Employee Relationship Plan And Turnover Costs At Synelly Luxury Ryokan Spa And Retreat

Employee relationship plan

1). Discussion

Planning and recruiting process in the organization

In the given Spa resort named Synelly luxury Ryokan Spa and Retreat, the planning process of the employees is divided into two parts. The parts include the  plan of theemployee relationship and the  plan of the benefit and compensation. The plan of employee relationship develops in terms of system of management and recruitment and the of the labor relationship (Reiche et al. 2016). On the other hand, compensation and benefit plan consists of the attendance statistics, salary structure and the incentives contributed to them (Oke 2016). The human resource department of Synelly luxury Ryokan Spa and Retreat consist of the HR manager, specialist in relationship  of employee, specialist of benefit and compensation, specialist of training and development and the coordinator  of Human Resource (Cascio 2018).

2).Employee relationship plan:

Employee forecasting and headcount planning: Taking in account the peak season and lean season of the hotel industry, the Synelly luxury Ryokan Spa takes in action to employ two different kinds of staffs, one is contractual employee and the other is casual employee (Bratton, and Gold 2017). The contractual employees are full time employees who are recruited on the basis of legal contracts (Snell, Morris and Bohlander 2015). And the casual employees are the ones who help on coping up with shortage of staffs during the peak season in the resort.

3).The recruitment system:

The recruitment system is based on the description of the job, establishment and the recruitment channel selection. In this process, the concept of the job would be introduced to the interested candidates and a sample of the various positions is to be provided to them ( McPhail et al. 2015). The following step shows the recruitment process in details:

 Job description: The job description relies on the analysis of the job that needs to be examining the knowledge and the skill requirements of the job (Reiche et al. 2016). There is need for                               a sound communication with the various departments and understanding the various responsibility of the job.

Recruitment channels:The recruitment process consists of five steps.  A five round selection takes place, the Most of the candidates who are suitable will join the resort.

 On account of the industry of service in Sydney, it is characterized by low income in the hospitality industry  in south whales has to confront the disadvantages  of  high turnover.  

Recruitment process

A high turnover rate happens in terms of service industry especially working within 6 months. The average level of job stability for service industry occupy 12% in accordance with the otheremployees of other  industry.

Moreover, the off-season and peak season factor affects the hospitality industry. Taking the factor into consideration, recruitment channel listed below plan to be used in Synelly luxury Ryokan Spa

.Online recruitment of Job: To post purchase and advertisement CVs via recruitments from the website.

.Agency of human resource: to make use of resource of head hunting to find senior  level position.

.Recruitment from college campus: To increase the rate of collaboration with college and use interns to avoid redundant staff.

.Internal Introduction: this refers to the introduction internal employee with the externals

.Newspaper: The post of job vacancy advertisement in the labor newspaper.

4.Staff turnover costs

 The labor turnover is the ratio of the firm’s employee that leaves during a particular year. In the given organization Synelly luxury Ryokan Spa has a rate of turnover 30.34% for operation staffs and 38.29% rate of turnover for management staffs. This tells that and managerial staffs  and the operational staffs experience patterns of turnover that are similar like hospitality business in the area (Cascio 2018.). The hospitality industry has always relied on the staffs who are casuals as a technique of obtaining both labor flexibility and for vacancy filing of the job. The below table provides the information that more or less nearly one third of the employees in the hotel is casuals. Trends of using casual employees has helped in the effort for training; loss of human capital; loyalty of the company, standard in quality of product and productivity. Increase in research is required into the practice of labor market in order to examine in detail the organizational cost (Bratton and Gold 2017). Feedback of the HR manager indicated that casual employees tend to have a turnover that is higher because they have many jobs in order to obtain the level of income that is adequate.

The total staff turnover of the organization is shown in the following table:

Category of Employee	Total	turnover	Turnover %
Managerial employees	1916	782	37.19%
Operational employees (including casual)	8677	4348	50.64%
Total employees (including casuals)	10506	5130	48.34%

5.Reasons for departing from the organization

The table shown shows the prime reason for departure of employees who are senior is either internal transfer or resignation that is voluntarily taken. It also shows that for operation employees, 86% resigned voluntarily. Turnover of labour is a human Resource loss.  Voluntary resignation is major issue that the hotel is facing. The table shows the number of employees leaving and the reasons for a particular year.

