Customer service skills will grow in importance in the next three to five years, according to research conducted by People 1st for their 2013 State of the Nation report.

Of the more than 2,000 employers surveyed 88 per cent said customer service would grow in importance, followed by management and leadership skills (69 per cent), sustainability issues (58 per cent) and effective use of social media (48 per cent).

The report found social media and technology would shape the industry as people make use of new information sources to become better informed about what is available in the market.

Turnover in the industry has fallen from 31 per cent in 2009 to 20 per cent last year, however, a further 660,200 people need to be recruited by 2020.

People 1st chief executive Brian Wisdom said businesses needed to invest in employees in order to retain them but said only 41 per cent of hospitality organisations had offered training in the past year.

He said: "Of those that offer training, most money is directed toward elementary occupations, which is carried out at the most basic level, and much of this is because of the high turnover rates we're experiencing. It has become a vicious cycle that we need to stop."