability to retain skilled employees
Inflexible working
conditions
The lack of flexibility in working conditions, including hours is resulting in employee
departure. 81% of employees claimed improving flexibility would probably or definitely
influence their decision to stay at their organisation
Participant comments and observations
Some organisations do not have the scale to offer much flexibility to existing employees
without transforming their current workplace arrangements
Many parts of the industry rely on abnormal hours of work to function, which limits their
ability to offer flexible working hours without increasing their overall employment costs
Lack of people
management skills
Participant comments and observations
Some employers fail to recognise the significance of a harmonious workplace and this can
in turn have a negative impact on employee retention
Some employers are not skilled in people management and struggle to deal with
workplace disharmony. Lack of people management skills tends to lead to disgruntled
employees and ultimately employee turnover
Inadequate scale to
support training &
development
Participant comments and observations
Many operators in the industry are small (85% of total industry) and don’t have the
resources to provide adequate in-house training and career progression opportunities
Workplace and industry
reforms
Participant comments and observations
Many employers noted difficulty meeting workplace compliance requirements and
suggested a need for workplace reforms particularly with respect to visa application
processes
Student and working holiday visas only allow for a short working period increasing the
level of administration and compliance
31
Barrier Research Findings
Cultural barriers –
indigenous workforce
Participant comments and observations
Work can be difficult for some indigenous employees as a result of their home situation,
food and clothing issues and long travel distances to and from work
Lack of cultural awareness can give rise to cultural insensitivity at the workplace.
Career Opportunities
As has been mentioned previously, research has clearly indicated that there is a perception existing within
the Tourism Industry that employees working in the industry have limited career opportunities available to
them. Whether it is as a result of a lack of promotion of careers on offer or the poor communication of
the opportunities available, the general view is that if you want to progress you are better off in another
industry. Although employees working in owner-operator environments might support this belief to some
degree, there are definite pathways that can be promoted and highlighted to prospective and existing
employees.
Research indicated that from the sample of employees surveyed (70%) believe that career opportunities
existed both within their own organisation and the industry as a whole. Unquestionably, some sections of
the industry are tailored to brief tenures, and the industry needs to learn to embrace that fact. However
the industry and its employers also have to promote the long-term, stable, rewarding positions that are on
offer by the industry and the opportunities for training and development within the enterprise and in the
industry more broadly.
Figure 4: Rating Career Opportunities
32
Discussing Career Opportunities
Findings show that although most employees believe that career opportunities do exist within their
organisation, it is most often not communicated until performance discussions are undertaken.
Figure 5: Discussing Career Options
Employees surveyed felt that career paths are rarely communicated in an employee’s offer letter (66%),
during induction training (68%) and to a lesser extent at time of initial recruitment (40%). Increasing the
level of communication and discussion may highlight the development needs of individual employees and
assist organisations by planning and managing capability shortfalls in a more proactive manner for the
benefit of both employee and the organisation.
Summary of Observations
Most organisations appear at ease filling un-skilled job vacancies with the exception of regional and
remote employers where location is a major barrier. Some low paid menial jobs can be challenging to fill
with suitable candidates.
The majority of organisations and employees felt that word-of-mouth is the best form of access to
employment. Organisational websites also provide a mechanism for employers to easily promote job
vacancies. Targeted newspaper advertising is also seen as an effective recruitment method.
There did not appear to be any major innovation to traditional recruitment methods.
Some organisations use candidate management systems to assist with the volume of applications for some
roles. These systems seem to be more prevalent for larger organisations and less so for the smaller
businesses who tended to rely largely on word of mouth and existing employee networks.
Online systems and social media, although in use, did not appear to be considered an effective medium.
Given the rise in digital resources and social media it can be expected that the use of online social
networks will increase over time, and organisations of all sizes could be making better use of these tools.
Targeting specific employee groups such as mature age, disabled and indigenous workers has not been
taken up with any fervour by the industry. Where employers have taken up employing these groups they
cited the need to ensure appropriate cultural awareness training for employees to help with integration
and understanding of social customs and promote cultural tolerance within the workplace.
Most employers and employees agree that the industry needs to do more to help change the perception of
lack of career opportunities within the industry and the impact this is having with recruiting suitable
candidates.
33
There are a wide variety of career opportunities within the Tourism Industry. The industry does however
suffer from negative perceptions (perhaps unfairly) that jobs within the industry are transient and do not
provide a “real” career.
The Industry needs to do more to promote careers across the industry and showcase employees who have
been able to effectively manage a career and lifestyle across a variety of roles. Many of the employees
who responded to the online survey felt they had ample opportunities within the industry with many
aspiring to management positions or considering starting their own tourism business venture.
Organisations should do more to help promote careers within their own organisation and perhaps consider
informal agreements with other tourism organisations as a way of allowing individuals to progress further
within the industry. Many organisations in other industries have commenced promoting past-alumni
programs in the hope that by staying in contact with past employees they may one day return and/or refer
friends or contacts as potential employees.
