Human Resources Management of Etihad Airways - Case Study Example

Name Tutor Subject Date Etihad Airways HR Practices The process of examining systems, procedures, documentation, policies and practices in terms of the human resource function is what is known as a HR audit. The primary objective of the audit is to highlight strengths and weaknesses in the HR systems with the view of identifying issues that need resolution. Etihad Airways is among the top companies in the UAE. It is the official UAE carrier which started its operations in 2003. Essentially, the airline is the fourth largest in the kingdom. It is, however, the second largest in UAE after Emirates. The following is an audit report on its HR practices. Staffing Recruiting The recruitment process starts online where the posting of jobs happen. The interested people then get to fill out their details on an online form which then gets assessed for eligibility. The final step is in an interview where the candidates get an aptitude test. The recruitment and selection process ensures that the managers have a chance to enhance the behavior or steadily uplift the ability of their workforce. The strength of the process includes the easiness associated with the online recruitment system. Selection Etihad Airways employs a combination of approaches in their selection process to ensure they get the best talent. Among the methods used include a written application, interview questions that are behavior-based, presentations and testing. Like most organizations, however, Etihad combines the recruitment and selection processes on their website. Mainly, when candidates post their application online, a selection program will use keywords to sort them out. Two interviewing methods are typically used. The first one is an individual interview where one person interviews one applicant at a time. According to Boella and Goss-Turner, this type of interview process is prone to bias (70). The other two categories are panel and stress interviews. The former is common in the public sector. The latter method involves creating a stress situation and determines how the candidate reacts in such an environment. Etihad employs a panel interview to ensure that there are reduced instances of bias and the stress interview to get the best candidates that can handle it appropriately. In that regard, the firm’s selection process is appropriate and is according to the best practices. Human Resource Development Training and development are critical exercises that enhance the abilities of the employees. Training initiatives attempt to build capable workforces that fulfill the objectives of the organization. According to Bos‐Brouwers, training can either be internal or external (418). In the context of internal, training is either off-job or on-job. Among the strengths associated with human resources at Etihad is e-Learning conducted internally. Bratengeyer, Albrecht and Schwarz contend that Etihad utilizes a Learning Management System (LMS) to offer operations-related courses. In that view, Etihad uses current technology to provide relevant courses to its staff members. At Etihad Airways, all workers receive induction and training sessions every year. In terms of talent development, the organization is known locally for their innovative National Talent Development Program. According to their website, Etihad has more than 2000 people from the country in various positions. However, there is still room for improvement. Google is one company that is a model for recruiting and managing talent (Christensen, Hughes and Rog 746). While talent has always been important, it is now critical in the contemporary business environment. Mainly, most firms are now engaging in much more complicated knowledge-based work and are operating at a global level. This has meant that talent performance has a substantial impact on the bottom line. Getting the right talent much depends on how the organization communicates their talent needs in the opportunities they offer. Additionally, they must identify the positions that are critical and which will contribute to a competitive advantage. Etihad Airways still has a long way to go in ensuring they attract and keep the individuals that have the proper abilities and knowledge. At present, the company does not have an initiative that stands out in the context of talent development. Compensation and Benefits The treatment of employees at the company is relatively good. In a recent independent employee survey, the total staff engagement score was 76% - a figure that is 18% above global average (eTurboNews 1). According to the same survey, 93% of the employees stated their happiness at working with Etihad Airways. The organization provides an array of benefits for its crew. Among them include education benefits, organization-wide performance bonuses, housing allowance, childcare services, global flight benefits and a comprehensive medical insurance among others. Most importantly, the organization provides access to a tax-free environment for its staffs at its base in the UAE. Etihad’s competitive perks include among others a competitive salary that is also tax-free. Employees also get free accommodation will all the private utilities. Free transport is available to all the employees to and from their place of work. On the other hand, all staffs enjoy travel benefits that include airline privileges for friends and family. Etihad also offers unlimited personal travel for the staffs at a subsidized price. They also get free private medical cover and 30-day vacation leave. Moreover, there are chances for career progression provided that it is a fast-paced environment and Etihad is constantly growing. Despite these benefits, the organization has come under fire from unions in the US. These bodies representing U.S. airline workers and flight attendants claim that the employment policies of Etihad Airways and other airlines from the Gulf region are discriminatory. According to the Unions, the airlines require women to obtain permission before getting married or pregnant (Strunksy 1). The fact that the airline is wholly-owned by the UAE