Case Study Three: Approaches to HRM in the hotel Sector

As outlined in Box 3.1, HRM in the hotel sector is strongly influenced by the variability of demand, particularly in those establishments serving the seasonal tourism industry. The hotel sector is also heavily dependant on the external labour market as staff turnover is typically high and, therefore, a ready supply of both skilled and unskilled labour is often required to meet customer demand. This high turnover often results in problems of skills shortages in key operational areas, such as waiting or kitchen staff. However, while the hotel industry context often acts to constrain managers choice in HRM strategy, policies and practices, evidence suggests a variety of approaches to the staffing and managing the workforce. The following case studies contrasts the employment practices adopted in two similar hotels operating in the same UK city.

The Mercury Hotel

The Mercury is a franchise establishment of a large US hotel chain. It is 4-star rated and mainly serves the commercial market catering for business clients and hosting conferences and seminars. It has almost 300 guestrooms, is located in the centre of a large UK city and directly employs over 200 members of staff. Two-thirds of employees are employed full-time on 39-hour contracts with working times varying from week to week. Any hours worked beyond this are paid as overtime. The remaining third of employees are part-time (up to 25 hours per week). This structure appears to provide a balance between the need for flexibility in predictably busier periods throughout the year and as cover for short-term increases in demand. Management also make extensive use of return staff, mainly students who live in the area during term time or holiday periods, to provide a further element of labour flexibility. Such employees are seen as a ready supply of