The human resources department within a large hotel organization is responsible for recruiting, screening and hiring staff members. Employees in this department also administer compensation and benefits programs, coordinate safety practices and implement labor law requirements, just to name a few. The actions taken by human resources, especially during the hiring process, have a direct impact on the reputation, quality and financial performance of the hotel. By making decisions that can make or break the success of an organization, it is easy to see why human resources management is one of the most important departments in any industry. With that being said, there are many challenges facing human resource managers, two of which will be outlined in this paper. These issues include:

1. High employee turnover rates

2. Discrimination

 

High Employee Turnover Rates

     A turnover rate is the ratio of employees leaving a company (or industry) within a specific period of time. High employee turnover rates have, by far, been one of the main concerns within the hospitality industry. Research has shown that the “average turnover level among non-management hotel employees in the U.S. is about 50 percent, and about 25 percent for management staff” (Gautam, 2005, para.3). In addition, there is an enormous amount costs involved when losing and/or replacing an employee, including:

 

·         Advertising expenses

·         Overtime costs for staff members who must perform the duties of the vacant position

·         Valuable time spent on finding a new employee: reviewing resumes, performing interviews, etc.

·         Resources spent on the orientation and training process

·         Loss of productivity while the new employee is training (“Employee Turnover: How Much is It Costing You”, n.d.)

 

There are many reasons why there are high labor rates in the hotel industry. First of all, these rates can usually be the result of a flaw in the hiring process itself. In many companies, the hiring managers are in a hurry to fill the empty position, and therefore hire an inexperienced individual, assuming that he or she will “catch on” to the job requirements in due time. We all know what happens when you assume. This type of decision-making is nothing but a waste of time for both the employee and employer, and should be avoided at all times. On the other hand, there are good hiring managers who take the time to find the appropriate candidate, but ask the wrong questions during the interview, causing misconceptions about the candidate’s ability to exceed the company’s performance expectations after being hired.

 

Next, there are the issues with salary and growth opportunities. In today’s economy, employees are relying on these elements now more than ever, and as an employer, you must provide the candidate with an attractive benefits package to ensure their long-term commitment to the organization. Employee morale is directly related to their income and if the employer thinks that they can get away with overworking the staff while providing no incentives, then they are sadly mistaken. As the saying goes, it is a two-way street, and if the company expects its employees to give 100 percent when performing their duties, they should return the favor by giving the appropriate pay.

Finally, the work atmosphere also plays a big role in an employee’s decision to leave the company. Your job is supposed to be a place you enjoy coming to each day, and if you are constantly exposed to a tense, unwelcoming environment, it begins to have a negative effect on your own job performance. A manager or supervisor who is overbearing or lacks the necessary communication skills needed to direct his or her team can also contribute to the poor atmosphere.

These are just a few of the many reasons why the hotel industry faces such a high employee turnover rates. Fortunately, these issues can be easily fixed if the organization, especially the human resources department, focused their attention on the weak spots in the hiring process and then made the necessary changes so that only the most qualified individuals are brought into the company. Other changes that could help decrease turnover rates include:

 

·         Provide the employees with positive feedback

·         Clearly communicate daily tasks

·         Perform employee evaluations on a regular basis

·         Make sure the employees are properly trained

·         Share information

·         Make sure candidates understand the job requirements during the interview to ensure that they possess the necessary skills to be company expectations.

 

Implementing these changes will not only boost employee morale, it will also provide the hotel’s guests with better quality and service during their stay. Jim Hartigan, Senior Vice President for Customer Quality and Performance at Hilton Hotels Corporation, put it nicely when he stated, “Quite frankly, whatever product we have, a competitor can copy. A certain kind of bed, a television, and a showerhead, all of this can be copied. What can’t be replicated is the genuine, personal service” (Gautam, 2005, para. 3).

 

                     Discrimination

Discrimination in the workplace occurs when an employee suffers unfavorable or unfair treatment due to their race, age, gender, disabled or veteran status, or other legally protected characteristics. Federal law prohibits discrimination in a number of work-related areas, including recruiting, hiring, job evaluations, promotion policies, training, compensation and disciplinary action. This puts a great amount of pressure on the human resource department to ensure the employees’ rights are protected within the organization as well as protecting potential employees and guests.

 

                  Racial Discrimination

In 2008, the Equal Employment Opportunity Commission (EEOC) received nearly 34,000 race discrimination charges, by far the highest of any category. Of the total number of cases, 28,321 were resolved with $79.3 million in benefits given to the victims (EEOC, 2009). In the past, the hospitality industry has accounted for roughly 35 percent of the number of cases as reported by the EEOC, which is a difficult pill for any manager to swallow. As an example, in 2006, the owner of Miami based Spindrifter Hotel, agreed to pay $99,000 to settle a race discrimination claim by a fired white female employee who alleged that she was terminated shortly after the company learned that she had biracial children. The owner was also said to have made crude and derogatory comments about African Americans while in the presence of the female employee. (EEOC, 2006).

