Every company is trying to utilize many strategies to attract and retain their staffs, in this competitive world. Attracting and retaining the staffs is one of the most critical tasks of the company. Low turnover of the workers could be an advantage in many ways, and if is not followed correctly, it might lead to a downfall of the business. This essay will explain five elements of human resources by the challenges which could arise in attracting and retaining the staffs. The five aspects of human resources that will be discussed in the essay are as follows:
- HR Planning
- Recruitment and Selection
- Employee Relation Challenges
- Performance Management
- Motivation, Reward, and Compensation
This essay will reflect the detail evaluation related to the themes of the strategy of the business of hospitality sector. After the evaluation, appropriate arguments will be given on every issue.
Critical Challenges in Attracting and Retaining the Workforce
1. HR Management
Many studies had been done to realize the significance of the Human Resource Management (HRM), and as the business environment had changed into competitive place, the importance of HRM could not be ignored (Nieves & Segarra-Ciprés, 2015). The most vital aspect is the contribution of HRM in the achievement of the companies and to understand the cultural differences, whereas the businesses incline for internationalization. Several surveys had already carried out to recognize the different cultures and different attitudes of the people to the same issues.
The cultural differences and the significance of understanding the differences are significant for all the sectors of the business including the hospitality industry. The hospitality industry is different from other sectors since this is the only sector where the customer is brought to the product in place of taking the product to the customer (Jones et al., 2016). It is essential to know the cultural differences in the local areas and also to recognize the various customs and values of the local market, for the prosperity of the business, it is necessary to have a good HRM in the company. Hospitality industry all over the world has experienced the growth due to the globalization, and it is related to having a good HRM in the hospitality industry.
It is essential to identify the present circumstances of the hospitality industry to know the importance of HRM in the business of hospitality industry. Like several companies and industries, the hospitality industry also has recognized that their staffs are the most vital asset of the industry. Having a competent, qualified and hardworking employees, especially in the business of the hotel could find out the differences between the good and bad hotels. The HR managers cover almost every aspect of the hotel, and this makes HRM a vital and essential part of the management of the hospitality industry (Kramar et al., 2011).
As the hospitality industry is all about giving better facilities to the customers, so a good workforce working in the hotels determines the quality of the hotels. The HRM Department hires new employees, and these employees could severely influence the quality of the hotel. So it is essential to hire the best and the qualified staffs by the correct hiring procedures, where the candidates could be critically examined. The most vital part of the HR managers is to get the most suitable people for the specific work, as several employees take part in the task of the hospitality industry. Hospitality sectors always need active staffs those who could take on the spot decisions and still satisfy the consumer's query.
Recruitment and Selection
Recruitment is the way of finding the appropriate candidates for a job which is done by the recruiters. It is sometimes carried out by an employment agency or a member of staff at some companies searching for recruitment. The advertisement is the widely used method of the hiring employees, and this could take place by several ways like by newspapers with the job advertisement, professional publications, and job centers or by campus interviews (Deery & Jago, 2015). HR manager needs to be attentive and diligent while hiring new candidates, as it catches the attention of potential candidates. So, it is not easy to find out excellent and qualified employees.
Many tests in the selection process help to find the right candidates who are needed for a firm, depending on the nature and size of the firm. Selection is the method of recognizing and hiring the right candidates to fill the vacancies in a company. By the job analysis, the ultimate aim of choice is to make sure that the newly appointed candidates return the money spent on recruiting and training that candidates through their productivity. The processes utilized in selection methods are the utilization of minimum qualification, resume, interviews, writing capability and the knowledge (Gibbs, MacDonald & MacKay, 2015). The field of selection has a long background and is connected with many types of research and implementation, consisting of the HRs and commercial psychology.
