Highlights
Mark Bray,
You are an employment relations consultant. You work In a small (six-person) consulting firm, providing advice. mostly to managers, about how to improve their workplace relationships and hence worker productivity and performance. Your firm has Just been hired by Eastern Leagues Club to advise the CEO on the club's worsening staffing problems, and you've been assigned to the Job. Eastern Leagues Club is a licensed sporting club that Is doing well. Revenue is growing, membership Is growing and a surplus is being generated each year to build reserves and distribute to the associated rugby league club and local community groups. This is a very positive commercial story compared to many other licensed clubs in New South Wales. Despite these strengths, the CEO has become aware of some worrying trends among the club's staff. Like most clubs (BuultJens 2001), Eastern Leagues Club employs a mix of full-time, part-time and casual employees. The most significant concern relates to data Indicating that labour turnover has increased in the past 12 months. Finding good staff has always been a bit of a problem, but 41 employees out of a total 120—over 30 per cent—left in the last year. Apparently, though, there are significant differences between the main departments: turnover is low in administration, modest In the food/kitchen area but high (over 45%) among the bar staff. Furthermore, the number of employees who are union members seems to have grown and both the delegates and union officials hove been knocking at the CEO's door more frequently and more vigorously over recent months. You know that.
the hospitality industry has been characterised in terms of high turnover rotes, a part-time and casual workforce, on absence of an internal labour market—i.e. low Job security. promotional opportunity and career development, plus low wages and low skills levels.
You are also aware that:
. the hospitality industry has created and reinforced a turnover culture. Employees generally enter with the belief that there is limited career development and promotional opportunity... This dramatically increases costs and reduces the quality of service delivered. (Iverson and Deery Inn-,,,, o
Issues for debate
1. What are the potential causes of the staffing problems at Eastern? How would you determine whether your assessment of these causes is correct?
2. What advice would you give the CEO about possible solutions?
3. Would you Involve the union to solve the problem? Give reasons why or why not.
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