Effect of HR practices during times of crises on short-term and long-term hotel performance

Abstract

The tourism sector in Lebanon is the most affected sector whenever a crisis takes place. This research studies the impact of different types of crisis on the different HR policies and procedures in Lebanese 5 stars hotels. This study provides a qualitative deductive research through a detailed review of the literature, methodology and thematic data analysis of the semi-structured interviews with HR managers of 5 stars hotels located in Beirut, Lebanon. This study shows the role of the HR in Lebanese hotels. The primary data showed that employee downsizing, pay cuts, unpaid leaves and effective communication are the strategies that international hotels use in times of crisis. The study shows that in Lebanon, HR managers tend to use the alternatives of employee downsizing by cutting on payments through freezing the canteen, recruitment, and laundry. HR managers tend to stay away from implementing employee downsizing as an attempt not to violate labor contracts whereas in international hotels worldwide, employee downsizing is one of the mostly used strategies. Also, this study discusses the means of engaging and retaining employees in times of crisis along with showing the positive impact of non-monetary rewards that the hotels use during crises like the smiley campaign and employee of the month.