Excel Recruitment has warned that employers might struggle to meet salary demands next year.

Recruitment company Excel has warned that the Irish hospitality industry would face major challenges next year as new legislative employment changes will put pressure on employers to meet wage demands.

In the company’s annual Hotel and Catering Salary Guide, Excel Recruitment said it expected that staff across most roles in the sector would receive salary increases.

Chefs will remain in high demand in 2024 and will receive the highest spike in salaries, according to the guide. For example, the average salary of a second-year commis chef has risen by about 14 per cent – up from €28,000 to €32,000.

Sous chefs will receive an average salary of €52,000 in 2024, up from €47,000 in 2023

Sous chefs will receive an average salary of €52,000 in 2024, up from €47,000 in 2023.

Other roles such like hotel receptionists received an average of 12 per cent more salary last year than the year before, from €32,000 to €36,000.

Shane McLave, managing director of Excel Recruitment, said: “Without a doubt, the biggest threat facing the hospitality industry in 2024 is the spiralling cost of employment and not a shortage of staff.”

He added that most of the wage increases are reported in so-called “high volume roles” such as bar staff, waiting staff and catering assistants.

“Businesses need a lot of staff in these positions in order to function,” McLave said.

“With the increase in the minimum wage, we are seeing that what were once supervisory salaries are now being offered for entry-level positions as well as to bar and waiting staff, with pay rates there raising from €13 to €15 per hour.”

This, McLave said, will put pressure on businesses in the hospitality sector through the cumulative effect of seemingly modest incremental salary increases.

“Wage increases could cripple Irish hospitality businesses in 2024,” McLave said.

Excel Recruitment cites a recent Ibec report which found that while 84pc of businesses increased wages in 2023, a further 82pc plan on increasing them again in 2024.

The company expects that many small and independent establishments might collapse under the pressure.

Minimum wage raise

Seven main factors are responsible for this development, according to the guide – the minimum wage raise from €11.30 to €12.70 in 2024, the increase of sick days and the possible introduction of the living wage, which might increase the hourly wage to €15.

The other factors include the increase in PRSI, the ongoing lack of housing and rental accommodation across the country, pension auto enrolment and the Domestic Violence Act that could add up to five days of full pay.

“The nature of hospitality work itself is becoming less and less attractive for Ireland’s workforce and skilled staff are harder to come by. This has created a candidate-driven market,” McLave said.

He added that flexibility with working hours becomes more important, and less people are willing to work the same hours as before.

“Employers are consistently finding themselves under pressure to up their game in order to retain and attract staff but given the financial pressure that so many are under and the increased costs employers are facing, this can only go on for so long,” McLave said.

Standard benefits like pensions, extra holidays, four-day weeks add to this pressure, McLacve added.