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Recruiting vs. Retraining in Hospitality Industry Dissertation

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Executive Summary

Retraining and recruiting talents within the hospitality industry challenge organizational managers to make decisions based on underlying reasons that necessitate them to take one option in prevalence to the other. Among the factors to consider are employee turnover rates, which affect the overall performance of the organization, and employee motivation to work and remain working in the industry. Sometimes retraining is an expensive exercise, which when implemented can cause an industry to lose both talents who might seek for better-paying jobs in other firms in the industry while the previous employer suffers the loss of the talent. There is also the need for organizational human resource managers to consider the commitment employees have toward their current job to stay after the training. It is also important to consider the pay practises of the firm in comparison with other players in the industry, employee satisfaction, recruitment methods, skills gaps, job description, responsibilities, established benchmarks, and organizational policies on recruitment and retraining. In addition to that, the changing working environment, financial problems of any firm operating in the hospitality industry, and priority areas are influencing factors that organizations consider before deciding to retrain or recruit employees in the workforces. The decision to retrain or recruit is a subject of evaluation.

Introduction

Comparative studies on recruiting talents and retaining existing talents in the hospitality industry provide a rich set of knowledge and information for human resource managers and organizational managers, in general, to consider when deciding to recruit or retrain organizational talents to fill different positions in the hospitality industry. Among the factors to consider if an organization considers recruiting is the recruitment style. Organizations should consider the merits and demerits associated with the recruitment styles as any adopted approach has long-term positive or negative implications on the performance of a firm. The current paper is a comparative study on recruitment and retention of human resources in the hospitality industry. To compare recruitment and retraining of staff in the hospitality industry, the paper looks at various aspects associated with the merits and demerits associated with any of the approaches adapted (Ashby & Pell, 2001)

A firm might consider recruiting or retraining due to a number of reasons especially as it applies to the hospitality industry. That is because employees in the hospitality industry require specific competencies necessary for the execution of tasks specific to that industry. Typically, the competencies are drawn on the soft skills required for an employee in the industry, behavioural skills requirements, and other attributes that characterize and employee in the industry. In addition to that, the requirements associated with retraining or recruiting new employees are other important factors the human resource manager has to consider before embarking on a specific option (Ashby & Pell, 2001)

However, a critical evaluation of both recruiting and retraining employees in an organization shows a number of factors that motivate the management to adopt any of the approaches. One of the approaches is to retrain employees. Among the benefits associated with retraining employees within an organization is to retain the best of talents that have been identified in that organization. The underlying support for that fact is that, when organizations do not identify some of the best talents within the organisation, but look for others to fill available positions from outside the organization, they do not provide an opportunity for the talent within the organization to develop. Without such opportunities, employees always feel demotivated and are likely to start seeking for an environment that supports and provides opportunities for their growth (Ashby & Pell, 2001)

Other factors to consider include the consistency in the quality of work, customer satisfaction based on the services provided by the current employees who are well trained to address customer needs in the current environment, and employee development as already mentioned.

Significance of the Study

The human resources within an organization are an important component for the success or failure in the performance of the hospitality industry. While the provision of services to the customer is the core purpose of the hospitality industry, yet the underlying reason is for the business organization to make profits. Profits are the underlying factors for the survival of any business and in particular the hospitality industry. However, an organization can make profits based on employee performance, customer retention, and customer attraction. Thus, organizational employees need to be equipped with the appropriate skills to execute their duties effectively and efficiently. Poorly performing employees is a problem for any organization, while well-performing employees are an asset to any hospitality industry. However, getting the best talents within an organization is a challenge that organizational human resource managers face. Typically, these talents can be recruited or talents within an organization identified and retrained to address the human resource needs in the hospitality industry. There are a number of benefits associated with retraining and recruiting human resources within or from the outside of an organization. In the same tone, there are a number of disadvantages associated with recruiting or retraining employees for the hospitality industry. Therefore, it is the responsibility of the human resource personnel to evaluate the approaches to identify the best strategy to fill vacant positions arising within an organization.

Problem statement

Many organizations in the hospitality industry find it a challenge either to recruit employees from outside of the organization or to retrain currently existing employees within the organization. Both approaches have benefits and demerits for the target business organization reinforcing the dilemma on the appropriate option to adopt by human resource managers. However, the current study crystallizes the attributes associated with each strategy.

Aim

The aim of the current study is to conduct a comparative study on recruiting talents for the hospitality industry from outside of the industry or retraining the current talents in the industry.

Research questions

  1. What factors should be considered when deciding to recruit or retrain employees?
  2. What are the motivational effects of recruiting new employees instead of retraining employees in the hospitality industry?
  3. Does commitment influence recruitment or retraining?
  4. What are the effects of employee turnover on recruitment or retraining options?

Objectives

  1. To study comparative literature associated with the recruitment and retraining of talents in the service hotel industry.
  2. To identify the rationale for recruiting talents in the hotel industry
  3. To establish the rationale for retraining talents from outside of a firm operating in the hotel industry
  4. To establish the relationship between factors associated with recruitment and retraining and their influence in the hotel industry.

Literature Review

According to Armstrong and Kotler (2012), many human resource managers are in a dilemma of deciding between retraining organizational employees and recruiting talents in the hospitality industry. Each of the options that the human resource management might take has a number of benefits and demerits that each appropriate organization should exhaustively consider in relation to organizational needs. However, it is crucial that different issues have to be considered when deciding to recruit or retrain employees to attained organizational goals and objectives (Abelson, 1987).

One of the factors to take into account is the direct costs associated with either of the strategies as discussed later. Other issues to consider are the high staff turnover that might affect the employees in the hospitality industry. High employee turnover rates are very disruptive to any business activities especially with detrimental effects on the performance of a business (Armstrong & Kotler, 2012). Disruptions are a major cause of demotivation among employees and can lead to the slow death of a business. Other detrimental effects of job disruptions include low morale, demotivation, and lack of job satisfaction among employees (Abelson, 1987; Armstrong & Kotler, 2012).

