An Evaluation of the impact of Brexit on UK Hotel Human Resources
The hotel sector plays a very critical role in the UK’s economy. The membership of Britain to the EU was observed as a major contributing factor to the growth of hotels and hospitality sector in the UK. However, the controversial Brexit poll has made the hoteliers to be worried for the future growth in the industry. The Brexit effect has already been felt in the social, economic and political landscapes in the UK. It is, indeed, paramount to be privy to certain facts. Anticipation exists that the exit by the Britain from the EU will pose significant effects on the hotel sector’s capability to employ people from foreign countries, thereby interfering with a wide range of businesses. The study aimed at determining the impact of the anticipated UK’s exit from the European Union on the UK hotels’ human resource. It seeks to explore whether the hotels could suffer notable losses because of the movement restriction within the EU’s member states. The research adopted a quantitative research method where SPSS was used to analyze primary data gathered from a sample of hotel owners, managers and general workers in the selected cities within the UK. The study concluded that Brexit would have negative effects on the UK’s economy. While the immigrant workers viewed Brexit as a bad idea, indigenous Britain workers claimed that it was a good idea.
Britain, which has, over the years, been considered as a global tourist destination, has seen its hotel and accommodation industry grow to promising business for many investors across the world. Also, EU has played a significant role in enabling free movement of people among member countries. As highlighted by Koch (2016), the free movement within member states has impacted the tourism sector significantly leading to a notable growth in the hotel and accommodation industry, particularly in the UK. UK was considered as a significant beneficially of the EU initiative since it is a major tourism destination for the entire eurozone. A counter effect has been observed by Hill and Vanhoonacker (2017) who argued that the increased frequency of travel due to the free movement across the EU member states has caused a huge boost to the existence of the Union. Evidence were also presented showing that a significant majority of the tourists visiting the United Kingdom are from the countries that are members of EU, a fact that has been attributed to the free movement. Research has noted that hotel industry requires huge and diverse labor force.
The hotels in the UK has employed immigrants from the EU incredibly. As per Crafts (2016), and Wagner (2015), the membership and participation of Britain to the European Union has a noteworthy and immediate impact on the labor market, particularly because of migration and the free hiring act. Also, movement has a greatly contributed to the overall production, the GDP and the monetary spending plan. Moreover, FDI and trade flows altogether influence the aggregated economic activities in the UK (Bermejo & Werner, 2018).
The controversial Brexit poll has presented worrying uncertainty level for the future of economic, social and political systems in Britain. It is, indeed, paramount to be note and prepare for the emerging realities. Brexit move has continued to create different reactions few days after the referendum. Out of the many reactions, hiring freeze is one of the realities that cannot be ignored. Khalili (2017), noted that, in less than 5 days after the referendum, there was a decline in the job advertisements provided via the internet which was approximated to 50%, from 15 million advertisements to 0.8 million advertisements. The decline was significantly lower than the normal fluctuations which have maintained between 5-10 percent for the past 15 years.
It is, therefore, arguable that the consideration by the Britain to exit from European Union will have negative effects on the employability of the foreign nationals in the UK. The move will increase the intensity of an already existing problem since the UK has been experiencing a notable shortage of skilled personel in her labour market (Bhattacharyya, 2018). According to Filimonau and Mika (2017), the British hotels are bound to contend with the serious struggles to gain their momentum after the deleterious influences by Brexit on the UK’s labour market.
In the previous past, hotels in the UK incurred insignificant costs of hiring due to the free movement as agreed by the EU’s member states. People from foreign nations have had minimal challenges moving across the borders making them to easily apply and get employed in the UK. The Brexit issue therefore presents a problem to the workers from foreign countries who are in the UK necessitating a study that would help in advising about their future.
The research aimed at determining how the anticipated Brexit would impact the UK hotels’ human resources. The assessment seeks to explore whether the hotel sector could suffering notable losses following the movement restriction across borders of the EU’s member states. The researcher noted there was already a significant labour shortage in the UK due to unfavorable demographic factors, and expressed fears of a worse situation after Brexit. The study also intends assess whether UK has sufficient indigenous skilled personnel capable of satisfying the hotels labor market.
The main objectives of the research will be:
- To determine the percentages of hotel workers who are immigrants from within the economic zone.
- To find out the effect of restricted movement on hiring capacity of the UK hotels
- To determine the opinions of the immigrant workers on the impact of Brexit on their employability and movement.
- To assess the views of the indigenous British workers on the impact of Brexit on their labour market
This study presents interesting research area for both personal reasons and academic purposes. Over the years, the British hotels have provided affordable and good quality services when compared to the US and Australia hotels which have similar levels of development. Therefore, the impact of Brexit presents a significant opportunity for academic assessment.
This research was organized into six main chapters. The introduction was the first chapter and it introduced the research topic by presenting the background information, statement of the problem, research aim and objectives, and justification of the research. The chapter was important as it provides the first impression, establishes credibility with the target audience and prepares them for the research content. The second chapter, the literature review chapter, presented what other authors had found in relation to the current topic. The literature review chapter was important since it informed the audience what is already known about the topic and the existing research gap that the current study is set to address. The third chapter was about methodology and it presented the adopted techniques which helped the investigator to entirely conduct the research. These approaches ranged from the adopted method and design, and data gathering and analysis techniques. Also, the chapter explained the ethical considerations made during the study process. The fourth chapter was about results and discussions and presented the findings of the study while offering a discussion of the results in relation to what was already known in the literature. This chapter helped in connecting the study goals to the conclusions. The fifth chapter involved a presentation of the conclusions and recommendations. A summary of the conclusions reached by the research was made and offered recommendations. Lastly, the sixth chapter presented the reference list of all the sources from where the ideas, thoughts, and opinions that were used in writing the report were borrowed.
Residents of the Uk have expressed mixed feelings of pleasure, pain, and resentments as the Brexit continues to dawn on them. There is a huge amount of literature that already exists about Brexit and its impacts to the hotel sector. The literature review chapter attempted to discuss the impact of Brexit on the UK’s hotel human resources as revealed by the previous authors. The chapter started by discussing the state of human resources for the hotels in the UK. Labor outsourcing was also discussed and the meaning of Brexit on the Hotel sector. The discussion of the views of the hotel workers as presented by previous authors as well as the impact of Brexit on the human resource of the UK’s hospitality industry was also presented. Another significant area discussed in the literature review was the Chinese restaurants in the UK and how these restaurants were to be affected by the Brexit campaigns.
