Strategic Overview of Employment Conditions in the Hospitality Industry - Coursework Example

STRATEGIC OVERVIEW OF EMPLOYMENT CONDITIONS al Affiliation) STRATEGIC OVERVIEW OF EMPLOYMENT CONDITIONS IN THE HOSPITALITY INDUSTRY Introduction The contribution of the hotel and restaurant sector to the growth of the global economy is inevitable. The measurement upon which the contribution is decided depends on a number of indices such as the employment levels, the contribution of the sector to the GDP, and the growth of the sector in relation to the overall economic growth. Consequently, the success of this industry ranges in different regions, as various trends define the nature of doing business across various cultural and geographical set ups. This paper sets to concentrate on the working conditions that must be considered by a hotel company that aims at expanding its operations across borders. The Excelsia International Hotel and Leisure Group represents a classic example of a hotel chain that aims to expand its operations into other continents. Given the increasing need to venture in overseas markets, the hotel chain must look into several factors that facilitate this move. This will help in eliminating the hindrances that accrue with the plans to expand the operational territory. Nonetheless, in relation to HRM consultancy, the paper will delve deeper into the working conditions that define the European Union, as well as other non-European countries (Ascoli, 2008). This analysis is critical in giving the company an overview of the regulatory frameworks that must be fulfilled in order to acquire the desirable work force that suits the standards desired by the company. Analysis of France The overall contribution of the hospitality industry to the economic growth of France is immense. This trend has continued to register massive growth over the years due to the global increase in tourism numbers within and without the European continent. Despite this, the recession faced by European countries in the year 2009 affected the performance of this industry drastically. To curb the losses incurred during this turbulent economic period, the government reduced the VAT on food and beverages that were sold in the hospitality sector. During this period, many workers were laid off in order to facilitate the operational efficiency of many hotels. As noted, it was becoming extremely difficult to maintain the staff while the number of visitors frequenting the hotels reduced drastically. Nevertheless, with the government intervention, the number of bars and restaurants grew by 8%, in return offering job opportunities for approximately 30,000 people by the end of the year 2010. The French tourism industry consists of numerous small companies, despite the existence of few very large companies. The large companies constitute 0.7% of the companies within this sector. These companies employ not less than 250 workers, and contribute to 20% of the total work force available at in the hotel and restaurant sector. In one subsector, however, the concentration of the larger companies seems to be higher in relation to the other subsectors. For instance, in the travel and tour operation agencies, 2% of the companies offer employment to over 46% of the employees in this sub sector. The above trends illustrate that the demand of workers depends on the sub sector (Bharwani and Butt, 2012). Large and reputable companies dominate the travel and tour operations subsector. However, the hotel and restaurant subsectors have diverse dominations depending on the tastes and preferences of the local communities. That is to say, the desire to invest in the French hotel industry will require the management of the Exclesia Hotel to invest in learning the tastes and preferences of various communities within the geographical set up. The employment in the hospitality industry in France presents a classic case of diversity that aims to magnify the scope of professionalism within the sector. This industry supports other economic activities within the country such as fishing, retailing, agricultural productions and cultural industries. The establishment of a hotel in this country will require exquisite connections with the stakeholders in other sectors to guarantee the supply of goods and services. Through this, the sector provides employment mainly to the youth (Day, 2012). The youth employment in the French hospitality and tourism industries are evidently higher than in other sectors. The continuous modifications of the trends in global hotel industries require the young generation to implement the use of technology within the sector. Many hotel companies within France hire younger people, as these people have the ability to inform the management on the necessary improvements that will give their hotels a technological competitive advantage over the other hotels in the competitive industry. Of the 800,000 people employed in the hotel, restaurant and café subsectors, the percentage of young employees aged between 15 to 19years is relatively high. The percentage of that age group in employment in this subsector is 44%, while that of the entire economy is 19%. The companies that want to venture into this industry must take youth employment in the hospitality industry into concern. Similarly, the composition of the gender balance depends on the subsector. Women get employment in travel agencies more than their male counterparts do, as 78% of the employees in the travel agencies are women. However, the general outlook of the hospitality industry paints a picture that leans more on the qualification than on the gender. Moreover, the attraction of foreign workers into the European Union is proportional to the success of the sector in each country. The European Union allows free movement of labour within the member countries, hence creating stiff competition for the lucrative job opportunities available within every country. For this reason, high qualification credentials that mainly aim at hindering the participation of non-EU members characterize the hotel industry in France (Eurofound.europa.eu, 2012). The foreign members seem to have less qualification, or have qualifications that do not gain recognition and relevance in the French hotel industry qualification index. Strict regulatory frameworks exist in the European Union concerning the working conditions of European Union citizens in the foreign hotels. However, the