The industry needs to continue to promote the benefits and career opportunities available to employees.
The current perception of “no career” may in fact be valid for many individual employees working for
owner-operator style organisations where size and scale limits the immediate promotional opportunities.
This does not necessarily hold when individuals look outside their immediate employment arrangements
where the variety of employers and diversity of roles is widespread.
The industry needs to consider promoting careers within the industry and that career progression
opportunities do not end with their current employer. The possibility of continuing development within
the industry is not currently promoted well. Collaboration at a local or regional level would also help to
promote a more diverse and multi-organisational career path for many current employees.
Employee perceptions of the value of competitive remuneration seem to change after they commence
employment within the industry. Remuneration, whilst not a significant attractant or impediment to the
joining the tourism industry takes on a higher priority for some individuals who have worked in the
industry for a while. Tourism organisations need to work harder at offering competitive remuneration and
other intrinsic benefits to employees in order to retain them over the medium to longer term.
Employers do not appear to adequately acknowledge the value derived by the work and work environment
in which their employees operate. Many employees considered the most valuable aspect of their roles
were the work itself and the camaraderie and enjoyment they derived working with colleagues.
Organisations would be well served by increasing the level of people management skills to ensure
workplace harmony and increase the overall job satisfaction of their employees.
Employers and employees both identified the need for flexible work practices and flexible working hours
as a major appeal for some employees. Organisations need to work hard to provide flexibility of
employment hours and conditions to prospective employees. The potential for job sharing was not raised
amongst either group but would suggest that job-sharing arrangements might assist smaller operators to
provide a level of flexibility and still meet work demands.
Strategic Goals aimed at raising the tourism industry profile, fostering industry collaboration and dealing
with skills shortages, collectively contain key actions which will address the observations and research
findings outlined in this section.
34
Actions and recommendations to address these observations are summarised below. Numbering of the
recommendations reflects the consolidated list of all recommendations shown in the Executive Summary.
Industry and employment structure reforms
Recommendations/Key Actions
3 Undertake significant workplace reforms that allow tourism owners and operators to compete
effectively for skilled and capable employees
3.1 Review of current remuneration practices to determine where and how the industry needs to
improve its overall reward and overall employment offerings
3.2 Review the impact of current award structures and employment terms and conditions on
service delivery expectations.
Raise the industry profile
Recommendations/Key Actions
4 Develop and implement a comprehensive plan that raises the awareness of the various tourism jobs
and career opportunities within the industry. Suggested actions include:
4.1 Develop and showcase actual career profiles of employees working within the industry
4.2 Engaging with key stakeholders and communities to promote awareness of tourism jobs and
careers
4.3 Use appropriate tools and methods to promote employment within the tourism industry to
youth and schools that highlights the various roles and career choices available
Foster industry collaboration
Recommendations/Key Actions
5 Local and regional support is provided to assist with recruitment and help facilitate collaboration
amongst industry employers. Some of the possible actions would include:
5.1 Develop and establish employer hubs to allow for collaboration and promotion of job
opportunities with the local area and the region more broadly
5.2 Regional Training Organisations (RTOs) facilitate information sharing and collaboration amongst
local industry employers
6 Develop industry “one-stop” regional portals that include tools and resources to assist employers
meet recruitment needs and their employment obligations
7 Develop and facilitate collaboration amongst industry employers to develop career paths for their
employees that may extend beyond current employment arrangements.
35
Minimise skill shortages
Recommendations/Key Actions
8 Develop and foster collaboration between industry and educational organisations to ensure an
adequate supply of skills and capabilities to meet industry demands. Collaboration could include:
8.1 Develop an Industry Skills Shortage Priority Taskforce
8.2 Local community and regional meetings to discuss industry skills demands, availability and
training requirements
8.3 Introduce mechanisms for employers and employees to promote skills needs and job
opportunities
8.4 Connect employers, job seekers and students – locally, regionally and nationally
9 Develop and implement strategies to help minimise the impact of workforce shortages and retention
challenges faced by seasonal, regional and remote rural employers
9.1 Foster collaboration and partnerships with summer and winter employers to explore the
possibility of the exchange of seasonal and/or part time workers – for example collaboration
could be through the use of primary industries work programs.
36
SECTION 4: HR PRACTICES AND ENGAGEMENT
Key findings from interviews, focus groups and survey submissions have been consolidated and analysed.
Given the relatively low industry participation in the survey it was not possible to segment findings across
industry sectors or identify specific location differences.
The low level of engagement in part is a consequence of the multiple demands and requests for
information and assistance from employees and employers within the Industry. The general perception
was that some participants at focus groups had raised issues previously in different forums. There was also
an underlying apathy and feeling that not much will come of their feedback.