The hospitality industry needs employees with appropriate attitude and appearance. The correct position means the social and interpersonal capabilities, which are concerned with the responses of the employees, ethical behavior and understanding with the customers or in other words could show the emotional bond with customers (Solnet et al., 2015). The modern hospitality industry is extremely competitive which had created a continuously changing industry situations. The HRM Department hires new employees, and this employee could severely influence the quality of the hotel. So it is essential to hire the best and the qualified staffs by the correct hiring procedures, where the candidates could be critically examined.
The most vital part of the HR managers is to get the most suitable people for the specific work, as several employees take part in the task of the hospitality industry (Kramar et al., 2011). The hospitality industry not only has to deal with the market competitiveness and attract the customers but has to hire qualified employees those who could provide the best facilities to do a successful business. In Europe, the hospitality industry has become one of the fastest developing sectors following employment. The industry supports almost 17 million jobs in Europe with a revenue of nearly 2 million.
Employee Relation Challenges
Several small and big companies in the hospitality sector have issues in realizing their human resources and employee relations responsibilities in any nations. It is estimated that almost 80% of the companies do not have employment contracts and employment-related rules and regulations. At the time of the dispute, the court would decide for the company, and in most cases, the decisions go against the company. The cases and claims of bullying and sexual harassment in the offices are increasing every day. An average claim is $36,000 to $ 300,000 and in one nation a staff was given $1,000,000 in recent times (Gannon, Roper & Doherty, 2015). The cases of rape and sodomy are also increasing in the hospitality sectors, and the trauma, ill will and bad reputation hamper the fame of the hospitality industry.
The stalking by other staffs, sending emails, messages and gifts are other issues in the industry which have resulted in the absence and resignations by the employees. Illegal utilization and mismanagement of the services for the private use are also increasing. Some of the staffs utilize the official emails and internet services for their personal need and to access illegal websites. Most of the hotels intentionally disobey the health and safety rules, and the outcomes of this are the rising turnovers of the employees and the penalty levied on them.
Several HR managers do not know to control and lead the staffs. Ineffective job description and mismanagement behaviors could be the reason for psychological damage which could result in huge fines and also the lengthy legislature procedures. The problems of attendance and time maintenance are common issues, and the company could remove them by using the self -service facilities for the staffs. The staffs could themselves keep a track on their time and attendance and solve these problems through smart gadgets (Kramar et al., 2011).
It would decrease the possibilities of conflict and give them many advantages. Promoting safety within the firms should the first requirement of all the owners of the firms. This should consist of all the safety tools that could be utilized for the safety and protection of the staffs. Several hotels have the high turnover that means the company has more staffs than their requirements. This is all because of the HR managers who are not able to satisfy the various needs of the company. HR managers should follow more planned policies in place of the traditional methods. The staffs are the most vital assets of the organization, and so the hospitality industry needs to hire qualified and hardworking staffs to improve the quality of the sectors. The whole procedure has to be carried out by the HR managers.
At present, most of the firms in the hospitality sector are continuously trying to develop their performance, either to flourish or to survive. It might consist of fundamental changes in strategies, market positioning, aims, frameworks, sourcing materials, human resources and also the cultural environment in the firms (Prayag & Hosany, 2015). Several other approaches are followed by the firms to attain these changes successfully. Performance is the method by which allows the managers and the staffs to plan, examine and analyze the performance and the total contribution of the staffs towards the company.
The primary objective of the performance management is to examine and improve the efficiency of the staffs. An efficient performance management strategy needs time and resources to help the board, the executive director and the other senior managers of the firm. To create a new policy of performance management, the company could make a committee consisting of the staffs, managers and board members to increase the knowledge and the support for the administration (Nieves & Quintana, 2018). The support of the management on the consequences of the performance management is also essential to make sure that the excellent performance is identified, insufficient performance needs the necessary help and training, and changes in duties or suspension occurs due to the constant poor performance.