standardization of these rules has increased the competition for workers between the domestic and international hotels. The French government accepted that the hotel industry envisages a lot of diverse cultures and programs, hence relaxing the labour laws to allow diversity to prevail within this sector. As a result, many immigrants get employment in the hotel and restaurant sectors, in contrast to other sectors within the national framework. This offers an incentive for the aspiring foreign investors to venture into this industry as the availability of labour creates an advantage for the companies within this sector. It is worth noting that the French Hotel Federation has an active policy that recruits overseas personnel (The Hospitality Sector in Europe: An assessment of the economic contribution of the hospitality sector across 31 countries, 2013). The inability of French nationals to speak all the languages obligates the hotels to hire foreign personnel though facilitating links between the French hotels and the overseas catering colleges. These links polish the ease of acquiring employees suited for the French hospitality industry (Saad, 2013). Foreign hotels in this region also require links into such programs, as these hotels enjoy direct referrals from the travel agencies and tourism companies. French legal frameworks obligate employers to provide a good working environment for the employees through provision of incentives to work. An ethical concern over the treatment of workers is a topic that dominates the hospitality industry, as competition is stiff in this sector. With the increase in qualified staff, many hotels offer seasonal contracts for their employees to ensure that they retain the qualified employees. Despite the fact that seasonal work accounts for the problems relating to inadequate permanent working, many hotels view this as a strategy of managing the staff during the peak and off peak seasons. The employment in the French hospitality industry is approximately 993,000. This is attributed to the influx of international investments in this industry. Given the diversity of cultural backgrounds within the international hospitality sector, trade unions exist to champion the requirements of workers within the hospitality industry (Kalargyrou, 2011). The trade unions represent the interests of workers in the decision-making processes of the company. Inclusivity in the French hotel industry is the key to building sustainable employee-employer relationship in line with trust, accountability and motivation. Failing to subscribe to this trade union can subject the employees to manipulation by the employers. Therefore, the trade unions raise the profile of contact agreements, while providing a level form for the discussion of organizational strategies within the company. Amongst the problems associated with hotel industry are stress and huge workloads, discrimination and harassment, irregular working periods, and job uncertainty due to the expansive requirements of the qualification. Wages and salaries are a major determinant of the employee retention program as depicted in the French hospitality industry. Large companies offer lucrative salaries to their employees, hence attracting the most qualified employees for their vacancies. On average, the hospitality industry in the European Union adopts a trend of standard remuneration based on the qualification of individual employees. The government intervention in the remuneration of local citizens working in the foreign hotels is minimal, as these companies pay taxes to the government (People1st.co.uk, 2015). Therefore, many companies have adopted a remuneration structure that is universally standardized across the industry, hence creating a competitive field based on the motivational strategies that a company employs to retain its employees. The physical working conditions in this industry also determine the success of the company. Many of the employees are subjected to harmful conditions that may affect their private life. However, the government has put in place strict penalties for hotels that subject their employees to physical demanding work. Amongst the problems associated with the employees in this sector are noise and high sound levels, skin infections, poor safety standards, low lighting, temperature and breathing problems. It is important for the investors to put in place premises that support the comfort of workers, and eliminate the health complications through offering health insurance programs for the employees. The working conditions in France depict a situation in which the employees are protected by trade unions. The recruitment criterion in this country is based on transparency and meritocracy. However, international or foreign investors in the hospitality industry enjoy a level playing field as the government has eliminated the barriers that hinder the effective movement of labour within the industry (Pizam, 2009). With the current growth of tourism numbers within the European Union, countries are jostling to attract the largest numbers of tourism. This pressure, coupled with the increasing trends in globalization, offers a chance to the management Excelsia International Hotel and Leisure Group to venture into the French hospitality industry as a means of expanding its operational territory across the domestic borders. Analysis of China The current development in the world places China as a global destination of foreign investments. China accounts for the largest percentage of the near term development in the hospitality industry, as many investors look to tap into the growing demand for hospitality services in this emerging economic superpower. The Chinese hospitality industry, just like the other global industry, is characterized by unique customer patterns of demand that have irregular and unsocial working hours. These working hours however, have splits in form of nightshifts, weekend shifts or holiday period working. The irregular working conditions within the Chinese Hospitality industry are a recipe for heightened stress on the workers. China has a historical intolerance to the requirements of employees, as the government is bent on attracting industrial investments for the employment of their population (Li and Li, 2013). A majority of the population employed in the hospitality industry are women. Given these poor industrial-working conditions, the women forgo their family responsibilities