Need for Change on Three Key HR Issues MEMO
TO: Managing Director and Principal Shareholder
FROM: Head of HR
SUBJECT: Need for change on three key HR issues
Based on the analysis of the present day employment conditions in the Huntsman hotels and the recent expansion plans into France, I would like to share my thoughts and suggestions on a need for a comprehensive organisational change in light of 3 key HR issues. To a great extent, the change is required in the HR processes in order to ensure that top-talented managers can be acquired in today’s workforce shortage conditions. Moreover, the changes would be useful for long-term retaining the managers. This factor would ensure continuous growth of the hotels and would assist you to implement your expansion aspirations as a successful initiative. Therefore, in accordance with my short stay in the company, HR issues I have identified include the need for improving the selection and recruitment strategies, along with internal communication between the employees, and finally, the uniform and well-developed pay structure for the employees.
As the company has faced the legal issues in the past being accused of discrimination in the selection and recruitment strategies, there is a need for redeveloping the recruiting strategies. The efficient design of recruiting strategies would not only play a role in attracting top-skilled employees to the hotel but would also reduce the company’s cost which had incurred in past due to the resolution of legal issues. The job advertisements should be developed in a way that they can attract from a larger pool of candidates regardless of their colour, gender, religion and culture. We would have to focus on the broader perspective of having ‘the right people on bus’ rather than focusing on their demographic characteristics. From the past practices of high profile organisations, it has been evident that the way an employer brands themselves has a great influence on the psychology of candidates (Russell & Brannan, 2016). They are likely to apply for the job position at the company where they will have a chance to apply their full potential in a multi-cultural environment. On the other hand, if the advertisement reveals to the employees that the company does not practice justice between all of its employees or considers any demographic characteristic of employee to reach the selection decision, the candidates would not apply for a favourable job vacancy (Ababneh et al, 2014).
The role of communication between all the organisational levels has been positively attributed toward improving the workplace culture, employee performance, motivation, encouragement, and retention as well as to enhancing the efficient leadership. One of the reasons which I think are responsible for the high employee turnover faced by the Huntsman Hotel is the lack of clear communication between the employees. The employees consider managers as elites with whom they are not able to share their concerns or workplace issues. In turn, this factor has led to employee turnover as the employees have no possibility to find a person to discuss their concerns with or anyone interested in their well-being or listening to them. Hence, they prefer leaving the hotel to search for some place with a better communication culture. Strong organisational culture and communication strategies help to enhance the overall performance of an employee, namely, employees are able to reach both personal and organisational goals by the effective and efficient use of resources available to them.
At the same time, it has been evident in the hotel that the employees are not comfortable while talking to the managers and the leaders. Role of a leader is critical for an organisation. Unfavourable leadership style can lead to dissatisfaction among employees, hence increase employee turnover. There is a positive link between leadership qualities and employee retention (McDermott et al, 2013). Good leadership can result into employee satisfaction, help in developing comfortable environment for employees’ productive work that will encourage them to stay with an organisation for a longer period of time. It is actually the duty of a leader to identify suitable leadership style and communication strategies that will create an extremely dedicated workforce in order to achieve organisational goal efficiently. Therefore, the hotel needs to bring changes in its communication and leadership practices in a holistic manner.
Lastly, the uniformity of pay structure has been missing in the hotel’s employment history. It is never perceived as a good idea to just raise someone’s pay as a way to improve their loyalty or ensure that employees do not leave the organisation. The Huntsman hotel has been having 2 major disadvantages because of following the non-uniform pay structure. First, the employees who are provided the raise in payment just to ensure that they do not leave the hotel are likely to think that the hotel needs them. This thought provokes them to be dishonest with their job duties as they assume that the hotel is not in the position to fire them. The second disadvantage is based on the psychology of the co-workers who assume that they are not appreciated by the hotel the way others are as they have received the monetary incentives. Therefore, they are discouraged and their working motivation and morale will be lowered. As a consequence, the employees might search for the other job opportunities where they can have uniform packages and higher self-esteem simultaneously. Although some researchers have witnessed that pay-per-performance strategies improve the job performance of employees, the studies did not specifically target the organisations facing issues of high employee turnover (Taylor & Beh, 2013). Additionally, there are some studies which described how the performance-based pay systems discouraged the team performance and have even not been accepted in some cultures due to creating discrimination among employees (Gerhart & Fang, 2014). Therefore, the hotel could not just decide to hold the employee from leaving the organisation by increasing the pay but look at the overall HR strategies and bring improvements to a few at a time. In this context, the hotel would immediately need to develop well-defined pay packages and increment policies. The uniform salary packages would assist the hotel to retain the employee by improving their perceptions about employer’s justice.
In conclusion, the improvement in the HR practices of recruitment and selection, communication strategies and pay packages would result into the employee loyalty and retention. Moreover, the recent expansion of hotel to France would be positively influenced.