Challenges of Hospitality and Tourism Industry

This article discusses the challenges faced by the hospitality and tourism industry in retaining efficient workforce. The major challenges and the possible strategies to overcome these problems are also analyzed. The article also highlights the importance of employee-friendly policies, career growth opportunities, and human resource policies to attract and retain skilled employees.

Running head: CHALLENGES OF HOSPITALITY AND TOURISM INDUSTRY
Challenges of Hospitality and Tourism Industry
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1CHALLENGES OF HOSPITALITY AND TOURISM INDUSTRY
Hospitality and tourism business is a blooming industry that requires a huge number of
workforces. In order to maintain long-term sustenance and growth, these organizations need a
huge and efficient supply of workforce. However, in hospitality and tourism industry is facing
serious problems while retaining the workforce. According to researches, the number of annual
turnover in the hospitality industry is at an alarming rate. In this regard, it can be said that
employee retention is a critical problem for the leaders of the hospitality industry. Compared to
the other industries, the tourism and hospitality industries are witnessing the lowest rates of
employee retention. In this regard, the primary issues faced by the hospitality and tourism
industries are to be analyzed. The major challenges and the possible strategies to overcome these
problems are also to be analyzed. Moreover, it can be noticed that the organizations operating in
the hospitality and tourism industry are often involved in high competition regarding acquiring
efficient workforces and retaining them. Hence, the strategies of employing efficient employees
and their retention is also to be analyzed.
As pointed out by Blomme, Van Rheede & Tromp, (2009), the primary challenges faced
by the human resource management of this industry include high turnover of employees, low
wage issues, recruitment of unskilled labor and workforce issues. The hospitality and tourism
industry is considered as one of the most stressful one. The longer working hours and work
pressure are the prominent reasons behind the high turnover of the employees. The long working
hours and work pressure is affecting the social life of the employees. As the hospitality and
tourism industry demands for work related pressure it is noticed that the employees are prone to
burn outs and stress. According to Hughes & Rog, (2008), job elated stress and longer working
hours are also the reasons behind the volatile nature amongst the employees of this sector. It has
been noticed that a significant number of employees are working in the hospitality sectors are

2CHALLENGES OF HOSPITALITY AND TOURISM INDUSTRY
unskilled labors and are working in order to gather experiences. This has emerged as one of the
major issues regarding the low employee loyalty.
According to Eisenberger et al., (2002), several wage theft issues are also affecting the
hospitality industry to a great extent. As a result of the high demand of workforce, employers in
this sector often chose to employ high number of unskilled and inexperienced labors. As a result
of this, the organizations also tend to pay meager compensation to the employees. This meager
compensation clubbed with the longer and stressful working hours are playing influential role in
employee turnover. As opined by Rehman & Mubashar, (2017), the tourism and hospitality
industry has a very low and unstructured award system. It has been monitored that these
employees often need to work under immense stress and that too for a long span, hence; they are
losing their morale to work efficiently. The lack of awarding system in this industry is
aggravating the matter greatly. As opined by Prathiba (2016), the wage structure in the
hospitality and the tourism industry is significantly low. This is affecting the efficiency and
willingness of the employees to perform. In addition to this, these organizations operating in the
hospitality and tourism industry have no proper rules and regulations regarding extra working
hours. It has been noticed that the organizations operating in the hospitality industry do not pay
extra compensation for the extra working hours. In addition to this, Barron (2008), has pointed
out that the hospitality industry primarily deals in customer satisfaction. Hence, the organizations
have come up with huge penalty for the poor performance of the employees. This is aggravating
the matter largely.
Dermody, Young & Taylor (2004), have also pointed out that tourism as well as the
hospitality industry is primarily dependent on the unskilled labor. This is raising significant
issues regarding the performance of the employees and customer satisfaction. In addition to this,

3CHALLENGES OF HOSPITALITY AND TOURISM INDUSTRY
it has been noticed that these organizations employ workforce mostly on the basis of contracts.
Hence, the employees are not provided with any job security. This is affecting the loyalty of the
consumers to a great extent. In addition to this, AlBattat, Som & Helalat, (2014) have mentioned
that the tourism and hospitality industry is getting affected due to multiple issues regarding the
workforces. It has been noticed that employment of aging workforces is an important issue in
the tourism and hospitality industry. As the industry demands for working under intense pressure
and for a longer hour of time, aging employees are often unable to cope up with the stress
(Deery, & Jago, 2015). This is also aggravating high employee turnover of the employees. It has
also been noticed that the aging employees often are unable to understand the needs of the
customers. As opined by Prathiba (2016), the primary reason behind this is the generation gaps
between the employees and the customers. Hence, it can be said that the organizations need to
focus on employing younger workforces that will be capable of working for a longer span as well
as understanding the needs of the consumers.
As opined by Kim (2014), employees in every sector evaluate their job experiences based
upon the expectations that they had prior to joining the employment. In this regard, it can be said
that the organizations need to come up with strategies to attract people in order to increase their
desirability within the potential workforce. This will provide the organizations a competitive
edge over other organizations in order to attract skilled and efficient employees. Moreover,
taking up these strategies will be helpful in the process of retaining the efficient workforce. To
elaborate it furthermore, reference of the research of Zopiatis, Constanti & Theocharous (2014)
can be taken, where the authors have pointed out that the hospitality and tourism industry needs
to come up with regulations that ensure satisfactory payment of the employees. In addition to
this, award programs are also important in order to attract the efficient and skilled workforce. ()