There have been a number of common themes arise from the research which has been analysed and
interpreted with regards to their application across all sectors and locations.
The Employee Value Proposition framework has been used to help contextualise findings and to
incorporate best practice traits drawing on broader industry experience.
The key findings have been summarised around the key themes of explaining the Employee Value
Proposition model which is a critical part of attracting potential employees to the industry generally and
specific enterprises, as well as recruitment and retention practices. Findings are also discussed as they
relate to career opportunities focussing more at the enterprise level.
Employee Value Proposition — What matters to employees?
Maximising attraction and retention is an issue facing all employers, including those in the Tourism
Industry. Organisations are realising that in order to attract and retain talented employees it is essential
to consider the whole employment offering to employees – it is no longer just about pay and remuneration
levels alone.
When developing an employee value proposition it is important to consider a number of dimensions
outside the traditional remuneration and reward practices. Organisations need to consider how their
current Employment Arrangements (i.e. flexible work practices), Career and Development opportunities
and Management and Leadership style impacts on employee perception of their workplace. A well-
developed employee value proposition can have a positive and sustained organisational benefit.
Employers who are able to articulate and implement a total employee value proposition are more likely to
provide a positive and supportive experience for employees and in turn help attract and retain a talented
workforce.
The following diagram serves to illustrate the four key dimensions and the variables that underpin an
organisation’s employee value proposition.
37
11
A critical consideration when developing programs that support an organisation’s employee value
proposition is to understand clearly what drives employee decisions around the four key dimensions. It is
not enough to implement initiatives without considering employee perspectives. On many occasions what
an employer and employee perceives are in many instances not aligned, and we have found evidence of
this in the research and consultation conducted in the current study.
Alignment between employee values and employer perceptions is essential for the success of any
initiatives aimed at attracting and retaining key talent.
Findings from the research discussed in this section have been contextualised using the Employee Value
Proposition Framework.
11 Figure 1: BDO’s Employee Value Proposition Framework
38
Employee Value Proposition
For organisations the challenge is to find quality employees, with the necessary skills, knowledge and
experience, to meet the role expectations within their organisations.
The reasons why an employee chooses to work for an organisation can and will vary according to individual
circumstances and work preferences. The key reasons why an employee chooses to work within an
industry are usually consistent with the reasons they choose employment with a certain organisation
within that same industry. Individuals will think about their personal circumstances, compare options, and
then choose to take up a position based on what they perceive to be the best value for them on offer.
An Employee Value Proposition (EVP) is the balance of reward and benefit, work policies and practices,
and overall experienced by an employee in return for their work. An EVP for an organisation describes why
an employee’s total work experience is better than any other organisation or industry. Organisations who
are able to clearly articulate and understand this are more likely to attract and retain quality employees.
Attraction Reasons Table 2: Attraction Reasons
According to the research the most cited reasons
individuals are attracted to the Tourism Industry
includes; working with people, the job itself,
opportunity to travel, diversity of work and the career
opportunities.
Survey responses indicated that the top 3 reasons
where well aligned from an employer and employee
perspective. Interestingly remuneration was not a high
priority for employees considering work within the
industry.
What can the industry and employers do to attract more suitable candidates?
Responses were sought from employees and employers about what would help to attract more suitable
candidates to the industry. Although there were some consistent themes, it appeared that what had
attracted individuals initially was not necessarily the same when considering opportunities to attract more
skilled employees to the sector.
Table 3: Attracting suitable candidates
Employer Comments Employee Comments
Training & Development
Promote Industry Benefits
Simplify Employment Conditions
Education Alignment
Reduce Unemployment Benefits
Competitive Pay
Training & Development
Flexible Working Hours
Career Options
Increase Industry Profile
Training and development opportunities where considered more important by both groups, with
employees ranking competitive remuneration as the highest priority and employers not considering
remuneration a high priority. This inconsistency would suggest that although employees surveyed did not
Attraction Reasons – Top 3
Employers Employees
- Working Conditions - Lifestyle
- Lifestyle - Working Conditions
- Career Progression - Career Progression
39
initially consider remuneration of importance for themselves, competitive remuneration becomes more of
an issue once employed within the industry.
Both employees and employers considered that the industry would need to do more to promote itself to
prospective employees by promoting the benefits of working within the industry and the varied career and
development opportunities available.
Employers also considered that an increasing alignment with educational institutions would assist in
promoting the industry to school leavers. Programs aimed at promoting the industry to school students
would help manage negative perceptions about the industry and serve to demonstrate the diversity of
roles and opportunities that exist within the industry.
Rewards & Recognition
Employee and employer views on items such as base pay, pay progression, short and long term incentives,
awards and recognition programs, superannuation and flexible salary packaging arrangements did not rank
highly as attraction reasons. However, remuneration and pay arrangements appear to take on a higher
level of importance to employees once employed within the industry.