Studies on the best option to recruit or retrain based on employee turnover indicate that organizations sometimes retrain talent with the ultimate aim of retaining them only to find the retrained personnel exiting from the organization. However, one of the factors that influence employee turnover is an organizational commitment to the current workforce. When the commitment in terms of retraining is low, employees even if they are retrained must seek for ways to exit from the organization and seek for the best working environment. Commitment, actual turnover, retraining, and recruitment constitute related factors that influence the option to adopt a specific approach than the other (Ashby & Pell, 2001).

Retraining, on the other hand, is a commitment that organizations show to motivate employees to stay within the hospitality industry. One of the commitments that are reflected in retraining employees is to affect commitment (Allen & Meyer, 1990). According to Chang (1999), affective commitment develops an emotional attachment to an organization, employee involvement in organizational development, and individual identification with the employee. Retraining is an approach that improves employee commitment to their jobs ad is likely to yield positive results such as improved performance (Armstrong & Kotler, 2012). Another form of commitment is a normative commitment where employees develop an obligation toward the organization. In addition to that, continuance commitment is also another element yielded when employees are retrained instead of recruitment (Allen & Meyer, 1990).

Other factors that contribute positively to motivating employees are the pay practise that firms adopt. Pay practice deals with salary, wages, and other compensation mechanisms that organizations use to compensate employees for the work they have done. Thus, an approach is crucial in determining the level of employee turnover and the motivating element behind their desire to stay within the firm (Chang, 1999). Typically, there is a strong relationship between job satisfaction and pay to practise a firm may adopt as part of its policies. Higher wages have been shown to increase productivity in a firm. Thus, the pay practise can influence the policy an organization adopts either to retrain employees or to recruit new talents into the organization (Alrichs, 2000).

It is evident that organizational employees with high staff turnover experience many problems with their customers. There is the possibility that such an organization can experience customer and profits decline. It also becomes a difficulty for the organization to attract new customers and retain old customers. Staff turnover has been shown as one of the fundamental factors that directly affect profits and growth opportunities for any organization performing in the hospitality industry. Typical examples include the quality of services offered by ever-changing staff and the consequent implications on customer attitudes (Alrichs, 2000). When a customer develops a negative attitude toward an organization offering certain services, there is the possibility that the same customer will be discouraged and discourage other customers from using the same services (Alrichs, 2000).

It has been observed among human resource managers and researchers that the human resource department should critically consider the issue of recruitment and retraining and prioritise the approach based on organizational needs and industry trends. The human resource department should assess the effectiveness of the approach adopted in filling a vacant position or addressing organizational needs and use appropriate methods to evaluate the right candidate for a specific position within an organization (Ashby & Pell, 2001).

Research has shown that when deciding to recruit or to retrain talents, it is crucial for the appropriate department to consider a number of factors to that effect. One of the factors to consider is the value associated with the current position in the organization and its impact on the operations of the organization. It is also important to examine and evaluate the skills set of employees who can fit into that job and identify the need to retrain or recruit the employee (Davies, Taylor & Savery, 2001). Studies show that retraining or recruiting should be tailored to fit into the organizational structure in relation to the demands of the business organization in the hospitality industry. It is critical to note that the organizational structure is one of the factors that affect its performance (Alrichs, 2000). A poor organizational structure contributes to the poor performance of an organization while good organizational structures are the underlying motivational factors for good performance. However, it is also important to evaluate the cost of retraining and recruiting in connection with the organization’s goals and objectives (Elangovan, 2001).

It has been proposed in a number of studies that when recruiting or retraining individuals to fit into a specific job in the hospitality industry, it is important to consider a number of factors. These include identifying the specific requirements of the job by examining and evaluating the importance of the factors in relation to the needs and objectives of an organization. The importance associated with the job and the skill set as already mentioned above serve as underlying factors in deciding the approach to use (Elangovan, 2001). Typically, the human resource manager should identify the duties and responsibilities associated with a specific vacancy. Once the evaluation and comparisons have been done, the human resource manager examines in detail the kind of talents available within the hospitality industry to fit into the position and evaluate the option of recruiting or retraining a talent to fit into the availed vacancy. Therefore, the best tool for the organization to use is the job description of the available job (Alrichs, 2000).

Other studies show that the job description provides the benchmark for opting to recruit of retraining the employees. The job description provides an accurate assessment of the vacancy to be filled in the hospitality industry and serves as a guideline on the elements to consider in the process. Among the elements to be included to provide an accurate description of a vacancy is the job title. Other components to be included include the department that the individual will fit into and the location of that job. Another key element to consider in the description is the relationship between the posts and to whom the person could report to. Thus, that establishes a reporting relationship between the new occupant of the potion and the management (Firth, Mellor, Moore & Loquet, 2004).

Other details that are considered in the study should include the specific functions that the person could be required to undertake in that position, key duties and responsibilities, and the purpose of the job. Once these factors are considered, then the human resource manager embarks on the next process of evaluating currently existing talents in the industry and the possibility of recruiting an employee from outside of the organization (Alrichs, 2000).

The human resource department should establish a number of benchmarks or a scale against which to measure the attributes of the person required for the specified post. It is a comparative exercise by examining current talents within the organization and applicants who have expressed interest in the job (Ashby & Pell, 2001). Among the points to consider include physical makeup, the level of educational attainments and qualifications, the intellectual capacity of the applicant and the existing talents, one’s interests and disposition toward others, and special circumstances surrounding the job (Alrichs, 2000).

When considering recruiting or retraining employees, organizational managers should consider a grading system to use when evaluating a specific employee. According to available studies, a number of organizations with significant success have adopted a five-point grading system. The system consists of evaluating the impact an applicant or the existing talent has on other employees in the organization. That also includes the appearance of the talent, as the hospitality industry requires that the service provider should be of an impressive appearance. It also has to consider the manner and speech of the talent under consideration to evaluate the appropriateness of the talent in filling that position. It is also crucial to evaluate the vocational training that the current talent under consideration has undergone to help determine the appropriateness of fitting into the post. It is important to consider the innate abilities of the evaluated talent for appropriateness to fit into the current posting or not (Alrichs, 2000).

