Chapter 17. Human Resources. Division

Transcription

1 This sample chapter is for review purposes only. Copyright The Goodheart-Willcox Co., Inc. All rights reserved. Chapter 17 Human Resources 383 Chapter 17 Human Resources After studying this chapter, you will be able to explain the importance of human resources. list the eight major functions of HR. summarize the process of recruiting candidates for job openings. give examples of compensation and benefits. describe reasons why companies must have policies and procedures. list the three groups of laws that affect HR and give an example of each. describe reasons that record keeping is an important HR function. summarize the personal qualities and skills required of HR employees. analyze issues that affect human resources management. Terms to Know human resources personnel recruitment screening process compensation wage salary wage and salary scale benefits social security Federal Insurance Contributions Act (FICA) workers compensation employee handbook sexual harassment regulatory compliance discrimination Americans with Disabilities Act (ADA) disability minimum wage tipped employee job description Human Resources Information System (HRIS) labor labor union collective bargaining labor relations employee retention turnover temporary worker Every business has resources that it uses to run the business and produce products and services. Money is one type of resource. Money is often referred to as a financial resource. Buildings and equipment are another type of resource. Buildings and equipment are often referred to as capital resources. The people who work in the business are a third type of resource. The people who work in a business are often referred to as human resources. Human resources include everyone who works for the company, including all managers and all workers, Human resources are sometimes called personnel. Personnel consist of all the people (persons) who work for the company. The success of any hospitality business depends on the people who work for it. It is important that the human resources be managed as carefully as financial resources or capital resources. In many ways, a business s human resources are its most valuable resource. The quality of service provided by business separates it from other businesses. The quality of service depends on all the people who work for the company. If employees are happy with their jobs and treated well by their employer, they will do a better job. Human Resources Division As we learned in Chapter 16, all managers are responsible for managing the people who report to them. Whether a company is large or small, someone must handle all the human resource management tasks. In a small company, the general manager and the other managers will handle all the human resources tasks. In a larger company, there will be a separate human resources department or division. When human resources is part of a larger division, such as Administration, then human resources will be a department in that division. In very large companies and corporations, human resources will be a separate division. In a company with a human resources department or division, the managers will still be responsible for a large number of human 17-1 Human resources include everyone who works for the company, including all managers and all workers.

2 384 Part 4 The Business of Hospitality Chapter 17 Human Resources 385 resources management tasks. Examples of the tasks that managers do even when there is a human resources division include the following: hiring, training, supervising, planning shifts, and evaluating. However, many of the administrative, record keeping, research, and program development tasks will be handled by the human resources division or department. A human resources division or department is often called HR for short. HR is sometimes called the personnel department. The eight major functions of HR are as follows: recruitment, compensation and benefits, policies and procedures, regulatory compliance, employee performance, record keeping, labor relations, and employee retention. Recruitment Recruitment is the process of finding candidates for job openings. Recruitment is sometimes called staffing. A business has a job opening because a worker has left or because a new job has been created. The manager with the open job needs a new employee as soon as possible. HR works with the manager to find the best worker as quickly as possible. Recruitment is one of the major responsibilities of HR. Recruitment includes finding candidates, screening candidates, reference checking, and testing. There are many ways to find candidates. The typical way is to place an advertisement in the newspaper. HR works with the manager to write the ad. HR then takes care of placing it in the newspaper and collecting the resumes that come in. There are other ways to look for candidates. Many company Web sites have a special section for career opportunities. HR may be responsible for maintaining this part of the Web site. Ads can also be placed on Internet job search sites. Career fairs, employment agencies, and executive search firms are other ways to find candidates. Another way to recruit is to hire student interns during the summer or part-time during the school year. These students are eager to get work experience in a hospitality business. These interns often become job candidates after they graduate. Once HR has a group of candidates, these candidates must be screened. The screening process consists of determining which candidates are likely to be a good fit for the job. HR will perform the screening by reading the resumes and doing some phone interviews, The resumes of the candidates with appropriate qualifications will be presented to the manager. The manager will then interview the candidates. The manager will usually select the two to four best candidates. HR will then check references for these candidates. When a person