Some employers believe that advertising starting salaries did not help them attract suitable candidates.
Feedback from employers suggested that most acknowledged that the pay levels are below market
average.
According to recent salary survey data12, the hospitality and Tourism Industry ranked 3rd lowest by average
remuneration at $56,501, the highest average remuneration of $130,213 was recorded by the mining
industry. The only industry sectors below hospitality & tourism included call centre & customer services
($53,786) and administration and office support ($52,082). The low average remuneration for the Tourism
Industry may be impacting on the industry’s ability to retain skilled candidates given the rising level of
importance remuneration takes for employee survey respondents.
Employment Arrangements
Employment Arrangements include items such as hours of work, work/life balance, health & wellness
programs, induction programs, diversity & equity, and flexible work arrangements.
Employee groups continually cited job satisfaction, working with people and flexible work arrangements
as some of the most valued aspects of working within the industry. With regards to flexibility in work
arrangements, flexible hours of employment was highly valued by many.
Table 4: What employees’ value
Employer Comments Employee Comments
Workplace Culture
Work Environment
Flexible Hours
Job Security
Competitive Remuneration
Workplace Culture
Team Members
Flexibility (including hours)
Job Satisfaction
Location
12 Seek - Advertised Monthly Salary Survey Data – June 2013
40
Many employees cited a deep passion for their job and of working with a great team. The need for
affiliation and job satisfaction was absent from employer comments.
Employees mentioned diversity of work repeatedly as a reason they were attracted to working in tourism.
Building a broad range of skills that are required to deal with different situations can also benefit the
employee for future career opportunities.
Management & Leadership
The quality of management and leadership plays an important role in attracting individuals to an
organisation. Organisational values and direction, decision-making and involvement, and quality of
supervision can influence an individual’s perception of an employer and their workplace.
Although it didn’t rate as highly when compared with other factors, working at an organisation that treats
employees fairly, demonstrates strong values and ethics, and ‘makes a difference’ are important factors
influencing an employee’s decision to join or leave an organisation.
Smaller operators who focused on “family” values and promote a strong team culture in the workplace
were able to retain their employees for longer periods.
Career & Development
Table 5: Career & Industry Profile
A common perception of the Tourism Industry is that it
provides limited career opportunities. The ability of
organisations within the industry to attract and retain
skilled employees is impacted by this negative
perception.
Both employees and employers recognised that career
progression is an important factor to attracting
employees to the industry. Providing training and
development opportunities was consistently seen by
employers as a mechanism to both attract and retain
employees.
Some employers suggested the need to align closely with
educational institutions to assist with attraction and
promotion of the many and varied career opportunities
that the industry has to offer. Career development also
appeared to be of greater importance to employees and
of lesser importance to employers.
Summary of Observations
In summary there are a number of factors that influence individuals considering employment within the
Tourism Industry. Intrinsic factors such as job satisfaction and a desire to work with people should not be
underestimated as key reasons why individuals seek out employment within the industry.
Many employers considered that providing more learning and development opportunities, promoting the
benefits of working within the industry, simplified employment conditions and aligning with educational
institutions would assist them to attract more suitable candidates to the industry.
Whilst employees agreed that increased training and development opportunities would help attract more
candidates, a marked difference between the two groups was the importance of competitive
remuneration. Although competitive remuneration had not necessarily attracted individuals initially to the
Employer Comments
“Promote industry as long term career option”
“Improve the profile of a career in tourism to ensure we attract and train motivated staff who are willing to stay in tourism despite its transient and seasonal nature”
“Make tourism an appealing career to school leavers”
41
industry, their needs change. Employees placed a much higher priority on the need for competitive
remuneration once employed within the industry. More competitive remuneration may also help with
retention of existing employees and the attraction of higher calibre candidates. Although providing more
competitive remuneration for experienced employees may marginally increase wages costs, this will be
more than compensated for, by increased retention and hence productivity.
A critical and somewhat overlooked fact by employers is the desire for increased workplace flexibility for
many of the individuals currently employed within the sector. The need for flexibility could be in part
driven by the predominance of 25 to 40 year old females (42%) working within the industry that were
surveyed.
Actions and recommendations to address these observations are summarised below. Numbering of the
recommendations reflects the consolidated list of all recommendations shown in the Executive Summary.
Improve HR management practices and structures at the enterprise level
Recommendations/Key Actions
10 Promote the use of progressive human resource practices and structures by tourism employers. Some
of the initiatives could include:
10.1 Provide coaching and mentoring of owner-operators on progressive HR practices including job
sharing, and how to provide flexibility to employees
10.2 Recognise and showcase employers who use effective HR practices to help attract and retain
their workforces
10.3 Educate employers on their legal employment obligations and the cost benefits of improving
retention through creating and managing expectations, promoting more intangible but valued
employment arrangements and rewarding performance
10.4 Provide a range of practical best practice HR guides to employers related to people
management practices and structures that will help them attract and retain the right workers.