Another crucial factor to consider is the self-motivation of the application relates to the needs of the job in the hospitality industry. Each of the talents s to be screened by the human resource manager to establish their individual goals, success rates, and their consistency in executing their tasks in the hospitality industry. Once these evaluations have been conducted, the human resource department decides whether to recruit new talents into the hospitality industry or to recruit new talents from outside of the organization (Griffeth, Hom & Gaertner, 2000).

The option to train, according to a number of research reports is in response to the shortage of talents that respond to industry needs. The hospitality industry has unique characteristics that require well-trained talents to provide services in the industry. However, other researchers contend that retraining talents within an organization are beneficial to the designate organization compared with recruiting employees into an organization. Among the elements to consider when deciding to recruit or train the existing talents is motivation. However, the underlying component that drives motivation is attitude and job satisfaction. Job satisfaction and employee attitude might strongly contribute to the decision to hire new employees or retrain current employees (Griffeth, Hom & Gaertner, 2000).

Skills Gap

Successful business organizations ensure that employees have the appropriate skills to execute the tasks and responsibilities assigned them. It has been demonstrated in the industry that employees in the hospitality industry require appropriate skills to ensure the performance of the organizations retains profitability at all levels of their operations. However, some of the employees lack sufficient skills as a motivating factor for recruitment instead of retraining employees. However, research shows that it is possible for an organization to suffer from a skills gap, necessitating the organization to recruit employees from outside of an organization. However, it has been demonstrated that the skills gap in the employees of an organization can either be bridged by retraining the employees of recruitment. However, as mentioned above retraining and recruitment in the hospitality industry are given precedence depending on organizational goals and objectives. Thus, it is important to conduct a review of the literature on the skills gap to enable organizational manager decides which strategy to adopt to attain organizational goals and objectives (Ashby & Pell, 2001).

A skills gap may exist between current talents in the hospitality industry from which an organization might desire to bridge. A skills gap is defined as “a significant gap between an organization’s current capabilities and the skills it needs to achieve its goals”. The skills gap places organizations at a critical position where their performance so brought to question in an increasingly completive environment. The skills gap provides human resource managers with the challenges to address and opt to fill vacancies or retrain employees in the working environment. That is specifically because job requirements in the hospitality industry keep on changing and new talents might be required to take the new challenges that come with the changes. In addition to the changing job requirements, educational needs keep on changing to address the changing environments in the hospitality industry. That necessitates challenges to human resource managers to identify the best strategy for talent recruitment or retraining.

Changing Nature of Work

It is important to consider the aspect of the ever-changing nature of work (Templar, 2010). Research has shown that many of the requirements in the hospitality industry are becoming knowledge-based and demand that the workers become knowledge-intensive. However, it is important to agree that the service industry draws on workers from the knowledge-based industry to actual physical talents. Typically, the hospitality industry also draws on the exchange of information on services and products (Guthrie, 2001; Hegney, Rogers-Clark, Gorman, Baker & McCarthy, 2001). These kind of transactional approaches of attending to the needs of the customer are knowledge-based and require one with the skills that address such needs. However, as already stated some of the work in the hospitality industry might not be knowledge-intensive depending on the type of work. One can conclude that the kind of talents needed in the industry might be both knowledge-intensive and non-knowledge intensive. It is therefore crucial to note that recruitments and retraining must be based on the knowledge needs of the organization (Ashby & Pell, 2001).

As mentioned above, the skills gap can necessitate an organization to retrain or recruit talents in the hospitality industry. The skills gap has the potential to reduce and affect adversely the performance of an organization. That could necessitate an organization to recruit or retrain. However, retraining employees with a skills gap has a number of benefits. Typically, that is due to the number of employees working in that organization, the size of the organization, the cost of retraining, and the need for knowledge change within the organization. If the human resource managers determine that all employees need to be retrained for the organization to attain its goals and objectives, then retraining becomes necessary, however, if the organization determines that recruitment is necessary since the new recruit could come with new skills and expertise into the organization, then it becomes necessary to recruit. However, human resource managers need to identify key reasons that motivate the organization to retrain the talents or recruit the talents (Ashby & Pell, 2001).

Among the items to consider include the skills of the workforce currently working in the hospitality industry do not march with the business needs of the organization, the strategy, and goals of the firm, then, it becomes essential that the employees be retrained (Hui, 1990). That could be the case since laying-off all organizational employees and recruiting a new workforce could have a detrimental effect on the operations and performance of the firm. Another reason that compels an organization to retrain instead of recruiting employees is if a merger happens between industries, and new employees come with new organizational cultures and skills, then, it could be important for the survival of the new company to retrain the current talents (Hui, 1990; Templar, 2010).

It might be possible for an organization to experience financial problems. That necessitates an organization to cut down on expenditure. Instead of the organization retraining talents, the organization decides to recruit since the cost of retraining becomes prohibitive for the organization. Another problem associated with retraining talents within an organization is lack of financial commitments and upper management support for retraining and development (Hui & Triandis, 1985). Employees in the workplace always desire that the management be interested in their growth and development. When the upper management has made no commitments for their retraining, then recruitment of talent becomes necessary. However, due to the changing job environments, changing skills needs, as mentioned elsewhere, might arise with immediacy. On the other hand, since retraining might take time, recruitment might be effective as it could address the rising needs with sufficient immediacy.

Suggestions, however, have been made on the approaches organizational talents can adapt to bridge their skills gaps and ensure successful delivery of services in the hospitality industry. These approaches help to save organizations the cost of recruiting or retraining personnel within the organization. These include employees being aware of the performance goals to attain organizational objectives. Each employee is required to identify the key strategies in the hospitality industry and the firm they are working (Ashby & Pell, 2001). Each of the employees should establish performance metrics and evaluate their selves in meeting performance metrics. It is important for the employees to identify competencies to enable them to map organizational strategies with the performance metrics required for an improved and cultivated talent. One of the strategies used in mapping the skills gap is to identify the core business functions and what is crucial in attaining the organizational strategies. It is also important for the management and the human resource managers to work with the employees to identify the current needs and future competencies in bridging the skills gap. Each of the characteristics identified in the skills gap should also be prioritized depending on organizational talent needs (Hulin, Roznowski, & Hachiya, 1985).