applies for a job, they are asked to supply references. A reference is a person who is willing to talk to employers about the candidate s ability to do the job and the candidate s personal qualities. HR will usually contact these references. Reference checking can include other checks as well. Examples include checking education, employment history, social security number, and driver s license. HR will call the appropriate offices to make sure that the information that the candidate gave is correct. For example, if the candidate says he earned a college degree, HR will call the college to verify that the candidate did get that degree. In addition, HR does criminal background checks for certain jobs, such as security officer. HR will also handle any testing that is required. For example, some jobs require certain math skills. HR will administer the appropriate math test. In addition, many companies now require preemployment drug testing. HR will handle the preemployment drug testing. HR will present all information learned about the candidates to the manager. The manager makes the final decision on which candidate to hire. Compensation and Benefits Compensation consists of the money paid and benefits provided to a person for his or her work. Wage is the term used for the amount of 17-2 This member of the HR staff is using the phone to screen candidates and check references. money that a person is paid per hour. A person who is paid hourly wages is eligible for overtime pay. A salary is an annual amount of money that a person is paid. Managers and professionals are usually paid a salary instead of an hourly wage. People who are paid a salary usually do not get overtime pay. People who are paid a salary are often eligible for bonuses. Although many people love their work, people work to earn money. In order for a business to get the best workers, the business has to pay the workers a competitive wage. For example, suppose you are applying for a job as a busser at two restaurants. The restaurants are the same in every way except for the wages offered. One restaurant is offering $8.00 an hour. The other is offering $8.75 an hour. Most people would take the job with the higher wage. One of the responsibilities of HR is to know what other businesses are paying their workers. HR does this through wage and salary surveys. HR uses this salary information to develop a report for management. HR then works with management to decide what wage or salary to offer for each job in the company. A list of wages and salaries paid for each job is called a wage and salary scale. Another part of compensation is benefits. Benefits include all forms of compensation other than salary and wages. One benefit that most employees get is social security. Social security is a federal program that ensures that workers will get some income after they retire. Social security was established through the Federal Insurance Contributions Act (FICA). Through FICA, the federal government takes a small percentage of every worker s paycheck and puts it in the social security fund. The benefit part is the employer s contribution. For each employee, the employer contributes to the social security fund an amount equal to the amount of money that the employee paid.

3 386 Part 4 The Business of Hospitality Chapter 17 Human Resources 387 Another benefit that employers must offer is workers compensation. Workers compensation requires that the employer must provide medical and salary coverage for an illness or injury that an employee experiences as a result of the job. Each state has developed its own workers compensation laws. Most employers provide many other benefits. HR researches and develops these benefits. Benefits commonly offered include paid vacation, paid sick days, health insurance, life insurance, disability insurance, savings plans, and retirement plans. Another common benefit is educational benefits. Many companies will help employees get a college degree by paying for part of their tuition, Employees usually have to meet certain requirements before they are eligible for this benefit. In addition, many companies will pay for courses and professional training that is directly related to the worker s job. Many companies also offer a variety of other benefits such as wellness programs. These programs are discussed further under Employee Retention. Policies and Procedures Every company must have policies and procedures that ensure the safe and efficient running of the company. HR usually works with management to develop these policies and procedures. Once the policies and procedures are established, HR usually develops an employee handbook. An employee handbook is a document, usually in book or pamphlet form, that explains all company policies and procedures concerning employees. HR is responsible for making sure that each employee receives a copy of the handbook and understands its contents. Companies need policies and procedures for many areas. Examples include attendance, appropriate dress, employee conduct, personal phone calls, and smoking, For example, most companies limit the number and length of personal phone calls during work hours. In addition, most companies develop a formal discipline policy. The discipline policy is used to ensure fair treatment of all employees. It is usually used when employee behavior or performance is causing serious problems in job performance or to other employees and customers. Minor problems are handled by the employee s direct supervisor. Minor problems include occasional lateness to work and minor problems in job performance. The supervisor will meet with the employee to discuss the problem and develop ways to solve it. Serious problems are covered in the discipline policy. The discipline policy usually requires that the employee receive warnings about the problem. The first warning is usually verbal. The second warning is usually written. There are also specific steps to be