Introduction to Resourcing and Talent Management
Resourcing and talent management is crucial for every organisation because it ensures that the company has competent personnel to beat the competition and retain customers in the long term (Sims, 2006). Recruitment and retention are both two important HR functions that require strategic planning as they are important for the growth of a corporation to allow them to increase their organisational profit (Pinnington, 2011). This report is based on Thistle Hotel which has a portfolio of 33 hotels operating within the three and four star sector (Thistle Glasgow Hotel, 2015). The company uses a number of strategies to create a competitive edge in the marketplace by offering a wide range of services.
The purpose of this essay is to explore, and describe in detail, the different recruitment and retention strategies employed by the company to achieve its long term objectives. The impact of these strategies on effective people resourcing will also be discussed, in addition to discussing the application of appropriate strategies in other sectors.
The success of an organisation is highly based on the quality of their workforce, their skills and attrition rates (Krishnaveni, 2008). Without highly qualified personnel, Thistle Hotel cannot achieve success as it will lack the ability to fulfil the demands of customers (Ellinger and Ellinger, 2014). The staff at the hotel; such as the waiting staff, chefs, HR managers and finance managers are the ones who drive the business of the hotel, therefore, the continuous development of employees is the focal point for firms wishing to grow (Koskela and Palukka, 2011). Building a base of loyal customers requires employees who show a welcoming attitude, and are highly motivated, qualified and skilled (Kreimeier, 2014). These factors contribute to achieving high sales turnover and a reputable image of the hotel in the marketplace. For this reason organisations invest in minimising attrition rate, by hiring talented individuals and providing excellent services to consumers (Holland and Pyman, 2006). Thistle hotel uses a number of sources of recruitment such as traditional, online and social media to attract potential employees. Here, traditional sources of recruitment consists of hiring internally, local employment offices and temporary agencies. Internal sources of the company such as promotions, transfer and demotion, as well as hiring retired employees are considered (Jain, 2005). This process proves to be effective in attracting the most competent personnel and retaining them. These internal strategies of recruitment facilitate filling the vacant positions in the company in a cost effective manner. this is because the organization will not have to bear the costs of hiring and other types of expenses. Hence, it proves to be cost effective. In addition, this increases the level of motivation amongst existing personnel (Pinnington, 2011). However, the company and sector overall face high retention issues due to frustration over working hours and leave which is not readily available (Koskela and Palukka, 2011). In order to retain employees the company has adopted several training programmes with a focus on career planning and development to develop talented staff internally with the opportunity of promotion (Larsson and Hyllengren, 2013). This is beneficial to the company as it minimises the cost of the external recruitment process.
For example, if Thistle hotel has a vacant post with a higher position in one of its branches then management can promote an employee to that branch. This will save the costs of hiring an external recruit. Moreover, there will be additional cost saving as the employee will not need induction and training because he has been internally recruited. Additionally, Thistle hotel can use promotions, under which existing employees can be promoted to a higher position (Ganihar and Nayak, 2007). However, employees must have the potential to secure the higher position and accordingly HR professionals must have HRM practices such as succession planning and career development so as to enhance interest of the workforce towards accomplishment of the aim and objectives of the hotel (Koskela and Palukka, 2011).
Employees are promoted according to their skills and abilities in order that the corporation can ensure optimum utilisation of its limited resources (Inkson, 2008). Such kind of effective HRM strategies helps management to boosts morale of the workforce and in turn has a positive impact on sales turnover can be seen (Sims, 2006).
It also approaches competent personnel who have retired (Nikandrou, Brinia and Bereri, 2009). On a voluntary basis the retired people are hired back in the organisation so that expertise can be retained in the organisation(Inkson, 2008).