Once the skills gap has been identified, it is critical for the management and the employees to work together toward implementing the key elements for successful implementation of the skills gap strategy. Many suggestions have been made on the approach human resource managers need to consider in filling the gap. These include setting goals and establishing measures of current skills, identify measures and goals for filling such talent gaps and establishing a strong path to follow in implementing the strategies to fill the skills gaps. It is important for the managers to identify approaches that are appropriate for filling the gaps and how the management will contribute to executing the procedures (Huselid, 1995).

Once these strategies have been implemented of filling the skills gaps, then it is crucial for the management and the employees to make a follow-up by evaluating the success rates in the skills gap implementation. Typically, that includes monitoring and measuring employee progress, using benchmarks and other assessment tools to evaluate the effectiveness of the skills gap implementation strategy, and measuring the success rates among the talents in the industry (Kirschenbaum & Weisberg, 2002).

However, some other factors favour an organization to recruit talent in the industry rather than retraining the current workforce.

Other Salient Factors

It is important to note that a number of other factors have to be called into account in determining the underlying success of the hospitality industry. Lack of successful attainment of organizational goals and objectives are some of the underlying factors that necessitate organizations to consider retraining or recruiting employees within the hospitality industry (Ashby & Pell, 2001).

The hospitality industry requires a workforce that is trained effectively and efficiently to address the emerging needs of the hospitality industry. However, it is important for any organization in the hospitality industry to attract and retain people with sufficient and effective skills in the industry. Such well-trained and qualified personnel provide an environment for the customer to get attractive and desirable services. However, the lack of sufficient skills in the industry might cause an organization to decide to retrain the existing talents or recruit new talents into the firm. However, employees at times find themselves compelled to shift from their current positions and look for different jobs if they are not satisfied with the current jobs. That compels organizations to recruit or to decide to retrain existing talents in the industry. However, there are underlying reasons that underpin the retraining or recruitment of employees in the hospitality industry. Therefore, it is crucial to consider the literature that discusses the underlying factors that compel human resource managers in an organization to attempt to adapt one of the two approaches.

Factors to consider when deciding to recruit or to retrain existing talent are driven by priority areas that demand actions. These include the demand for a highly skilled workforce, strategies to invest and expand on the traditional workforce, the ability for the organization to access quality workplaces, and workforce planning.

One of the options that compel organizations in the industry is by evaluating the existing workforce if it is providing quality services that drive the demand for the services forms the specific industry. It is important to consider the service industry as one that requires well-trained personnel and the management should work toward attaining a level of proficiency in attracting and retaining employees. If a guarantee is established on the ability of the organization to retain its employees, there is every chance that retraining might be more advantageous than recruiting. That is because employees within an organization who are retrained are likely to retain their talent within the organization with enhanced performance. That is also because old employees are conversant with the organizational culture and other processes and procedures, and need no further training. Therefore, it is less expensive to retrain existing talents than recruiting them.

However, one crucial element that organizational employees consider is the age of the current workforce. While it might be assumed that aged employees have a rich set of experiences in the hospitality industry, yet there is the possibility that the entire workforce at one time might retire and the organization suffer adversely. Therefore, that fact supports the need for organizations to recruit new and younger talents into the hospitality industry. It is therefore important for organizations to address the need to factor a diverse workforce that can be attained through recruitments. Increasing the workforce diversity, factoring the factor of an increasingly ageing workforce, and enhancing the workforce expertise are some of the fundamental factors to consider when deciding to recruit or retrain talents in the hospitality industry (Steel & Griffeth, 1989).

Research has shown that organizations in the hospitality industry suffer from the fear that if they retrain current talents in the industry, there is the possibility that they might incur high training costs and time only for the newly trained talents to seek for jobs elsewhere and end up as a loss to the current organization. It is therefore critical to examine the main reasons that cause high employee turnover rates for these organizations to consider when taking either of the options mentioned elsewhere in this paper. In the context of the current study, employee turnover is “Employee turnover is a ratio comparison of the number of employees a company must replace in a given time period to the average number of total employees. A huge concern to most companies, employee turnover is a costly expense especially in lower-paying job roles, for which the employee turnover rate is highest” (Beach, 2003). “Many factors play a role in the employee turnover rate of any company, and these can stem from both the employer and the employees” (Beach, 2003). “Wages, company benefits, employee attendance, and job performance are all factors that play a significant role in employee turnover” (Beach, 2003). “Companies take a deep interest in their employee turnover rate because it is a costly part of doing business” (Beach, 2003).

Employee Turnover

Employee turnover is driven by the tasks, behavioural characteristics of the workers, the characteristics of the firms, and other industry variables that human resource managers need to develop policies to curb the trend in the hospitality industry (Beach, Brereton & Cliff, 2003). It has already been mentioned that turnover has adverse effects on the performance and operation of any firm. Therefore, there is a need for managers to strategies to reduce employee turnover and mitigate the negative effects associated with talent turnover. Among the empirical evidence on the effects of employee turnover include direct and indirect costs associated with the rate of employee turnover. When the turnover is high, organizations incur costs due to advertising for a vacant position, incur costs associated with head hinting, and result in reduced productivity (Beach, Brereton & Cliff, 2003). In addition to that, it has been established that human resource costs are incurred in the process of recruiting a new employee. It has been established that costs associate with recruiting new employees translate to over 30% on top of the salary of the employee (Beach, Brereton & Cliff, 2003).

According to Boxall, Macky & Rasmussen (2003), a number of potential problems associated with employee turnover leading to disruptions. These include demotivating employees, disruptions on the operations of a firm, poor public relations, and high personnel costs. Other demerit associated with employee turnover includes strategic opportunity costs, poor organizational image, and social integration (Beach, Brereton & Cliff, 2003).

It is important to examine the reasons that lead to employee turnover from an organization to enable organizations to identify the earlier signs of turnover to help retain their employees they have already trained. These include poor salary scales, poor performance appraisals, and unstandardized pay. It has been established that “When two or more employees perform similar work and have similar responsibilities, differences in pay rate can drive lower-paid employees to quit. In a like vein, if you pay less than other employers for similar work, employees are likely to jump ship for higher pay, if other factors are relatively equal” (Hellman, 1997).