taken if the behavior is serious enough to lead to suspension or termination from the job. These steps usually include documentation by the supervisor of the employee s behavior and work. Sometimes, the employee is required to undergo counseling. Often, a formal correction plan is developed for the employee to follow. Many companies have specific policies concerning sexual harassment, Sexual harassment is considered to be any unwelcome behavior of a sexual nature that creates an intimidating, hostile, or offensive work environment. Sexual harassment also includes the request or demand for sexual favors as part of the terms of employment or as a basis for employment decisions such as promotions or raises The employee handbook covers the company s policies in areas such as attendance, dress, conduct, personal phone calls, and smoking. Information on Sexual Harassment from an Employee Handbook The Company is committed to providing a workplace that is free from all forms of discrimination, including sexual harassment. Sexual harassment is considered a form of misconduct. An employee whose behavior fits the definition of sexual harassment may be subject to disciplinary action up to and including dismissal. Sexual harassment could also subject this Company and, in some cases, the individual, to substantial civil penalties. The Company has a detailed written policy on sexual harassment. This written policy is part of the Company s overall affirmative action efforts, pursuant to state and federal laws prohibiting discrimination based on age, disability, race, color, religion, marital status, and gender. Each employee is responsible for refraining from sexual harassment in the workplace. Briefly, sexual harassment is defined as any unwelcome behavior of a sexual nature that creates an intimidating, hostile, or offensive work environment. No employee male or female should be subjected to unsolicited or unwelcome sexual overtures or conduct in the workplace. Specific definitions of sexual harassment are in the written policy. Furthermore, it is the responsibility of all supervisors to make sure the work environment is free from sexual harassment. All forms of discrimination and conduct that can be considered harassing, coercive, or disruptive, or that create a hostile environment, must be eliminated. Copies of the written policy are available from your supervisor Many employers help employees get a college education Many companies have specific policies concerning sexual harassment.

4 388 Chapter 17 Human Resources 389 Photo courtesy of Juanita Nañez Juanita Nañez was an honor student in high school. Because of family obligations, she was not able to attend college immediately after high school. Juanita put her dream of college on hold and started working. She later married and raised a family. However, she never stopped learning. Throughout her career, Juanita attended many conferences, workshops, seminars, and college courses. She also studied for and obtained several professional certifications. One of her first jobs was at a bank. She worked as a parttime coordinator for college recruiting. She coordinated interview schedules and prepared information packets. In screening resumes, she learned the importance of detail and accuracy. Juanita Nañez Never Stop Learning Juanita found the work fascinating. She enjoyed searching for the right people (recruiting) and matching them to the right jobs. She excelled in her work and was soon promoted to corporate recruiter. Her new job responsibilities included working with supervisors and interviewing. Juanita left the human resources area to work as a bilingual office manager for an international oil and gas supply company. On this job she developed her planning, organizational, and international business skills. She also learned about compensation and benefits. The company went out of business, and Juanita was out of a job. She decided to return to the human resources field. She saw an ad in the local newspaper for an assistant in the management recruiting department for T.G.I. Friday s, a popular casual dining restaurant chain. Juanita liked the idea of working for a restaurant. She knew that restaurants are fastpaced, people-oriented businesses. Juanita got the job. She worked hard and quickly moved up the career ladder. Today Friday s is owned by the parent company, Carlson Restaurants Worldwide, Inc. (CRWW). CRWW operates more than 700 restaurants around the world. In 1999, Juanita became the executive director of corporate human services for CRWW. Juanita is now the vice president of diversity for CRWW. Her life philosophy is to always be curious, enjoy life, and never stop learning and growing. She believes that this philosophy has led her to many advancement opportunities. For more information, visit the Web site Juanita Nañez s Career Path 1962: First job, server in a soda fountain/diner in a pharmacy 1972: Corporate recruiter, First National Bank in Dallas, Texas 1982: Office manager, Dallas International Supply Co. 1983: Assistant in management recruiting, T.G.I. Friday s 1989: Director of employee relations, Carlson Restaurants Worldwide, Inc. (CRWW) 1990: Received Professional in Human Resources certificate from the Society for Human Resource Management 1996: Senior director of employee relations and staffing, CRWW 1999: Executive director of corporate human services, CRWW 2003: Named vice president of diversity, CRWW 2005: Recognized by Texas Diversity Council for ourstanding service and commitment There are certain behaviors that a company cannot tolerate from employees while they are at work. These behaviors are grounds for immediate dismissal from a job. The following are examples of behaviors that can result in immediate dismissal: fighting, refusing to follow a supervisor s instructions, consuming or being under the influence of alcohol or illegal substances, possession of firearms, stealing company property, damaging company