For external recruitment, the management places advertisements on several media platforms such as newspapers, television and other related sources. It facilitates in attracting suitable candidates and then effective recruitment and selection process is adopted by Thistle hotel (Inkson, 2008). The majority of recruitment sources of Thistle hotel are based online in order to attract fresh talent at lower positions but also in order to have better positioning and planning the business firm can focus on career management as it is considered as one of effective methods. Online recruitment is considered to be one of the best sources as through this, the hotel can reach to the mass market and thus attracting a wider pool of talented people (Jain, 2005). Further, young people are more prone to use the internet thereby, allowing the company to capitalise on this when recruiting for trainee, graduate and low paid staff (waiting staff) through hotel website, social networking sites, mobile application can be promoted for the jobs and other job portals can also be a good source for recruiting talent.
Moreover, this source is cost effective and through this, the desired results can be achieved (Sims, 2006). Apart from this, campus recruitment is another external source by which fresh talent can be hired into the company (Tomé, 2011). Under this, the company directly establishes a working relationship with the business and hospitality schools after the completion of session placements (Holland and Pyman, 2006). Another good example of campus recruitment is universities recruitment fair where companies attract a large number of potential candidates to fulfil vacant positions such as internships which is a good source for recruiting talent. Once the internship period is over, a manager can assess the progress made by the internee by determining whether his performance is good or not.
This will help in getting effective personnel in the hotel at low costs for the recruitment process whilst the personnel is already aware of the working environment and the job profile of the company (Inkson, 2008). He already possesses knowledge about the basics of the work.
Outsourcing is another method through which Thistle hotel attracts highly competent personnel on contractual basis in order to complete work in a time efficient manner these kind of sources works on the basis of contract which motivates the organisation to secure a good position in the marketplace as an outsourced workforce will be job specific and accordingly internal sources can better focus on strategic level. However, outsourcing can be time consuming as hotels may have to wait until the best pool of suited candidates are found (Mayhew, 2015). Though, comparatively it takes less time because the company is not required to complete the recruitment and selection process (Larsson and Hyllengren, 2013). When these processes are done correctly, individuals who possess skills that match the requirements of positions will be employed. This helps individuals adjust in the work environment, which in turn helps Thistle hotel in attracting potential customers (Sims, 2006).
Employers branding is a most important process of recruitment which includes a huge aspect with regards to employee engagement, prevailing labour market conditions and individualism along with trust and loyalty among other competitors. In order to get information related to employers brand different sources such as labour market mapping, attraction analysis and segmentation could be used alongside employee engagement survey and appreciative inquiry (Tomé, 2011). In addition to this brand of leadership and day to day behaviour of management prove to be effective in attracting number of workforce for Thistle hotel. Use of employer brand supports other strategies of recruitment such as advertisement and social media etc. All these factors help the hotel to assess the issues in retention of employees and resolve the same by taking corrective action (Krishnaveni, 2008).
Retention refers to keeping a highly competent workforce within the organisation for a long time. It requires the management’s attention in providing a good work environment for employees who the organisation wishes to keep (Harrington, 2007). It is very important for any organisation to have a good work environment so that employees find it feasible to offer their services for a long term. Companies with high retention rates tend to have high wages, employee welfare programs and other related benefits for their staff (Taylor and McGraw, 2006). These benefits encourage employees to develop relationships of trust with the organisation where they work (Ellinger and Ellinger, 2014). This way companies and employees work with integrity in order to achieve specified objectives (Jain, 2005). The management of the hotel lays emphasis on motivation of the workforce so as to keep them with the company for an extensive time (Larsson and Hyllengren, 2013). Some of these motivation techniques are monetary and non-monetary rewards, such as succession planning, career management and reward strategy. Here, monetary rewards are offered in the form of incentive whereas promotion, succession planning and career management are effective tool to provide non-monetary reward. A golden handshake is usually offered to graduates to retain them whilst motivating thereby, enhancing performance (Crocker, 2008). A golden handshake comprises of a generous bonus which is offered to the employees. Use of these strategies helps employees to understand that they are valued in corporation and accordingly they make active efforts to accomplish set targets. All these strategies are unique and important for the growth and success of an organisation (Holland and Pyman, 2006). Succession planning is a technique which consists of the workforce working at non-managerial levels are trained to be promoted to higher positions (Krishnaveni, 2008). In this support, it can be said that the use of effective recruitment and HR strategies also facilitates business firm to motivate employees and the reward system policy assist management to improve motivation level of employees.