Research Methodology

To attain the ultimate goal of the comparative study to recruit or retrain talents in the hospitality industry, the researcher decided to conduct after the research in the UK hotel industry. Within the UK different hotels with different settings and cultural backgrounds were considered to attain comparative results. These destinations were identified as crucial in the collection of primary data to address the dilemma faced by management in the UK hotel industry within a multicultural environment. The study considered a sample size of 24 participants with a sampling frame consisting of people working in the hotel UK industries. A repeat sampling occurred 6 months after the first data was collected. The underlying reason for the repeat of the study was to establish any changes in trend to provide a concrete baseline to make the study reliable and show a strong relationship between industry dynamism. Three hotels with multicultural considerations were considered in this case with each contributing 8 participants. In addition to that, the study constituted sampling in a 6 months period to identify the impact of the variables in relation to attaining the aim of the study.

It was crucial to consider each of the qualities of a sampling frame such as logical organization, contact information, and fair representations of each element in the population were observed. Typically, the current research aims to compare the recruitment and retraining of talents in the hospitality industry with the view to crystalize both options for human resource managers. A number of factors identified in the study included considering the priority areas to conduct the study and the characteristics of the industry, variables such as emerging trends in the industry as motivating factors to retrain or recruit, and other factors like the grading system and its influence on the overall skills set of the recruited or retrained employee. However, it is critical to note that some of the data might not have been included here, though it was used in the study, according to the agreement between the source of the data and the researcher.

The current research will be both qualitative quantitative. It will be qualitative based on comparative literature available on the recruitment and retraining of employees in the hotel industry. Qualitative research in relation to the comparative literature on the rationale for recruiting or retraining and retraining approaches and the underlying variables provide the basis for the research. Typically, the literature will also provide information on the variables related to recruitment and retraining, thus answer the research questions for the underlying study. However, the research will also include quantitative research. The qualitative study will also underlie primary data collection with the aim of establishing numerical values related to the study variables and their relationship with the retraining and recruitment approaches.

In the quantitative study, questionnaires were used to gather information on the best strategy managers should adopt and the underlying reasons for adopting such a strategy. Thus, quantitative data provided a scale upon which the variables mentioned below could be assigned values. The quantitative study provided data on priority areas to consider in relation to recruitment and retraining by providing numerical values related to variables such as grading systems, self-motivation, the skills gap, changing business environment and industry trends, employee satisfaction, and the nature of work. In addition to that, quantitative data collected using questionnaires could be quantified in relation to the above variables and other variables related to the study.

Additional variables to consider included employee turnover, employee satisfaction, direct costs, the frequency of business disruptions, employee morale, organizational commitment, emotional attachments, and pay practises. In addition to that, the questionnaires will serve as data gathering tool to provide an instrument for collecting data on productivity and its relationship with recruitment and retraining, profitability, attitude, value, job requirements, and duties and responsibilities in relation to the type of job and the link between the job and recruitment or retraining. However, it is crucial to consider a number of factors related to evaluating the suitability of questionnaires in relation to their use in the current study to attain the objectives and drive the study towards achieving the main aim of the study as discussed below.

It was crucial, before starting the questionnaire administration process to examine the characteristics of a questionnaire to establish the underlying rationale for using questionnaires (Denzin, 1978).

One of the factors to consider include the reliability of the questionnaire as a data-gathering instrument. The reliability of a questionnaire is based on the fidelity and perspectives of the respondent. The researcher in this case can be the researcher or a team member recruited into the research team (Denzin, & Lincoln, 1998).

However, there are problems associated with questionnaires as data-gathering instruments. Different authors concur on different problems presented as data-gathering instruments. One such problem is the persistence of records registered and noted to occur in a similar direction. However, questionnaires were settled upon as one of the most important tools for informing the study due to their relative advantage to the case under investigations.

The study was characteristically longitudinal and involved a cross-sectional design. Drawing from different research designs, questionnaires were a dominant and common tool to use in the study.

Questionnaire Survey

A questionnaire is a tool used to capture information from various respondents in the population targeted for the study. According to Denzin and Lincoln (1998), questionnaires are well thought out statements, which respondents use to provide feedback on their perceptions about a specific situation. Questionnaires are in different designs and are used purposely to fulfil a specific purpose in any study.

One important and critical characteristic of a questionnaire is that it is an evaluation tool that is administered after the occurrence of an event. However, a critical analysis of the situations in which questionnaires are administered indicates that a questionnaire can still be administered even before an event occurs. In the current study, the questionnaires will serve the critical purpose of capturing data relevant to the study.

The questionnaires to be administered will be designed with a high degree of clarity not to leave any ambiguity in the mind of the respondent. The aim of the study will be to establish the rationale behind recruiting talent or retraining talents in the hospitality industry. The questionnaires therefore will be used to generate data that can be analyzed to reinforce the rationale for recruitment or retraining.

Questionnaires are identifiably some of the most appropriate tools to use in the current study due to the benefits associated with their use. One of the critical benefits associated with questionnaires is the applicability and flexibility of use.

It is important to design the questionnaire based on the problems and the study under consideration. One critical component incorporated into the questionnaire design is the aim of the study. To formulate the study, therefore, a theoretical proposition will be to inform the approach as detailed below.

The actual environment dictates that the questionnaire has to address various and specific issues and factors that will, when analyzed, provide a strong case for recruitment or retraining of talents (Glesne, & Peshkin, 1992).

Questionnaire Design

In theory, a questionnaire design should be well drawn beforehand with careful considerations emphasized at the planning stage for the type and kind of questions to pause to the respondents. The respondents and the kind of information to collect from the respondents also influence the questionnaire at the design stage. In addition to that, the kind of response elicited due to the content represented in the questions was carefully considered. That allowed the researcher to consider the kind of a sampling to use and the target population. In addition to that, it was of critical importance to consider the fact that questions paused should be unambiguous and were expressed in clear and simple language. In addition to that, the questions were presented in detail for clarity, precision, and to ensure the questions were straight and to the point. Typically, the issues mentioned above reflected the format after which the questions were designed. The format presented the general layout of the questions and the logic that they were arranged on the paper. Importantly, questions should be logically arranged not to confuse the respondent, but allow the respondent to provide answers in a methodical manner.

