Importance Of Employee Retention And Attraction In The Hospitality Industry

HR Planning for Employee Retention and Attraction

The sector of hospitality is growing very fast however, there are many competitors in the same field and the competition is going tough, everyday. Besides that, the business can be considered as one of the oldest businesses in history. The huge growth of these industries also required a huge number of skilled workers or employees to provide a better customer support. Apart from that, the companies are providing many opportunities to the people. In the past, the employees are not so important for the companies now a day is the employees are the key services to the hospitality sector. To retain the employees are also important for a hotel as the competitors can absorb the skilled workers. In this project, it will be discussed regimentally, that how it is important to retain the employees or to attract the new employees to this industry, and how much this new workforce is important for this industry.

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The hospitality industries are one of the oldest businesses which includes the hotels and motels or lodging. The industries provide the meals personal service and the accommodation for the permanent residents and the traveling public. The hospitality industries can be divided into four categories (Ariza-Montes, Arjona-Fuentes, Han, & Law, 2017).

  • Food and beverages
  • Travel and tourism
  • Lodging
  • Recreation

Apart from that, the range of the employment opportunities is very huge in this sector. The growth of the employees can be considered as high as compared to the other sectors. The number of employees working is huge but the skilled and best employees are less. So to retain the employees the company have to do many things.

As there is a hard competition between the hospitality industries it is required to hold the current workforce. A stream has researched in the HRM strategies to examine the linkage between the practices of the HRM and the effectiveness as well as performance of the organization. However, it is necessary for the HRM to have a systematic approach, so that the workplace will provide the high-performance work system. If the companies do not focus on hiring the employees who can involve in the development of the company then the business will not grow up. The company also have to understand if the company does not focus on the employee’s problems or does not provide the facilities, the employee can move out of the organization. Thus, the organizations need to build a positive work environment so that they can attract and retain the employees.

Job Satisfaction and Employee Retention

HR planning is one of the important factors, which is needed to improve the business and the employees thinking. If the brand of the company or the hotel goes, it will necessarily increase the brand value. If the brand value goes high, there is a possibility that the employees will get attracted to the hotels to work there. Branding is one of the factors, which attract the workforce (Yang, Wan, & Wu, 2015). However, it does not mean that on the brand value of the company will attract the new workplace as the attraction and the retention are interlinked which each other.  As if the employees are not happy in spite of the brand name the new employees will also not able to join the company.

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HR planning should be accurate to identify the issues and the problem. Because it is necessary for the hospitality management as managers are not aware of the HR planning or the benefits of the HR planning and the managers always plan in their way (Cortini, 2016). That will make an impact on the employees. The SPF (Strategic problem Formulation) can help to identify the negative impacts of the HP planning process (Lyles, 2014). By this, it is identified that there are eight factors that make the process more complex.

The retention of the employees depends on the industries or the specific sector. Some of the organizations have some internal issues that can lead them to the downfall of the employee’s retention. In this project will discuss the main areas that one organization can review and understand the main reason for the decrease in the level of key employees, which are leaving.

In the high turnover of the employees in the company that may involve the hidden cost, however, it defers from company to company. Nevertheless, there are some problems also while retaining the employee’s high retention levels also creates issues for the company. For example, an employee or a particular team have become so much good at their profession that the head of the company will not want to lose them. Even promoting them cannot able to solve the problem. This will result in the stagnation or it will de-motivate.

The retention does not mean to retain all the employees some companies are there to retain all of the employees, which is not good, as the company will lose their creditability if they will retain all the employees. Retention does not mean to retain the non-performer. The employees who are productive or the good performer should be encouraged and these employees can come under the retention policy. Those who do not perform should be understood that the company does not want them. That means the company should retain those who can provide profit to the company.

Motivation and Employee Retention

One of the major factors for them in the huge employee turnover is the organizational cost.  There might be some the reason for the organizational cost that can affect the retention part of the employees (Vardaman et al. 2016). If the company is doing cost, cutting in the company’s budget the management will leave those employees who are not performing well or the company will not stop any employees who want to leave the company if the company is suffering from a loss. The human capital theory suggests that some labor is more productive than others and it needs more resources to invest in the training of the new employees. So retaining the old employees will save the cost of the company. However, some companies do not stop the experienced employees as they can hire those employees who can demand less salary.

