Hospitality Industry - HR Issues - Coursework Example

Hospitality Industry - HR Issues Hospitality Industry - HR Issues Introduction In this global world of Information Technology, every industry is facing a lot of competition and the “survival of the fittest” rule is applied everywhere. As the trend of downsizing got popular few years back, organizations realized that they did not only lessen their costs but also lost their good employees in this process. So hiring new and skilled employees is a challenge for employees and especially in Hospitality Industry, which requires not only qualified personnel but also the ones who have natural talent in them. Below we discuss few challenges faced by the Hospitality Industry to attract and retain employees in the market. Hospitality Industry The hospitality industry is one of the largest industries in the world, which shares a worth of 3.5 trillion dollar service sector in the world economy. The term “Hospitality Industry” is used to cover all the industries, which provides services to customers, such as hotels, food service, casinos and tourism etc. so it is clear that the Hospitality industry is very diverse in nature and it is global, which means that it is important for every country of the world and is equally famous all over the globe. The Hospitality industry is gaining new heights with the passage of time and heavy investments are being made in it, however, this also calls for the better quality, as the competition is getting tougher and tougher. The one who provides best services will definitely get more customers1. The Hospitality Industry is cyclical, which means that it is highly affected by the political and social factors. If a country is facing security problems, then definitely it will witness the decline in its Hospitality Industry, it goes with the fluctuations in the economy. Jobs in Hospitality Industry As the industry is growing rapidly, new jobs are being generated and in the same way, job seekers are facing a tough competition in job market. There are a number of schools and colleges offering different courses for the people who are interested in making their way in Hospitality Industry, although, the criteria for entering a job in Hospitality Industry is quite informal, but these days formal education is available for this purpose. People are not asked to show their higher education degrees for jobs but management, design and culinary jobs often needs formal degrees from college or business schools. Different schools offer programs and trainings for Hospitality Industry. Jobs are mainly in hotels, either residential or public houses, motels, resorts, nightclubs, restaurants, fast food corners and sanitarium. There are also in travel agencies, as travel agents and in airlines as Airline Cabin Staff. Challenge facing the hospitality industry to attract and retain their employees These days, like all other industries, Hospitality Industry is also facing some challenges, and these challenges are regarding the employees and how to attract competent employees in their business. Due to globalization, it is now difficult for industry to adopt reengineering or reprocesses. They have to manage their budget and expenses, which are now increased due to the rising prices. Technology is yet another challenge faced by the organizations, which is pouring like rain and one needs to sort it out according to their own needs, instead of running behind it blindly. So it is when the Human Resource Management plays its part, as it is the strategic and coherent approach to the management of the organization’s most valued assets, which is none other then people2. The employees working in the organization are the most important and valued assets of the organization and they are needed to be handle with care3. The people working in the organization collectively contribute to the achievement of the organization, thus the manager needs to deal with them in a way, that can motivate them as well as organization can take maximum benefit of their skills and talents. One of the challenges faced by the industry these days is the lagging wage rates, as the salaries are less than what other industries are paying to their customers. It is one of the reasons, why the industry finds it difficult to attract qualified candidates. Even if they find some, they do not prefer to stay longer4. Due to job instability, college graduates are reluctant to pursue a career in hospitality industry. Not only the job instability, but also the work hours are critical, though employees get the off-season but during the busy months, they have to work day and night and even in the weekend shifts. That is the reason they want to go for the other careers, which offers them flexible work hours, job security and good salary. The skills needed for Hospitality Industry employees are different than the other industries, so the employees whom are to be hired must posses the special qualities as well as degree. Changing demographic, shifting travel patterns and rapidly changing economic conditions are constantly increasing the pressure on the Hospitality Industry to indulge themselves into a campaign for hiring employees and to develop effective business strategies5. The issues like health and safety and security affect Hospitality Industry more than any other industry. Many of the hospitality industry business require a better understanding and research of the history and locality. In this regard, it is considered better if the employee is from the same region, because like this he will take less time in training6. The employees must be computer literate and must know the use of Information Technology, as it is an integral part of every business these days7. Attracting talented, young and energetic employees is a biggest challenge these days. Hospitality management systems are popular and are evolving into more sophisticated tool, which provides many benefits to the business. As there are more comprehensive and better-integrated systems, which are dealing with almost all areas of the complex business of hospitality industry, such as handling data, financing and managing the bookings etc. As the most of the businesses in hospitality industry is seasonal, such as hotels, casinos, tourisms etc, so the employees are not stick with the organization for the whole