Staff turnover costs

Reasons for leaving	Number of employees leaving in the management sector	Number of employees leaving in the operational sector
Voluntary resignation	510	369
Termination	79	252
Redundancy	15	20
retirement	6	20
Inter group transfer	141	298
Total employee leaving	751	959

The staff turnover refers to the cost of replacing the employees who have left. In the organization, a significant cost is labor turnover. The cost of turnover for a period of twelve month has been shown in the following table. The total turnover cost is AU$ 141, 2259.  The most significant factior that is affecting the hotel industry is labor turn over; it affects the profitably, quality of service, and the training skills. A further proper analysis of the management, cost, time spent in the training procedure of the new employees and its implications should be made.

  The replacement cost of the functional and operational employees in the organization for a period of 12 months is shown.

Cost	Average  turnover cost per year
Management sector	AU$ 706130
Operational sector	AU$ 706129
Total	AU$ 141, 2259

6).Forecasting demand

Forecast of human capital demand is the process of estimation the requirement of the human resource in right quality and right number for future.  The human resource demand is forecasted according to the mission and vision of the firm.

 7).The factors that affect the Human resource forecasting of the Synelly luxury Ryokan Spa retreat are as follows:

• Employment trends
• Replacement trends
• Productivity
• Absenteeism
• Expansion and growth

8).The techniques followed by the organization for forecasting the human resources demand are:

• Managerial judgment: The managerial judgment is a very common technique in forecasting of demand. Since the organization follows the top-down approach, the forecasting is done in the top-level management (Bakoti? 2016). The departments about the human resource requirements give different proposals to the top-level managers for approval (Shields et al.2015). After analyzing the proposals the, managers come into the conclusion and decides the future human resource demand.
• Work-study technique: Another technique used by the organization for meeting the organizational demand is workload analysis. In this method, the pressure or the load of the work is measured and that according to the season that is peak season or off season, basis of the need of employees the demand is set up. The performance of the existing employees is also analyzed on this method.
• Ratio trend analysis:the human resource demand is also estimated based on the production level ratio and the quantity of the available workers. The ratio will help in  estimating the demand of the HR.

9).Staff positions & pay rates

The position of the staff is the foundation of the companies operation. It provides the direction for the coordination and development of the company (Guest 2017). The Synelly luxury Ryokan Spa retreat is determined to adopt the centralized approach to the structure of the organization (Hornstein 2015). The process where the structure decides to keep the decision-making at the top of the hierarchy. The flow of command moves from the top to the bottom. The financial control is to be kept at the top level only.

The structure of the staffs is kelp in two segments. One is the functional segment and the other is the operational segment. In total there are eight centers divided into the two segments (Wong, Wong and Wong 2015). The finance, human resource, and marketing belong to the functional center, and the food, beverages, front office, engineering and maintainace is in the operational segment. Each of the centers has two different levels of position, that is one management position and the other is the general position. The management position supervises the general ones who actually do the work. They also make efficient planning and implements the strategies (Dudley et al. 2017). Due to less head counts in the functional department and the operational department, the resort decides to make the managers the leaders in the functional department. This is how the labor costs are reduced in amount.

Human resource forecasting factors

Synelly luxury Ryokan Spa has employed the reporting mechanism from the junior position to the senior position (Small et al. 2017). To avoid confusion and misunderstandings within the workers and the managers, the hierarchy is well maintained.

  Payroll structure along with the onus range of the staffs at Synelly luxury Ryokan Spa and Retreat for one financial year (2017-2018) is as follows:

Job role	Salary range	Bonus range
Head Chef	AU$49,391 – AU$79,835	AU$0.00 – AU$9,87
general chef	AU$46,903 – AU$65,960	AU$0.00 – AU$5,156
Duty manager	AU$44,319 – AU$62,098	AU$0.00 – AU$9,858
Hotel manager	AU$44,994 – AU$89,979	AU$0.00 – AU$15,342
General manager	AU$54,217 – AU$121,952	AU$0.00 – AU$28,906
Front office manager	AU$47,771 – AU$70,119	AU$0.00 – AU$9,635
Cleaning and maintaining staffs	AU$12,429 – AU$16,937	AU$0.00 – AU$976