While introducing a new strategy of performance management or changing the old plan, it is necessary to deliver the objectives and the measures in the performance management policy to the staffs before it is applied (Al-Refaie, 2015). It is also essential to analyze the new performance management strategies after the first year and bring changes if needed. HR managers and other executives of the hospitality industry needs to concentrate on the performance and productivity of each staff from the bartenders, catering servers to front-line employees in the hotels, restaurants and resorts to holding up their positions in the competition (Baum, 2015).
Performance management is preferred to improve the efficiency of both the employees and the industry through examining and rating the performance, planning the task and fixing the expectations, recognizing and enhancing the critical skills and identifying and rewarding the excellent performance. The interpretation of the performance management is complex and needs time and resources to carry out the process (Brandon-Jones et al., 2016). But the lack of time poses a challenge to the performance, especially when it shifts its concentration from the main activities of the company. Lack of money is also an issue in measuring the performance management (Tracey, 2014). Until the data of the performance management is updated in the current policies, the performance management loses its importance in the industry.
Motivation, Reward, and Compensation
The motivation of the employees is significant for the competition and success of the organizations, especially at the time of severe financial situations. The primary reason that the HR managers needs to motivate the staffs to provide their best efforts is due to their connection with the outcomes of the firms. But, driving the teams to give their best performance is not an easy task for the HR managers. This is due to the reason that the managers should know the aspects which could be utilized to inspire the employees to give their best performance or work hard (Erdem & Jiang, 2016). But, the motivation strategies of every organization might not satisfy every employee.
This fact is true for the firm under the hospitality sectors. Several small and medium firms under the hospitality industry believe that the financial rewards are the central aspect to motivate the employees to give their best performance. Most of the big hospitality companies in the hotel, pub or restaurant sectors have a more professional HRM policy to inspire the employees to carry on their best work and to retain them. The big companies also have more resources such as the flexible hours of working, attractive packages of payments and well-structured development programs for the growth of the career, so that the employees with excellent capabilities and experience are attracted to join the hospitality sectors (Gregson et al., 2016).
Compensation might consist of rewards in the form of money like the incentives, bonuses or performance bonus. The companies reward their employees when they achieve their targets which they have jointly fixed with the staffs. Rewards could be non-financial like the paid holiday vacation for two persons (Karatepe & Karadas, 2015). Compensation is a motivational aspect, and for that, it requires a variable. The salary differs in rational to the outcomes or targets which has been jointly fixed with the other staffs. This type of payment is known as an incentive. The companies give incentives to their teams to increase the productivity.
The incentive is a variable price to the cost of the companies, and it differs directly to the outcomes of the performance. In attracting the suitable candidates for the right job, the companies need to create compensation and reward policies. Compensation is one of the methods to attract and retain the employees. Other equipment of the talent management are the measures to maintain the potential, professional and technical staffs (Grobelna & Marciszewska, 2016).
Compensation motivates the workers as a team, creative people or productive employees. Similarly, the companies need to create the rewards from the staffs and their work performance. The awards have to be essential and meaningful for the staffs. The company could give the options of selecting the rewards from various rewards. This will give the feeling of personalized rewards to the employees, and they will work harder to achieve this reward (Luo & Milne, 2014).
The essay had analyzed the main challenges that a hospitality sector had been facing regarding the HR planning where it had explained about the problems of cultural differences. The second factor had presented the recruitment and selection procedures in retaining the employees and the involvement of high cost in the proceedings. The third factor is the challenges and the hurdles of employee relation that the HRM had to face in attracting and retaining the suitable staffs.
The fourth factor is the performance management of the employees, and the challenges could arise for the employee retention. HR managers and other executives of the hospitality industry needs to concentrate on the performance and productivity of each. The last factor had focused on the motivation, rewards, and compensation that had discussed the several motivation and compensation policies and the significance of rewarding the right employee. The awards have to be essential and meaningful for the staffs. All the five themes had been highlighted and focused on the key challenges that are faced by the hospitality industry.
Al-Refaie, A. (2015). Effects of human resource management on hotel performance using structural equation modeling. Computers in Human Behavior, 43, 293-303.