Refer to QTIC, Tourism and Hospitality – Best Practice Guide
42
Appendices
Appendix 1 – Methodology, Approach and Survey Demographics
Appendix 2 – Summary Policies & Programs (Commonwealth & State Government)
Note: A booklet entitled “Guidelines and Tips for Industry Employers on Improving Engagement” has been provided as a separate stand-alone document.
43
Appendix 1: Methodology, Approach and Survey Demographics
The approach adopted by BDO in meeting the scope and deliverables of this engagement involved a
number of distinct activities which were then analysed to assess common themes and outline relevant best
practices in Queensland and other jurisdictions.
Specifically, research, data gathering and industry consultation involved:
A desktop review of existing research material which was summarised and contextualised to
support the project objectives
Summarising findings from previous reviews and existing approaches across the tourism sector and
contextualising these findings with other industry wide perspectives i.e., Tourism 2020 and other
industry and state based initiatives
Industry consultation. Given the approved research budget and tight timeframes (48 person-days
effort spread over 9 weeks), the consultation approach was restricted to primarily surveying
employers and employees via an online survey. A series of focus groups with Tourism Industry
employers and employees were also held at Cairns and Brisbane to help gather additional
qualitative information.
The online survey was made available to solicit the feedback from employees across the four sectors. The
survey sought input on what attracted employees to the industry, how they perceive career options within
the sector and where they are most likely to seek employment in the future.
In addition an online survey was made available to nominated HR Managers & Operators for each region.
The survey sought input and their perceptions on what attracts employees to the sectors, and the
constraints and opportunities of retaining them.
Consultations were also held with identified stakeholders from industry associations and other relevant
organisations to solicit their views.
The primary research phase had some limitations in terms of sample sizes which were smaller than
expected and also the relatively small numbers of tourism employees and employers who participated in
focus groups. These factors were regularly reported to QTIC as the engagement progressed, and has
meant that the deliverables produced for this engagement have been concentrated on the industry as a
whole as well as being targeted at industry employers more generally.
The survey was issued to the Queensland Tourism Industry Council (QTIC) membership and made
available more broadly through various Region Tourism Offices and other online means. Only 32
employers and 71 employees responded to the survey
Focus group invitations were issued to the QTIC membership in selected regions. 4 Four focus groups
in total were scheduled for 2 locations, Brisbane and Cairns, 2 for employers and 2 for employees.
There were no acceptances for the employee groups - the 2 focus groups for employers were held with
only 15 attendants in total
44
Survey Demographics
Two surveys were developed, one soliciting views
from employees working within the industry and
the other from employers (including owners,
operators and/or HR managers).
The surveys were made available online to
survey participants. Paper versions of the surveys
were also made available and responses included
in the overall analysis.
Industry engagement and overall survey
responses were low. As a result information
gathered from the surveys has been used to
generate high-level themes only.
We would caution using specific survey findings
without further consultation with key
stakeholders to confirm the validity of the
overall findings.
Table 1 – Workforce
Employers Employees
Total Reponses 32 71
- Male 41% 26%
- Female 59% 74%
Full-time 44% 73%
Average # of emp 58
Employee Turnover 25%
Table 2 - Age Profile
Age group Employers Employees
>20 11% 0%
21-25 19% 9%
26-30 26% 27%
31-40 20% 27%
41-50 11% 21%
51-60 8% 15%
60+ 5% 1%
Information was gathered and segmented by
Region and Industry Sector. The limited number
of responses have not allowed for detailed
analysis of results by either segment.
Table 3 - Region in which organisations operate
Region Employers Employees
Brisbane 29% 40%
Gold Coast 20% 9%
Sunshine Coast &
Wide Bay
26% 13%
Mackay &
Whitsundays
9% 3%
Townsville 0% 1%
Cairns 17% 14%
Other 21%
Table 4 - Sector in which the organisation
operates
Sector Employers Employees
Accommodation 31 29
Tourist Services 29 16
Adventure Tourism 8 12
Food & Beverage 15 24
Other 17 19
45
Appendix 2: Summary of Policies & Programs (Commonwealth & State Government)
Objectives Focus areas Policies & Programs
Commonwealth
Tourism 2020
December 2011
Tourism operators can meet their
labour and skill needs to deliver high
quality customer service to all
visitors. Including those from Asia
Increase supply of labour, skills and
Indigenous participation
Policies
Implement the 8 Hot Spots pilots
Simplification of 457 visa processing guidelines
Develop template labour agreement for the Tourism Industry
Participate in Fair Work Act review
Programs
Pacific Seasonal Worker Pilot Scheme to tourism in Broome
Regional Sponsored Migration Scheme allows regional employers to
sponsor foreign nationals
Pilot program to facilitate skills transfer between indigenous and non-
indigenous businesses
Labour and Skills Connect online solution for education, training,
recruitment and retention
T-QUAL Strategic Tourism Investment Grant to provide business skills
training for indigenous people
Indigenous Employment Program aims to increase employment and
economic development opportunities for indigenous Australians
Queensland
Tourism and
Hospitality Workforce
Development Plan
June 2012
Deliver training and skill-
development outcomes that are
business orientated and designed to
meet world class tourism product
and services standards
Provide existing and new workers
with the opportunity to enhance
Attraction, Recruitment and Retention
Mobile and seasonal workforce
Greater portability of skills and
qualifications
Pathway programs
Recognition of prior learning (RPL)
Policies
Develop and promote career pathway opportunities aimed at raising
the profile of the Tourism Industry to attract and retain a skilled
workforce
Promote the ‘tourism story’ focussing on the environmental, economic
and social contribution of tourism to the wider community, at a
whole-of-state and regional level
46
Objectives Focus areas Policies & Programs
their skill levels through formal
training.