A general observation is that simple questions are always placed at the beginning of the document. In addition to that, the designer of the questionnaire ensured that the questions remained simple, clear and to the point, thus, avoiding any complexity in their design.

On the other hand, the sequence of the questions considered and their layout examined for consistency with the case under investigation.

It was important to conduct a test on the questions to identify any weak points for corrective actions. Once the pre-test was completed, then corrections were done on the questions contained in the questionnaire prior to their large-scale application in the field under investigation. Specific consideration of the environment under investigations indicated the design of the questions targeting each respondent based on the kind of information to capture (Glesne, & Peshkin, 1992).

It was important to consider the personal feeling people have when being asked questions related to age, gender, and educational levels. Therefore, it was important to keep safe confidential information once had been made available depending on the applicability of the information to the research.

One specific characteristic of questionnaires is the level of confidence respondents were accorded using the document. Respondents need to be assured about the confidentiality of the information they provide without any negative implications on their well-being. In addition to that, the questionnaire should clearly state the reason for the information captured into the questionnaire and where the information is to be used.

Questionnaires are susceptible to low or high response rates. It was therefore the responsibility of the one conducting the survey to ensure response rates were maximized. Various methods for maximizing responses include providing an introductory statement about the questionnaire and its intended purpose, and a cost-free mode of delivery for the respondent. On the other hand, when responses are not forthcoming particularly after two weeks expire from the date they were posted to the respondents, it is important to resend the questionnaires and reminder letters.

In the case to recruit or to retain employees within the organizati0on, the responses were high due to a number of factors. Among them included the facts that respondents were well informed about the survey under consideration and the implications of the approach to retrain or to recruit on organizational performance and their position in the jobs. Many respondents were free to participate in the survey. In addition to that, employees particularly at the low levels of management were also cooperative in proving information related to recruitment or retraining. However, difficulties were experienced with some employees at the management levels and specifically for those that were perceived to be poor performers. However, another management staff was supportive of the move as they realized the rationale to incorporate a retrain or recruit as an approach to improve the level of productivity and quality of work.

The advantages and disadvantages of questionnaires as data-gathering tools were considered in relation to recruitment or retraining employees. In addition to that, the advantages and disadvantages were also informed from theoretical perspectives of the merits and demerits of using questionnaires as survey tools.

Among the driving factors that made questionnaires appropriate tools to use include the flexibility, convenience, and the objectivity of administered questionnaires. In particular, questionnaires were identified to be instruments that had the advantage of being standard, therefore, the processing time for the resulting data was convenient a less complex. On the other hand, a large population sample could be covered in the study without the need to redesign the questions administered in the study (Clont, 1992).

However, various disadvantages were identified with the use of questionnaires. In theory, open-ended questions are difficult to analyze, as they are highly subjective. On the other hand, closed-ended questions are specific and smaller amounts of data are made available or processing. In addition to that, respondents may find it difficult to respond when given long-winded questionnaires with the possibility of providing superficial answers.

One other consideration factored into the design of the questionnaires included the design was the different disciplines that contributed to the option to recruit or retrain. These included personnel working at different levels of management, employees, and the relationship between employees and their occupation during the working lifecycle. Moreover considered in the design were the customers. It was important to consider the questionnaire design process, and it was critical to consider equality issues specifically accounting for gender, age, occupation, and family size. However, it is important to note that employee turnover peaks when many economic uncertainties prevail. Thus, when firms decide to recruit or to retrain it must also be pegged against economic uncertainties and other performance factors.

Research Design

The research design constituted different aspects of design components with descriptive approaches that may be concrete or abstract. In addition to that, the design was informed by characteristics of the society, which in essence define a social research. A social research, according to the grounded theory, attempts to establish a strong relationship between facts and highly developed procedures that reveal the behavioural patterns in people (Glesne, & Peshkin, 1992).

On the other hand, accurate descriptions of the implications of recruiting or retraining, cost incurred, and time constraints are examined and belong to the group of elements that will inform the study. On the other hand, an exploratory research will inform the study by providing answers to the research questions.

Analytically, the research design will be triangular constituting internal and external factors that influence the outcome and outputs of any of the two approaches. Typically, the research design will be interactive in nature and will take a triangular shape. These approaches allow using both qualitative and quantitative approaches to address the main objective of the study. The research design will provide a basis for understanding the factors that influence labour productivity, input, and output variables, which affect the outcome of an option. In addition to that, the study will be informed by the standards and variables to be integrated into formulating an approach to either retain or recruit new talents. Evaluations will be conducted at the management level, employee level, management factors, and risk factors. The research design will draw on variables that seek to crystallize the need for retraining or recruiting (Healy & Perry, 2000).

Sample Size and Sampling Frame

In theory and practice, a sample consists of a target group of participants or population that is used in a study. The population, in this case, consists of a target group with characteristics that are common among the entire population being studied. Information will be collected through a survey to be conducted on the target population. Importantly, there is no relationship between the size of the sample survey and the size of the population under investigation. Despite that, large samples yield more accurate information about the survey being conducted.

A sampling frame, in theory, forms the source of the materials to be used in a study. Typically, as specified below, the study will concentrate on a sampling frame descriptive of the study being undertaken (Healy & Perry, 2000).

Results and Discussion

The study was conducted with a time difference of 6 months before conducting an analysis for comparative purposes. Three different areas that were characteristically multicultural were also considered in the study. The sample characteristics used included identifying the age brackets to identify the type of responses each age bracket could provide and different areas with different cultures. However, the sample provided is representative of other areas that showed a strikingly similar trend. The study sample consisted of respondents both male and female working in the UK hotel industry. The distribution of the age included <20, <30, <40, and <50. It was, however, noted that age has a minor influence on the results. The two tables below represent the responses within a six months period to establish the trend and justify the appropriate approach used.