As per the latest assessments, the economically active population of the UK citizens, aged between 16 and 64 years, has decreased greatly (Card, Heining, Cardoso & Kline, 2018; Blanchflower, 2015). However, data collected and analysed by the Labor Force Survey show that in 2017, the total number of persons living in the United Kingdom altogether increased. The joblessness rate, in any case, has incomprehensibly remained consistent. The observation, basically, infers that the British labor market enormously relies upon imported labor. As as EU member, Britain took advantage of the vast outlay of affordable labor despite the fact that her active population was decreasing. Alberti (2016), attributed this to the opportunity presented by free movement freedom enjoyed by all members of the EU. This benefit has existed for quite a long time and, maybe, is the thing that empowered the UK to ascend from being the third least fortunate nation economically the region in 1975 to be a very grown economy both inside the locale and on the world. Similarly, the British nationals have taken the advantage of the free movement to different nations and secure work there, build up different enterprising endeavors, and outfit a lot of riches. Nonetheless, the Brexit survey puts every one of these improvements in question. For example, in 2016, more than 32.2 million individuals were employed. This mirrors an expansion of more than 400,000 individuals when compared with the year 2015 (Alberti, 2016).
While a greater part of the exploration work demonstrates that immigrants feared the goals by the Britain in the attempt to exit from the EU, another group of specialists asserted that there were different components impacting the immigrants distribution. For instance, in an study by Gregson, Botticello, Crang, Calestani, and Krzywoszynska, (2016), an conclusion was made that the situating of immigrant workers fundamentally depended on steriotypical suppositions that make a chain of importance, and which associated a reputation of work qualities with the marks of stigma of various messy occupations. The researchers asserted this was an hierarchy whereupon laborers at the apex played.
The desire by the UK to exit the EU has in the recent past entangled the survival of the hotels, accommodation, catering and hospitality sectors. The enduring progression of European people from different nations inside the monetary zone has started to fade away gradually. For example, it currently takes hotels approximately half a year to fill a chef’s vacancy (Strickland, 2017). As residents from different countries experience the reality of lost opportunity of residing in the UK, the displacement rates have fundamentally expanded, denying the hotels the potential workers who have been so important to the division for a considerable length of time in the past.
Measurable proof demonstrates that the number of foreigners from other EU member countries who dwell in the United Kingdom was over 3.6 million in the year 2017 (Connolly and Sellers, 2017). This was an astounding increment from 1.2 million individuals in 2003. The observation indicated the level at which the UK has relied upon the human asset from different states within the Euro economic zone. As indicated by Abboushi (2017), all out movement dropped by more than 80,000 people since the Brexit survey was initiated. A lion’s share of the decrease is ascribed to the migration of the foreigners, and the declined immigration rate.
The hotels demand a lot of labour force, and are dominated by the private sector as well as entrepreneurs in the SMEs. Moreover, the hotel industry is the main employer of a great number of women and youth in Britain. According to Sirkeci, et al., (2017), over 60 percent of these workers are immigrants from inside the EU’s economic zone. The hotels and hospitality sector employ many laborers on contract bases from the other member states during peak periods (Sirkeci et al., 2017). The expense of employing these regular specialists has been very viable in view of the free movement from one EU member state to another. There is, hence, substantial explanation behind the hotels worry in view of the soon approaching and egression move from the EU.
Mitchell, (2015), conducted a research to assess the differences in approach to offshoring and outsourcing by Multinationals. Particularly, the author compared the German and UK headquartered firms in the transport and engineering sectors. According to this study, businesses in the UK were less risk adverse and appeared to be more flexible and agile in their sourcing policies that were prepared to offshore, outsource, and partner or acquire appropriately. To some extent, these businesses were found to even use competitors in case of sound business case.
As per the discoveries from the latest studies, the investors in the hotels have experienced the spot of the quick results of Brexit on the growth of UK’s economy. Woolfson (2017) discovered that these investors presently think that its progressively costly to hire laborers from without the outskirts of Britain. The standards and guidelines have turned out to be more tightly than previously. In addition, the expense of importing products from different nations has altogether expanded since the Brexit survey (Zahn, 2018).
For instance, At the Queensberry hotel in Bath, there are more than 30 full-time laborers, a majority of whom come from foreign countries like Spain, France, and Germany. In the midst of the arrangements for the proposed exit from the EU, these foreign laborers are compelled to reevaluate the fate of their vocation because of the rising vulnerability. While a portion of the laborers fear that they may be compellingly asked to leave the United Kingdom, others keep on communicating negativity for the steadiness of such hotels sooner rather than later (Mount, 2017).
A hotel proprietor in Hungary, Mr. Gosi, communicated his dissatisfaction with the Brexit survey. As he would see it, the survey presented one of the most moronic discussions ever introduced and is only useful for the canisters. He includes that both the European Union and the United Kingdom need each other for common additions, but the later needs the earlier more (Bushnell, 2017).
At the same magnitude, MagalyEtter, who is one of the hotel supervisors in Switzerland, opines that the Brexit plans ought to have taken more time to enable more opportunity for the hotels to acclimate to the foreseen effects thereof. As she expressed her opinion based on the report by Ladkin and Kichuk (2017), she said, “A wide range of individuals from a wide range of nationalities work in our industry.” She keeps on deploring that on the off chance that the free development of Europeans will stop, at that point the hotels will experience genuine battle. Actually, it is only a long time since the Brexit was passed in a submission and the hotels are as of now attempting to discover qualified staff for their employments. Magaly is very skeptical if the British alone can provide the skills expected in the hotel business.
Laurence Beere, a hotel proprietor, strengthened the hatred of hotel proprietors at the reality of Brexit. The proprietor expressed high levels of fear, referring to prove that in a 30 years span, there have consistently been difficulties in the sector’s HR department. This is despite the free movement agreed by the EU. Presently with the exit from EU reality, there are more than enough reasons to fear. Beere keeps on highlighting that the hotel industry has consistently depended on the worldwide labor whereby it is the Italians, Germans, and other foreigners overhauling the restaurants and hotels in the UK (Willie, et al., 2017).