Engaging with the non-traditional
workforce
Ensure workforce mobility and seasonal workforce issues are linked to
workforce planning at a whole-of-state and regional level
Flexible training delivery is required to support the pool of casual,
mobile and seasonal workers, to be better able to respond to an
increasingly global labour market and subsequent labour mobility
Develop a skills and qualification recognition system to support labour
mobility within and beyond the Tourism Industry
Develop and support pathways programs to assist with improvements
in attraction and retention within the training system
Improve access pathways to VET training through better consumer
information and greater employer-trainer and industry engagement
Develop a funding model that is industry led and tied to workforce
planning strategies developed by industry
Recognised Prior Learning requires greater promotion with improved
and cost-efficient systems to encourage and assist candidates through
the process
Recognise training pathways associated with non-accredited training
Provide support to businesses and operators that will enable them to
better engage with the non-traditional worker
Programs
Webpage that can assist tourism businesses with general information
on the industry, operations and support
Works TV provides the latest employment opportunities and career
information across the industry
Cookery training opportunities for over 700 people seeking to enter
industry or upgrade skills
Gateway schools program aimed at improving industry-school
47
Objectives Focus areas Policies & Programs
engagement
Chinese language and cultural awareness – raising the level of
proficiency of operators to provide better products and service
Indigenous Hospitality Pre-employment -8 week training course for
those interested in gaining skills to work in the industry
Indigenous champions network – increases operators awareness of how
to encourage and maintain increased participation the indigenous
Seasonal worker program 3 year trail
Mature Aged Project promoting the benefits of older workers (45+)
Salute to Excellence recognising and celebrating high achievers in
year 12 training in tourism or hospitality and encouraging them into
the industry
Wet Tropics Tour Guide Training assists the industry expand their
knowledge of the World Heritage Area and create information, skill
sharing and networking opportunities
Victoria
Victorian Tourism
Workforce
Development Plan
2010-2016
Increase supply of labour to the
Tourism Industry to deliver high
quality service standards which meet
visitor needs and expectations
Support the provision of sustainable
employment conditions which, in
aligning with the relevant awards
offer packages that will attract and
retain individuals with the relevant
qualifications and experience and
ensure that tourism is seen as a long-
term career opportunity
Making tourism a career of choice
Supporting sustainable workforce
structures
Retaining quality people
Growing the tourism workforce
Training and skilling the tourism
workforce
Supporting small business excellence
Growing the tourism workforce in
regional Victoria
Policies
Increase tourism business awareness of and participation in the
Victorian Skills Pledge
Assess individuals skills and experiences as part of gaining RPL through
a registered training provider
Establish tourism ambassadors program
Leverage off the relatively high take-up of hospitality courses
undertaken through VET-in-schools to promote tourism careers to
senior students
Develop measures to promote tourism employment and career
prospects to individuals returning to work
48
Objectives Focus areas Policies & Programs
Ensure education and training
systems deliver the skills and
knowledge required to accommodate
the needs of both individuals and
businesses in the Tourism Industry.
This will include training that is easy
to access and that prior learning is
recognised
Support employees and employers in
the Tourism Industry, particularly
small businesses, to address current
and future workforce needs through
the provision and awareness of
information and advisory support
groups
Address labour and skill shortages
common to regional Victoria
Actively provide advice to tourism employees and employers
negotiating workplace agreements
Ensure tourism employees and employers are aware of the
modernisation of awards relevant to the Tourism Industry
Identify reasons and develop actions to address factors which
influence tourism employees choosing to stay or exit the industry
Investigate impediments to the national recognition and portability to
training qualifications and certification in tourism occupations
Investigate the establishment of a national long service leave
entitlements scheme
Roll-out a tourism leadership program to deliver professional
development and networking opportunities
Develop seasonal workforce management plans tailored to needs of
individual destinations
Negotiate labour agreement to secure appropriately skilled overseas
worker to fill identified labour gaps
Ensure high demand tourism occupations are considered under the
State Migration Plan and reviewed annually
Improve businesses access to sponsored skilled migration visas
Include high demand tourism occupations on the General Skilled
Migration Skill Occupation List
Engage businesses to develop and implement workforce strategies
that focus on training and skill development which will make
employment more attractive
Ensure training packages are integrated and meet the needs of the
Tourism Industry
Evolve Victoria’s Tourism Excellence Program to increase the
involvement of tourism businesses focusing on staff recruitment and
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Objectives Focus areas Policies & Programs
retention strategies
Increase industry awareness of the Tourism Channel
Programs
Skills Pledge publicly acknowledging business efforts to invest in skills
development.
