HR overview: tackling hospitality’s top three people challenges

The hospitality industry thrives on delivering unforgettable experiences, but behind the scenes, it’s a whirlwind of people management, compliance and logistics.  

Now, in 2026, the pressure to get it right has never been greater. 

From finding and keeping the right talent to navigating evolving legislation, the challenges are stacking up – in an industry where happy staff equal happy customers, there’s no room for error. 

This handy guide is here to help you cut through the noise.  

We’ve tackled the three biggest HR hurdles facing hospitality businesses in 2026:

  • Keeping up with changing legislation (Employment Rights Act 2025, Autumn Budget and Employment Tips Allocation Act of 2023)
  • The Recruitment Paradox (the need for talent vs rising cost/legislative pressure)
  • Managing modern rota demands

With practical insights and actionable strategies, you’ll be equipped to build a resilient, people-first operation. 

“For HR and payroll teams, the priority now is to understand the changes, review internal policies and procedures, communicate relevant updates to their employees and find opportunities to drive efficiency while ensuring compliance.”

Stephanie Coward, Managing Director, HCM  

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Opportunities for innovation and growth

The hospitality industry is no stranger to challenges, but with every challenge comes an opportunity to innovate and grow. 

By embracing change and leveraging the right tools, you can transform obstacles into stepping stones for success. 

Adopting new technologies, refining your processes and fostering a people-first culture will help set the foundation for a resilient and forward-thinking workplace. 

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