Long hours, low pay: Why India's hospitality industry can't keep young workers

Imagine landing your first job at a hotel after years of studying hospitality. Instead of greeting guests in a five-star lobby, you're working 10 to 11-hour shifts, six days a week, earning around Rs 13,000 a month. In many cases, there's no overtime pay for those extra hours. Nearly half of workers don't even have a formal employment contract.

For thousands of young people in India's tourism and hospitality industry, that isn't an exception. It's the reality described in the Tourism and Hospitality Skill Council's (THSC) Demand and Skill Gap Study 2024.

The timing couldn't be more striking.

India's hospitality industry is entering one of its biggest growth phases. The report estimates workforce demand will rise from 11.8 million workers in 2024 to 14.8 million by 2028. Hotels, restaurants and tourism businesses are expected to hire millions over the next four years.

So why are employers saying they can't find enough skilled people?

The answer, according to the report, isn't that young people aren't joining the industry. It's that too many aren't staying.

THE INDUSTRY NEEDS MORE PEOPLE THAN EVER

The THSC study, conducted with PwC, surveyed more than 10,100 young people and 553 employers across 20 states and six Union Territories.

One finding stands out immediately. More than half of employers (52%) said their biggest hiring challenge is finding appropriately trained and technically skilled workers. Nearly one in three (31%) also said applicants lack the soft skills needed for customer-facing roles.

For an industry expected to add millions of workers over the next four years, that is a worrying mismatch.

On paper, it makes little sense. A sector preparing to hire millions more people should have no shortage of applicants.

The next few pages of the report explain why.

THE JOB IS DEMANDING. THE PAY OFTEN ISN'T

Many young hospitality professionals begin their careers with long working days.

According to the study, only 39% of surveyed workers actually work the standard eight-hour shift. The remaining 61% regularly work beyond eight hours, with the average stretching to 10 to 11 hours a day. Nearly 62% said they work six days every week.

Despite the demanding schedule, starting salaries remain modest.

The median monthly salary for an entry-level worker is Rs 13,000. Organised firms offer a median of Rs 15,000, while workers in the unorganised sector receive around Rs 12,000. In food services, the median salary falls to Rs 10,000.

The income distribution tells a similar story. Around 43% of workers earn between Rs 5,000 and Rs 20,000 a month. Another 46% fall in the Rs 20,001 to Rs 35,000 bracket. Only 12% earn more than Rs 35,000.

The report also offers one encouraging sign. Around 83% of employers said they pay higher wages to candidates with technical skills, hands-on experience or relevant short-term training, suggesting that skilling can translate into better pay.

Most employers also believed formally trained workers perform better than those without formal training.

EXTRA HOURS DON'T ALWAYS MEAN EXTRA PAY

The report also raises questions about working conditions.

Among employees who said they worked overtime, only 41% reported receiving overtime pay.

Job security appears uneven as well. Nearly 47% of surveyed workers said they had no written or verbal employment contract.

Individually, each of these numbers is concerning. Together, they help explain why retaining workers has become one of the industry's biggest headaches.

EMPLOYERS ARE FEELING THE IMPACT

It doesn't take long to see the consequences.

Employers reported an average attrition rate of 21%, meaning roughly one in five workers left during the year.

When asked why employees leave, the answers were remarkably consistent.

Nearly 49% blamed low wages. An identical 49% said workers leave for better job opportunities elsewhere. Another 33% said many employees simply change career interests after spending one or two years in the sector.

The report paints a picture of an industry that is constantly recruiting, but struggles to hold on to the people it trains.

THE RETENTION PROBLEM IS MAKING THE SKILL GAP WORSE

One finding explains why the problem keeps feeding itself.

Employers repeatedly said they need better-skilled workers. Yet only 34% currently provide training facilities, and just 43% plan to provide training over the next 12 months.

Why aren't more companies investing?

The biggest reasons were cost constraints, high employee attrition and time pressures in a fast-paced industry.

It creates a cycle that is difficult to break.

Workers leave because starting salaries are low, working hours are long and opportunities elsewhere look more attractive. Employers, meanwhile, hesitate to spend more on training because many employees leave before that investment pays off. As a result, the shortage of skilled workers continues.

A GROWTH STORY WITH A TALENT GAP

India's tourism and hospitality industry is expected to create millions of jobs over the next few years. The report estimates that accommodation and food services alone will account for around 93% of the sector's workforce demand by 2028.

But the findings suggest that creating vacancies may not be the industry's biggest challenge anymore.

The bigger challenge may be convincing young professionals that hospitality is a career worth building.

Because if workforce demand climbs from 11.8 million to 14.8 million by 2028 while long shifts, modest starting salaries, weak contract coverage and high attrition continue, the sector could find itself creating jobs faster than it creates lasting careers.

That's a challenge no amount of hotel expansion alone can solve.