property, and violation of safety rules. Regulatory Compliance There are many local, state, and federal laws that employers must follow. The laws change frequently and are often very complex. In addition to the laws themselves, many regulations based on these laws must be followed. One of the major responsibilities of HR is to make sure that the company knows the laws and regulations and follows them. Following appropriate laws and regulations is called regulatory compliance. HR will also be involved if the company is sued. HR works with the company lawyer or legal department for professional legal advice, especially if the company is sued. Laws and regulations that affect HR can be organized into three groups: equal opportunity, workers rights, and safety laws. Equal Opportunity Starting with the Declaration of Independence, the United States of America has had the ideal of equality for all. Unfortunately, this ideal has not always been carried out, especially in the workplace. In the workplace, people should be evaluated based on their work performance. All workers should be treated with dignity and respect. Everyone s rights should be respected. Discrimination is treating people unfairly, based on irrelevant characteristics. For example, people have been discriminated against in the workplace because of their race or religion. Over the years, national, state, and local governments have passed a variety of laws to ensure that workers are treated fairly. A large number of laws have been passed to prevent discrimination in the workplace. These laws prevent discrimination based on age, disability, gender, national origin, race, and religion, One of the laws getting particular attention is the Americans with Disabilities Act (ADA). The Americans with Disabilities Act (ADA) was passed to make sure that people with disabilities are treated fairly in public places and in the workplace. According to the ADA, a disability is a permanent condition that limits one or more major life activities. Examples of major life activities include walking, speaking, and sleeping. According to the ADA, each job must be analyzed for its essential functions. Essential functions are those tasks that the person in the job must be able to do. The ADA requires that if a person can perform the essential functions of a job, then the person should be given equal consideration for the job, regardless of disability. If the person hired has disabilities, the ADA requires that the company make reasonable accommodations so that the disabled person can do the job. Reasonable accommodations are accommodations that do not cost so much that the cost is detrimental to the business. The HR department analyzes jobs for essential functions and helps the company meet the ADA requirements. For example, an essential function of a door attendant is the ability to load and unload luggage from cars and carry luggage into the hotel. A person who must use a wheelchair to get around cannot perform this essential function, and therefore is not qualified for a bell attendant job. However, an essential function for a reservations agent is being able to answer the phone, understand customers, respond to requests, and make reservations. If a candidate can perform these reservations agents functions, being in a wheelchair is irrelevant. The hotel must give the candidate in a wheelchair equal consideration for the reservations job with candidates who are not in wheelchairs. If the hotel hires the person who uses a wheelchair, the hotel must make reasonable accommodations. Reasonable accommodations are determined on a case-by-case basis. A reasonable accommodation may be getting a desk that accommodates a wheelchair. An unreasonable accommodation might be installing an elevator.

5 390 Part 4 The Business of Hospitality Chapter 17 Human Resources 391 Equal Opportunity Laws Year Laws Main Provisions 1964, 1991 Civil Rights Act Bans employment discrimination based on race, color, religion, sex, or national origin. Created the Equal Employment Opportunity Commission (EEOC), which investigates charges of discrimination. Allows jury trials and punitive damages in discrimination cases. 1967, 1990 Age Discrimination Employment Act, Older Workers Benefit Protection Act Bans discrimination against workers age 40 and older Immigration Reform and Control Act Bans employment of noncitizens who are not authorized to work in the U.S. Bans discrimination against citizens who may appear foreign. Bans discrimination against noncitizens who have legal work permits Americans with Disabilities Act Bans discrimination against individuals with disabilities in matters of employment, government services, public accommodations, commercial facilities, and transportation Equal opportunity laws prevent discrimination based on age, disability, gender, national origin, race, and religion. Workers Rights Workers rights are protected by a variety of laws and regulations, One of the major provisions of the Fair Labor Standards Act (FLSA) is the minimum wage provision. The minimum wage is the lowest hourly rate that a worker must be paid. The federal government sets the minimum wage. In order to raise the federal minimum wage, Congress must pass a bill and the President must sign it into law. The law also requires that a poster be visibly displayed at the worksite, Workers Rights Laws Year Laws Main Provisions Fair Labor Standards Act Equal Pay Act Minimum wage Overtime pay Restrictions on employment of children Record keeping 1993 Family and Medical Entitles eligible employees up to 12 weeks of unpaid, jobprotected Leave Act leave in a 12-month period for specified family and medical reasons 17-7 Workers rights are protected by a variety of laws and regulations. Men and women must be paid equal amounts if they are doing the same job or substantially similar jobs 17-8 Workers rights to a minimum wage are guaranteed by the federal government. (There are some exceptions.)

