Human resource management issues in Malta's hospitality industry

Abstract

The tourism industry is a very important sector of Malta’s present and future economic aspirations and plans. The contribution of Travel and Tourism to Gross Domestic Product (GDP) in Malta is expected to rise from 22.6% (EUR1,366.3m or US$1,905.3 m) in 2009 to 25.0% (EUR2,553.3 m or US$3,265.0 m) by 2019, (World Travel and Tourism Council 2009). Clearly the hospitality industry has a major part to play in Malta’s economic future. In this context, the management of human resources in the hospitality industry is of particular interest, assuming that effective management of these resources has a key role to play in the effective operation of the island’s hotels. In this research I am going to explore the Human Resource Management issues facing the Maltese Hospitality industry and offer solutions for them. As indicated in the Malta Tourism Authority Report (MTA 2004), the growth in tourism demand has generated a high demand for manpower in Malta’s hospitality industry. This demand in manpower in Malta is sometimes hard to meet because the hospitality industry’s image is still perceived as requiring a relatively low skills profile associated with low pay, high turnover, unfavourable working conditions and high seasonality (MTA 2004). The tourism industry has become increasingly complex during the last 8 years and the knowledge, skill and ability requirements for occupations ranging from front-line jobs to management jobs have grown significantly. “Tourists have become more experienced and independent generating demand for better quality service, professionalism, customised service and value for money. This generates the need to analyse and develop human resources employed within the tourism industry” (MTA 2004). Abraham Maslow and Frederick Herzberg, two dominating scholars of behavioural theory (Kempton, 1995) while discussing the relationship between individual motivational factors and job satisfaction, claim that in order for firms to understand what motivates people and thereby increase retention rates, they should understand basic human needs, both psychological and physical. If employees have needs that are not fulfilled it could be assumed that they will be dissatisfied and thereby eventually leave the organisation in search of fulfilment elsewhere. In order to foster motivation and satisfaction Herzberg argues that the internal needs have to be met while external needs should be satisfied in order not to have dissatisfied workers (Kempton, 1995). It is viewed by Herzberg as not being enough to satisfy external needs as salary, physical environment, company policy and other basic needs. If firms cannot provide employees with the possibility to fulfil internal needs of personal growth it will become very difficult to foster motivation and satisfaction (Kempton, 1995), thus making it more difficult to retain workers.