Two samples of data in the appendix show that some managers consider retraining instead of recruiting new employees. The results show a However a significant difference in response rates when compared for the two six months period the data collection was done. The findings show that 91.7% are for recruitment instead of the retraining of the workforce in the first study while 80.6 % showed a similar response after a 6 months period. Some of the reasons the provided were that retraining might be expensive, new skills might not be captured into the industry due to organizational culture deeply embedded into the employee thinking. Typically, the differences in the responses show a similar trend for the first and second sample studies. In addition, there could be high chances of exits from the industry, and need to retrain. Recruiting brings new blood with new skills into the industry, among other reasons.

Another key element considered in the analysis was motivation. 24 questionnaires were administered to determine the role of motivation as a tool to retrain or to recruit. 8.3% of respondents regarded retraining as a strong motivating factor for the employees while 91.7 % did not consider retraining as a motivating factor. Instead, recruitment could motivate the employees by new entrants bringing new skills and ways of doing things. However, it was difficult to determine how recruitment could be motivating factors, but assumptions such as internal conflicts and other variables not readily identified could facilitate motivation in the recruitment direction. While the argument might be related to the first study, it is crucial for the reader to examine the two samples. Typically, the similarities and differences seem to be small, and the percentage differences for each of the responses seem to show no significant difference for the researcher to conduct an analysis using the first sample.

16% of the respondents agreed that commitment to pay could felicitate the firm to recruit instead of retraining, while the 84% were in favour of recruitment, and the respondents were below <20 years of age. One could expect that age bracket to offer significant support in favour of retraining, but have significant support for recruitment. Typically, some variables such as the capability of the firm to retrain and the type of industry training could influence their attitude. On the other hand, 25% of the respondents were in favour of retraining in the <30 years age bracket, while 75% were in favour of recruitment in relation to commitment to pay. However, 29.2 % of the respondents in the <40 years age bracket were in favour of retraining, while 71.8% were in favour of recruitment. On the other hand, 20.8% were in favours of retraining in the 50 years age bracket, while 79.2% supported recruitment.

Thus, establishing a strong trend in support of recruitment instead of retraining based on the study conducted on the sample. Other factors that had significant contributions to the study included turnover where 29.2 % were in favour of retraining instead of recruitment within the 20 years age bracket, with a rising trend registered for the subsequent age brackets. Implying that turnover was a significant factor that could influence the retraining of employees. Typically, the trend rose from 29.2 % in the lower age brackets to 42.5 % in the upper age brackets showing the significance to conduct further studies in the effects of turnover and underlying causes of turnover in the industry and its consequences. Other factors included the age and skills gap. Skills gap and age has fair distribution in favours of recruitment across the age brackets implying turnover had the most impact on retraining and recruitment.

On the other hand, 8.3 % of the managers responded by stating that they consider retraining instead of recruitment. However, the response rate, in this case, was low. Only 12 questionnaires were responded to, in which only 8.3 % of the respondents preferred retraining instead of recruitment. However, 37.5 of the respondents were in favour of retraining. On the other hand, 37.5% of the respondents confirmed that they supported recruitment when the exit rates were high, while 29.2 per cent supported recruitment is motivation was the underlying reason under consideration.

According to the facts from the above study, a number of findings were established. A significant number of industry players favour either one of the approaches. That is based on questionnaire findings that were administered on employees and managers in the hospitality industry. Results show that managers and employees favour any of the two approaches depending on a number of influencing factors. That included motivation, organizational culture, opportunities for growth and development, skills gaps, the type of knowledge requirements, and the age of the employees. The motivation was identified as one of the factors organizational managers identified as a key driving component for organizational managers to recruit or decide not the recruit but retrain existing talents within an industry.

It was realized form the study that the objectives and goals of an organization are some of the motivating factors compelling organizations to retrain employees. Retraining employees could motivate them by showing them that the organization is concerned with their growth and development. Retraining employees also motivates them and makes them trust and develop confidence in the organization since it shows a lot of commitment to employee welfares. Thus, motivated employees are likely to improve their productivity and the quality f work they do. In addition to that, motivation makes employees own the job and tasks associated with the job, thus making them add value to their work. It inculcates in them the belief that the management is concerned with their job security.

Organizations retrain their talents since at times it becomes difficult to recruit new talent that can fit into the organization at once. New talents need some time to be retrained and get acquainted with an organization’s culture and operations. Thus, if the tasks are knowledge-intensive, a firm is likely to get a negative impact on its overall performance that might translate to customer dissatisfaction and loss of customers with the consequent loss of profits and organizational performance.

However, results also showed that an organization might decide to recruit new talent due to a number of factros. One of the underlying reason that makes organizations decide to retrain is the immediacy of filling a position that has suddenly fallen vacant due to some reason. It might be difficult if the current workforce does not merge the skills required to fit the current position that has fallen vacant. It is therefore compelled to recruit rather than to retrain new talents. The hospitality industry requires a workforce that is trained effectively and efficiently to address the emerging needs of the hospitality industry.

However, it is important for any organization in the hospitality industry to attract and retain people with sufficient and effective skills in the industry. Such well-trained and qualified personnel provide an environment for the customer to get attractive and desirable services. However, a lack of sufficient skills in the industry might cause an organization to decide to retrain the existing talents or recruit new talents into the firm. However, employees at times find themselves compelled to shift from their current positions and look for different jobs if they are not satisfied with the current jobs. That compels organizations to recruit or to decide to retrain existing talents in the industry. However, there are underlying reasons that underpin the retraining or recruitment of employees in the hospitality industry. Therefore, it is crucial to consider the literature that discusses the underlying factors that compel human resource managers in an organization to attempt to adapt one of the two approaches.

On the other hand, retraining has much better benefits to the organization than recruiting. That might be due to the ever-changing trends in the hospitality industry and the business environment. Retraining, though it might be expensive at times provides the less costly approach of retaining employees and enhancing their skills to remain competitive in the market. Retraining might also be beneficial to the organization as it facilitates employee growth and development, therefore, internal promotions and improves the opportunities to retain current and existing talents. However, the size of the firm and the cost of retraining compared with the cost of recruiting have to be considered carefully.

Other factors considered by human resource managers in deciding to recruit and deciding to retrain are where employees are unionisable and other employees are not. It is also important to consider opportunities for the productive improvement, restraints on mobility, and the ability for the firm to provide training needs.

