Human Resource Management In Hospitality Industry

Human resource management is important in the hospitality industry because it focuses on customer satisfaction, employee performance, and service quality. So, it is a crucial part of hospitality, and it is impossible to run the hospitality industry without human resources.

So, you need proper human resource management software or hotel software with an integrated HRM system. Otherwise, you cannot go the long run in business. 

But, now, most of the hospitality industry uses advanced hotel management software. And this software has an efficient human resource management system. 

In this article, we will cover the entire aspect of human resource management in the hospitality industry. 

From the article, you can understand the necessity of HRM in the hospitality industry. Let's get into details and manage your hotel property like a pro.

What Does HRM Mean in the Hotel Industry?

HRM stands for Human Resource Management. It is one of the most popular terms used in the business industry. Human resource management systems are widely used in almost every sector. 

In general, human resource management is associated with managing the business's or organization's employees or staff. Surprisingly, it covers all the activities that an organization needs to manage the employees. 

Suppose you run a hotel and you have hundreds to thousands of employees, and they work in different sectors for different purposes. You need to manage them properly to get the best output from them. 

In that case, it is a must to integrate the best hotel management software with HRM solutions. It will make your work easier by providing the human resource management services. 

So, definitely, HRM is a core feature of a hotel management system.

Functions of Human Resource Management in Hospitality Industry

Human resource management has several key functions to manage the hospitality industry. These functions are crucial for effective employee management. 

Moreover, human resource management creates a positive impact among the staff. It will help to make a productive working environment. However, it is a great benefit for the business. An effective human resource system helps to increase guest experience. 

Here, we will provide the functions of human resource management in hospitality industry. 

1. Recruitment 

Recruitment is one of the major functions of HRM. It has several modules and submodules that work seamlessly to ensure the efficient hotel operation. Every hospitality business needs staff to manage the property. Hotel booking software provides the HRM system that works for recruitment and staffing. 

Modules of Recruitment:

• New Candidate

The new candidate is a module of recruitment in human resource management. This module is developed for recruiting new employees. It provides a series of information that helps to hire the suitable person for the position. 

However, the new candidate module starts from gathering basic information such as name, email, phone number, address, etc. 

Then, it has additional submodules where the educational information and past experience-related information are gathered. 

This is a way to recruit new candidates for the job positions.

• Manage Candidate

Managing candidates is an important function of the recruitment and staffing process. As we know, recruitment processes go through different stages. So, it is important to track every stage for better staff hiring. 

Managing candidate modules tracks each stage of recruitment, such as application to final stage selection. This module manages the candidate information like name, candidate ID, photograph, email, phone, etc. 

This function is very effective and helps to choose the best staff and ensure employee satisfaction.

• Candidate Shortlist

Candidate shortlisting is another stage of employee hiring. It's a process where, after reviewing the application and identifying the suitable ones, their names are being listed for calling for an interview. 

Candidate shortlist modules have different sections. It includes candidate name, ID, job position, shortlist date, and interview date. 

Moreover, the management team can also add a shortlist and manage the shortlist from the dashboard or admin panel. Remember, effective candidate shortlisting is time-saving. 

And, it also helps to review and hire the right persons. 

• Interview

An interview is the conducting way to hire employees. It is a major module of recruitment. Through the interview process, management can evaluate the person's qualifications and personality. It helps to understand that the person is fit or unfit for the job position. 

The interview module has many functions. The team just simply logs in to the hotel management software, clicks on the human resources, and then goes to the interview section. 

Now, a dashboard will open where the name of the candidate, interview, job position, interview date, viva marks, written and MCQ marks, total marks, and the selection option are displayed. 

This is the process of interviewing an employee, and the user can get it from hospitality management software.

• Candidate Selection 

In human resource features, you will find a candidate selection module. It is a module that helps to choose any individual for a job role. It is the last stage of recruitment. 

When the shortlisted interview sections are completed, then HR selects the candidate based on the performance and marks. 

In the candidate selection module, candidate name, ID, employee ID, position, and selection terms are included.

2. Training and Development

Training and development is a crucial function of human resource management. It is a function that mainly focuses on providing efficient training to the employees. 

Successful training sessions empower the service quality and improve skills. As a result, the employee understood their role properly, and the business benefited. 

Moreover, training sessions are essential for the employees also. It helps to build their career. A well-equipped training covers multiple areas. It includes technical skills, customer service, manners, leadership development, etc. 

So, HR manager functions can cover the sections, and you can get it from advanced hotel software, and it helps in direct hotel booking. 

3. Performance Management

Human resource management offers performance management modules. This module can monitor and evaluate the performance of an employee. Moreover, it also helps to provide feedback and give recognition or awards. Performance management modules can be characterized in different submodules, such as the award section.

• Award

Providing awards or recognition is important for business. It motivates the employee to be more effective. When any employees get any award for their work, it creates a positive impact, and they start with new energy. 

