The Importance Of Human Resource Management In The Hotel Industry

1380 Words6 Pages
Human resource management (HRM) is said to be one of the most important departments within the hotel industry. HRM involves the importance of employees and the role they play in developing organizational performance (Gilmore and Williams, 2013, p. 112). The employees of the hotel are viewed as the vital resources of the business (Lockyer, 2007, p. 75). A well-structured human resources department in a hotel is considered to be a competitive advantage (Rutherford and O’Fallon, 2007, p. 415). With that being said, there are several issues that arise within human resources in the hotel industry, the main one being staff turnover rates. This essay will discuss and outline what staff turnover is, the main reasons behind staff turnover, the impact it causes to an organization, and the techniques human resources have aimed at to reduce staff turnover reoccurring within the hotel industry. “Turnover refers to either voluntary or involuntary separation from organizations” (Rutherford and O’Fallon, 2007, p. 430). A survey taken in 2009 by 243 hotel managers claimed human resources as the most common problem they face (Enz, 2009). This issue is in high interest of hotel managers because of the direct and indirect financial costs when losing and/or replacing staff (Jang and George, 2012). Turnover is costly to an organization because of having to replace employees and their skill set as well as the effort for bringing in new individuals, i.e. advertising and interviewing, and having

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