6 392 Part 4 The Business of Hospitality Chapter 17 Human Resources 393 There are many conditions and exceptions to the minimum wage laws. First, each state can make its own minimum wage laws. However, the state laws have to provide at least the minimums in the federal law. Second, certain categories of workers can receive less than minimum wages. Some of these categories include student-learners and tipped employees. HR must be up-to-date on all the details and help the company comply with the laws and regulations. The category of tipped employees is especially important in the hospitality industry. A tipped employee is a worker who receives tips from customers, Most restaurant servers are tipped employees. The federal law establishes a lower minimum wage for tipped employees. However, the tipped employee must actually receive tips that make his or her minimum wage meet the federal minimum wage. If the tipped employee does not make enough in tips, the employer must make up the difference. For example, in 2009, the federal minimum wage was $7.25 per hour and the federal minimum wage for tipped employees was $2.13 per hour. A tipped employee had to earn at least $5.12 in tips each hour. Suppose the employee made only $3.00 in tips an hour. Then the employer must pay an additional $2.12 an hour. The states can make stricter laws. There are also a large number of complex laws covering benefits. The only benefits that employers are required to provide are FICA and workers compensation. Employers often choose to provide other benefits. Common benefits provided are health insurance and retirement benefits. There are a large number of laws that cover these benefits. The purpose of these laws is to protect the rights of the workers. HR is responsible for keeping up-to-date on all these laws and making sure that they are followed. Safety Laws The major safety law is the federal Occupational Safety and Health Act of 1970 (OSH Act). The purpose of OSH Act is to assure safe and healthful working conditions for all workers. The OSH Act also established the 17-9 Servers are in a category called tipped employees. Occupational Safety and Health Administration (OSHA). This agency makes sure that the laws and regulations in the OSH Act are carried out. One of the laws requires that employers display a poster about the OSH Act, The Spanish version of this poster is in Chapter 20, Figure More information on the OSH Act and workplace safety can be found in Chapter Employers are required to display this poster about the OSH Act. The Spanish version of this poster is in Chapter 20, Figure

7 394 Part 4 The Business of Hospitality Chapter 17 Human Resources 395 Employee Performance The manager or supervisor of each employee has the major responsibility for each employee s training and performance. However, HR does some training and provides support to managers. One of the major tasks of HR is to develop a job description for each job. A job description is a document that lists the essential functions and requirements for a job. HR usually develops job descriptions with the managers. Figure shows what is usually covered in a job description. Many companies list their job descriptions on their Web sites. Another major responsibility of HR is to coordinate performance reviews. HR often uses the job descriptions to develop performance review forms. HR also works with managers to make sure that reviews are done in a timely fashion. HR also is involved in new employee orientation and training. When new workers are hired, they need to learn many things about the company. HR usually has an orientation session to give them the information they need. For example, HR would present the employee handbook and go over it during orientation. HR also provides training in a variety of areas, such as safety. HR also works with the managers to help them provide the training that their workers need. Record Keeping Record keeping is one of the most important functions of HR, In a small business, such as a bed-and-breakfast, it is easy to keep track of information since there are few employees. In a large business, such as a 2,000-room luxury hotel, there may be hundreds of employees, including part-time workers. HR must be What Goes on a Job Description Heading Explanation Example (Other terms for the heading) Job Title (Position Name) Reports To Purpose (Scope, Objective, Primary Responsibilities) Essential Functions (Specific Functions, Job Duties) Qualification Standards (Education and Experience) Physical Requirements Name of the job Job title of the manager to whom the job reports Describe the basic purpose of the job Describe all the functions that a person doing this job must perform Describe the educational, experience, and personal requirements for the job Sometimes the physical requirements of a job are given in a section separate from the educational and experience requirements Server Restaurant Manager Serve food and beverages to guests Greet guests within 30 seconds after they have been seated Reading, writing, basic math, and verbal communication skills required Lift and carry a tray that may weigh up to 30 lbs A job description is a document that lists the essential functions and requirements for a job Record keeping is one of the most important functions of HR. Computers make record keeping more efficient. efficient, well organized, and computerized to keep track of the information on all these employees. The record that is kept on each employee is called an employee personnel file. Personnel files contain basic information, required forms, evaluations, job descriptions, payroll, and benefit records. These files are confidential and are kept locked in the HR office. There is a certain amount of basic information that must be kept for each employee. For each employee, you need name, address, telephone number, and social