The critical aspect of succession planning is dividing in to formal and informal strategies. The informal one is that where employees know that they are going to occupy the high position. On the other hand, formal succession planning is that in which the management intentionally provides training to existing employees for higher positions so as to meet the specified objectives (Harrington, 2007). Another strategy is career management, which aims to enhance knowledge and skills of employees and allow them to select appropriate option for their progress at workplace (Jain, 2005). It will bring improvements in the current work environment and will attract potential employees, and existing ones will change their mindset if they are thinking to leave the organisation (Ganihar and Nayak, 2007). The reasoning behind this strategy is to make the workforce competent, knowledgeable and skilled to move the hotel towards success (Harrington, 2007). Another retention strategy is rewards. Here, the management of Thistle hotel assesses the performance of all personnel on the basis of a set of criteria and analyzes employees according to the criteria. With this process, it becomes convenient for the corporation to provide rewards to those who achieve targets, and it works well in motivating other employees to work harder. Apart from this, it is also imperative that the correct reward it identified for each employee (Sims, 2006). Owing to this, at first, the needs of the entire workforce can be assessed by taking advantage of any suitable HR program (Aghazadeh, 2003). Those who are seeking good salaries should be provided monetary rewards for their performance instead of thinking to provide good positions only (Ellinger and Ellinger, 2014). These strategies can be applied in other organisations including Marriot, Tesco and Sainsbury as well as other related sectors. It will help organisations to boosts morale of employees and create a sense of achievement among them. This will positively impact organisations in the form of integration of the workforce, high profitability and competitiveness of hotels (Taylor and McGraw, 2006) and assist Thistle hotel in bringing modifications in the current work environment so as to cater for the needs of more personnel and retain them for an extensive time (Pinnington, 2011). Apart from this, there are several other reasons by which employees can be retained in the organisation (Kreimeier, 2014). It shows that succession planning and career management are two of the most important tool which can assist an organisation to retain employees for long time. However, in the hotel industry of the UK, work on the basis of innovation and creation where it is very important to retain employees otherwise hotels have to incur huge cost. (Nikandrou, Brinia and Bereri, 2009)At this juncture, career management should be prioritised giving employees a chance to ensure growth at work. By giving employees flexibility in this regard it assists workforce to work with interest and contribute towards success of corporation (Holland and Pyman, 2006). Further to this the Thistle hotel can effectively a reward strategy and succession planning. Both these methods are formal ways to enhance the level of motivation and retain employees with the organisation (Koskela and Palukka, 2011).
The aforementioned report concludes that retention strategies used by hotel organisations are effective in term of increasing customer base and reducing cost whilst facilitating expansions of the company at a global level. This fact makes the retention process easier and the management can change the work environment in a positive manner (Aghazadeh, 2003). Apart from this, other corporations should also take views of their employees while making use of effective retention strategies. It contributes towards achieving long term as well as short term objectives (Ganihar and Nayak, 2007). Moreover, various stated retention and recruitment strategies could be applied in the hotel as well as retail industries, to reduce employee turnover to a great extent (Kreimeier, 2014). Apart from this retention strategies like monetary reward, promotion and celebrating success of employees in the organisation are imperative ways to ensure development of workforce. This will decrease employee’s turnover and motivate employees to work with integrity in order to achieve specified objectives. This will also help the management to a maintain good performance of the firm for a longer time (Mayhew, 2015). Among these, career development and succession planning are important tools to cater for the need of employees and influence them to provide long term services for Thistle hotel (Sims, 2006).
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