Baum, T. (2015). Human resources in tourism: Still waiting for change?–A 2015 reprise. Tourism Management, 50, 204-212.
Brandon-Jones, A., Lewis, M., Verma, R., & Walsman, M. C. (2016). Examining the characteristics and managerial challenges of professional services: An empirical study of management consultancy in the travel, tourism, and hospitality sector. Journal of Operations Management, 42, 9-24.
Deery, M., & Jago, L. (2015). Revisiting talent management, work-life balance, and retention strategies. International Journal of Contemporary Hospitality Management, 27(3), 453-472.
Erdem, M., & Jiang, L. (2016). An overview of hotel revenue management research and emerging critical patterns in the third millennium. Journal of Hospitality and Tourism Technology, 7(3), 300-312.
Gannon, J. M., Roper, A., & Doherty, L. (2015). Strategic human resource management: Insights from the international hotel industry. International Journal of Hospitality Management, 47, 65-75.
Gibbs, C., MacDonald, F., & MacKay, K. (2015). Social media usage in hotel human resources: recruitment, hiring, and communication. International Journal of Contemporary Hospitality Management, 27(2), 170-184.
Gregson, N., Crang, M., Botticello, J., Calestani, M., & Krzywoszynska, A. (2016). Doing the ‘dirty work’of the green economy: Resource recovery and migrant labor in the EU. European urban and regional studies, 23(4), 541-555.
Grobelna, A., & Marciszewska, B. (2016, April). Work motivation of tourism and hospitality students: implications for human resource management. In Proceedings of the 8th European Conference on Intellectual Capital, ECIC (pp. 95-103).
Jones, P., Hillier, D., & Comfort, D. (2016). Sustainability in the hospitality industry: Some personal reflections on corporate challenges and research agendas. International Journal of Contemporary Hospitality Management, 28(1), 36-67.
Karatepe, O. M., & Karadas, G. (2015). Do psychological capital and work engagement foster frontline employees’ satisfaction? A study in the hotel industry. International Journal of Contemporary Hospitality Management, 27(6), 1254-1278.
Kramar, R., Bartram, T., De Cieri, H., Noe, R., Hollenbeck, J., Gerhart, B., Wright, Patrick M. (2011). Chapter 7: Human Resource Planning and Human Resource Information System, Human resource management in Australia: Strategy, people, performance, 211-251.
Kramar, R., Bartram, T., De Cieri, H., Noe, R., Hollenbeck, J., Gerhart, B., Wright, Patrick M. (2011). Chapter 5 Performance Management, Human resource management in Australia: Strategy, people, performance, 320-360.
Kramar, R., Bartram, T., De Cieri, H., Noe, R., Hollenbeck, J., Gerhart, B., Wright, Patrick M. (2011). Chapter 8: Employee Relation, Human resource management in Australia: Strategy, people, performance, 375-410
Luo, Y., & Milne, S. (2014). Current human resource management practices in the New Zealand hotel sector. Journal of Human Resources in Hospitality & Tourism, 13(1), 81-100.
Nieves, J., & Quintana, A. (2018). Human resource practices and innovation in the hotel industry: The mediating role of human capital. Tourism and Hospitality Research, 18(1), 72-83.
Nieves, J., & Segarra-Ciprés, M. (2015). Management innovation in the hotel industry. Tourism Management, 46, 51-58.
Prayag, G., & Hosany, S. (2015). Human resource development in the hotel industry of Mauritius: myth or reality? Current Issues in Tourism, 18(3), 249-266.
Solnet, D., Kralj, A., & Baum, T. (2015). 360 degrees of pressure: The changing role of the HR professional in the hospitality industry. Journal of Hospitality & Tourism Research, 39(2), 271-292.
Tracey, J. B. (2014). A review of human resources management research: The past ten years and implications for moving forward. International Journal of Contemporary Hospitality Management, 26(5), 679-705.