According to the above research, results show that an organization can decide to retrain its workforce to address the needs of a changing business environment and by considering that the acquisition of skills is a continuous process and not a one-point process. It is based on the underlying principle that skills acquisition is a process that should not be restricted to a one-point demand but a projection of future needs in the job market. It is important to consider the skill needs for a specific job, the work organization in that particular firm, underlying recruitment, and retraining policies, and the job design and employee relationships.

Another underlying reason for an organization to retrain is the culture that the organization has developed in its employees. An organization might have a culture that facilitates an environment for the growth of highly qualified personnel can grow and develop.

When an organization decides to retrain or to recruit talent, a number of issues have become clear to consider. These include establishing and understanding the current trend of skills in the market, future needs, and current needs in the firm. Other factors include identifying the best strategies of retraining the best talent and suitable talent for the jobs in the industry and implementing policies and strategies that encourage growth and development in the part of the employee.

To retrain and retain existing talent in the industry, it is crucial for the management to identify the role of salaries for the employees so that an employee is not retrained only to seek another better paying job in another industry. It is crucial for the management to consider the adequacy of the compensation schemes for the employees to encourage them to stay. In addition to that, the decision to retrain should also be pegged on whether there is another pool of employers who might take your employees after the retraining with better compensation schemes.

Other issues to consider when making the decision to recruit or retrain include job satisfaction with the underlying rationale being the emotional attachment employees develop toward their current potion.

Conclusion

In conclusion, the line between recruiting employees in an organization and retraining is influenced by several factors that human resource manager should consider before engaging in any specific task. Therefore, recruitment or retraining of talent in the hospitality industry should be a carefully-weight task before settling on the right chance. The factors to consider include the direct costs of training an employee and the cost of recruiting new talent into the organization. Recruitment costs are in the form of adverts and other resources and time used to evaluate a candidate for a specific position. Other factors to consider include the skills gap before deciding to recruit or retrain talent in the hospitality industry.

Organizations should consider the merits and demerits associated with the recruitment styles as any adopted approach has long-term positive or negative implications on the performance of a firm. It is also important for a firm to consider the motivational effect of retraining and recruiting the workforce on the current talents within the firm. It might be important for a firm to recruit new talent based on the immediacy of a position and the skills requirements to address the problems. However, it is important for a firm to strategies and retrains its employees with the objective that business needs in the hospitality industry are always dynamic and should be addressed based on dynamically changing skills. Acquisitions of dynamically changing skills addressing dynamically changing business needs should be critical in enabling human resource managers address needs arising in the industry, by making appropriate decisions to either train the current workforce or recruit talent externally. It is also important for the Once the evaluation and comparisons have been done, the human resource manager examines in detail the kind of talents available within the hospitality industry to fit into the position and evaluate the option of recruiting or retraining a talent to fit into the availed vacancy. Therefore, the best tool for the organization to use is the job description of the available job. It is also important the identifying the specific requirements of the job by examining and evaluating the importance of the factors in relation to the needs and objectives of an organization.

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Appendix

Below is the sample questionnaire that was administered on the respondents in the hospitality industry in the research to establish the rationale to recruit or retrain talent in the industry. Information gathered using this questionnaire would be used for the purpose of this study and no other use.

  1. State the underlying reasons that you have observed cause employee exit.­­­
  2. Does your organization motivate employees by retraining them? Yes/No
  3. Does the organization motivate employees by retraining them to inspire self-commitment to the organization? Yes/No
  4. Does pay practice influence the option to recruit or retrain employee talents? Yes/No
  5. Does retraining improve employee productivity? Yes/No
  6. Does recruitment improve employee productivity? Yes/No
  7. Does age contribute to influencing the organization to retrain or recruit? Yes/No
  8. Does skills gap necessitate recruitment? Yes/No
  9. Does skills gap necessitate retraining? Yes/No
  10. Does the changing working environment necessitate recruitment? Yes/No
  11. Does the changing working environment necessitate retraining? Yes/No
  12. Do financial positions influence recruitment? Yes/No
  13. Does age demand retraining? Yes/No
  14. Does age demand recruitment? Yes/No
  15. Are there employee retraining? Yes/No

Sample Data Analysis

Below is a sample of the data analysis that was done during the study that an organization considers as constituting the underlying factors to consider for retraining or recruiting employees.

DisagreeResponseAgreeResponseDisagreeResponsesAgreeResponseQuestionnaires
<20<30<40<50Age distribution
Retrain (Rtn)RtnRtnRtnNo.
8.3%1237.5%1937.5%1912.5%1424exit
8.3%1237.5%1929.2%1716.7%1824motivation
16.7%1425.0%1629.2%1720.8%1824commitment
21.7%1521.7%1513.0%1326.1%1723Pay practice
20.8%1529.2%1720.8%1516.7%1224Productivity
29.2%1729.2%1734.2%1142.5%2524turnover
12.5%1333.3%1825.0%1625.0%1424satisfaction
21.7%1530.4%1713.0%321.7%1323Skills gap
16.7%1433.3%1816.7%1420.8%1224age

Second research with the same variables after six months

DisagreeResponseAgreeResponseDisagreeResponsesAgreeResponseQuestionnaires
<20<30<40<50Age distribution
Retrain (Rtn)RtnRtnRtnNo.
19.4%1736%1945%1923.5%1524exit
18 %1437.5%1929.2%1716.7%1524motivation
26.7%1225.0%1629.2%1719.8%1724commitment
31.7%1121.7%1513.0%1326.1%1723Pay practice
20.8%1829.2%1720.8%1526.7%1324Productivity
29.2%1729.2%1734.2%1142.5%2524turnover
12.5%1333.3%1825.0%1625.0%1424satisfaction
21.7%1530.4%1713.0%321.7%1323Skills gap
26.7%1433.3%1616.7%1830.8%1224age
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IvyPanda. (2021, March 20). Recruiting vs. Retraining in Hospitality Industry. https://ivypanda.com/essays/recruiting-vs-retraining-in-hospitality-industry/

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IvyPanda. 2021. "Recruiting vs. Retraining in Hospitality Industry." March 20, 2021. https://ivypanda.com/essays/recruiting-vs-retraining-in-hospitality-industry/.

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