Practically 50% of the laborers in the hotel sector, from the chefs to the waiters, are people from the EU member states (Markova et al., 2016). Time is already moving and the takeoff of the Britain from the EU is clearer than at any other time. Very few laborers have had the opportunity to verbalize their sentiments, yet the minor reality is that there have been of great migration since the initiation of referendum campaigns. Their moves to leave the UK do not promise well for the future advancement of the hotel industry. It is essential to recall that the vast majority of the waiters are youngsters who, given the smallest chance to leave, won’t delay (Underthun & Jordhus-Lier, 2018). Additionally, different urban areas like Paris have the capability of changing the work guidelines sooner rather than later and are probably going to ingest a greater part of the accomplished laborers who flee from the lifestyle, the costs, and the climate that is common around Britain (Vlandas & Halikiopoulou, 2018). The assessment of one of the laborers is that what’s to come won’t be any better for immigrant workers in the UK.
2.5 Impact of Brexit on UK hospitality industry Human Resources
The looming Brexit has been a nightmare for restaurants and staffing within the hospitality industry. According to a research report by Bratton and Gold, (2017), non-UK-born migrant workers dropped in numbers by 58000 between April 2017 and June 2017. A similar trend was observed in the same period in the following year, 2018 (French, 2018). The decrease in non-UK-born migrant-workers was found to have severe impacts on the hospitality industry in addition to undermining the sector.
The labour Market Outlook report published by the human resources body for the last quarter of 2018 following survey results conducted on 1002 employees across the UK revealed that there was a significant pressure on recruitment where employees reported much difficulty in hiring (Tryfonas & Crick, 2018). The report also revealed that there was an overall reducing labour supply characterized by a combination of a shock drop in the number of both non-EU and EU citizens in employment in the UK. The most notable effect of this reduction has been higher workloads for existing staff, challenges meeting customer service objectives, and loss of business. According to Sissons, (2018), the impact of productivity growth and the uncertainty following the Brexit campaign has been having a slowing effect on the wages growth. However this has been seen to raise new starters and key staffs.
2.6 Chinese Restaurant Industry Situation in the UK
While the UK restaurant industry is growing, reaching a worth of enormous £30 billion a year, research shows that the Chinese restaurant industry in the UK is suffering. The downfall in Chinese restaurants within the UK has been linked to rising costs and economic uncertainty (Kong, 2019). Things worsened with the announcement of Brexit campaigns making the larger chains slim down whilst the independent chains were busting all together. According to Axelsson, Malmberg, and Zhang (2017), the fall in the pound, as a result of Brexit, and food inflation are the major factors that lead to the downfall of Chinese restaurants in the UK. It was observed that a significant majority of the Chinese restaurants in the UK preferred hiring people within the UK after training them to recruit directly from China. Recruiting from China was seen as a costly, time consuming, and risky steps. On the other hand, training people from the UK needed a wide scope and variety of persons, which was easily achieved by targeting people from entire Europe. However, the approach has been affected by Brexit due to reduced cross country movement.
However, contradicting reasons have been given by other researchers. Liu and Niyongira (2017) argued that there is a shortage of skills in Chinese cuisine that is needed for a new and upcoming restaurant to realize success. Also, the passion for cooking among the young generation in the Chinese community has over the years been lost.
The methodology discussed the procedures adopted to ensure the success of the research. The chapter described the adopted methods and design, the target population and the research area, the sample, data collection procedures and data analysis procedures. Also, the methodology section discussed the ethical requirements considered during the study processes.
3.2.1 Possible research methods
Three possible research approaches which could have been adopted in this study include qualitative research, quantitative research, and mixed method. Under the qualitative research approach, the researcher is expected to collect qualitative information and assess their trends from which he draws conclusions based on the nature and characteristics of these trends. This type of research presents a naturalistic inquiry procedure that attempts to ensure an in-depth understating of social phenomena within a natural setting (Patten, & Newhart, 2017). However, this research approach is faced with a challenge in that fewer people are studied and the collection of the qualitative data is often more time-consuming.
Conversely, quantitative approaches involve the gathering of numerical facts and figures which are analyzed using mathematical or statistical techniques and drawing the study conclusions from the analysis results. In natural science and social sciences, the quantitative study is the systematic empirical assessment of observable phenomena using statistical, computational or mathematical techniques.
Above all, the study could have used a mixed research method. Under the mixed research methodology, the researcher gathers, analyses and integrates data in form of both qualitative and quantitative nature and mixes qualitative and quantitative aspects in a single study (Creswell, & Clark, 2017). Even though the researcher gains in breadth and deeper understanding and corroboration by mixing both qualitative and quantitative research and data, the approach invites a complicated procedure which introduces a significant challenge.
3.2.2 Justification for the chosen method
After considering the merits and demerits of the three possible research methods, the study chose to adopt quantitative research. This method had several advantages over the alternative methods leading to its consideration as the most appropriate research approach for the study. First, the approach permitted the formulation of a sound hypothesis without allowing a room for emotional design. Second, the approach involved probabilistic predictions and inferences which permits sound implementation allowing a rigorous evaluation of the quantitative hypothesis. Third, the approach enabled evaluation of multiple dataset and hypothesis, in a fast and more accurate manner than the human brain can ever perform. Further, the method allows for the automation of the various time-consuming manual processes enabling performance of complex analysis (Creswell, & Clark, 2017).
The study adopted a descriptive research design. This is a scientific research design which involves observing and describing the behavior of a subject without influencing it in any way. This design allowed the researcher to observe the participants in a natural and unchanged environment (Creswell, & Creswell, 2017). This design is advantageous as the researcher gets to understand the population characteristics better since no manipulations are made during the research.
The research majorly took place in major hotels within major cities in the UK. The cities that were highly targeted included Birmingham, London, Glasgow, and Manchester. It was believed that the major hotel and hospitality activities took place in the targeted cities, hence were expected to suffer greatly as a result of the intended exit from the EU. Further, the activities in these cities sent ripples that influenced a bunch of activities in other parts of the country.