One of the main problems is that the organization is not able to hold the experienced employee in the company is that the company is not able to provide the job satisfaction. If the employee is satisfied with the job, then there will be no reason for the employee to leave the job (Lu, Lu, Gursoy & Neale, 2016). The management of the company should ensure that the talented employees should be given the autonomy to work. They suppose to provide the work related to the designation.

The problem regarding the job satisfaction is that the company is not able to provide the good environment in the workplace. If the company can provide a better work environment then the retention of the employee will be not necessary, as the employee will not go anywhere. Apart from that, the company can provide training to the employees if the employee is not able to cope up the pressure of the work then the company should provide the training to the employee. However, most of the employee cannot able to handle the pressure of the work, which led them to leave the organization.

One of the major problems is that the employee does not find any motivation for the work. If the company is providing the motivation to the employees the employees can also devote to the work (Grobelna & Marciszewska, 2016). Motivational theories can be classified into four categories:

  • Economic needs of the man
  • Social concept of motivation
  • Self-actualization
  • The contingency approach

The motivation can improve the employee’s work and the retention part. Lack of motivation can decrease the productivity of the employees and make the employees feel like they are working under the pressure. This feeling will lead the employee to leave the company. Moreover, the company will not be able to hold the employee for a longer period. Sometimes if the employee does not get motivation from the upper management the employees feel undervalued which is not a good thing for the company. Motivation can be described as the psychological process that can cause the direction and the persistence of voluntary actions to move forward to achieve the goal.

Management and Employee Retention

Management can be one of the reasons, which can cause the problem in retaining the employees. If the company’s management is not able to provide the career growth, learning and development of the individual employees this will cause the company to lose one of the employees. Management has the direct relation with the retention of the employees. If the company’s management is not able to provide the satisfaction to the employees, the employees will have a chance to leave the company (Deery & Jago, 2015).

One of the researches has suggested that the maximum number of employees has been resigning from their job because of the managers who are not able to provide the job satisfaction to the employees (Samar, 2013). They failed to become a good leader to lead the team. If the boss is inspiring then the employees are likely to stay more time with the company.

Overview: The Company needs to provide a positive working environment. Without the positive working environment, employees could not trust the company and could not rely on the management system (Hauswald, Hack, Kellermanns, & Patzelt, 2016). Therefore, it will directly affect on the strength of the company that they are trying to increase and to attract the new employees. The positive working environment is such an important which is very necessary for the reputation of the company too and if the reputation remains good, the employees will try to join the company by own choice. The employee needs self-satisfaction with the work and it is possible only if the company allows having that environment. It refers to the friendly environment too that will motivate the employees to work and get attracted to those companies.

Companies need to reward the employees to attract them and get motivated by the thoughts and conceptual behavior of the other employees. The company must pay the reinforcements to those employees who are in real need (Fruhen, Weis & Flin, 2015). Such incidents will help the employees to trust the companies and to work more for the company. These are some assets of the company too. To recognize the old customers and to keep belief over the employees can make a company more strong and can help in bringing more employees in the future.

It is a system, which can improve the employee’s performance, and the evaluation is the process, which identifies the satisfaction level of the workforce (Schwartz, Borchert, Hirth, & Tran-Gia, 2015). The evaluation process includes the measurement of the morale of the employees, the turnover and the engagement level of the workforce. If the company is not able to evaluate all these things company, cant able to attract new employees from the industries. it is necessary to showcase these things. If the company is not able to display these things, it will have a negative impact on the future employees. For the new employees, they always check the company’s policies when they come for an interview. In hospitality industries, it is necessary to get the skilled employees for the better customer service.  

