Human Resources Management for Independent Hotels
Albert BarraDecember 3, 2018 · 5 min read
In general, there is a widespread view that the hospitality and foodservice industry faces a range of staffing-related issues, poor practices and employment conditions, particularly in small and/or family-run hotels. Hotels belonging to large hotel groups have greater advantages in human resources recruitment and development, as the higher levels of pay and benefits they can offer generally make them the first choice for highly competent and qualified staff.
Many hotels justify the absence or neglect of HR management functions on the basis of the organisation's size. Smaller hotels with limited financial resources claim to be constrained in the development and implementation of human resources systems compared with larger hotels. It is a fact that large and small organisations tend to differ in terms of resources, money and time. However, all businesses, whether small or large, need to hire employees to carry out their daily operations. Regardless of a hotel's size, employees are vital assets. A well-established and well-maintained human resources department provides a solid structure and an organisational advantage that is vital to success.
Although small hotels face unfavourable conditions, they have opportunities to grow, as their small size generally gives them a greater degree of flexibility. Smaller organisations need to adapt their human resources practices compared with larger organisations because of differing workforce requirements and legal considerations. Specifically, they should focus on improving guest satisfaction and service quality through well-organised human resources management.
Human resources management (HRM) is the function within an organisation that focuses on recruiting, managing and directing the people who work in the organisation. Unfortunately, small hotels face many human resources-related issues concerning staff quality, staff training and development, discipline, unattractive wages and benefits, and high turnover among younger staff members. The survival of a small hotel may depend on its ability to recruit efficient and qualified people, while providing them with incentives to work at full capacity in order to maximise the property's profits.
The reality is that small independent hotels cannot succeed without an efficient HR management system in place. Hotel owners play the most important role in establishing such systems, so they should be the starting point for change. But what can be done to set up a human resources system?
One of the main obstacles family-run hotels face in implementing human resources practices is the shortage of HR professionals who can maximise their results. Several steps should be taken to improve sources of organisational efficiency.
Although small hotels face unfavourable conditions, they have opportunities to grow, as their small size generally gives them a greater degree of flexibility. Smaller organisations need to adapt their human resources practices compared with larger organisations because of differing workforce requirements and legal considerations. Specifically, they should focus on improving guest satisfaction and service quality through well-organised human resources management.
Human resources management (HRM) is the function within an organisation that focuses on recruiting, managing and directing the people who work in the organisation. Unfortunately, small hotels face many human resources-related issues concerning staff quality, staff training and development, discipline, unattractive wages and benefits, and high turnover among younger staff members. The survival of a small hotel may depend on its ability to recruit efficient and qualified people, while providing them with incentives to work at full capacity in order to maximise the property's profits.
The reality is that small independent hotels cannot succeed without an efficient HR management system in place. Hotel owners play the most important role in establishing such systems, so they should be the starting point for change. But what can be done to set up a human resources system?
One of the main obstacles family-run hotels face in implementing human resources practices is the shortage of HR professionals who can maximise their results. Several steps should be taken to improve sources of organisational efficiency.
Steps to take
First, owners must recognise that human resources management is an investment and that it can lead to business sustainability and success, as staff members are the most valuable resource a service-sector business has. Second, a Standard Operating Procedure (SOP) that must be established to include work policies and detailed procedures for staff members in every department, in order to define and maintain quality standards. Human resources planning should include an analysis of human resources needs, the capabilities of existing staff members, and the preparation of job descriptions to define staff duties and qualifications. Appropriate and qualified employees must be adequately compensated, as low wages and limited benefits do not attract the most qualified staff. This can lead to poor service standards and, ultimately, a decline in guest numbers and revenue. Small hotels do not need the same extensive human resources management system as a large hotel, but staff selection and training must be considered to ensure that quality standards are maintained. In fact, SMEs should use recruitment and selection procedures more carefully than any other HR practice. Staffing has been identified as the weakest human resources management practice among SMEs. Indeed, the most common staffing method used by SMEs is word of mouth, as it is a low-cost option for attracting candidates. Family-run organisations can halve their staffing through "academic recruitment", as it is a relatively less expensive recruitment source than hiring through advertisements and private job boards. In addition, recent graduates from educational institutions can work with enthusiasm and commitment. There are occasions when hotel managers would benefit from hiring a dedicated HR manager, especially where there are issues related to high turnover, staff morale or poor service delivery. While most hotel managers/owners appreciate the need for human resources management, their lack of professional HR skills prevents them from applying systematic HR processes and understanding the impact this has on the organisation. Absenteeism is also linked to poor pay and a lack of a professional approach from supervisors in their dealings with employees. Independent hotels should consider taking positive measures, such as coaching, reward systems, improving the work environment and training, to address absenteeism. Formal training provided by larger organisations is generally offered to employees annually and provides personal development opportunities. On the other hand, in a small hotel, training is usually informal, costly and delivered voluntarily by other employees within the business or by the owners. Other options may include using volunteer students from local colleges/universities to provide employees with important training and skills. Some training options may include free or low-cost training, as well as advice from groups such as local business associations or business communities. Some of the most popular tools are seminars/webinars, conferences, videos and on-the-job training. The very nature of the sector is to provide hospitality, and this requires human resources to deliver appropriate services. Therefore, small and medium-sized hotels should formalise their HRM practices. Independent hotel owners or managers should be more willing to introduce greater formality into their company's HR practices, as an "appropriate" level of formality is positively related to performance. Formalising human resources management practices requires financial support and training for owners/managers in management skills. This must, of course, be taken into account, but in the long run it is cost-effective.
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