does not help the situation. To be exact, the Middle Eastern country has severally experienced criticism for allowing practices that oppress women. For example, there is no existence of legal recourse against premarital rape and husbands can beat their wives without facing any consequences. Safety and Health Without a doubt, safety and health are critical factors that determine the productivity of employees. Safety is all about protecting all workers from potential injuries accidents in the workplace. On the other hand, health activities aim to that the organization provides for the employee's mental and physical wellbeing through initiatives. The company complies with local laws in terms of safety and health. Employee and Labor Relations The law requires organizations to allow unions to represent its workers. It is necessary that the organization bargains with such a union in good faith. The latest accusations by unions in the US regarding the supposedly discriminatory practices by Etihad Airways underscore a strained relationship between the two parties. It is also important that every organization stays abreast of current labor laws to avoid liabilities. Etihad has not yet received any accusations on breaking any laws of labor in the countries they operate. The gender discrimination claims by American unions are not factual. Every year, Etihad conducts leadership training for their management on how to deal with unions representing employees of the organization. Supervisors and managers have the most contact with staffs. Therefore, they are in a better place to deal with labor-management challenges. At Etihad, such leadership training is available for all senior staff in the organization. The American Unions incident exposes the company’s underbelly on matters touching on the treatment of women in the workplace. In actual sense, as an emeriti company, it is prone to such accusations even when they are not factual. Becker contends that good employees’ relations are intangible and enduring assets that organizations have (18). At Costco, the emphasis is on its staffs and that has consistently been their source of competitive advantage. In a way, the organization is able to maintain their reputation as an employer of choice based on its staffs who act as brand ambassadors. Costco offers the employees attractive perks and opportunities for growth. The focus on employees has led the company to make significant savings on labor costs associated with employee turnover. At Etihad, the salaries are among the best offered for airline pilots. The airlines from UAE enjoy government support, and that has substantially led to their enormous growth. For example, the company gets grants from the UAE government to purchase airplanes and so has huge cash reserves to pay good salaries. A local survey by LinkedIn showed that company's employees had a satisfaction rate of 93%. That means they are behind the company in all they do. This situation reflects that of Costco. The competitive wages by Etihad contributes to their favorable position in the market. Better perks are key to customer satisfaction and lower turnover rates. Every time there is a vacancy in the company, their website becomes flooded with numerous applications and that underscores Etihad’s popularity as employers of choice. The only shortcomings associated with Emirati airline is its preference of locals. Etihad has a specific preference on employing UAE nationals. This focus in a way dents the image of the organization as an equal opportunity employer. Emiratis have specific advantage when it comes to getting employment in comparison to other nationals. Recommendations While sexist accusations may be without basis, they show that something could be amiss with the hiring practices. Etihad Airways should provide more clarity on such issues and show their support to all members of staff. LinkedIn ranked the company as the top 100 most-in-demand employers. Despite such awards, the firm should strive to offer among the best services to women staff. When it comes to talent development, Etihad needs to come up with a standout initiative that encourages creativity and talent development among its staffs. Years before Google, 3M was giving its workers up to 15% free time to spend on their side projects. The initiative proved efficient in making individuals come up with new business projects and initiatives. Likewise, Etihad can come up with a similar initiative to attract a talented workforce and design work that fits the current talent. The Emirati firm needs to change their preference on employing fellow countrymen if they are to enhance their image as an equal opportunity and employer of choice. All people should have equal chances of getting the job regardless of their gender, sexual orientation, social orientation or race. Works Cited Becker, Wendy S. "Are you leading a socially responsible and sustainable human resource function?." People & Strategy 34.1 (2011): 18. Boella, Michael and Steven Goss-Turner. Human Resource Management In The Hospitality Industry: A Guide To Best Practice. 1st ed. Hoboken: Taylor and Francis, 2013. Print. Bos‐Brouwers, Hilke Elke Jacke. "Corporate sustainability and innovation in SMEs: evidence of themes and activities in practice." Business Strategy and the Environment 19.7 (2010): 417-435. Bratengeyer, Erwin, C. Albrecht, and H. Schwarz. "Deployment of eLearning in the Airline Industry." Global Journal of Human Resource Management (2012). Christensen Hughes, Julia, and Evelina Rog. "Talent management: A strategy for improving employee recruitment, retention and engagement within hospitality organizations." International Journal of Contemporary Hospitality Management 20.7 (2008): 743-757. eTurboNews,. "Etihad Airways Sets Record Straight On Labor Policies And Practices". Eturbonews.com. N.p., 2015. Web. 19 Dec. 2016. Maceda, Cleofe. "UAE Companies Share Best Practices That Engage Employees". GulfNews. N.p., 2015. Web. 18 Dec. 2016. Strunksy, Steve. "U.S. Flight Attendant Unions Say Gulf Airlines Have Sexist And Anti-Gay Employment Policies". NJ.com. N.p., 2015. Web. 19 Dec. 2016. Read More