It showed on the class "Globalization and Competitive Methods of Multinational Hospitality Companies".

1. Challenges for the global
hospitality industry: an HR
perspective
Presented By
Pei Li & Qianqian Su

2. Table of Contents
O Introduction
O The Human Factor
O Methodology
O Shifting Paradigms in the Hospitality Industry
O Conclusion and Implications of Research

3. Introduction
Globalization has unleashed the latent economic potential of
the international hospitality industry. However, it has brought
to the fore several challenges faced by the hospitality sector,
especially in the Human Resource Department.

4. The Human Factor
With globalization and increasing international competition,
the ability of the human factor to deliver quality product and
services is emerging as a key source of competitive
advantage in the context of the hospitality industry world-
wide.
Intangibility
Inseparabilit
y
Heterogeneit
y
Human Resource-Centric
Industry

5. Methodology
The research is based on data gathered using a
qualitative research methodology.
• Primary Data: semi-structured interviews and informal
discussions with senior level managers in India
• Secondary Data: academic literature and industry
reports
• HR Roundtable (5th International Conference on
Services Management)

6. Shifting Paradigms in the
Hospitality Industry

7. Trend 1 — Global Expansion
Catering to the needs of the contemporary world traveler whose
business and leisure pursuits increasingly traverse global boundaries,
several international hospitality chains have attempted to capitalize on
rising demand in high growth markets such as China and India.
Challenge 1 — Attraction & Retention of
Employees
• Manpower shortages both in terms of quantity and quality is one
of the biggest HR challenges faced by the hospitality industry.
• Manpower shortage is further exacerbated by the high attrition
rate in the industry. With the increase in demand for good
hospitality labor, staff turnover is very rapid, especially in India
and China.

8. Challenge 1 — Attraction & Retention of
Employees
• Creating unique organizational value proposition
• Based on behavioral profiling and psychometric testing during
recruitment
• Using innovative human resource practices
• Developing institutionalized education framework
• Hiring from outside the industry
• Emphasizing on internal communication after merger and
acquisition
• Rationalizing and revising pay scale

9. Trend 2 — Evolving Patterns of Consumer
Demand & Technological Development
O With the increasing commoditization of goods and services, “experience”
have emerged as the next stepping stone in the “progression of
economic value”
O Experiences provide a sensory, emotional and relational connection to
the service or product offering, well beyond its mere functional value.
Challenge 2 — Training & Development for
Capability Enhancement
Technological developments, international expansion and the resultant
culture diversity and emerging experience-centric guest expectations
have brought into focus the importance of developing competencies
other than only those related to core hospitality operations.

10. Trend 3 — Building Brands
O Brand is emerging as an important value driver which is expected to
influence the hotel choice of the consumer, now and in the future.
O Hospitality product is becoming more and more experience-centric
and customer-focused to match the emerging needs of the world
traveler.
Challenge 3 — Employee Engagement
The existence of touch point or “moments of truth” which influence
customers’ perception of service makes consistency even more
difficult to achieve in the context of hospitality services.

11. 6 core elements that drive employee engagement:
Challenge 3 — Employee Engagement
• Tangible rewards
• Quality of work
• Work-life balance
• Inspiration and values
• Enabling environment
• Future growth and opportunity
Employee engagement has a positive correlation with desirable
organizational outcomes such as heightened customer satisfaction
and loyalty, reduced employee turnover, improved return on assets,
and higher profitability.

12. Conclusion
Employee Engagement Training & Development
Attraction & Retention
of Employees

13. Thank you!
Question:
Besides the challenges mentioned above, what
challenges do you think play an important role in
the hospitality industry?