4CHALLENGES OF HOSPITALITY AND TOURISM INDUSTRY
has mentioned that the leadership programs and promotion of industrial position also helps the
organizations in attracting the skilled candidates.
Kara et al., (2013), have pointed out that in order to decrease the issues related to wage
theft, the companies can come up with policies of paid over time and justified penalty rates.
Applying these policies will be helpful in grabbing attention of the skilled and efficient labors. It
has been noticed that the employees working in the hospitality and tourism sectors are more
willing to work in organizations that are able to provide them with proper compensations (Deery
& Jago, 2015). Hence, coming up with employee friendly policies and providing ample scope of
career growth will be helpful in attracting the employees to the organizations. Moreover,
Robinson et al., (2014) have pointed out that the organizations should come up with policies that
provide the employees job security. The organizations need to adopt policies where the efficient
worker will have the opportunity to get promotions and full time contracts after showing proper
performance. Adopting reward and recognition policies are highly effective way of attracting and
encouraging the employees. Moreover, () have pointed out that coming up with a systematic
roistering will be helpful in reducing the job related stress and situations of working for longer
hours. In addition to this, Gin Choi, Kwon & Kim (2013) has pointed out that in order to attract
the skilled workforce to the industry, providing them ample and significant career opportunities
is to be considered of having highest importance. By adopting an efficient roistering system, the
organizations will be able to maintain a parity between the working hours of the employees. It
has been monitored that the training and development programs adopted by the organizations
also play vital role in the gaining the attention of the candidates. Ciulu & DRĂGAN, (2011) have
mentioned that both the skilled as well as unskilled labors are willing to take up the

5CHALLENGES OF HOSPITALITY AND TOURISM INDUSTRY
developmental and training program. Hence, the organizations providing the opportunities to
increase their skills and efficiencies will definitely be able to grab the attention of the candidates.
In addition to this, Prathiba, (2016) have mentioned that along with attracting the
workforce to an organization, it is also important to retain the employees. As it is widely known
that, the nature of the job in hospitality and tourism industry is highly demanding. Hence, the
industry is prone to high employee turnover. In order to reduce the number of employee
turnover, the organizations should come up with retention policies. As opined by Barron, (2008),
one of the most important aspect of retaining the efficient and skilled workers is to prioritizing
them. To explain it furthermore, it can be said that the organizations need to take up policies that
are employee friendly and prioritize their efforts.
In addition to this, it has been mentioned by Kim, (2014), that in order to reduce the
issues related to the employee turnover, the organizations need to focus on the process of wining
the competition of acquiring skilled talents to the organizations. In this regard, it can be said that
the organizations need to take up various strategies that can be helpful in the process. According
to Rehman & Mubashar, (2017), taking up reward and recognition program is one of the most
important strategies of employee retention.
Another important strategy, which has been pointed out by Prathiba, (2016), is that the
organizations need to take up in order to retain the workforce is taking up flexible approach. The
hospitality industry can consider flexible working hours for their employees. As the industry
demands long working hours and handling job related stress, the organizations should take up
flexible working hours. Adopting flexible working hours enables the employees to create a
balance between their social and work life.

6CHALLENGES OF HOSPITALITY AND TOURISM INDUSTRY
In addition to this, Prathiba, (2016) has pointed out that taking up approaches that enable
the employees to obtain career opportunities will encourage the employees to stick to this
industry. Moreover, it can be said that taking up proper training and skill building programs are
helpful in order to retain the employees in the hospitality and tourism sector. Moreover, proper
reward and recognition strategies are important for gaining a competitive edge over other
organizations. In order to maintain a balance between the personal and working lives, it can be
said that the organizations need to take up proper human resource policies that help the
employees gaining benefits (Deery & Jago, 2015). Providing healthcare facilities, educational
and medical expenses for their families are some of the strategies that can be taken up by the
organizations in order to gain the attention of the employees.
To conclude, it can be said that the hospitality and tourism industries are volatile in terms
of employee retention and attracting skilled candidates. Moreover, it has been noticed that these
industries are prone to high turnover of employees and hence a competitive environment exists in
amongst the organizations. The primary reasons behind the high employee turnover are the
practice of employing huge number of unskilled candidates, long working hours and meager
compensations. To overcome these issues the organizations dealing in the tourism and hospitality
industry should take up strategies that are employee friendly. The longer working hours of the
employees tend to hamper the social and personal lives of the employees working in these
industries. Hence, the organizations should take up plans and strategies that support that provide
job security to these employees. Moreover, it can be said that better human resource policies and
better career prospects are some of the major strategies that can help an organization to attract
talents as well retain them.

7CHALLENGES OF HOSPITALITY AND TOURISM INDUSTRY
Reference
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8CHALLENGES OF HOSPITALITY AND TOURISM INDUSTRY
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