Total Rewards & Union Avoidance: Hospitality Industry Report

This report delves into the critical relationship between Total Rewards strategies and union avoidance within the hospitality industry. It begins by exploring the reasons why employees consider joining unions, highlighting factors such as job security, fair wages, and working conditions. The core of the report focuses on the "work-life balance" pillar of Total Rewards, emphasizing its significance in fostering employee satisfaction and minimizing the appeal of unionization. The report defines work-life balance and its positive impacts, such as reduced stress and increased well-being. It then presents two real-world examples: Delta Hotel chains' union avoidance strategy through flexible hours and benefits, and a UK-based budget hotel chain's implementation of flexible working arrangements to address employee turnover and prevent unionization. The report concludes that effective management, which prioritizes employee needs and provides a supportive work environment, is crucial for retaining employees and achieving a competitive edge in the hospitality sector. References from academic sources are included to support the arguments presented.

Running head: TOTAL REWARDS & UNION AVOIDANCE
Total Rewards & Union Avoidance
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1. Introduction
Human beings are rational creature and they act rationally in many different spheres
of their lives (Berlin, 2017). One of such spheres is joining a union. It is note that employees
join union with a rational approach, thinking of whether joining it would be advantageous for
them, or not. This paper shall elaborate on presenting a discussion on why employees join
union, considering one of the five pillars of Total Rewards (work-life balance) and explaining
how this pillar would best keep the employees content and decrease the ability of union
organiser forming a union, with a special focus on hospitality industry. This chosen topic is
of significance due to two reasons. First, the ones who are not in a union or do not know
anyone in labour or trade union, often are not sure about what the labour unions do and why
someone joins them. This topic would clear this doubt. Secondly, it would highlight how
work-life balance can keep employees satisfied and keep them away from joining unions.
2. Discussion
2.1. Why do EEs Join a Union
The nature of work is changing globally, with the increase in globalisation of
businesses. Majority of employees are trying shedding responsibility for providing them with
good pension, health insurance, job safety protections and reasonable working hours.
Researchers have devoted much time and efforts for straying why employees choose to join
unions. It is to note that labour unions, also known as trade unions, are the organisations of
workers that are formed for furthering the economic and social interests of its members
(Ahlquist, 2017). However, the key unsatisfactory factors that make employees join them
include- a) sense of job security, b) wages and benefits, c) working conditions, d) fair and just
supervision, e) powerlessness, f) participation, g) recognition etc.

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It is to mention that security is one of the key human needs. In working environment,
employees often find themselves being dependent on their employers and on what they
consider as impersonal organisations (Keim et al., 2014). Every employee wants to know that
their jobs would prevail in the future and that they would be protected against all the unfair or
unjust or arbitrary treatments. The development of technology has made employees and
workers feel vulnerable to job loss. For instance, today thousands of robots are used in
manufacturing processes and the use of robots is expected to increase in the future. For this
reason, they look for unions who can make sure that their jobs are protected against all sort of
layoffs, promotions, recall etc.
With the same, the issues of bread-and-butter of employees are always been the most
important forces behind their unionisation (Smith, 2014). Higher wages, shorter working
hours, increased benefits; suitable work conditions are significant reasons for employees to
join a union. Often employees might think that the labour union, with its united strength
would make sure that fair wages are given to the workers in the community with all the
necessary benefits like paid sick leave, medical facility, holidays, pensions etc.
Again, there are some employees who find that the structure of unions offer them with
the opportunity for gaining the recognition that are not available to them within their business
organisation. For instance, an employees who is little educated might serve on a shop
committee or might even be elected as a position of influence like that of officer or steward
role. Also, there are many who have claimed that union memberships has helped them meet
their desire to gain a voice in the decision making process, which effects them in their
working environment. Unions give the workers the required power for negotiating for more
favourable working conditions and other benefits by means of collective bargaining. The
workers to feel as if they are lost in their large and complicated industrial society consider
unions as a last hope.

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2.2. Work-Life Balance
As per Hoole and Hotz (2015), there are five elements of total reward system and they
are- compensation, benefits, professional development, recognition and work-life balance or
work-life flexibility. This system included all the efforts, which an employer could use in the
process of recruitment, motivating and retaining employees. The chosen element for this
paper is the “work-life balance or flexibility”.
It is to mention that work-life balance or flexibility is all about providing the employees
with an opportunity for meeting their personal goals and obligations. Kim (2014) has defined
the concept of work-life balance as “the state of equilibrium where a person equally
prioritizes the demands of one's career and the demands of one's personal life”. It is highly
important for all the generations who are involved in working for an organisation in the
current business world. With the advancements in technology, employees often work for long
hours after their shift timing. There are many positive impacts of good work-life balance and
they include- less stress, decreased level of burnout risk and a great sense of well-being.
The employers who understand and support the idea of work-life integration and provide
their employees with work-life flexibility are likely to advance in the market of talents.
Yadav and Dabhade (2014) in this regard have also claimed that the employers who are
committed towards providing their employees with working environments that support their
work-life balance can effectively save on costs, experience low level of absenteeism and
enjoy more productive and loyal work-force. The crucial benefits of work-life balance that an
employer can provide in this regard are- a) flexible working schedules (modified schedules,
compressed working weeks etc., b) paid time-offs, c) opportunities for community
volunteerism, d) remote working and e) parental leaves (Hofmann & Stokburger-Sauer,
2017). Although the work-life balance programs take different forms and majority of the