Conclusion:

The hospitality industry deals with the people, it makes sure that optimum satisfaction is provided to its customers. The successful hospitality ventures prioritizes their guests and needs experts to serve them efficiently, a role of the human recourse plays an important role in the hotel industry, the industry recruit good employees, train them and achieve a increased level of service for customer. The department of human resource puts the administration benefits and compensation. It includes the surety that the wages and other benefits are competitive with other hotels and resorts that are similar. If the hotel industry is considered as “union shop”, the  role of the HR department is to keep a close eye contact on the supervision and the wages of the various labour divisions and departments. This safeguards the labours from under stepping wage and the labour requirements set by the union.

The human resource development is management of people who makes up the workforce of an organization (Oke 2016). It includes the development of labor, skills, talent and work of the individuals. It is the administration of employee benefits, aspects of recruitment and dismissal. The primary focus of the Human Resource is to increase the productivity of the employee. The development of the relationship in between the individuals in the organization depends upon this. The human resource planning refers to the identification of the future current and human resource needs for an organization to obtain the company goal. It is a link between the overall strategic plan and the human resource management of the organization (Bratton and Gold 2017).

The chosen company whose human resource plan is to be developed is Japanese spa and hotel retreat named Synelly luxury Ryokan Spa and Retreat located at a distance 2 hours away from Sydney. The organization is a spa resort in the middle of natural hot springs and Blue Mountains surrounded by beautiful natural scenery.

References:

Bakoti?, D., 2016. Relationship between job satisfaction and organisational performance. Economic research-Ekonomska istraživanja, 29(1), pp.118-130.

Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.

Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.

Cascio, W., 2018. Managing human resources. McGraw-Hill Education.

Dudley, N., Chapman, S., Newman, J.A., Dumanovsky, T., Meier, D. and Spetz, J., 2017, May. Payment Models Drive Community-based Palliative Care Staffing, Recruitment, Training and Services. In JOURNAL OF THE AMERICAN GERIATRICS SOCIETY (Vol. 65, pp. S80-S80). 111 RIVER ST, HOBOKEN 07030-5774, NJ USA: WILEY.

Guest, D.E., 2017. Human resource management and employee well?being: towards a new analytic framework. Human Resource Management Journal, 27(1), pp.22-38.

Hornstein, H.A., 2015. The integration of project management and organizational change management is now a necessity. International Journal of Project Management, 33(2), pp.291-298.

McPhail, R., Patiar, A., Herington, C., Creed, P. and Davidson, M., 2015. Development and initial validation of a hospitality employees’ job satisfaction index: Evidence from Australia. International Journal of Contemporary Hospitality Management, 27(8), pp.1814-1838.

McPhail, R., Patiar, A., Herington, C., Creed, P. and Davidson, M., 2015. Development and initial validation of a hospitality employees’ job satisfaction index: Evidence from Australia. International Journal of Contemporary Hospitality Management, 27(8), pp.1814-1838.

Oke, L., 2016. Human Resources Management. International Journal of Humanities and Cultural Studies (IJHCS)? ISSN 2356-5926, 1(4), pp.376-387.

Reiche, B.S., Stahl, G.K., Mendenhall, M.E. and Oddou, G.R. eds., 2016. Readings and cases in international human resource management. Taylor & Francis.

Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns, R., O’Leary, P., Robinson, J. and Plimmer, G., 2015. Managing Employee Performance & Reward: Concepts, Practices, Strategies. Cambridge University Press.

Small, E.E., Doll, J.L., Bergman, S.M. and Heggestad, E.D., 2017. Brown & Smith Communication Solutions: A Staffing System Simulation. Management Teaching Review, p.2379298117716673.

Snell, S.A., Morris, S. and Bohlander, G.W., 2015. Managing human resources. Nelson Education.

Wong, Y.T., Wong, Y.W. and Wong, C.S., 2015. An integrative model of turnover intention: Antecedents and their effects on employee performance in Chinese joint ventures. Journal of Chinese Human Resource Management, 6(1), pp.71-90.