Evaluation of HR performance in tourism/hotels business
Every successful company and business should pay due attention to human resource management. The company may lose money, customers and partners but still have chances for survival if it has highly qualified and professional personnel. It is people who can change situation and overcome crisis. Sometimes the most creative and innovative ideas come from the lowest level of the company. It is very important two professionally work with employees, measure their performance, evaluate their needs and attitudes. There is nothing better than a loyal and satisfied employee. Statistics show that the most satisfied employees have the most satisfied customers. A satisfied customer is a loyal and regular customer for the company. As known, a regular customer is a regular source of income. So, the company is interested in having professional and loyal employees.
Human resource management, as a part of any management system, needs to be evaluated. It should be noted that evaluation of human resource management more difficult as compared to evaluation of financial indicators. Indeed, it’s not easy to measure such things as employee satisfaction or organization climate. However, with the help of balanced scorecard this is possible. BSC is known as the best performance evaluation tool that links operational and strategic planning. In other words, it puts strategy into action. BSC can also be applied to human resource management.
Different business areas require different approaches and methods of HR evaluate. The differences lie in various key performance indicators. In the field of tourism evaluation of HR it especially important since human factor plays an important role in this business area. Thus, the following indicators may be used in HR evaluation in tourism/hotels business.
- Employee satisfaction. As already said above, satisfied employees have satisfied customers. Many people return to the same hotels every year just because they like service, attitude, atmosphere etc. So, the entire serving personnel should be satisfied with their work to offer guests a welcoming atmosphere. Employee satisfaction is measured through surveys. It needs saying that sometimes this indicator may not be 100% accurate as not all employees will tell the entire truth. However, experience proves that measurement of employee satisfaction positively affects employee performance and facilitates decision-making for top management. A satisfied employee is loyal towards the company he works for, and of top management may expect new interesting ideas coming from the lowest level (doorman, girl at reception etc.)
- Percentage of employees receiving regular performance reviews. Hotel business faces very tough competition, and that’s why employee performance must be regularly reviewed. Of course, it is not possible to evaluate the entire personnel, but human resource department must do everything possible to measure performance of as many employees as possible. The higher this indicator the more efficiently human resource department works. This indicator may be measured once a month, quarter or a year. Higher percentage means that the greater number of employees undergo performance reviews and thus they are aware of own strong and weak points. Such evaluation is good for top management as well.