Southwest Airlines: HRM Implications and Challenges Report (2024)

This report examines the HRM implications for Southwest Airlines, focusing on the challenges it faces. It highlights the airline's recruitment methods and its impact on employee engagement and retention. The report also discusses the impact of rising labor costs and the COVID-19 pandemic, which led to operational challenges and the need for cost-cutting measures. It explores how the company's emphasis on internal promotions and high retention rates, while beneficial, have also limited opportunities for employee career advancement. The analysis provides insights into how these factors have shaped the company's approach to human resources and its ability to navigate economic and operational hurdles.

HRM implications for Southwest Airlines
Southwest Airlines' recruitment methods, where it has used numerous human
resource considerations, can be used to characterize part of its achievement. However,
a variety of unexpected obstacles that the organization has previously faced were not
anticipated, and they occurred as the corporation was in the process of spreading
throughout the American Market. In particular, the rise in labor prices had been a
significant cause of concern for the corporation (Market Line, 2021). In addition,
Southwest Airlines prioritizes employee engagement and contentment to reduce
turnover rates. Furthermore, the corporation has had to deal with limited expansion
because of many significant problems connected with introducing new personnel into
the organization while concurrently transferring current employees to other regions.
As a result of the increase in the labor cost due to inflation, the corporation has
become less profitable.
The COVID-19 outbreak has had many consequences for both small and large
companies, and Southwest Airlines is no exception. Remaining at home orders
significantly impacted the airline sector, resulting in the cancellation of operations
(Air guide Online, 2020). People's concerns resulted in the slowing down of travel
procedures. The airlines' productivity was negatively affected as they were forced to
follow strict rules.
Southwest's inherited tradition has been mainly influenced. It negatively
impacted employee engagement since operating cost constraints forced employers to
negotiate salary freezes. It is vital to highlight that COVID-19 has ended in the

company's expansion becoming delayed (Air guide Online, 2020). The corporation
has had to develop strong internal promotions and significant retention percentages.
Since there are fewer advancement chances, the corporation has struggled to grow and
develop the professions of its employees, even though most people regard it to be the
best place to work.