Skills Stores provides individuals with advice about current skills and
experience and access to registered training organisations
Tourism ambassadors and road shows to provide individuals
information on career opportunities in the industry
Internet based portal that aims to promote careers in tourism and
providing information on employment and training
Leadership program brings together diverse groups of people in an ‘in
situ training’ environment that facilitates networking and mentoring
by industry leaders
Victoria works offers a suite a programs that connect people to
employment and training, focusing on mature age, youth, indigenous
and parents returning to work
Restaurant and Catering Association labour agreement to provide
access to overseas cooks and chefs
Securing Jobs for your Future – Skills for Victoria package delivers a
demand driven training model and a broader range of innovative
practical courses
Victorian Training Guarantee provides eligible individuals with
government subsidised training that can be accessed anytime and
available for further higher training
Victorian Certificate of Applied Learning for year 11 and 12 students
is an alternative learning stream focussing on practical work-related
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Objectives Focus areas Policies & Programs
experience
Apprentice Kickstart Extension provides funds to employers to
encourage commencements of young people in skill shortage trades
Tourism Excellence Program provides the impetus for businesses to
increase their professionalism through improved management
systems, career mapping strategies and focus on superior customer
service
Local Skills Partnerships Program enables regional local governments
to build their economic development capacity and capability through
supporting the recruitment of a highly skilled workforce
Western Australia
State Government
Strategy for Tourism in
Western Australia 2020
Expand hotel, aviation and workforce
infrastructure to support the growth
Provide every visitor with the
opportunity to have an Aboriginal
tourism experience
Infrastructure
Indigenous
Policies
Industry training and participation
Alignment of skills inflow through immigration
Industry training and development initiatives
Tourism and hospitality workforce participation
Opportunities and pathways for Aboriginal employment in tourism and
hospitality, including through traineeships and cadetships
Developing a program of cross-cultural training and awareness
opportunities for both employees and employers
Programs
Hospitality Passport gives talented apprentice chefs and hospitality
trainees an opportunity to learn and earn in some of the State’s top
restaurants and hotels
FutureNow is a training council that facilitates the continual
improvement of workforce skills to drive productivity and deliver a
competitive edge now and for the future
51
Objectives Focus areas Policies & Programs
LiquID - ID and discount card exclusively for hospitality employees,
certifies training and provides access to a range of discounts
Tourism Employment Plans in Broome are delivering regional solutions
to ease the immediate labour and skills pressures supported by
regional committees
South Australia
Tourism Industry
Workforce
Development Strategy
2007-2012
March 2007
Position tourism as an employer of
choice to targeted sectors of the
current and future labour market and
promote career opportunities
accordingly
Develop strategies to improve
retention and career pathways
within the industry
Deliver training for continuous
improvement in skills for employees
and employers consistent with
industry needs
Recruitment
Retention and progression
Enhancing skills
Policies
Determine best fit ‘segments’ within the current and future labour
markets and promote these segments
Promote industry experience (skills gained) of students and/or past
students and employees to provide a realistic understanding of career
and employment opportunities
Continue to advocate to the Federal Government for legislation that
influences the industry’s capacity to attract and retain employees
Align the industry with Commonwealth and state initiatives to support
participation by a broad range of social sectors
Support the implementation of the FTH Skills Council SHIFT.COM
website proposal
Increase the capacity to up-skill when required and recognise prior
learning as part of training processes
Encourage industry sectors to work together to identify job-share and
exchange opportunities, and develop and recognise competency-based
skill sets across locations and businesses
Continue to encourage and facilitate access to flexible training
arrangements within the workplace
Support new delivery models that effectively meet education and
training needs in regional tourism areas
Support and extend the Appetite for Success program to key
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Objectives Focus areas Policies & Programs
occupational areas within the Tourism Industry
Continue to provide, facilitate and promote a range of networking,
training, mentoring and business development information and
opportunities specifically to cater for tourism businesses
Raise tourism businesses’ awareness of training and the benefits of
integrating flexible employment and workforce planning into business
practices
Strengthen human resource management practices and customer
service excellence within the National Tourism Accreditation Program
Liaise with non-tourism specific organisations to ensure that tourism
businesses can capitalise on business development training and
mentoring opportunities
Conduct a skills audit/training need analysis on Aboriginal tourism
businesses to provide an indication on skills gaps within this sector
Programs
Workforce development Program provides grant funding for industry-
wide workforce projects
Mornington Peninsula Tourism Traineeship Program offering young
students opportunities to undertake training and work experience
Tasmania
Tasmanian Hospitality
Industry Skills Plan
June 2012
Enough people to do the work
required, to the standard required,
to consistently deliver a world class
experience.