security number. In addition, there are several forms that the federal government requires that each employee fill out. The employer must then keep these forms on file. The first form is the W-4, Employees Withholding Allowance Certificate. This form is used to determine how much federal tax the employer must take from each worker s paycheck. Another required form is the I-9, Employment Eligibility Verification. This form is required by the Immigration Reform and Control Act. The I-9 form documents the employment status of each potential worker. Potential workers are generally in three categories: U.S. citizens, who are eligible to work; non U.S. citizens who have gotten official permission to work; and non U.S. citizens who are not permitted to work in the U.S. The purpose of the I-9 form is to keep employers from hiring non U.S. citizens who do not have permission to work in the United States. The FLSA also requires that employers keep records for each employee concerning the hours worked and the wages earned. These records are

8 396 Part 4 The Business of Hospitality Chapter 17 Human Resources 397 required so that the U.S. Department of Labor can make sure that employers are following the requirements of the FLSA. Most HR departments keep additional records on each employee. These records include performance reviews and benefit program enrollments. If an employee has performance or conduct problems, these are also documented and kept in the personnel files. HR must keep personnel files up-to-date. New files must be made for new employees. Changes in employee status must be recorded. Changes include retiring, leaving the company, promotions, new address, and changes in family status such as marriage, divorce, or new children. In addition, the FLSA requires employers to keep certain records for two to three years. Many HR departments use computers to help with record keeping. A Human Resources Information System (HRIS) is the general name for a computer system that human resources departments use for personnel records. It is relatively inexpensive software and very userfriendly. An HRIS system can keep track of employee information such as employee attendance, wage histories, anniversaries of hire date, birth dates, disciplinary records, names, addresses, and social security numbers. The software can then be used to quickly access information about any employee. HRIS can also be used to generate reports. For example, an HRIS can generate a report on a specific employee, such as the work history and number of days the employee has missed work. An HRIS can also generate reports about all the employees, for example, how many employees are currently on staff, the average wages, and the average workdays missed. An important responsibility of HR is confidentiality, HR staff members have access to a great deal of personal, private information. HR staff must be able to keep private all private information. All employee files are confidential. Only the employee and authorized HR staff can see the whole file. The manager to whom the employee reports directly can only see items directly related to job performance. That manager cannot see any personal information, for example, medical information. Labor Relations The word labor is another term often used for human resources, that is, the people who work for a company. However, labor also has a more specialized meaning. Labor is the term used to refer to those workers who are members of a labor union. A labor union is an organization for workers who perform similar work. The purpose of a labor union is to make sure that the union members get fair wages, decent benefits, and safe working conditions. Labor unions achieve this purpose through collective bargaining. Collective bargaining is the way that labor and management discuss what they expect from each other. The union represents the workers in collective bargaining with management. Many unions also offer training and apprenticeship programs. There are several unions active in the hospitality industry. One of the major unions is the Hotel Employees and Restaurant Employees International Union (HERE). HERE represents over 250,000 people who work in the hospitality industry in North America. At each hospitality business, it is up to the employees whether they want to be represented by a union. Many hospitality businesses have no union representation. Some hospitality businesses have several unions. Each union represents a different group of workers. In a business where there is union representation, the relationship between the labor unions and the management of the company is called labor relations. HR is usually responsible for labor relations. There are many laws that govern labor relations. The main law is the federal National Labor Relations Act. Many states have developed their own laws for labor relations. HR is responsible for making sure that all labor relations laws and regulations are followed. Employee Retention Employee retention refers to the efforts made to keep good employees and reduce turnover. Turnover occurs when an employee HR staff members have access to a great deal of personal information about each employee. They are responsible for keeping this information confidential. leaves the company and another employee must be hired to take his or her place, Turnover is very expensive for a business. Here is what happens when an employee leaves a job. First, the job is vacant. There is no one to do the work. This situation causes the business to have trouble meeting customer needs. Second, the business must find a new employee. This process can be costly and can take a great deal of time. Third, once the new employee is hired, the employee needs to learn how to do the job. Even if the employee has a great deal of experience, he or she has never worked at this particular job for this particular company. There is a great deal to learn. It might take a while before the employee does his or her job well. There is always some employee turnover. Turnover occurs when a worker is promoted within the company. Turnover occurs when employees move away. Turnover occurs when

