Employee Retention Challenges in H&M Hennes & Mauritz UK Ltd

This report discusses the key challenges of employee retention faced by H&M Hennes & Mauritz UK Ltd in the hospitality management function. It also provides solutions and practical implementation strategies to overcome these challenges.

HOSPITALITY
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Key challenge of company..........................................................................................................3
TASK 2............................................................................................................................................5
Solution........................................................................................................................................5
TASK 3............................................................................................................................................8
H&M Hennes and Mauritz UK Ltd could practically implement solution.................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality management is all about managing the operations of hospitality organisation.
This report is based on the case study of H&M Hennes & Mauritz UK Ltd. In respect to its
hospitality management. Company initiated its operations in the year 1979. This report would
analysis the different aspects related to the hospitality management of organisation. Henceforth,
report would emphasis on any key challenge the organisation is currently facing as a part of the
hospitality management. This report would also emphasis on the effective solution to face such a
problem. Furthermore, practical implication of the solution would also analyse in this report.
TASK 1
Key challenge of company
Human resources are one of the major resource company is associated with as a part of
the hospitality management function. Human resources personally involved in the entire
hospitality management functions operated at the organisation. In recent times H&M Hennes &
Mauritz UK Ltd has faced many challenges as a part of the hospitality management function.
Apart from much other challenge company has faced employee retention as a huge challenge.
Employee retention causes too many further issues associated with the challenge.
Employee retention challenge
Employee retention is all about facing issues in sustaining human resources associated
with the organisation. Apart from other challenges retention of employees at the H&M Hennes &
Mauritz UK Ltd has becomes one of the massive challenge company is facing currently. Most of
the time employee retention issue is a consequence of the poor leadership at the organisation.
Leadership play an important role in establishing a proper work culture at the organisation. Due
to bad leadership practices like not solving employee issues on time and many other becomes the
reason behind the organisation facing high employee turnover rate (Pittino and et.al., 2016). In
case the company could not sustain its human resources than it directly hit on the efficiencies of
the company’s services. Hospitality is a service sector which immensely depends upon the
quality of services the organisation caters to its customers. Employee retention issue also indicate

that the employees at the company are facing bad and unethical treatment which has suffered
into low employee satisfaction from the job. Many times the entire culture of the company is
negative. Inappropriate leadership of company is also a reason behind the ineffective work
culture at the organisation. Due to inappropriate work culture at the organisation employees of
company do not get proper support from the management and leadership in respect to fulfilling
the individual duty of employee.
Factors led to employee retention challenge at the organisation
Many factors work behind the company facing the challenge in retaining its human
resources. All the factors play a crucial role in behind the creation of this challenge.
Tight work schedule: Tight working schedules involve long working hours that causes to many
challenges for employees at job. Long working hours requires employees to work overtime to
meet the responsibilities of designated position in organisation. H&M Hennes & Mauritz UK Ltd
is facing the challenge of employee retention and this is one of the major reasons behind the
organisation facing this challenge (Holtom and Darabi, 2018). Tight working schedules reduce
the employee satisfaction from the respective jobs at organisation. Tight work schedules create
hustle at the work place as the employees do not get proper rest.
Low employee well being: Employee well being is one of the major factor that support the job
satisfaction of employee’s part of the organisation. This is also one of the major reasons behind
the employees leaving their jobs at any specific organization. Well being is all about improving
the feasibility for employees at work place so they can get ease in doing their jobs. Low
employee well being is possibly the reason behind the employee retention challenge at the H&M
Hennes & Mauritz UK Ltd.
Inappropriate organisation hierarchy: This is also one of the factor that causes to issues like
low employee retention at work place. Organisation hierarchy provides growth opportunities to
employees at internal level of company. Due to inappropriate organisation hierarchy employees
do not get proper opportunities to grow at the organisation. This is probably the factor that
worked behind the low employee retention at the H&M Hennes & Mauritz UK Ltd.

