Z Hospitality Pvt. Ltd. is a luxury hospitality company, a resort established in 2015 in Pokhara, Nepal. The resort, situated near Phewa Lake with a panoramic view of the Annapurna range, primarily caters to foreign tourists and domestic luxury travelers. With over 150 rooms, a spa, three restaurants, and extensive event facilities, it has positioned itself as a premier destination for high-end leisure and corporate events. Currently, it employs 210 staff members, including front office, housekeeping, kitchen staff, spa therapists, event managers, and administrative personnel. Most operational staff are recruited locally, while department heads are hired from Kathmandu or occasionally abroad. There is no formal recruitment policy or structured onboarding process in place. Supervisors conduct informal on-the-job training. There are no regular training schedules, skill development workshops, or cross-departmental learning initiatives. Appraisals are conducted annually but are mostly subjective, based on supervisors’ observations. There is no defined Key Performance Indicator (KPI) system, and promotions are based on tenure rather than merit. Salaries are relatively low compared to industry standards. Overtime pay and service charges are inconsistently distributed, often leading to employee dissatisfaction. The staff comprises individuals from diverse ethnic backgrounds, but women account for only 10% of the workforce. There is no gender sensitivity training or policy to promote inclusion. While basic accommodation and meals are provided for staff, they often lack access to recreational facilities, mental health support, and career counseling services. The resort has experienced a high turnover rate (32%), especially in housekeeping and food service. Many trained staff leave for better-paying jobs in Kathmandu or abroad. Z is preparing to launch a new eco-friendly wing and plans to hire 60 additional staff. However, the HR department is under-resourced and lacks a structured hiring strategy. Several guest complaints have been linked to inexperienced or unmotivated staff, highlighting gaps in service quality. Internal feedback suggests a lack of growth opportunities, favoritism in promotions, and unclear grievance mechanisms. A recentlabor inspection revealed non-compliance with Nepal’s labor laws related to working hours and overtime pay.
Questions:
Identify and explain the key Human Resource Management (HRM) issues faced by Z Hospitality.
Propose and explain a performance appraisal system that is transparent, fair, and aligned to service quality and employee growth.
What HR strategies would you recommend to reduce employee turnover and improve retention in the resort? Justify your strategies.
Leave a Reply