One of the major challenges in attracting the employees is that the company does not involve in the productivity of the company (Raub, 2017). A company does not take ideas and suggestions from the employees. If the companies take feedback from the employees the company can able to understand that what is the main need of the employees while working.  This one of the reason as the employees always wants to see that the company can hear the suggestions of the employees what they want from them.

One of the challenges of the company while attracting the workforce is that the company does not highlight the reward systems or the easiness of work in the company. Reward system is one of the strategic planning of the HR (De Vito, Brown, Bannister, Cianci & Mujtaba, 2018). It is one of the tools to raise the commitment levels of the employees. It also helps the HR to attract the employees in the same field to join the company. However, the company is not able to provide the reward system into the platform or while recruitment. This is one the problem the employers cannot able to attract the new workforce as the workforce is not found the company policies attractive to work with.

Conclusion

The employees are the one who can provide better service to the customers. If the employees can be retained in the company, the outcome of the company will be high. Retention is one of the major policies in the HRM.  However, if the company is retaining the employees who are having less experience and those employees are not performing well then it will be the loss for the company as the expenditure of the company will be high and the outcome will be low. Apart from that, it is necessary to recruit new employees if the company need more skilled employees in their company but there are many challenges to hire those employees. The company needs to improve the employee’s satisfaction or the job and they need to make a better workplace environment, which will attract many other employees to be the part of the company. These two parts are interrelated to each other, as these two will ensure how positive the employees about the organization are.

References:

Ariza-Montes, A., Arjona-Fuentes, J. M., Han, H., & Law, R. (2017). Employee responsibility and basic human values in the hospitality sector. International Journal of Hospitality Management, 62, 78-87.

Cortini, M. (2016). Workplace identity as a mediator in the relationship between learning climate and job satisfaction during apprenticeship: Suggestions for HR practitioners. Journal of Workplace Learning, 28(2), 54-65.

De Vito, L., Brown, A., Bannister, B., Cianci, M., & Mujtaba, B. G. (2018). Employee motivation based on the hierarchy of needs, expectancy and the two-factor theories applied to higher education employees. IJAMES, 62(1), 78-87.

Deery, M., & Jago, L. (2015). Revisiting talent management, work-life balance, and retention strategies. International Journal of Contemporary Hospitality Management, 27(3), 453-472.

Fruhen, L. S., Weis, L. M., & Flin, R. (2015). Attracting safe employees: How job adverts can affect applicants’ choices. Safety science, 72, 255-261.

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).

Hauswald, H., Hack, A., Kellermanns, F. W., & Patzelt, H. (2016). Attracting new talent to family firms: who is attracted and under what conditions?. Entrepreneurship Theory and Practice, 40(5), 963-989.

Lu, L., Lu, A. C. C., Gursoy, D., & Neale, N. R. (2016). Work engagement, job satisfaction, and turnover intentions: A comparison between supervisors and line-level employees. International Journal of Contemporary Hospitality Management, 28(4), 737-761.

Lyles, M. A. (2014). Organizational Learning, knowledge creation, problem formulation, and innovation in messy problems.

Raub, S. (2017). When employees walk the company talk: The importance of employee involvement in corporate philanthropy. Human Resource Management, 56(5), 837-850.

Samar, K S. (2013).Contemporary Challenges of Human Resource Planning in Tourism and Hospitality Organizations: A Conceptual Model. Journal of Human Resources in Hospitality & Tourism, 12(4), 333-354.

Schwartz, C., Borchert, K., Hirth, M., & Tran-Gia, P. (2015, November). Modeling crowdsourcing platforms to enable workforce dimensioning. In Telecommunication Networks and Applications Conference (ITNAC), 2015 International (pp. 30-37). IEEE.

Vardaman, J. M., Allen, D. G., Otondo, R. F., Hancock, J. I., Shore, L. M., & Rogers, B. L. (2016). Social comparisons and organizational support: Implications for commitment and retention. Human relations, 69(7), 1483-1505.

Yang, J., Wan, C., & Wu, C. (2015). Effect of internal branding on employee brand commitment and behavior in hospitality. Tourism and Hospitality Research, 15(4), 267-280.