9 398 Part 4 The Business of Hospitality Chapter 17 Human Resources 399 benefits, and other programs that will keep employees happy. HR often develops quality of work life programs to help retain employees. These programs are discussed in the last section of the chapter Turnover occurs when an employee leaves the company and another employee must be hired to take his or her place. employees leave for a variety of personal reasons. Businesses learn how to deal with this type of turnover. Turnover also occurs when employees are unhappy with their jobs. Turnover also occurs when a competing company offers much better wages or benefits or working conditions. Part of the function of HR is to make the workplace as positive as possible. HR researches wages to make sure the business offers a competitive wage. HR also researches the benefits other companies offer. HR works to develop wages, HR Staff The size of the HR staff depends on the size of the business. In a small business, the general manager or president of the company will handle all HR tasks. A business of 60 or more employees will often have one HR staff member. This person will be called the director of HR. As the number of employees increases, the number of HR staff members will increase. A large HR division will be divided into several departments: recruitment, training, labor relations, and compensation and benefits. Large HR departments often have a number of assistants and clerical staff. Employees in HR need a variety of skills and personal qualities, HR staff that interview candidates, do training, and handle labor relations must have excellent communications and interpersonal skills. HR staff that deal with compensation and benefits must have excellent math skills and be very detail oriented. HR staff that deal with regulatory compliance must also be detail oriented. All HR staff must be able to keep confidential information confidential. HR Issues The HR division or department deals with many issues. Many of these issues concern individual employees and their problems. Other issues affect the hospitality industry more broadly. Some of these issues include diversity in the workforce, recruitment, family and medical leave, and quality of life programs. Diversity in the Workforce The nature of the workforce in the United States has changed over the past 50 years and will continue to change. In the past, most of the HR staff members need excellent communications and interpersonal skills. HR staff that deal with compensation and benefits must have excellent math skills and be very detail oriented. workforce was white and male. Major changes include the increase in women and minorities in the workforce and the aging of the workforce, This increase in diversity of the workforce has created challenges and opportunities for the hospitality industry. The opportunity is to serve customers better, because the customers are more diverse than they used to be. The challenge is to create a smoothly functioning team from individuals from a variety of different backgrounds. People are usually most comfortable with people who are just like them. A diverse workforce puts people from different backgrounds together. These people often need to learn to work together and to understand each other s backgrounds. Issues that arise include prejudice, discrimination, sexual harassment, and communication problems. HR helps the company deal with the issues that arise from a diverse workforce. Some companies have created a special job to deal with diversity issues. For example, many hospitality companies have a vice president of diversity. HR develops training programs that help people work with each other. In addition, if there are language issues, HR will develop language classes to help workers learn English. HR will also develop training programs in employees native languages to help them with their jobs while they are learning English. Recruitment Another major issue for the HR department is recruitment. Hospitality companies often have a difficult time finding enough qualified employees to fill job openings. In addition,

10 400 Part 4 The Business of Hospitality Chapter 17 Human Resources 401 Recent Workplace Statistics 59% of American workers are female. 43% of new American workers are minority. Only 45% of the labor force is white and male. The average age of the American worker is 40. The size of the active labor force is shrinking. Half of the workforce will be permanent part-time workers The workforce in the United States has become more diverse in the past 50 years. there is competition among hospitality companies for the best workers. HR spends a great deal of time developing ways to find qualified candidates. HR also works to make its company more appealing to the candidates than the competition. In order to fill open positions, the company often has to hire temporary workers. A temporary worker is a worker who is hired for a specific, usually short, amount of time. A temporary worker is not on the regular payroll and does not receive company benefits. Temporary workers are widely used in today s workforce. These workers do not just fill in for clerical positions. Temporary workers are used at all levels of hospitality businesses, Temporary workers often fill in for regular workers on medical leave or family leave. Temporary workers are especially useful during peak seasons. Temporary workers are also often used for banquet services. Issues with temporary workers arise because these workers do not receive benefits. They also often work at several different