Unsolved employee issues: Many times employees do not sustain at such organisation where the
issues are huge between management and employees. These are possibly the factor that work
behind the low employee retention at the organisation (Bibi and et.al., 2017). This is possible
that many issues of employees remain unsolved due to less focus of management over solving
employee’s issues at work place. Unsolved issues of employees also cause to low employee
satisfaction at job. Probably this is the factors that have contributed to the employee retention
challenge H&M Hennes & Mauritz UK Ltd is facing at this time.
Leadership theories
H&M Hennes & Mauritz UK Ltd can follow different leadership theories to face this
challenge. The leadership theories can be projected in the following manner.
Progressive leadership theory: Progressive leadership theory would allow the company to take
the issues of employee seriously./ This leadership theory also suggest to value the human
resources associated with the company (Baharin and Hanafi, 2018). Progressive leadership
theory would guide company towards creating a proper organisation hierarchy that can allot
plenty of growth opportunities to employees. Leadership would also be able to focus on solving
employees issues at work place.
System Leadership: System leadership is also a crucial leadership theory that can support
company in establishing or improving the system of company. This leadership theory gives
emphasis on establishing a proper system at the organisation on the basis of the needs and
requirements of the organisation.
Contingency leadership: This is a crucial leadership theory that can support company in dealing
with the challenge of employee retention. This theory would guide company about all such steps
that are necessary to deal with the issues of employee retention at work place (Kaur, 2017). This
theory guide company towards empowering human resource department in such a way that it can
create a proper culture at organisation for managing the human resources at the organisation.

TASK 2
Solution
Currently there are H&M (Hennes & Mauritz) UK ltd. is facing very big challenge
relating to employee retention. Basically, top-level management of this clothing retail company
is not succeeding in retain its various skilled and talented employees within its daily business
operations (Wakabi, 2016). There are HRM of company has putted its huge efforts for
systematically retaining different employees in the workplace, but human resource management
also snot get success in retaining. This challenge its really making very tough situation to this
company, because without having a workforce of various effective employees, this company
can’t gain appropriate profit in the market place. Of course, the competition within the UK’s
clothing retail market is continuously increasing, in which upper management of this company
has to find some appropriate solutions to systematically deal with this employee retention
challenge. In the series of different solutions, there are upper level management of H&M can
choose one solution called; making a comfortable work environment and culture. This is
basically one of the best ways or methods to different companies for effectively retaining
different employees in the workplace.
By adopting this solution, there are top-level management at H&M will definitely able to
properly deal with this challenge. Generally, existing management of this retail company should
be understood one small thing that, H&M is not only the company that is facing this challenge,
because there are lots of other companies and businesses exists in the market place which are
facing this same employee retention challenge. In this situation, making or creating a
comfortable work culture is the best solution to those all companies which are suffering from this
employee retention issue or challenge. Currently there are lots of effective techniques available
to the H&M’ top-level management for creating or making a comfortable work culture.
Basically, most people or employees always like to work only in that places of work, where
present management has succeeded in making an effective and comfortable work culture
(Maduwanthi, 2016). After having an effective and comfortable culture of work in the H&M,
existing management of this retail company will be able to take huge work from its various
employees.

Generally, while working in the comfortable workplace, employees always be motivated
to put their excellent efforts in the daily operations of organisation. In this situation, there are
H&M will also able to effectively motivate its various employees in its daily operations by
making an effective work culture or environment. In the techniques of making of an effective
and comfortable work environment, the communication technique is an excellent technique.
Basically, when most people within an organisation has well-developed communication skills,
then workplace or work culture of that organisation will be automatically comfortable and
effective, so that, upper management H&M need to develop communication skills of its various
employees. After developing these skills, employees at H&M will simply understand each
other’s emotions by conducting a common interaction. Sometimes, some conflicts also has raised
between different employees in the workplace of any company just because of different
background of employees. In this situation, top-level management of this retail company need to
implement the concept of equality and diversity in its daily operations (Chan, 2019). Basically,
there are equality and diversity management promote healthy and comfortable work culture, so
that this factor can contribute in solving company’s employee retention challenge as well.
In this dynamic and modern world, most businesses are investing very high fund on the
development of a healthy and comfortable workplace. In this situation, there are top-level
management at H&M also responsible to invest some fund in providing different development
and training sessions to its employees, because after participating these sessions employees of
H&M will be able to improve their behaviour, and also get motivate to positively act within the
different activities of this retail company. For implementing this solution in the workplace,
existing management of this company has required to change the employees’ perception as well,
because it is very necessary for encouraging various employees to maintain an effectiveness and
comfortability in the place work at this retail company. Many times, many employees have
negative motivation and mindset as well, so that upper management of this company need to
terminate these types of employees from their existing job, because such employees mostly
decreases the productivity and performance of a business or venture. By considering these all
factors, H&M will be able to make an effective and comfortable work-culture.
According to different business experts, most employees very much like to work in a
comfortable work culture or environment, so that after having an effective and comfortable