People employed in the hospitality
and tourism industries have
appropriate skills and attributes to
deliver quality experience
Improving recruitment, induction and
retention strategies
Building skills to meet the needs of
customers
More effective promotion of hospitality
career and education pathways into
schools
Development of a training culture
Policies
Feasibility study into regaining Tasmania’s reputation for
internationally recognised hospitality graduates
Industry reference group for VET and RTO discussions
Design, develop and deliver induction and in house training tools
Design and develop skill set for Training Champion
53
Objectives Focus areas Policies & Programs
People with experience and
expertise are retained within the
industry because they have the
opportunity to grow and build
satisfying careers
Businesses in the industry have the
right information, management
systems and processes in place to
maximise the contribution of their
people
The industries have structures and
mechanisms in place to address
future workforce and skill needs on
an ongoing basis
within the hospitality industry
Programs
Tourism Business in the Digital Age helps tourism businesses develop
online capabilities to engage with the digital environment
Workforce Participation Program aims to increase participation by
encouraging ‘people with potential’ to enter the workforce
Pilot Workforce Planning Program helping businesses develop and
adopt workforce plans focussing on retaining mature aged worker
approaching retirement
Hospitality Industry Employment Portal that provides information on
career, training and vacancies
Northern Territory
Northern Territory
Tourism Strategic Plan
2008-2012
Address skills shortages problems
associated with seasonality,
competition from other industries,
economic growth and the casual,
itinerant nature of the tourism
workforce
Competition for skilled workers
Limited investment in skills
development by employers
Limited supply of skilled labour
Strong economic growth
Policies
Assist tourism operators target mature age workers, indigenous
workers and apprentices
Educate operators on the role of working visitor placement agencies
Investigate establishing job sharing systems with other tourism regions
in Australia that have complementary tourism seasons
Programs
Tourism Employment Plan –Red Centre is delivering regional solutions
to ease the immediate labour and skills pressures supported by
regional committees
Indigenous Workforce Participation initiatives program aims to
increase workforce participation for indigenous Territorians by
assisting industry and business to plan establish practices and system
54
Objectives Focus areas Policies & Programs
that engage and expand the numbers and skills
National Tourism Training Academy to up-skill and assist finding work
for indigenous people
New South Wales
Tourism Towards 2020
The NSW Tourism
Industry Plan
March 2011
Implement training and workforce
development programs in partnership
with industry
Enhanced Tourism Industry skill,
knowledge and professionalism
Policies
Complete a NSW Tourism Skills Development and Workforce Planning
report
Support skills development through industry based training
Support industry associations to help their members attract and retain
skilled people
Provide capacity building programs to industry
Support the extension of working holidaymaker and other tourism-
related visa policy
Upgrade training assistance to small tourism businesses
Provide training support for tourism businesses
Programs
TAFE voucher system enables businesses to have greater flexibility in
planning training and development strategies by enabling individuals
to allocate money towards training they don’t need to use
immediately
Education and Training Committee brings a listing of those
educational bodies around the state offering internship programs
Tourism Employment Plans are delivering regional solutions to ease
the immediate labour and skills pressures supported by regional
committees
Services Skills
Australia People working across tourism and
hospitality will be appropriately
Creation of a highly skilled workforce
Access to quality employment
Policies
Creating a more responsive training and learning system
55
Objectives Focus areas Policies & Programs
Tourism and
Hospitality Workforce
Development Strategy
2009
skilled and able, through the
application of their expertise, to
contribute to the growth and
development of a sustainable,
productive and profitable industry
Shaping the future through better
workforce planning
Expanding the traditional workforce
Better recognition of learning skills
Accelerated pathways
Focus on management and business skills
People currently not in workforce and welfare to work targeted
groups
Engaging indigenous workers
Managing the generational change: Young people and mature aged
workers
Using overseas workers
Improved attraction and recruitment
Enhanced retention strategies
Flexible work practices and employment arrangements
Improving industry image and the provision of career pathways
Better information and analyses of data at a regional level
Destination management planning and labour force mapping to assist
workforce planning
Provide high quality workforce information, tools and services
Programs
Workforce Futures Program delivering a practical approach addressing
labour and skills issues
Skills advisor network utilises advisors to help businesses through a
process of planning, development and implementation to address
workforce needs