Suppose you are connected with the hospitality industry and you use a popular hotel booking software - XainHotel. 

And the hotel booking software has human resource features, and human resources has an awards section. 

In that case, you can gather, monitor, and evaluate performance and provide awards to your employees based on the performance. In the award section, you can choose the award categories, description, gift item, date, employee name, etc.

4. Employee Relations

Employee relations is a key feature of the human resource management system in the hospitality industry. As we know, a happy employee is connected to a happy guest. 

Every hospitality industry, such as hotels, resorts, spas, guest houses, etc, wants to make their guests happy. When any hospitality industry can make a good relationship with the employees, then the guest's experience will be better. 

HRM features mainly focus on employee relations by maintaining a positive and healthy relationship. Here are some important functions of employee relations in the hospitality industry.

• Conflict Resolution
• Create a positive work environment
• Addressing concern
• Retention and job satisfaction
• Performance feedback, etc. 

5. Compensation Management

Compensation is one of the most important parts of HRM. Every business industry needs these features to ensure a successful payroll and benefits. Basically, compensation management refers to managing every aspect of paying employees. 

And the hospitality industry is more attuned to the features. Compensation management includes payroll integration, salary structure management, bonuses, incentives, benefits administration, etc. 

When any human resource professionals use hotel software with HMR, they can design a fair and competitive decision on salaries, bonuses, and other aspects. From the advanced hotel management system, Xain, you can get the payroll functions. However, payroll allows you to manage

• Salary Type Setup
• Salary Type
• Salary Generated

6. Employee Management

If you ask what the most crucial task of human resource management is, employee management comes first. Employee management includes all the terms related to managing employees. 

When employee management is done properly, it motivates the staff and creates a positive working environment. It is most important for a successful hospitality business. 

Let's get into more detail and know which functions are covered by the employee management.

• Attendence

Attendance management refers to the way to track and manage employee attendance. Nowadays, almost every business and industry uses advanced software with an automated attendance system. 

This software ensures a hassle-free employee attendance list with zero to no error. However, attendance management systems reduce the workload on humans and make the business more impactful. 

It also reduces human error, and employees become more punctual as there is no scope to misuse. From the attendance section, human resource specialists can manage and view the employee's name, ID, date, check-in, check-out, staying time, etc. 

• Position

As we know, the hospitality industry is one of the largest industries. Different types of staff and employees are connected with the industry. It includes waiters, drivers, housekeepers, managers, accountants, chefs, HRMs, etc. 

So, it becomes very hard to manage them properly. In that case, the employee position list function is very helpful. 

The hospitality industry can easily manage and get the list of their entire employee positions and their details.

• Manage Employee

Manage Employee is a section where human resources in hospitality can manage employee data. It covers overseeing the employees in every detail. Suppose your hotel owns one hundred employees. And you can manage their details from the human resource functions. 

This section allows you to track and manage employee serial number, ID, photograph, first and last name, position, phone number, email, duty type, hiring date, termination, pay rate, etc. 

However, this function made the hotel booking software more popular in the business industry. Employee leave and loan management are also covered by HRM in the hospitality industry. 

7. Legal Issue and Labor Law Compliance

In the hospitality industry, HRM ensures the legal issues and labor law compliance. As we know, the hospitality industry relies on different categories and services. It includes shifting duties, health safety, trust issues, and service quality. 

So, the business owner must ensure the organization is strictly following and maintaining labor law and legal issues. However, it is beneficial for both employees and the business owner. 

Let's see, how does human resource management ensure legal compliance in hospitality? 

• Employment Contracts and Documentation
• Minimum Wage and Overtime Compliance
• Work Hours and Breaks
• Health and Safety Standards
• Anti-Discrimination & Equal Opportunity
• Leave and Benefits Entitlement
• Child Labor Laws

8. Workforce Planning and Scheduling

Workforce planning and scheduling are two distinct parts. But both of these are essential parts of human resource management in hospitality industry. It ensures that your organization has sufficient employees and they are assigned the right duties. 

However, workforce planning analyzes the current employee status and recommends if any are needed. On the other hand, schedules ensure a well-balanced workload distributed among the staff. 

Here are some important aspects of workforce planning and scheduling in hospitality.

• Shift Planning
• Peak Hour Management
• Flexibility and availability
• Demand Forecasting
• Action Planning
• Gap Analysis

Final Thought

The hospitality industry is mainly a service-based and customer-driven industry. So, it is important to provide exceptional guest experience and customer satisfaction. 

Only then can the business or organization sustain itself in the business with success. And it is only possible with effective hotel software with an advanced human resource management system. 

It ensures your business is effective and you have recruited the right staff, trained them properly, and they are doing their duties. Human resource management in hospitality industry also creates a positive environment, which is beneficial for business profit and reputation. 

So, when you are servicing the hospitality industry, make sure you have the best hotel software with efficient HRM.