From Short-Term Gains to Long-Term Pains: The Hospitality Temp Work Dilemma

As a hospitality recruiter, I’ve noticed a growing shift in recent years: more professionals in the industry are opting for temporary or seasonal work rather than committing to permanent roles. This trend, once mostly limited to peak seasons and special events, is becoming more commonplace. But while this shift offers flexibility for both employees and employers, it also has long-term implications that are reshaping our beloved industry—some of which, in my opinion, may be hurting the market.

Let’s explore the benefits and challenges this trend presents from both sides and consider whether it’s sustainable in the long run.

Why Are Hospitality Workers Choosing Temporary Roles?

The flexibility of temporary work is undeniably attractive, especially in hospitality. Workers are increasingly looking for control over their schedules, allowing them to balance personal commitments, travel, or pursue other interests. For many, the gig economy has made shorter-term engagements not only acceptable but preferable.

For hospitality professionals, temporary roles allow them to work when it suits them and often earn more during high-demand periods. However, in my opinion, this shift has also triggered a problem: as candidates hop from one job to another, they ask increasingly higher wages, probably to ensure they can survive any gaps between roles (understandably). However, when they are paid €30 an hour in a non-managerial role during a staffing crisis, they’ll be reluctant to accept less in the future, regardless of whether the role or responsibilities warrant that rate. This creates an ever-increasing salary demand, which may soon become unsustainable for hospitality businesses.

Benefits for Employees

• Flexibility: Temporary work gives employees the freedom to choose their hours and workplaces.

• Variety: It allows them to gain experience across different countries, establishments, broadening their skill set and building networks.

• Higher Pay in Peak Times: In periods of high demand, wages can rise significantly—often more than permanent staff would earn. (this drives more people towards temporary roles)

But here’s where the challenge lies: this freedom comes at a cost, not just for the workers but also for the businesses employing them. As candidates continue to expect these elevated pay rates without long-term commitment, the sustainability of such salary demands is questionable. Many employers simply won’t be able to keep up.

Drawbacks for Employees

• Job Insecurity: Temporary workers often face the uncertainty of not knowing when or where their next job will be.

• Limited Career Progression: Jumping from role to role can hinder long-term career development or promotions within a company or certain managers refuse the interview candidates who have 3-4 different jobs within a year.

• Lack of Benefits: Temporary workers frequently miss out on benefits like paid holidays, health insurance, or even pension plans.

Although temporary roles provide workers with flexibility and higher pay during busy times, I believe this cycle of ever-growing salaries and the continuous movement of the workforce is damaging the industry’s long-term health. Candidates are pushing for higher pay out of necessity and because they’ve learned that clients in desperate need of staff are willing to pay higher rates. But this desperation-driven inflation of wages may ultimately lower industry standards, as employers are unable to retain skilled, committed workers for permanent roles. Let's be honest, you can't build a premium restaurant on temp staff.

The Employer’s Perspective: Flexibility or Risk?

For employers, hiring temporary staff has clear benefits, particularly in an industry as unpredictable as hospitality. It allows businesses to respond quickly to fluctuating demand without the overhead of maintaining a large permanent staff.

However, as an increasing number of workers opt for temporary roles, it’s becoming more challenging for employers to build quality brands. In my opinion, relying too heavily on temporary workers erodes the ability to deliver consistent service, ultimately lowering standards in the industry. Employers can’t build strong, well-trained teams or maintain continuity in their operations if they are constantly cycling through new staff.

Benefits for Employers

• Cost-Effectiveness: Employers can manage labour costs by hiring staff only when needed.

• Flexibility: Businesses can adjust their workforce quickly to meet changing demands.

• Reduced Long-Term Commitments: Without the obligations of permanent contracts, businesses avoid redundancy and benefit costs.

Yet, the downside is significant. The higher wages that candidates are demanding may seem reasonable in the short term, especially when a business is in urgent need of staff. But, when employers are forced to pay time and a half or even double or the normal rate, they set a precedent that can’t be easily walked back. Over time, this inflation of wages may lead to financial strain, especially for smaller businesses, threatening the sustainability of the industry.

Challenges for Employers

• High Turnover: Temporary staff turnover can be costly, requiring constant recruitment and training.

• Lower Loyalty and Engagement: Temporary employees may lack the same commitment or investment in the company’s long-term success, which can negatively affect service quality.

• Knowledge and Continuity Gaps: With temporary staff, businesses often lose 'institutional knowledge', making it harder to maintain service excellence.

In my view, employers are caught in a difficult position—balancing the need for flexibility and competitive wages against the long-term sustainability of their business models. If these trend continues to rise, it’s not only the financial health of individual businesses at risk but the overall quality and standards of the hospitality industry.

Is This Shift Here to Stay?

The rise of temporary and seasonal work reflects broader changes in how people view work-life balance and career flexibility. But while these changes benefit workers in the short term, I worry that the ongoing inflation of salary expectations and the over reliance on temporary workers could have lasting negative impacts on the industry.

Many hotels and restaurants may struggle to keep up with the increasing salary demands, especially as the cost of living rises and competition for top talent intensifies. At some point, something has to give. Either the industry will need to recalibrate wages and/or prices, or businesses will face financial unsustainability.

Are We All Seeing This Trend?

To my clients, fellow recruiters, both in-house and agency-based: are you seeing this trend as well? Are more hospitality professionals gravitating towards temporary work? Or is this a phenomenon we’re witnessing within our immediate networks?

I’m curious to hear if this is a broader trend or if it’s just our corner of the industry. How are employers responding to these shifts in worker preferences and salary demands? And more importantly, do you think this trend is sustainable?

Final Thoughts

Ultimately, the rise of temporary and seasonal work in hospitality is a reflection of changing workforce priorities. While it offers undeniable flexibility for both employees and employers, it’s important to consider the long-term impacts on the industry. As recruiters, we are in a unique position to guide both sides through these changes. But we must also ask ourselves: are we helping to create a sustainable market for the future? Let’s keep the conversation going, share our experiences, and ensure that we’re not contributing to a race that neither side can win.