environment of work, this company will be simply enabled to retail various employees in its
daily operations (Wulansari, Meilita and Ganesan, 2020). Currently H&M has a very effective
workforce that can enable to this clothing retail business to generate huge revenue in the market.
Nowadays, proper employee retention is very necessary task to each and every business, because
without retaining employees in the workplace, no business can achieve its decided goals in the
decided time period. In the current situation, creating a comfortable place of work is the most
appropriate solution to Hennes & Mauritz for systematically retaining its various employees in
the place of work.
Top-level management of should be taken very quick action towards adopting this
solution in its business environment, because retention of talented and skilled employees is very
important to the company. The HRM of this clothing retail company has putted its huge efforts
for hiring these talented and skilled, and human resource management has provided some
specific training sessions also these all employees. In this situation, upper management at
Hennes & Mauritz is fully responsible to retail these all employees by making an effective and
comfortable work culture or environment (Boswell, Gardner and Wang, 2017). Existing
management of this company should be understood this small thing that, gaining various talented
and skilled employees is not a small task to a business, so that it should put its huge efforts for
retaining them in its business environment.
TASK 3
H&M Hennes and Mauritz UK Ltd could practically implement solution
H&M Hennes and Mauritz are two different companies but works at single platform in
order to gain high profitability in their business. Currently, employee retention is one of the
major issues that has identified in joint venture companies i.e. H&M Hennes and Mauritz. There
are various challenges of employee retention that have determined in Task 2. For example, salary
dissatisfaction, high job opportunity, less engagement of employees at the workplace etc. are the
major challenges that are currently faced by H&M Hennes and Mauritz. To overcome this
issueshas decided by management of H&M Hennes and Mauritz to take some effective
managerial practices. Strategies are:
Implementation of Herzberg’s equity motivation theory

It is one of the major effective strategy of employee retention and will resolve salary
dissatisfaction issues among staff member. This theory comprises two type motivation factors
i.e. hygienic factors and motivation factors. Hygienic factor includes good working condition,
flexible working hours, vacation, health and insurance policy and others which does not motivate
individuals but brings satisfaction in them for the job (Alshmemri, Shahwan-Akl and Maude,
2017). Motivation factor includes equal opportunity in promotion policy, respect, achievement,
growth etc. motivates individuals to give best performance at the workplace. Management of the
H&M Hennes and Mauritz practices both factors and provides air-conditioning workplace with
cleanliness so that individuals can give additional hours except working hours that will maintain
wellbeing of staff. Management involve staff member in decision-making process and
encourages them to give best performance at the workplace. Apart from this, human resource
managers of H&M Hennes and Mauritzwill try to keep equal balance between output and input
by offering reward time to time accordingly individuals’ efforts which they will put at the
workplace. Such initiatives will support company to stay motivated it’s staff to give excellent
performance in the company. Thus, H&M Hennes and Mauritz will resolve employee retention
issue and brings satisfaction in them for the job by keeping fair balance between input and
output.
360 Degree Feedback Strategy
It is another effective strategy for the H&M Hennes and Mauritz because it will help
maintain wellbeing of employees as well as customers. this strategy allows management of the
H&M Hennes and Mauritz to collect reviews from employees about their issues and
organization’s strategy that makes them feel valuable part for the company. With this strategy
management can understand needs and expectation of the employees for their job role and
responsibilities. Thus, it become quite easy for the company to keep engage it’s employees in the
business activity (Matei and Abrudan, 2016). On the other hand, employees get opportunity to
share their issues directly to management. Such communication creates healthy working
environment and encourages employees to give productive performance in the workplace. It is
quite obvious when employees have high level of satisfaction that automatically make them
dedicated for their job responsibilities and motivates them to achieve all objectives of the
company within timeframe.

CONCLUSION
It can be concluded that there are upper management at H&M has highly required to take
actions towards properly retaining various employees in its business environment. This is really
big challenge to this company, so that existing management at company need to quick action
towards making an effective and comfortable work culture, because this type of work cultures
mostly retains employees in the workplace.

REFERENCES
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