The study used a sample of size 100. The sample for the study included the hotel owners, managers and general workers in the selected cities. The study selected a convenient sample from the target population. Convenient sampling was adopted because it would help in avoiding delays as well as missing values since all the selected persons were those readily available for the survey.
The sample choice was based on two parameters. The first parameter was the industry one was working as well as the job position or specialization within the industry. The major specializations focused on included chefs, waiters, human resource managers and hotel owners. Second, the researcher made delibete preference to the foreign workers who had a better taste of what the free movement across the member countries in the EU meant compared to the indigenous workers.
3.6 Data Collection Procedures
The questionnaire was the primary method of data collection. A questionnaire is a form that contains questions that need to be answered by respondents for the purpose of a survey or statistical study (Bell, Bryman, & Harley, 2018). Other alternative data collection methods that could have been adopted for the study include observation, interviews, focus groups, ethnographies and documents, and records. Nonetheless, the researcher chooses to use questionnaires because they had numerous advantages over alternative methods. First the questionnaires option presented a cheap approach to data collection with less requirement for the researcher efforts. Second, the approach provides standardized procedures enabling an easier handling of the data (Krosnick 2018).
The questionnaires were distributed with the help of email services and the sampled respondents were allowed to fill them for a duration of one week before sending them back to the researcher. Upon receiving the filled questionnaires, the researcher recorded the data in Excel software for data screening and cleaning. Data screening process involved the identification of errors, missing values, and outliers which would negatively influence the analysis results (Bell, Bryman, & Harley, 2018). On the other hand, data cleaning involved the correction of errors, filling in of the missing values and removal of outliers. The screening and cleaning processes ensured that the data was useable, valid and reliable for testing the causal theory. The screened and cleaned data was then exported and coded them into SPSS software ready for analysis.
The analysis process involved both descriptive and inferential methods. The descriptive statistics included the assessment of measures of central tendency, measures of dispersion and the evaluation of frequency distributions (Ott, &Longnecker, 2015). Majorly, the descriptive statistics were used to provide a general view of the characteristics of the sample. However, some descriptive procedures such as the frequency distribution analysis techniques were used to answer various research questions. Conversely, the inferential statistics helped in testing the hypothesis by inferring the sample results to the target population (Bell, Bryman, & Harley, 2018).
Analysis to determine the percentage of hotel human resources that are immigrants from within the economic zone was done using frequency distribution technique. The researcher computed the frequencies for various groups of respondents as well as their respective percentages to enable comparison. On the other hand, the analysis to find out the restricted movement’s effect on the UK hotel’s hiring capacity was conducted using a linear regression model approach. The linear regression model was chosen because it produces correlation coefficient using R-value, the coefficient of multiple determination using R-squared value, the effectiveness of the model using ANOVA, and the significance of the effect of the independent variable on the response variable using T-test, in a single analysis (Ott, &Longnecker, 2015). The study fitted the following regression model for the analysis of the effect of restricted movement on hiring capacity of the UK hotels.
Where; y was the hiring capacity of the UK hotels and x the level of restricted movement. The last term represented the error of the model while b’s represented the model parameters.
The opinions of the immigrant workers were investigated using the frequency distribution technique. The study assessed the proportions of the immigrant workers who agreed, disagreed and who remained neutral about some hypothesis or claims regarding the impact of Brexit on their employability and movement. Similarly, the analysis to assess the views of the indigenous British workers on the impact of Brexit on their labor market was done using the frequency distribution technique. The study assessed the proportions of the indigenous British workers who agreed, disagreed and who remained neutral about some hypothesis or claims regarding the impact of Brexit on their labor market. The results were presented using cross-tabulation tables as well as bar graphs.
Ethical considerations were critical in this research as they helped to determine the difference between the accepted and unaccepted behaviors. The three major ethical considerations made by the study included the signing of the informed consent, ensuring voluntary participation and protecting the respondents’ confidentiality and anonymity. The informed consent form made clear about the persons who were willing to participate in the study after they were fully informed about the evaluation that was to be conducted (Gebhardt, 2016). The form briefed the participants about the purpose of the research, the reason for the research and how the findings were to be used. Also, the informed consent form described possibilities of any potential adverse impacts of the participation and the audiences who would access the findings. The informed consent form was important as it helped the participants to make informed decisions as to whether they should take part in the study or not.
On the other hand, voluntary participation was ensured through the informed consent form. The research only engaged those participants who signed the informed consent form. This means that no participants was coerced or forced to participate in the study. Also, participants were allowed to withdraw from the study any time they felt like doing so.
Above all, the researcher ensured confidentiality of the participants’ information by carefully handling the questionnaires and the research data. In addition to excluding the identifying information, the researcher made sure that the questionnaires were not handled by any other person (Barber, 2017). Similarly, anonymity of the participants’ data was protected. This was achieved by ensuring that no identifying information such as name and address was requested for during the survey.
The researcher also recognized all the previous authors whose ideas helped in writing of the current research report by citing them and referencing their publications. The citing process helped to avoid cases of plagiarism.
The population from which the sample was drawn was categorized into three sub-groupings namely the hotel owners, managers, and general workers. Despite these sub-groupings, the researcher adopted a simple random sampling technique. This sampling technique introduced a major research limitation with regards to sampling bias. Sampling bias refers to a scenario where the sample fails to represent the characteristics of the target population fairly. However, to minimize the effect of this limitation, the researcher used a large sample of size 100.
The other research limitation was due to the adopted research method. The current study, having a significant focus on a social issue, was limited by the fact that it used quantitative data together quantitative research method. One disadvantage of quantitative data is that it cannot be applied to offer explanations about social phenomena, making it less useful in social research. However, the researcher made significant efforts of capturing some qualitative aspects during the data collection process by using Likert scales to capture answers from questions about feelings, opinions, and thoughts. The process converted some qualitative information into quantitative data.
3.10 Validity and reliability of data
Validity of the data was ensured to achieve the accuracy of the research. The accuracy of the results was enhanced through the use of modern statistical tools such as Ms Excel and SPSS. The software ensured that the complex computations were achieved with higher levels of accuracy and with less time. Validity and reliability tests were also conducted to ensure that collected data was valid and reliable before it was subjected to the analysis procedures.
