Literature Review Essay
Literature review As for years hospitality industry is suffering from high staff turnover. The main aim to chose this topic for the literature review is that continuous problem and effect causing to the organization in terms of labor shortage especially skilled labor and organization having no control on the staff retention due to which it is become a challenge for hospitality industry especially human resource that how to attract and retain the talented and skilled staff (Barron, 2008).
Demographic change in UK Paul Barron has said the hotels in UK are struggling to retain and recruit the experienced and talented staff (Barron, 2008). Organization is also facing the significant demographic change in the population. As there has been tremendous increase in the aging population and also very low population of young people entering the industry. Due to this sudden transformation not only causing shortage of staff but also facing the problem to retain the knowledgeable and experience staff. (Govaaerts et al. , 2011).
According to the author the unevenly distributed population is the prime reason for the lack of skilled employees in the hotel industry. (Choi, Woods, Murrmann, 2000). Due to this sudden transformation not only causing shortage of staff but also facing the problem to retain the knowledgeable and experience staff (Govaaerts et al. , 2011). Paul Barron has criticized that industry always had a bad reputation of paying low wages to the staff, unusual working hours, boring job and limited opportunities for career growth due to which the hospitality industry has always found it difficult to motivate staff, and retain qualified and skilled labor. Barron, 2008). Future challenges for industry According to author, in the coming decade the demand of talent would be very high and companies would be fighting for the talent with their competitors therefore the company need to see that they can retain their talented and skilled staff so that they can have that competitive advantage and always be ahead with their rivalries (Govaaerts et al. , 2011). This high labor turnover issue in the hospitality industry has become one of the key problems for them.
The turnover culture identified in the UK and Australian hospitality industry found turnover rates as high as 300 per cent per annum (Barron, 2008). If organization not able to retain the staff then the employees would not only leave the company but also take the companies private information and company would also have to recruit and train new staff this would again be the additional cost for the organization (Govaaerts et al. , 2011). Hospitality industry spends alone ? 2,575 on training for one employee and when it is compared to average of all other industries it is ? ,725 a year. Even in recession in 2009, when the industry was not having a good time in terms of business still they were having highest labour turnover which is 31% per annum in 2009. 65% of the business report stated that their employees lacked the customer service skills and the other skill area shortage included management, chef, IT, leadership (Druce, 2010). The government new rule on immigration stating that only graduates will be only allowed to apply tier 2 visa which is a 2 years work permit for skilled migrants that till April 2012.
This would be a bad news for the ethnic restaurant which heavily dependent on 13,000 non European chefs around UK and according to British hospitality association feel that by tightening the law on migration could result in closure of ? 3 billion ethnic restaurant sector (heller, 2010). And now UK just facing with the line of events like Olympics 2012 which is just door away from England and it is still facing a huge skill shortage of labor who would be determining the success of Olympics. Of 257,000 chefs, 30,000 have no qualification and 51,000 have only basic qualification. (Heller, 2010) (Bawden, 2007).
Hospitality graduates changing career A number of researches have shown that the industry does not treat the hospitality student graduates properly instead of using their skills and their attitudes which is required for the industry. And in the other hand industry pointing out the students for being more theoretical and not being practically knowledgeable and also the hospitality expert have suggested to the institution to teach and provide student with more realistic view of the industry and prepare them more technically and knowledgeable according to the hospitality standard (Barron, 2008).
In the authors opinion Chi and Gursoy has said that even the industry believes that getting a degree of hospitality is important and valuable one. But in the past many hospitality graduates have left the industry even though having degree. Firstly because of the industry low paying wages method and also due to the lacking of skills and pressure which they have to face from the employers (Chi and Gursoy, 2009). According to author, when employees sees no future prospect or opportunities for themselves or getting weary with the company then they tend to leave the organization. Govaaerts et al. , 2011). Due to these the hotel industry started to look for the students firstly who had a good industry skills compared to their academics. (Chi and Gursoy, 2009). After doing research on hospitality students author baron came to know that 50% of the students (hospitality graduates) leave the industry after completing the college or university because of the poor working climate, having a bad experience while working in the hospitality industry and many could not see long term career in this industry (Barron, 2008).
The author Whelan and Carcar has said that performance management review helps the organization to get to know the talented and knowledgeable staff that are performing best and also willing to give the suggestion to the organization to improve the standard of the company. (Whelan & Carcar, 2008). According to author choi, woods, murmann, for most of the people hotel is always have been their first job and a learning process for most of the people and also moulds them to the real working world .
The labor intensity in hotel industry is almost one employee for one room, which shows the importance of the role of employment in this industry. (Choi, Woods & Murmann, 2000). International labour contribution to hospitality industry in UK Author suggested that the industry had always suffered from employment problems such as recruitment, staff retention, and lack of skilled staff and also the image of the industry.
International labor has always played a significant role in filling the gap of shortage of labor turnover in UK (janta, 2011). Due to shortage of staff in the industry Ireland introduced a new visa scheme for particular skilled labor and in 2003 uk also brought new visa scheme which is known as sector based scheme where lower skill labor from hospitality industry and food & beverage industry can come to uk and work in uk for up to 12 months (devineet et al. , 2007). Apart from job creation this provides the opportunities of employment for the entry levels in job market.
