Tuesday, June 22, 2010

Best Labor Practices in the Hospitality Industry


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This topic has been added to enable the readers to appreciate the best labor practices of selected tourism establishments from the lodging industry, travel agency/ tour operators, transportation companies, food service industry and tourist sites. It will be noted that 90% of the selected respondents agree that it is imperative to have a proactive and supportive Human Resource Department which will be instrumental in enhancing the welfare of the employees and helping the company towards its growth in investments. An open-door policy with the President or General Manager of the company is most welcome as it has proven to be the most effective means of removing the barriers of communication and enhancing a shared responsibility of nationhood between capital and labor.
In summary, based on interviews with selected respondent managers, the following are the best labor practices that are now implemented in various tourism establishments:
(1) A comprehensive background check is usually undertaken by an employer before admitting newly hired employees.
(2) A two-week orientation training is given to the newly hired employees before they start the actual duty. An immersion of the operations will be observed plus a thorough study of the company’s background by the new employee will be undertaken. A written examination on what was learned during the orientation training will have to taken by the newly hired employees before he starts to work.
(3) Some respondents report that they do not have unions in their workplace. Instead, a weekly or monthly dialogue with the General Manager or President, or weekly meetings with Labor Management Councils are being established to thresh out every problem being encountered by employees.
(4) A performance evaluation on a monthly or quarterly basis is being undertaken among employees. In this regard, proactive counseling is being done to improve performance and productivity level of employees. By way of practice, a written performance evaluation is furnished to the employee concerned.
(5) Meritocracy is observed in such as way that increase in pay and other incentives are always based on performance. Other benefits being given over and above the benefits prescribed under labor standard laws are: meal allowance, vacation leave, sick leave, emergency leave, bereavement leave, hospitalization and medical benefits, group disability insurance, rice subsidy, birthday leaves, profit-sharing, performance based awards, productivity bonus, education benefits, 14th up to 16th month pay, quarterly bonuses, meal allowance, loyalty awards, Christmas groceries and a competitive retirement program. Sports and recreational activities, Christmas parties and weekly bible-reading activities are being undertaken to develop the employees’ physical, social and spiritual well-being.
(6) Adherence to due-process in termination disputes are strictly followed by the employer (i.e. 2-notice rule, hearing or opportunity to be heard, etc.).
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(7) Newly hired employees are oriented on and being furnished copies of the company’s Code of Ethics before they start working. All other day-to-day activities of the company policies are published in memos, copy furnished the employees and posted in strategic bulletin boards.
(8) Employees are furnished copies of their job description, company policies, house rules and the instruments on how they will be evaluated.
(9) Companies invest highly on training and development of employees and managers.
(10) To minimize labor cost, some of the tourism establishments apply the franchising as a business model. Contractual employment on emergency cases is also being undertaken.
(11) For tourist sites which are being administered by the government, strict adherence to civil service laws, rules and regulations is imperative.
As HR Managers, do you have any of the best practices as mentioned above?

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