On the other hand, the researcher ensured the research was reliable such that it was consistent with the notion that it would produce the same results if repeated. This was achieved by using standard method of data collection and data analysis. For the data collection, a standard questionnaire was used and similar questions were posed to all the members of the sample. In the analysis section, reliability was ensured through the adoption of standard statistical analysis techniques such as ANOVA and regression techniques.
Chapter Four: Analysis Results and Discussions
The analysis of the demographic variables revealed that there were significant imbalances among the sampled persons. These differences were significant in the hotel and restaurants sector, which according to research, is the second biggest employer with a percentage of 17.3% after the public administration (education and health) sector with a percentage of 18.7%. The analysis of the age data revealed that a wide range exists among workers in the hotel industry. The minimum and maximum values from the sample were equal to 20 and 55 years respectively. The age averaged at 36.58 years with a standard deviation of 8.458.
|Table 4.1.1: Characteristics of the age variable|
|Valid N (listwise)||100|
The distribution of the age variables, as revealed by the frequency histogram, was normal. Clearly, the chart produced taller frequency bars in the middle section and shorter bars at the extreme ends results in a bell-shaped histogram which implied that the distribution was normal.
Fig 4.1.1: Frequency histogram for the age variable
The analysis of the gender variable revealed that a majority of the sampled persons were females with a frequency of 57 (57.0%) against males who had a frequency of 43 (43.0%). Despite the disparity of income demonstrated by numerous researchers in the past between males and females in the hospitality industry with females earning considerably less than males, this study reveals that females are still the majority in the hotels’ workforce in the UK.
Table 4.1.2: Frequency distribution for the Gender variable
While the distribution of respondents across gender revealed that females were more than the males, a cross-tabulation between gender and position revealed that men dominated the top positions such as hotel owners and managers. The number of males and females who owned hotels in the UK was equal to 10 and 5 respectively while the management positions had 10 males and 9 females. Conversely, the lower job positions, that is the general workers, were dominated by females with frequencies equal to 23 and 43 for the males and females respectively. Apparently, the findings of this study support the assertion by the researchers in the previous research work that gender disparity remains in the UK hospitality industry, bringing the forefront importance of issues regarding decisions about recruitments, compensation, and supervision within the hotel industry.
|Table 4.1.3: Cross-tabulation between Gender and Position|
Further analysis of the highest level of education among the respondents revealed that a majority of the respondents had acquired secondary and college diploma as the highest educational qualifications with frequencies equal to 31 (31.0%) and 25 (25.0%) respectively. Other significant groups of respondents were those with undergraduate and postgraduate degrees with frequencies equal to 18 (18.0%) and 17 (17.0%) respectively. The group that had the smallest proportion included those who had primary education as the highest academic qualifications with a frequency of 9 (9.0%).
|Table 4.1.4: Frequency distribution for the Education level|
|Frequencies||%||Valid %||Cumulative %|
|Post graduate degree||17||17.0||17.0||100.0|
The analysis of the distribution of the workers based on their origins revealed that while a majority were indigenous British workers with a frequency of 53 (53.0%), there was a significant proportion of workers with a frequency of 43 (43.0%) who were immigrants from within the EU’s economic zones. Also, the study observed that there was a proportion of workers, although very small with a frequency of 4 (4.0%), who were immigrants from other parts of the world where EU was not under control. The huge proportion of immigrants from within the economic zone (43%), confirms the assertion that there is already a general shortage of skilled manpower in the British labour market (Bhattacharyya, 2018).
|Table 4.2.1: Frequency distribution for the hotel human resource category|
|Frequencies||%||Valid %||Cumulative %|
|Indigenous British worker||53||53.0||53.0||53.0|
|Immigrant from within the economic zone||43||43.0||43.0||96.0|
|Immigrant from other parts of the world||4||4.0||4.0||100.0|
The comparison of the proportions of workers who were indigenous British workers, immigrants within the EU’s economic zone and immigrants from other parts of the world where EU was not under control was presented using a comparative bar graph. According to the chart, the proportions of those who were indigenous British workers and immigrants within the EU’s economic zone were not significantly different. However, there was a notable difference between the two groups (indigenous British workers and immigrants within the EU’s economic zone) and the immigrants from other parts of the world where EU was not under control. The results indicated the European Union (EU) eased the trading processes among its members and helped to solve the problem of high labour demand in the UK.
Fig 4.2.1: Comparative bar graph showing the proportions of hotel human resource for the three groups
The study was also interested in understanding the nature of the employment trends within the UK in the recent past. Hence, a comparison of the average number of newly hired employees in the past year among the three categories of the human hotel resource was conducted. According to the analysis, the number of workers who were indigenous British workers, immigrants within the EU’s economic zone and immigrants from other parts of the world where EU was not under control averaged at 3.717, 15.0465, and 1.00 respectively. Clearly, it can be revealed that in the past year, the demand for the labour in the hotel and hospitality industry in the UK was settled, to a large, by immigrants from within the EU economic zone and to a lesser extent, by indigenous British works and immigrants from other parts of the world where EU was in control.
|Table 4.2.2: Mean comparison Report|
|The number of new employees hired|
|hotel human resource category||Mean||Observations||Standard Deviation|
|Indigenous British worker||3.7170||53||1.54891|
|Immigrant from within the economic zone||15.0465||43||5.06601|
|Immigrant from other parts of the world||1.0000||4||.00000|
The significance of the differences in the means was assessed using Analysis of Variance (ANOVA) method. According to the analysis, the computed value of F-statistic was equal to 132.285 with a significance value of 0.000. The significance value associated with the F-statistic was less than 0.05, the set alpha value of significance implying that the ANOVA test rejected the null hypothesis of insignificance. Therefore, the test led to the conclusion that there was a significant difference in the mean number of employees from different hotel human resource categories.
|Table 4.1.3: ANOVA for the significance of the means difference|
|The number of new employees hired|
|Sum of Squares||D f||Mean Square||F-value||Sign.|
|Between the Groups||3280.298||2||1640.149||132.285||.000|
|Within the Groups||1202.662||97||12.399|
According to previous research, as highlighted in the literature, most economies with the UK Treasury included claimed that being in the EU has a strong positive effect on trade, and, therefore, trade in the UK would worsen if it left the EU. One of the major reasons given as a possible contributor to the worsening of the trade was the restriction of the movement to and fro the UK. Nonetheless, the study revealed that there was a mixed reaction regarding the fear of restricted movement by the hotel management. According to the study, while a majority of the respondents had great fears with proportions equal to 20 and 28 for high and very high fears respectively, a significant proportion expressed little fears with frequencies equal to 21 and 20 for low and very low levels of fear respectively. A small proportion of respondents remained neutral and they neither feared nor were they courageous about the restriction of movement to and from the UK as a result of Brexit.