because their attention is torn between fulfilment of domestic chores and provision of services within the industry. China lacks a job security plan that ensures employees enjoy security of tenure within their respective job positions. Consequently, the predominance of temporary, part-time, on-call, casual and seasonal employment in this industry is related to low pay, high turnover rates, insecurity, limited career opportunities, job instability and high levels of outsourcing and subcontracting. Unlike in the EU where the trends lean towards part time employment, the Chinese industry tendency is dominantly temporary employment (King and So, 2013). This trend explains the fact that job security in the Chinese hospitality industry is scarce due to lack of enough regulatory frameworks to safeguard the interests of the employees. In the Chinese economy, however, the hospitality industry provides employment for many people working within the formal and informal sectors of the economy. Despite this, the Chinese culture of human resource is characterized by fake qualification strategies by many employees. Recent research indicates that the large population of the Chinese has created less job opportunities for the natives, who resort to unscrupulous means of acquiring job opportunities through creating fake resumes, titles and qualifications. Evidently, a thorough background search is necessary in employment of individuals within the entire economy, given that many applicants jostle for job opportunities in relation to the high populations. Being a country that experiences unprecedented economic growth, the opportunity to welcome foreign investments into the hotel industry comes with plenty of challenges for the foreign investors. Nonetheless, the sector has implemented a strategy that eliminates the applicants of job vacancies based on the academic experience and good conduct (Okumus, 2014). This aids to curb the rising cases of counterfeit certifications that favour the unqualified people for specific positions within the foreign companies. Through this, the sector has managed to provide opportunities for migrants and foreigners. Despite the fact that the Chinese government welcomes foreign investments, it is not keen to monitor the operations of these hotels in relation to employee standards. Irregular monitoring by the central government enables the rise of unethical practices in managing human resource. Despite the fact that the hotel industry does not directly perform these malpractices, their growth has championed the facilitation of such activities as gender inequality and child labour in the small enterprises. The Chinese companies lack a safety network and a reliable social protection policy, hence encouraging the harassment and manipulation of workers within the hospitality industry (Lee, 2013). The divergence in the workplace qualification places men above women in many sectors of the economy. Global trends in hospitality indicate that women contribute to a larger bulk of the employees forming the entire sector of workforce. In China, the unskilled women tend to get employment in the most vulnerable occupations that subject them to poor working conditions, exploitation, sexual harassment, violence and stress. However, the entry of international hotels into the local industry has changed this perspective as many women enrol for sponsorships to pursue training in hotel management. This presents an opportunity for many foreign hotels to initiate corporate social responsibility through training women for employment in their hotels. This talent retention program gives a competitive advantage for its implementers. The flexibility that part time jobs offer to the hotel industry employees is a contributor to the success of many hotels. However, the Chinese working conditions offer no part time opportunities for their workers (Wang, 2008). Many hotels in these regions failed to perform due to negligence on the need to implement part time working schedules. Unlike in the EU, the Chinese hotel industry employs temporary recruitment. This hinders the customer relations, as job security is the bedrock for advanced performance within the industry. Ethnic diversity within the industry contributes largely to institutionalized discrimination within the tourism and hospitality sectors. Despite the facts that diversity poses a challenge for many hotels, the Chinese prefer to use the minority ethnic groups as low skilled labourers. This means that the overrepresentation of the minority ethnic groups in the workforce translates to discrimination of these groups in certain vacancies within the industries. As evident, the Chinese working conditions are unfavourable for the implementation of a successful human resource management program. Given that the investment of a company within the industry requires mergers, the treatment on employees will define the success of the hotel in that industry. Unlike in the EU where the employees enjoy protection, the Chinese set up exposes the employees to manipulation by the employers (Lee, 2008). Nonetheless, Excelsia International Hotel and Leisure Group should take advantage of the flawed human resource management to implement a strategy that will attract many employees who have fallen victim to the discriminatory actions of other players within the industry. Conclusion The working conditions depicted in the two economies differ. Despite this, the bottom line obligates the investor to implement positive human resource management practices to ensure the success of the hotel into the foreign industry. In addition to that, the company should consider such factors as age, gender, and ethnic or cultural background in the implementation of a sustainable human resource management. References Ascoli, A. 2008. CMS Guide to Principal Hotels. Specific Laws in Europe and China. Bharwani, S. and Butt, N. 2012. Challenges for the global hospitality industry: an HR perspective.WW Hospitality Tourism Themes, 4(2), pp.150-162. Day, J. 2012. Challenges of Sustainable Tourism. J Tourism Res Hospitality, 01(02). Eurofound.europa.eu, 2012. Various national contributors. [online] Available at: http://www.eurofound.europa.eu/observatories/eurwork/comparative-information/national-contributions/austria/employment-and-industrial-relations-in-the-hotels-and-restaurants-sector [Accessed 8 Jun. 2015]. Kalargyrou, V. 2011. 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