Human resource risk challenges in the hotel industry

Abstract

PurposeThis study aims to identify and classify potential hospitality industry human resource (HR) risks in the luxury hotel context.Design/methodology/approachData has been collected from five-star hotels in Antalya, one of the most popular tourism destinations in Turkey. The study conducted focus groups to examine how hotel managers and lower-level staff perceive such risks. Using these focus group discussions, the participants' perceptions of HR risks were explored and elicited.FindingsParticipating hotel managers' and employees' perceptions were utilized to build up an outline for examining the risks associated with human resources management (HRM) practices in hotels. The evaluation shows that HR risk types in luxury hotels vary highly and that each type of risk requires close examination.Practical implicationsRecognizing HR risks play a key role for hospitality industry leaders and managers in attaining their organizations' goals and objectives, offering a practical framework in identifying and governing their HR risks, allowing them to make better strategic choices regarding their HR risk management (RM) plans.Originality/valueThis study extends the hospitality literature by exploring new ways of identifying and classifying HRM risks in luxury hotels.

Risk Management Practice in the Tourism and Hospitality Industry

“…Donbak (2022) states that fiscal instability is a business operating risk that needs attention. Due to seasonality low trained and less experienced personnel could raise less revenues for a hotel in the high season raising the risk of a failure and fiscal challenges on the low season (Ari, 2022). The financial ratios of the seasonality effect in touristic related activities and the hotel market could indulge to risk parameters that drive businesses to bankruptcy (…”

“… the hiring of a CRO (Chief risk officer) as a mitigation technique for companies with more fiscal leverage as the application of an ERM system (Razali at al.,2011),  An already prepared plan for a potential risk could help to prevent or alleviate that specific risk (Hanna Salman Sawalha et al2013)  multi-level collaboration between hotels and suppliers to avoid any upcoming implications of unexpected events such as covid-19 (Abou Kamar, 2022),  guidelines that adapt in each crisis to alleviate the risks, hotel chain assistance, personnel and team value ethics with brainstorming about ideas, external consultancy agencies, in house made protocols and personnel creativity and independence from supervisors (Diker et al, 2022;Waikar et al, 2015),  through his research in Turkey, states that a human resource risk management plan should be created and evaluated for businesses to demeanor fiscal risks (Ari, 2022).…”