|Table 4.3.1: The fear of restricted movement by the hotel management|
|Frequencies||%||Valid %||Cumulative %|
On the other hand, as Brexit negotiations reach a climax, Britain’s economy has started experiencing some changes. Before the negotiations had begun, hotels in the UK employed an average of 15 new workers every year. However, the study showed that this number has reduced drastically in the past year, where with the mean number of newly employed persons being 8.48 with a standard deviation of 6.729. The hotels which recorded the lowest and the highest number of new employees among the sampled ones had employed 1 and 25 employees respectively resulting in a range of 24.
|Table 4.3.2: Descriptive Statistics for the hiring capacity variable|
|The number of new employees hired||100||1.00||25.00||8.4800||6.72922|
|Valid N (list-wise)||100|
The impact of the fear of restricted movement by the hotel management on the hiring capacity of the UK hotels was assessed using linear regression model analysis technique. The model summary statistics which included the coefficient of multiple correlations (R) and coefficient of multiple determination (R-squared) were equal to 0.861 and 0.742 respectively. The value of R revealed that there was a strong correlation of 0.861 between the fear of restricted movement and the hiring capacity of the UK hotels. On the other hand, the value of R-square revealed that the fear of restricted movement explained 74.2% of the hiring capacity of the UK hotels.
|Table 4.3.3: Model Summary for the regression analysis|
|Models||Value of R||Value of R-Square||Adj R-Squared||Estimate’s Standard Error|
|a. Predictors: (Constant), The fear of restricted movement by the hotel management|
The effectiveness of the regression model was assessed using the Analysis of Variance (ANOVA) technique. According to the analysis results, the computed value of F-statistic was equal to 282.087 with a significance value of 0.000. The significance value was less than the set alpha level of significance (5%), implying that the test rejected the null hypothesis. Hence, a conclusion was made that the model fit was good and that the fitted model was statistically effective in describing the effect of fear of restricted movement on hiring capacity of hotels in the UK. .
|Table 4.3.4: ANOVA results for the regression model|
|a. Dependent Variable: The number of new employees hired|
|b. Predictors: (Constant), The fear of restricted movement by the hotel management|
The model parameters, as described by the results of the coefficients, were equal to 20.441 and -3.797 for the constant and the fear of restricted movement respectively. This implied that the fitted regression model was of the form shown below.
Where y was the hiring capacity of hotels in the UK and x the fear of restricted movement. The regression model suggested that the hiring capacity of the hotels in the UK was expected to decrease by 3.797 for a unit change in the fear of restricted movement by the hotel management. The significance of this effect was assessed using the T-test analysis technique. According to the analysis, the computed T-statistic for the fear of the restricted movement by the hotel management was -16.795 with a significance value of 0.00. The significance value associated with the T-statistic was less than the set alpha value of 5% implying that the test rejected the null hypothesis of none-significance. Therefore, a conclusion was made that the effect of the fear of restricted movement by the hotel management following the Brexit negotiations on the hiring capacity of the hotels in the UK was significant.
|Table 4.3.5: Regression Model’s Coefficients analysis results|
|The fear of restricted movement by the hotel management||-3.797||.226||-.861||-16.795||.000|
|a. Dependent Variable: The number of new employees hired|
The analysis revealed that Brexit will pose more danger than gain. More than half of the respondents claimed that the individual effect, as well as the combination of economic uncertainty, political instability and a fallout in investment, were what constituted the most worrying consequence of a possible vote by Britons to exit from the European Union. In the analysis, a significant majority with a frequency of 25 (25.0%) claimed that all these factors were worrying consequences of Brexit to them. The proportions of respondents who highlighted economic uncertainty, fall in foreign direct investment, and political instability as the most worrying consequences of Brexit had frequencies equal to 20 (20.0%), 21 (21.0%), and 22 (22.0%) respectively. However, there was a significant proportion of respondents who identified none of the worrying consequences of Brexit with a frequency of 12 (12.0%). This group claimed that Brexit would have a positive impact on the UK.
|Table 4.4.1: What do you think is the most worrying consequence of Brexit?|
|Frequencies||%||Valid %||Cumulative %|
|Fall in foreign direct investment||21||21.0||21.0||41.0|
|All of the above||25||25.0||25.0||88.0|
|None of the above (I think Brexit will have a positive impact)||12||12.0||12.0||100.0|
Surprisingly, nearly half of the respondents are not making considerable plans to prepare for Brexit. The proportion of respondents who made no plans and little plans had frequencies equal to 22 (22.0%) and 19 (19.0%) respectively. However, some respondents claimed to be factoring the responsibility of a decision by Britons to leave the EU into financial planning while another proportion was building a Brexit scenario into financial, operational and organizational plans. The proportions of respondents who claimed that they were making good and excellent plans had frequencies equal to 19 (19.0%) and 17 (17.0%) respectively. Nonetheless, some respondents made average plans with a frequency of 23 (23.0%).
|Table 4.4.2: Are you making plans to prepare for Brexit?|
|Frequencies||Percentages||Valid Percentages||Cumulative Percentages|
|I am making no plans||22||22.0||22.0||22.0|
|I am making small plans||19||19.0||19.0||41.0|
|I am making average plans||23||23.0||23.0||64.0|
|I am making good plans||19||19.0||19.0||83.0|
|I am making excellent plans||17||17.0||17.0||100.0|
The study examined the effect of individual and contextual variables on preference formation towards the EU’s freedom of movement. According to previous research, mobility was presented as one of the critical goals of the European integration and it relates to the 4 major freedoms that the EU law guaranteed namely the freedom of movement of capital, labour, goods, and services. The findings of this study were in agreement with the assertions provided by previous authors regarding the employability and movement after Brexit. A significant majority claimed that Brexit would take away the strong symbolic value presented by the free movement of persons who related themselves to EU citizenship rights.