Another incident worth mentioning involves the Adam’s Mark hotel chain. In 1999, a Justice Department investigation began after the Adam’s Mark in Daytona Beach, Florida was hit with a class action suit by five guests attending the Black College Reunion a year earlier. The African American guests claimed that the hotel charged higher rates and did not allow black visitors on the property. “The suit also charged that rooms rented to blacks had been ‘stripped out’ and lacked such basic amenities as telephones and maid service; pictures had been removed from the walls and room mini-bars were locked” (“Hotel Chain Charged”, 1999, para. 6). During the investigation, it was made clear that the Adam’s Mark hotel’s intentions were to decrease the number of African American guests at all properties by unfairly increasing the rates for poor quality rooms, and restricting their access to amenities that were offered to other guests. Prior to this situation, the franchise already had civil suits against three other locations, resulting in millions of dollars in payouts to the plaintiffs. As a human resource manager, there are many steps one can take to help prevent these issues from occurring in the workplace, such as:

 

·         Implementing and enforcing an Equal Employment Opportunity policy that is adhered to and supported by management

·         Designing, implementing and enforcing a harassment policy that clearly prohibits ALL forms of discrimination

·         Implementing policies prohibiting discrimination against customers and patrons, while stressing the importance of quality service

·         Periodically training the staff on the types of discrimination and the policies set forth by the organization

 

Sexual Harassment

Sexual harassment is one of the most serious human resource management problems today. The hotel industry is particularly vulnerable to claims of sexual harassment due to a number of factors including a high ratio of female to male employees and the fact that many employees work in various and, often, isolated areas of the property during the day. There are two types of sexual harassment: quid pro quo and hostile environment. Quid pro quo harassment occurs when a supervisor promises to give someone a better position, better pay, or some other improvement in a job or working condition in exchange for sexual favors. If the employee does not comply, the supervisor will threaten to fire, report, decrease pay, or any other action in order to damage their position or reputation. Hostile environment occurs when a coworker makes the employee’s work environment uncomfortable using sexual behavior, suggestions, gestures, comments, images, or other conduct.

There are a few steps that employers can take to eliminate these issues in the workplace:

 

·         Review the existing employee handbook and human resources manual to ensure that sexual harassment policies and procedures are in compliance with current state and federal laws

·         Have employees sign a written statement acknowledging that they have read and completely understand the sexual harassment policies set forth by the organization

·         Provide training to managers and supervisors, including and overview of sexual harassment laws, reporting issues and investigating obligations.

·         Conduct an audit of files involving past sexual harassment complaints to ensure the effectiveness of investigation procedures.

 

There are many different types of discrimination in the workplace, however these are the two most prominent in the industry. Below is a list of some of the federal laws prohibiting job discrimination:

 

·         Title VII of the Civil Rights Act of 1964: Applies to all businesses with 15 or more employees and “protects individuals against employment discrimination on the bases of race and color, as well as national origin, sex, and religion” (EEOC, 2009). “Equal employment opportunity cannot be denied any person because of his/her racial group or perceived racial group, his/her race-linked characteristics (e.g., hair texture, color, facial features), or because of his/her marriage to or association with someone of a particular race or color” (EEOC, 2009). Protections include:

o   Recruiting, Hiring, and Advancement: Job expectations must be equally and consistently applied to persons of all races and colors.

o   Harassment/Hostile Work Environment: “prohibits offensive conduct, such as racial or ethnic slurs, racial "jokes," derogatory comments, or other verbal or physical conduct based on an individual's race/color” (EEOC, 2009).

o   Compensation and Other Employment Terms, Conditions and Priveleges: “discrimination may not be the basis for differences in pay or benefits, work assignments, performance evaluations, training, discipline or discharge, or any other area of employment” (EEOC, 2009).

o   Segregation and Classification of Employees: Employees who are protected under this act cannot be isolated from other employees or customer contact.

o   Retaliation: “Employees have a right to be free from retaliation for their opposition to discrimination or their participation in an EEOC proceeding by filing a charge, testifying, assisting, or otherwise participating in an agency proceeding” (EEOC, 2009).

·         Age Discrimination in Employment Act of 1967: Protects applicants and employees 40 years of age and older from discrimination on the basis of age in hiring, promotion, discharge, compensation, or terms, conditions or privileges of employment.

·         Americans with Disabilities Act of 1990 (ADA): “prohibits private employers, state and local governments, employment agencies and labor unions from discriminating against qualified individuals with disabilities in job application procedures, hiring, firing, advancement, compensation, job training, and other terms, conditions, and privileges of employment” (EEOC, 2009). An individual with a disability has or has had a physical or mental impairment that tremendously limits their ability to perform routine activities. It is the employeers job to ensure that the facility is easily accessible to all persons with disabilities. They must also accommodate the employee by modifying their work schedule and any work equipment, as well as training materials and policies.

·         Sections 501 and 505 of the Rehabilitation Act of 1973: Prohibits employment discrimination against individuals with disabilities in the federal government.

·         Civil Rights Act of 1991: A statute that was passed in response to a series of United States Supreme Court decisions limiting the rights of employees who had sued their employers for discrimination. The modifications include the right to trial by jury on discrimination claims and introduced the possibility of emotional distress damages, while limiting the amount that a jury could award.

 

                       Conclusion

Based on the facts presented in this research paper, it is evident that employees in the human resource department have their work cut out for them when handling the high employee turnover rates and discrimination issues that occur all too often in the hotel industry. It is important for the organization to plan ahead by establishing a strict policies and procedures manual for all employees to follow to ensure that these issues do not become a major problem for the company. In addition to the employee manual, it is important for management to perform routine training sessions to refresh the staff on these policies and also educate them on the types of discrimination and how to avoid it. In regards to the high turnover rates, it is imperative that the HR team participates in a thorough hiring process in order to find the most qualified candidate for the position. Employees should also be treated with respect at all times. Doing so will help them feel like part of a team as well as keep them motivated to perform their duties to the best of their capabilities.