Human Resource Challenges in the Hospitality Industry

 Human Resource Challenges in the Hospitality Industry

The hospitality industry might not be unique in its dependence on customer service, but few other sectors in the modern economy are so closely linked with it. Most organizations within the crowded and competitive space live or die by their ability to effectively cater to the ever-changing demands of a dynamic customer base.

Companies that devote sufficient effort and resources to these challenges stand to gain a significant competitive advantage within the marketplace, particularly when they leverage the tremendous benefits and actionable insights gathered from effective feedback solutions. In a people-oriented industry, it’s not a coincidence that an organization in the hospitality space should utilize their own people data to find success.

It has become imperative for hospitality organisations to consider the implications of the global context in which they operate and respond appropriately to meet the change‐induced challenges. This can be done by ramping up the quality and the quantity of manpower employed through training and development interventions and by adopting suitable employee engagement and motivation initiatives.

 Since the hospitality industry is an intensive labour industry, and service-oriented business, the hotels are anxious to attract and retain qualified employees, because they are vital major assets for hotel success, and hotel industry prosperity.

The products of the hospitality industry are service experiences, which are intangible and depend on direct interaction between customers and employees. Thus, HR plays a crucial role in products and service quality, customer satisfaction, loyalty, and organisation performance.

The human resource functions help hotels to utilise the available human resources more effectively as competitive advantages to increase hotel performance to cope with the fierce competition in the hospitality industry. HR managers in hotels face many challenges in human resource recruitment, selection, training, and retention of qualified employees to achieve international performance standards in customer service.

Recruitment is the most significant of the human resource functions, due to its role in creating a positive impression about the business in the labour market to attract qualified employees who are interested in working for the organisation, and allows the company to effectively select the best applicants. The lack of investment in human resources leads to high staff turnover. Since the hospitality industry attracts immigrant people from rural areas who do not have the necessary skills for the hospitality industry, the need for training programmes must increase to meet the needs of the hospitality industry.

HR managers should periodically interview departmental employees to discuss any problems in the department or provide any solutions to develop work performance leading to developing employees’ skills of self-learning and problem solving, creating a new generation of leaders capable of solving problems and making decisions that in turn will increase their sense of importance and confidence. Finally, it will increase employees’ loyalty to the hotel and reduce the turnover rate. Hotels offer various ways to receive proposals and suggestions provided by their employees, whether by email, post box or during a meeting to diversify their different abilities and skills.

Hospitality professionals should improve and rebuild the industry’s image among the younger generations through presentations in high schools. They also should let students know about the reality of the hospitality industry. The advantages, benefits, and perks of the hospitality industry such as career paths, opportunities, availability of learning and development, and rapid promotion must be explained and compared with other competing industries. It also offers great opportunities for talented people to reach the managerial level much quicker than other competitive industries.

 Finally, the hospitality industry should draw a prestigious image of the industry among the younger generation. Moreover, the advantages of other competitive industries are limited in high salaries, but there are limited opportunities for learning and development, promotion, and career paths, in addition to the fact that employees are dispensed within a maximum of five to ten years. The cooperation, coordination and communication between academic institutions and the hospitality industry must be continued to face the HR challenges and retain the qualified and skilled employees.

Renuke Coswatte

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