The opinion of many immigrant workers was that the UK would lose great deals and opportunities after it exits the EU. One of the respondents in the survey cited a scenario where the progressive lifting of the movement restrictions across nations to workers from the Eastern and Central Europe in the mid-2000s and the subsequent years as well as the effects of the financial crisis and the associated economic difficulties resulted in high intra-EU migration flows. This made the zone change from poorer to wealthier member states. According to statistics, the number of European Union nationals who worked in other European Union countries increased from 5.8 million in 2008 to 6.6 million in 2012, translating to an increase of 14%.
The immigrant workers in the UK who were captured in the survey claimed that the tax-free trading system set by the EU impacted their employability positively. The respondents claimed that the EU widens their job market increasing the probabilities of securing a job in any of the 28 countries that are members of the EU. The benefit then influences their movement as well as educational opportunities. Further, the immigrant workers dismissed the claim that culture would be lost if the countries continued being in the European Union. A significant majority, with a frequency of 89%, defended their opinion by the fact that the EU has never had an official language which members should use and, hence, does not interfere with the cultural aspects of individual nations.
Fig 4.5.1: The opinion of the immigrant workers regarding the effect of EU on culture
A significant majority of indigenous works expressed a sense of tension between the ways EU objective to increase competitiveness and address the issue of unemployment, and the ability of the member state to regulate institutions in their domestic labour markets. Specifically, the respondents cited increased communication barriers which lead to difficulties in issuing instructions in the work areas because the citizens from different countries speak different languages. The language barriers were found to impact a significant feeling of disunity among indigenous British workers as it made it harder to bring workers together.
Other respondents belonging to the group of the indigenous British workers were of the view that shared wealth is not always good. The respondents claimed that their nation was large with respect to the economic capabilities, and hence, it shares its wealth with much smaller and poorer countries. On the other hand, those countries which were wealthier than the UK in some aspects, like Germany, prevented them from becoming powerful, which they considered being unfair to them. According to these respondents, the policies, decisions, and rules set by the EU were not there to protect the best interest of each individual country but to serve the interest for the entire EU’s zone. As a result, the smaller countries that are left unheard experience more damages than gains. Above all, the EU has power over the various countries’ governments. The claims suggested that the EU had the power even to kick out a political leader in a country if the union did not like the leader. As a result, the indigenous British workers felt that taking power from the governments of the individual countries by the EU would breach the lines of corruption and cause major problems in different sectors of government.
Fig 4.6.1: The opinions of the indigenous British workers regarding Brexit idea
Conversely, some respondents belonging to the indigenous British workers’ group were frustrated by the fact that they belonged to the EU but were of the idea that leaving was problematic too. They feared that the required procedures to get out of the EU were tedious and would waste most of their times and resources.
Significant imbalances characterized the demographic factors of hotel workers in the UK was evident. The age varied greatly as described by the wide range of 35 years as well as the high value of standard deviation which was estimated to 8.45807. Nonetheless, the distribution of the age variables, as revealed by the frequency histogram, was normal with a mean of 36.58 years. Further, despite the disparity of income demonstrated by numerous researchers in the past between males and females in the hospitality industry with females earning considerably less than males, this study reveals that females are still the majority in the hotels’ workforce in the UK. However, a cross-tabulation between gender and position revealed that men dominated the top positions such as hotel owners and managers. Hence, the study concluded that that gender disparity remains in the UK hospitality industry, bringing the forefront importance of issues regarding decisions about recruitments, compensation, and supervision within the hotel industry. Analysis of the highest level of education among the respondents revealed that a majority of the hotel workers in the UK had acquired secondary and college diploma as the highest educational qualifications although there were, also, significant groups of respondents who had obtained undergraduate and postgraduate degrees. Very few workers had primary education as their highest level of education.
The classification of hotel workers in the UK with regards to their origin led to a conclusion that while a majority were indigenous British workers (53.0%), there was a significant proportion of workers (43.0%) who were immigrants from within the EU’s economic zones. The massive percentage of immigrants from within the EU’s economic zone (43%), led to the conclusion that there is already a general shortage of skilled manpower in the British labour market. The study concluded that revealed that in the past year, the demand for the labour in the hotel and hospitality industry in the UK was settled, to a large, by immigrants from within the EU economic zone and to a lesser extent, by indigenous British works and immigrants from other parts of the world where EU was in control. According to the study, the average number of new employees differed between indigenous and immigrants. The study, through the analysis of variance, concluded that there was a significant difference in the mean number of employees from different hotel human resource categories.
The study made important conclusions regarding unrestricted and restricted movement and their impact on the hiring capacity of UK hotels. According to the study, that being in the EU has a strong positive effect on trade, and, therefore, trade in the UK would worsen if it left the EU. One of the major reasons given as a possible contributor to the worsening of the trade was the restriction of the movement to and fro the UK. Nonetheless, the study revealed that there was a mixed reaction regarding the fear of restricted movement by the hotel management. While a majority of the respondents had great fears, a significant proportion expressed little fears of restricted movement. A small proportion of respondents remained neutral and they neither feared nor were they courageous about the restriction of movement to and from the UK as a result of Brexit.
According to the study, as Brexit negotiations reach a climax, Britain’s economy has started experiencing some changes. The study provided evidence of reduced hiring capacity by UK hotels. Mobility was presented as one of the critical goals of the European integration, and it relates to the four major freedoms that the EU law guaranteed namely the freedom of movement of capital, labour, goods, and services. The opinion of many immigrant workers was that the UK would lose great deals and opportunities after it exits the EU. The findings of this study were in agreement with the assertions provided by previous authors regarding the employability and movement after Brexit. A significant majority claimed that Brexit would take away the strong symbolic value presented by the free movement of persons who related themselves to EU citizenship rights. The study, through the linear regression model analysis approach, concluded that there was a strong correlation of 0.861 between the fears of restricted movement and the hiring capacity of the UK hotels. On the other hand, the value of R-square revealed that the fear of restricted movement explained 74.2% of the hiring capacity of the UK hotels. The regression model suggested that the hiring capacity of the hotels in the UK was expected to decrease by 3.797 for a unit change in the fear of restricted movement by the hotel management. The T-test analysis led to a conclusion that the effect of the fear of restricted movement by the hotel management following the Brexit negotiations on the hiring capacity of the hotels in the UK was significant.