year, they work part time or even seasonal. So, to tackle this challenge, there must be contract base employment opportunities for the employees and handsome salary packages should be offered to them. In this global world, employees are not limited to only one country; they can travel anywhere if they find a suitable job. So there is a lot of competition in the market. Salary is the main thing for the employee, but the other thing is the satisfaction gained from work, which comes from the environment and nature of the work. It is the responsibility of the manager to attract employees by offering them an unbiased environment and friendly atmosphere8. As the job instability is the major problem in this industry, but this can be overcome by offering good packages to the employees, who had been working for quiet a long time with the organization. Constant trainings for the employees is much needed in the industry, as new things and techniques are being emerged daily, so in order to keep up with the market, organization must arrange training courses and sessions for the employees and the best timing for this is the off-season of the business9. That time can be utilized in a positive way and thus will be beneficial for the organization as well. Finding qualified personnel is a biggest challenge for the managers. It is one of those industries, where the employees should have degree but must have natural talent as well. If either of them is missing, then it is not possible for the employee to work good or according to the requirement of the job. Finding excellent and extra-qualified employees has always been a big challenge for the managers, but it is observed that managers should not ignore the other employees, because it is not possible, nor is feasible that each and every member of the team is best, so it is better to give equal importance to all the employees, because everyone is important at their own place. Attracting new talent is yet another challenge for the manager, he or she must maintain a strategy, which welcomes new and energetic employees in their organization. Another problem faced by the hospitality industry is the security and safety, as our world is not as safe as it used to be a decade back. The international traveling has become more expensive due to the raising prices of oil and gas; this had surely affected the hospitality industry. Hiring new people is a challenge, but retaining them is another challenge. Being loyal to the organization and employer is becoming a history now, as nowadays we hear that employees accept new job offer only weeks after being hired10. This trend makes people think if employees have changed or the employers are not fulfilling their duties and are not satisfying them. But the reason, which is highly observed, is that everyone in today’s world is striving for best, and whatever they think is better from previous, they miss no chance to catch it. That is why there is no loyalty in the employees. So in order to win the battle for the workforce share, it is needed for the organizations and firms to change their strategies and planning, and to improve it in a way that can help them in attracting talented and energetic employees11. It is observed that nowadays highly skilled employees are looking for more than compensation packages and benefits, and their demands only match with the big companies and organizations that can fulfill their demands. In order to hire highly skilled and reputed employees, one must think about the strengths of the company or the organization. Here, money is not the only thing a highly skilled employee is looking for, the thing, which he finds attractive is the growing and successful company or the organization, which can take maximum benefit of their skills and also employees get a lot of chances to improve themselves by learning new things and by having new experiences. They can proudly put these new things on their resumes. A friendly environment and an atmosphere where they can get a chance to be a member of a team and can also participate in decision-making are also important for employees12. Conclusion Above we discussed the challenges faced by the Hospitality Industry and we came to the conclusion that employees are changed as well as employers. Employees are no longer loyal to their organization and they want to go for best and for this purpose employers and managers should make some change in their policy for hiring employees. A good package is necessary and also a good environment, so if these things are in an organization, then they will definitely get highly skilled employees. References 1. Armstrong, Michael (2006). A Handbook of Human Resource Management Practice, 10th edition, London: Kogan Page. 2. Bob Brotherton (2003), The International Hospitality Industry, Butterworth-Heinemann 3. International Society of Hospitality Consultants, http://www.gbrconsulting.gr/greek/conferences/ihif%202007/top%20ten.pdf, Retrieved on 2008-10-05 4. Jon Hales, Jonathan (2005), Accounting and Financial Analysis in the Hospitality Industry, Butterworth-Heinemann 5. Legge, Karen (2004). Human Resource Management: Rhetorics and Realities, Anniversary Edition, Basingstoke: Palgrave Macmillan. 6. "personnel management". The Columbia Encyclopedia (Sixth Edition). (2005). Columbia University Press. Retrieved on 2008-10-05. “personnel management - see industrial management” 7. Raymond Markey, Ann Hodgkinson, Jo Kowalczyk (2002), “Gender, part-time employment and employee participation in Australian workplaces” Employee Relations, Vol. 24 Iss. 2 8. Smit, Martin E.J.H.. "HR, Show me the money; Presenting an exploratory model that can measure if HR adds value" Retrieved on 2008-10-05 9. Stone, R, (2005), Human Resource Management, 5th edition, John Wiley and Sons, QLD Australia 10. Thomas F. Powers, Tom Powers, Clayton W. Barrows (2005), Introduction to Management in the Hospitality Industry, Wiley 11. Towers, David. "Human Resource Management essays". Retrieved on 2008-10-05 12. Wilkinson, A. (1988). "Empowerment: theory and practice". Personnel Review 27 (1): 40–56. doi:10.1108/00483489810368549. Retrieved on 2008-10-05 13. http://www.buyerzone.com/personnel/rbib-how-to-find.html , Retrieved on 2008-10-05 14. http://orlando.bizjournals.com/orlando/stories/2004/02/02/smallb2.html, Retrieved on 2008-10-05 Read More