The latest quarterly The RSM Real Economy report found 61% of businesses were currently finding staff recruitment ‘extremely’ or ‘very’ challenging. Recruitment was a major concern for 41% of all employers, including travel. 

RSM interviewed 402 senior executives from businesses across all sectors and found half said they were allowing more flexible working and 38% had increased basic pay.

The Report found staffing challenges were even hindering business growth, with around a third of businesses saying they have had to delay expansion plans as a result. Another 30% said they had turned business away or had to close some locations completely. 

RSM’s report found employers are increasing salaries (43%) and improving staff benefits (43%) in a bid to improve retention. 

It added: “As remote and hybrid working becomes the norm for many employees, 71% of employers say they expect to see a permanent increase in remote working in future.” 

The research showed small businesses are suffering more than most. 

“When it comes to these businesses in particular - defined as those with turnovers between £10 million and £30 million - 40% said they have had to turn business away due to staffing challenges. This is the latest challenge for the travel sector which is keen to take advantage of an upturn in business,” the report said. 

RSM’s report shows that while 58% of employers believe staff left for a higher salary, 57% say staff moved on for a change of lifestyle.

Ian Bell, RSM UK’s head of travel and tourism, said: “The travel industry has been acutely hit by staff and many years of experience leaving the sector as the pandemic stalled global travel and, in turn, job opportunities. 

“However, as restrictions ease and the industry ramps up again, attracting and retaining staff will be difficult as experienced talent may have progressed a career within a different field; so operators will need to invest in training to quickly bring new staff up to speed. 

‘Employees now hold more of the cards, with the record levels of vacancies, largely due to resignations, demonstrating that people are not afraid to walk if the company they work for doesn’t meet their needs. 

“The current recruitment landscape presents a huge challenge for travel businesses and many will look to increase salaries and enhance benefits in a bid to attract and retain the best talent, at a time when cash will be tight following the pandemic.”