A recent study found that the skilled and educated migrants can be very productive and it creates the opportunities in the domestic job market. (Choi, Woods, Murmann, 2000). According to the author, survey done on labor force in 2007, got to know that 63 percent of the hospitality employees were from abroad and 43% of staff working from overseas in London’s pub was from Poland. (Janta, 2011). That means there is plenty of labor shortage in the international market which means that there are plenty of jobs for skilled labor in the industry. Choi, Woods & Murmann, 2000). In the growing population of the world there is a big hike in the number of skilled peoples. But still in developing countries many skilled people remain unemployed even if they have a good level of education. Employing the unemployed but skilled people in one part of the world would help in the skilled labor shortage in another part of the world. (Choi, Woods, Murrmann, 2000). Author suggests that the foreign migrant workers motive the employers and they are being used to supplement full time staffs during peak times.
These foreign born employees are usually reliable, committed and obedient. (Janta, 2011). Labor immigration & industry always try to attract an educated and skilled labor as they are the only one in demand in international market as they are the one who contribute maximum to the economy and also create more job opportunities for the other people. (Choi, Woods & Murmann, 2000). Recommendations: It is recommended that employers should consider the expectancies of benefits if they are seeking to retain the employees.
In order to retain the skilled and qualified employees the employers must pay extra attention towards the employee benefits which makes the employees more satisfied. Attitude towards giving the benefits to the employees is an important managerial implication. By doing the survey and getting the feedbacks periodically from the employees will help the organization to decide how the benefits should be distributed for the staffs and to decide whether the employees are eligible or not.
By giving the choices for the staffs, how to spent or utilize their benefits can tend the employees not to leave the job. But still the employees tend to resign the job even if they are satisfied with their pay and benefits in order to get a different exposure or experience. (Carraher, S. , 2006) The success of organization depends on giving employees exciting and challenging work. This will help them to develop their career as well. The main key for the managers and supervisors is to maintain a good relation etween new recruits and to understand how this will help for influence and retention level. It is recommended that the managers should help their employees to make understand about appropriate fit between their job responsibilities, value and behavior (Emerald, 2009). To retain the talented staff on board and to improve the stability with in the employee ranks, it is recommended that the organization must develop some strategies. The most important strategy is to acknowledge the employees contribution for the company.
Based on their acknowledgments, employee should be rewarded properly which makes the feeling in the employees mind that their contribution is valuable and they get motivated. The other strategies that can recommend is to focus on training of new recruits and implementing career development programs which makes the feels like they have advantages in career wise as well (Emerald, 2011). References: Barron, P. , 2008. Education and talent management: implications for the hospitality industry. International Journal of Contemporary Hospitality Management, [online] 20(7), pp. 30-742. Available at: http://www. emeraldinsight. com/journals. htm? issn=0959-6119&volume=20&issue=7&articleid=1747877&show=abstract. [Accessed 12 August 2011]. Carraher, M. S. , (2006). Turnover prediction using attitudes towards benefits, pay and pay satisfaction among employees and entrepreneurs in Estonia, Latvia and Lithuania. Baltic Journal of Management, [online] 6 (1). Available at: http://www. emeraldinsight. com/search. htm? st1=employee+retention&act=all&ec=1&bf=1. [Accessed 20 August 2011] Chi, C. G. , Gursoy, D. , 2009.
How to help your graduates secure better jobs? An industry perspective. International Journal of Contemporary Hospitality Management,[online] 21(3), pp. 308-322. Available at: http://www. emeraldinsight. com/journals. htm? articleid=1786302&show=html. [Accessed 25 August 2011]. Choi, J. , Woods, R. , Murrmann, S. K. , 2000. International labor markets and the migration of labor forces as an alternative solution for labor shortages in the hospitality industry. International Journal of Contemporary Hospitality Management, [online] 12(1), pp. 61 – 67. Available at: http://www. meraldinsight. com/journals. htm? issn=0959-6119&volume=12&issue=1&articleid=867315&show=abstract. [Accessed 17 August 2011]. Emerald, (2009) Building relationships for retention: How Time Warner Cable improves employee engagement, Strategic Direction, [online] 25 (7), pp. 6 – 10. Available at: http://www. emeraldinsight. com/search. htm? st1=employee+retention&act=all&ec=1&bf=1. [Accessed 20 August 2011] Emerald, (2011) Putting people first: Employee retention and organizational performance, Development and Learning in Organizations, [online] 25 (1), pp. 5 – 27. Available at: http://www. emeraldinsight. com/search. htm? st1=employee+retention&act=all&ec=1&bf=1. [Accessed 19 August 2011] Govaerts, N. , et. al. 2011. Influence of learning and working climate on the retention of talented employees. Journal of workplace learning, [online] 23(1), pp. 35-35. Available at: http://www. emeraldinsight. com/search. htm? st1=Influence+of+learning+and+working+climate+on+the+retention+of+talented+employees. +&ct=all&ec=1&bf=1. [Accessed 17 August 2011]. Janta, H. , 2011.
Polish migrant workers in the UK hospitality industry: Profiles, work experience and methods for accessing employment. International Journal of Contemporary Hospitality Management, [online] 23(6), pp. 803-819. Available at: http://www. emeraldinsight. com/journals. htm? issn=0959-6119&volume=23&issue=6&articleid=1944205&show=abstract. [Accessed 20 August 2011]. Website reference: Bawden, A. , 2007. Olympic shortfall. [online] available at:http://www. guardian. co. uk/education/2007/may/01/furthereducation. olympicga