hospitality businesses in order to work the equivalent of a full-time job. Family and Medical Leave The Family and Medical Leave Act (FMLA) was designed to help workers deal with family needs and still keep their jobs. Before this law was passed, the worker would often have to quit in order to take the time needed to care for the family member. The act entitles workers to take up to 12 weeks of leave (without pay) for certain family needs, then be able to return to their jobs. There are many details involved in meeting this law, and HR is responsible for those details. First, only employers who have at least 50 eligible employees are required to follow this law. Smaller employers are exempt. The employee must be eligible for the leave. An eligible employee has worked for the employer for at least 12 consecutive months, and must have worked at least 1250 hours during the past 12 months. Family members, for the purposes of this law, are parents, children, and spouses only. Family needs, for the purposes of this law, include birth or adoption of a child or serious illness of a family member. Proof of the nature and seriousness of the illness must be provided. The leave does not have to be taken all at once. The maximum amount of leave is 12 weeks in 12 months. The FMLA was amended in 2008 to add care for a seriously injured or ill family member of the armed forces. For this reason, employees are allowed to take up to 26 weeks off in a 12-month period. This law is very helpful to workers and their families. However, it creates problems for the company beyond the record keeping. The major issue is how will the work get done? FMLA requires that you hold the position or provide an equivalent position when the employee returns from leave. Arrangements must be made to accomplish the work while the employee is taking FMLA leave. For example, suppose the front office manager has to leave for 12 weeks during the peak season for maternity leave. If the company hires a new front office manager, which position will they give to their original office Temporary workers are widely used in the hospitality industry. manager when she returns from maternity leave? HR would work on a solution to this problem. Quality of Work Life Quality of work life (QWL) is a concept that refers to how the worker feels about the work experience itself. How a worker feels depends on many aspects of the job. Some of these aspects include management styles, freedom to make decisions on the job, physical surroundings of the job, job safety, work hours, and meaningful job tasks. HR may be given the task to improve QWL. The approach of a good QWL program says that a person s job and work environment should meet as many of the worker s needs as possible. HR finds out what workers need, what makes them unhappy, and what would make them happy. HR then develops QWL programs. One QWL program might work with managers on issues involving management style. Another QWL might work on improving the quality of the employee cafeteria. Common QWL programs include courses on stress management and financial planning, wellness programs, health club membership, and health screenings,

11 402 Part 4 The Business of Hospitality Chapter 17 Human Resources Membership in a health club is often part of a QWL program. HR often organizes holiday parties, charity drives, and employee recognition programs. QWL programs are especially important in the hospitality industry. Most businesses work Monday through Friday, 9 to 5. In contrast, the hospitality industry runs 24 hours a day, 365 days a year. When everyone else is on vacation Photo courtesy of Princess Cruises or out celebrating, hospitality employees are working. It is harder to keep hospitality staff feeling appreciated and motivated, when all their friends have every weekend off. HR is the department that deals with these issues. HR develops QWL programs that help staff feel appreciated and motivated. Key Points The eight major functions of HR are as follows: recruitment, compensation and benefits, policies and procedures, regulatory compliance, employee performance, record keeping, labor relations, and employee retention. Recruitment is one of the major responsibilities of HR. Compensation and benefits are provided to a person for his or her work. Companies must have policies and procedures that ensure the safe and efficient running of the company. Laws and regulations that affect HR can be organized into three groups: equal opportunity, workers rights, and safety laws. HR develops a job description for each job in the company. Record keeping is an important task for HR. Companies work very hard to reduce employee turnover. There are issues that affect the HR department. Review 1. List and describe the eight major functions of HR. 2. Summarize the four tasks that are involved in recruitment. 3. What are the differences between compensation, wages, and salaries? 4. Describe what is contained in an employee handbook. 5. Give two examples of equal opportunity laws and two examples of workers rights laws. 6. List and explain the headings in a job description. 7. List the types of information kept in an employee personnel file. 8. What is the purpose of a labor union? 9. Why is employee retention important to a company? 10. List and describe some of today s HR issues. Think and Apply 1. Imagine that you are the general manager of a hospitality business. Your business has just expanded from 60 employees to 200. You decide to add an HR department. How many people would you hire for your new department? Give each one a title and write a job description. 2. Choose one of the laws that affect HR. Describe a situation in which that law would apply. 3. Why is a job description useful? 4. With the assistance of a classmate, brainstorm inexpensive ways to make reasonable accommodations for employees with a disability.