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researchers till date have focused on compressed working weeks and flexible working
schedule. One of the extensive review of the empirical studies on these different forms have
demonstrated that these type of rewards had a mixed effect on some of the organisational
priorities and that the largest demonstrated affect was on the level of absenteeism that is
further followed by the decrease in organisational productivity.
Example 1
Delta Hotel chains has never been unionised as it engages in a practice called union
avoidance, which is a multi-faceted strategy that organisational management undertaken for
avoiding unionisation. The company has worked for creating a reciprocal employment
relationship and under this, employees of the company feel invested in their employment.
The company offers them with flexible hours, benefits and telework, which support their
work-life balance and in this way, the employees feel that they are producing something
beneficial and unique for the company and at the same time, they are satisfied with their job
role that give them the opportunity to balance their work life and social life. With the same,
they no longer need to approach labour unions to help them in meeting their desire to gain
work-life balance programs, which affects them in their working environment.
Example 2
Another example includes that of a UK based budget hotel chain, where majority of
the female employees were leaving the job because of poor work-life balance. Long working
hours and extra shifts reflect violation of the working time regulations and the current health
and safety rules. Female employees at the hotel used to find it very challenging to work
within the hotel with extra shifts as they also have their family commitments. As a result,
they tend to leave their jobs. However, there were also many others who were planning to
join labour unions as some of them were single mothers or the only earning member in the

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family. For people like such, leaving job is not a good option as they have to earn their living
and play their duties and responsibilities towards family. In order to ensure union avoidance,
the hotel planned to provide the workers with flexible working arrangements. They gave their
employees with choices for choosing from three different time slots such as - 8a.m to 4p.m,
9a.m to 5p.m and 10a.m to 6p.m. Also, they initiated temping work shifts, which involved
short periods for employees during peak hours and peak seasons. In such cases, employees
are extra paid. Also, the hotel decided to employ part time workers to meet with the seasonal
demands. In this way, it avoided unionisation.
3. Conclusion
Hence, from the above analysis it is to conclude the failure of management to ensure
job security, fair remuneration, fair supervision, involvement in the process of decision
making, safe and healthy working conditions to the employees motivate them to join the
labour union. Technological changes are revolutionising different types of works and workers
are still in need of a united strength to assure themselves of their individual opportunity,
advancement and dignity. Hospitality industry is one of the sectors that is completely
dedicated towards customer service and is highly labour-intensive business. For this reason, it
is completely dependent on the use of human labour. Therefore, the industry needs to ensure
that its employees are satisfied and retained in order to attain competitive edge.

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References:
Ahlquist, J. S. (2017). Labor unions, political representation, and economic
inequality. Annual Review of Political Science, 20, 409-432.
Berlin, I. (2017). Two concepts of liberty. In Liberty Reader (pp. 33-57). Routledge.
Hofmann, V., & Stokburger-Sauer, N. E. (2017). The impact of emotional labor on
employees’ work-life balance perception and commitment: A study in the hospitality
industry. International Journal of Hospitality Management, 65, 47-58.
Hoole, C., & Hotz, G. (2016). The impact of a total reward system of work engagement. SA
Journal of Industrial Psychology, 42(1), 1-14.
Keim, A. C., Landis, R. S., Pierce, C. A., & Earnest, D. R. (2014). Why do employees worry
about their jobs? A meta-analytic review of predictors of job insecurity. Journal of
Occupational Health Psychology, 19(3), 269.
Kim, H. K. (2014). Work-life balance and employees' performance: The mediating role of
affective commitment. Global Business and Management Research, 6(1), 37.
Smith, J. (2014). An" Entirely Different" Kind of Union: The Service, Office, and Retail
Workers' Union of Canada (SORWUC), 1972–1986. Labour/Le Travail, 23-65.
Yadav, R. K., & Dabhade, N. (2014). Work life balance and job satisfaction among the
working women of banking and education sector-A comparative study. International Letters
of Social and Humanistic Sciences, 21, 181-201.