The study revealed that there are varying views regarding Brexit idea among hotel workers in the UK. According to the study, while the indigenous Britain workers felt that Brexit was a good idea, immigrants argued that Brexit would pose more danger than gain. In general, more than half of the respondents claimed that the individual effect, as well as the combination of economic uncertainty, political instability and fallout in investment, were what constituted the most worrying consequence of a possible vote by Britons to exit from the European Union. Conversely, nearly half of the respondents were not making considerable plans to prepare for Brexit. The proportion of respondents who made no plans and little plans were equal to 22.0% and 19.0% respectively. However, some respondents claimed that they were factoring the responsibility of a decision by Britons to leave the EU into financial planning while another proportion was building a Brexit scenario into financial, operational and organizational plans. The proportions of respondents who claimed that they were making good and excellent plans were equal to 19.0% and 17.0% respectively. Nonetheless, some respondents with a percentage of 23.0% made average plans in preparation for Brexit.
The immigrant workers in the UK who were captured in the survey claimed that the tax-free trading system set by the EU impacted their employability positively. The respondents claimed that the EU widens their job market increasing the probabilities of securing a job in any of the 28 countries that are members of the EU. Another benefit was that the EU influences their movement as well as educational opportunities. Further, the immigrant workers dismissed the claim that culture would be lost if the countries continued being in the European Union. A significant majority defended their opinion by the fact that the EU has never had an official language which members should use and, hence, does not interfere with the cultural aspects of individual nations.
On the other hand, a significant majority of indigenous works expressed a sense of tension between the ways EU objective to increase competitiveness and address the issue of unemployment, and the ability of the member state to regulate institutions in their domestic labour markets. Specifically, the respondents cited increased communication barriers which lead to difficulties in issuing instructions in the work areas because the citizens from different countries speak different languages. The language barriers were found to impact a significant feeling of disunity among indigenous British workers as it made it harder to bring workers together. Other respondents belonging to the group of the indigenous British workers were of the view that shared wealth is not always good. The respondents claimed that their nation was large with respect to the economic capabilities, and hence, it shares its wealth with much smaller and poorer countries. On the other hand, those countries which were wealthier than the UK in some aspects, like Germany, prevented them from becoming powerful, which they considered being unfair to them. According to these respondents, the policies, decisions, and rules set by the EU were not there to protect the best interest of each individual country but to serve the interest for the entire EU’s zone. As a result, the smaller countries that are left unheard experience more damages than gains. Above all, the EU has power over the various countries’ governments. The claims suggested that the EU had the power even to kick out a political leader in a country if the union did not like the leader. As a result, the indigenous British workers felt that taking power from the governments of the individual countries by the EU would breach the lines of corruption and cause major problems in different sectors of government.
The study observed that the indigenous British workers in the Hotel industry had positive support to the Brexit ideal. Since these were the majority of the voters expected to participate in the referendum, the study anticipates that the Brexit deal would succeed. However, the move would breach the EU agreement which was set with the aim of ending the frequent and bloody wars between neighbours that culminated in the 2nd World War. Therefore, this study makes recommendations to the relevant stakeholders involved in the unity of EU to make residents of the UK understand the importance of the Union and vote against the deal anytime it is presented to them.
Research shows that a significant majority of UK residents are angry because they felt that the UK was being stolen. This could imply that the sharing of the resources among EU members is not equitable. Therefore, this study recommends that EU officials amend their rules to ensure that resources are shared equitably. The EU’s legislators are recommended to always scrutinize EU draft legislation and other EU documents in a fair manner without pressing any member country. Similarly, the UK legislators should adjust their laws to reflect the agreed EU legislation and treaties. In case governments fail to conduct themselves in accordance with the agreed expectations, these legislators should hold them to account based on the EU policies and negotiate for fair distributions of the positions in the EU institutions.
From the travel statistics, it is revealed that many people are still booking their travel plans for 2019. The political process with regards to Brexit is still ongoing this study anticipates a win for the exit. Nonetheless, regarding the numerous reassurances around flights and visas, this study makes several recommendations to the travellers. Travellers are first advised to seek reassurance from the relevant authorities on whether the planes, ferries, trains, and other forms of transports will still operate normally between the UK and the EU regardless of the Brexit outcome. It is important to know whether there will be a transition period if the deal gets to be agreed upon. Some other things which might be affected by the deal include the European Health Insurance and travel insurances. Therefore, citizens from other nations who are currently in the UK are advised to seek alternative insurance covers in case the Brexit deal is agreed upon.
Also, under the EU rules, the cost of making calls and other forms of communications via the mobile devices is the same in all the EU nations. However, if the UK exits the EU without a deal, such rules may fail to apply. Therefore, this study recommends that travellers need to check with their mobile phones network providers about the communication costs to avoid inconveniences.
This study, further made recommendations for future research. As stated in the introduction section, the aim of the current study was to investigate the impact of Brexit on UK hotel human resource. However, it is thought that Brexit would not only affect the Hotel industry but all industries in the UK. Therefore, future researchers are recommended to expand the scope of the study and include other industries. Moreover, apart from Brexit negotiations and the fear of restricted movement, there are other factors which could be affecting the UK’s hotel human resource. Therefore, future researchers are recommended to conduct research that assesses the effect of all possible contributors to the changes in the UK’s hotel human resource. This can be achieved through the adoption of multivariate analysis techniques such as multiple linear regression model analysis technique instead of uni-variate analysis methods.
The two major limitations of the current study as highlighted in the third chapter were the sampling method and the research method adopted. This study adopted a simple sampling method despite the population having sub-groups, a process that threatened the unbiasedness of the sample. Therefore, the future researchers intending to target the same population are recommended to adopt a stratified sampling method to ensure that all the sub-groupings in the population are fairly represented in the sample. On the other hand, the future researchers are recommended to include some qualitative aspects in the entire research process. Qualitative data is important as it gives deeper and detailed information regarding the topic. Also, qualitative data collection procedures creates openness because they encourage respondents to expand on their answers where they end up giving ideas about new topics that were not initially considered.