Podcast Employment Advice in 5 Minutes | Episode 09 Supporting Hospitality Businesses
Welcome to the E&P Services Podcast Episode 09, all about Supporting Hospitality Businesses.
David and Karli answer questions around a flexible workforce for hospitality businesses.
The questions:
- What payroll issues do you most commonly see from hospitality clients, such as late P45s or missing starter details?
- In your experience, how often do hospitality businesses struggle with payroll errors, like incorrect hours, holiday pay, or overtime and what impact does that have on them?
- How well do hospitality clients typically keep up with payroll-related regulations, especially around tronc, tips, and variable pay? Please explain tronc first.
- What challenges do hospitality businesses face with high staff turnover or last-minute rota changes, and how does their current payroll setup usually cope?
- From your perspective, what kinds of support do hospitality companies benefit from most when working with a dedicated payroll partner like E&P Services?
Listen
Transcript
Jim [00:00:04]
Welcome to the E&P Services Employment Advice in five minutes podcast, E&P Services and Employment and payroll company based in Liverpool and servicing businesses all over the UK. I’m your host, Jim Kinloch and with me today from E&P services are David Du-Feu and his colleague Karli. In this episode, episode nine, we’re talking about supporting hospitality businesses. So we’re going to start with you first, Karli. And the first question is, what payroll issues do you most commonly see from hospitality clients such as late P45s or missing starter details?
Karli [00:00:45]
Um, so in hospitality, Jim, we do often see new starters, um, arriving with very little notice. So that does mean key documents like P45s, starter checklists or right to work documentation can be delayed. Because the onboarding is often fast paced. Managers may not always have complete payroll information on time, and then that leads to emergency tax, incorrect pay, or delays in setting someone up on the systems. A payroll partner helps massively by chasing missing information, ensuring new staff are on board and quickly okay, and reducing the admin burden on the managers.
Jim [00:01:26]
I’m sorry, I interrupted. Never mind. I think we’ve got all of that very useful. So, we turn to David now. David, your first question is, in your experience, how often do hospitality businesses struggle with payroll errors like incorrect hours, holiday pay or overtime? And what impact does that have on them?
David [00:01:46]
Yeah, it’s very common, Jim, actually, um, mainly because hours in hospitality vary constantly. For example, split shifts, overtime, last minute cover or even if they swap shifts. So if time sheets or rota systems aren’t updated accurately, then errors can easily slip through and that results in staff being underpaid or even overpaid, damaging trust, leading to extra work correcting the payroll itself. So, a reliable payroll service like ours helps spot inconsistencies early, ensures that the correct holiday accruals for the variable hours are being considered and significantly, significantly reduces the number of corrections needed. So that’s a big help.
Jim [00:02:32]
Cool. Right. So, we’re going back to Karli for question three. And it is how well do hospitality clients typically keep up with payroll related regulations, especially around Tronc which I’d like you to explain tips and variable pay. So please explain tronc first and then answer the question.
Karli [00:02:53]
Um, so tronc is often um, like a tip service and a lot of employees. Employers. Sorry. Um, they do count this in your salary, but it’s not guaranteed part of your wage. So, trying to pay trunk as a percentage of tips on top of the salary or wages often causes issues because it’s not a guaranteed amount. Um, they do find it challenging to stay up to date with the regulations on tronc because they do change frequently and they can get quite complex, and tronc is confusing on how to structure it and what needs to be recorded and what counts towards national minimum wage as well. Uh, things like holiday pay calculations for variable hours. Staff also can cause uncertainty, but having support from payroll specialists just ensures that compliance. And then it also makes the process far more transparent and manageable for the managers and business owners.
Jim [00:03:50]
Well, that was very clear. Thank you for that. Um, it’s the first time I’ve come across the word tronc. It’s a lovely word. I just wanted to, um. So now question four and we’re back to David and his experience. Um, David, what challenges do hospitality businesses face with high staff turnover or last-minute rota changes, and how does their current payroll setup usually cope?
David [00:04:15]
Yeah, they certainly do face many challenges, Jim. High turnover will mean constant on boarding and off boarding of staff. So that puts pressure on managers and often leads to missing paperwork or even notifications of leavers. So, these last-minute rota changes can result in inaccurate hours being submitted, especially if the business doesn’t have an integrated rota or payroll system like the one we offer. Many hospitality businesses will struggle because their internal process isn’t built for such rapid change, so a dedicated service like the one we provide help streamline this by managing leavers, tracking changes and ensures that all adjustments make it into the payroll correctly and most importantly, on time.
Jim [00:05:00]
Cool. And our last, our fifth and last question is for Karli. From your perspective, what kinds of support the hospitality companies benefit from most when working with a dedicated payroll partner like E&P services?
Karli [00:05:16]
And so, I’ve been in the industry for nearly 15 years now, so I can see it from both sides. And I think the biggest benefits are the clear processes. There’s really fast communication, which is vital in such a busy industry. Um, and that real hands-on support. So, the payroll services, they help by making onboarding easier, offering guidance on the compliance and correcting errors quickly, as well as providing.
Karli [00:05:48]
Structured ways to submit hours and rota updates. Uh, they do also give the managers peace of mind to reduce their admin time. And it also makes sure the staff are paid accurately and on time. Even during these really busy periods like now, and with constant staffing changes seasonally as well. I think ultimately the support really helps businesses run smoother and allows the managers to focus more on the service and the operational side, rather than all that paperwork.
Jim [00:06:16]
Excellent. Well, I think that’s gone very well. So, uh, David and Karli from E&P Services Limited, thank you for your invaluable insights around employment in the UK. You can contact E&P Services by visiting the website. E&P services UK l.t.d.co.uk. Everything discussed in this podcast was correct at the time of recording. E&P services are not employment lawyers and advise you to confer with a qualified employment lawyer.
If you have any questions about the hospitality business and employment, then please get in touch. Follow us on LinkedIn.
[image credit: CHUTTERSNAP, unsplash.com]
