Analysis of Human Resource Management Problems in Budget Hotel. With the rapid development of the national economy, people’s quality of life has improved significantly, and people’s material and spiritual needs have increased significantly. Consumer choices have forced hotel management efficiency and quality to further improve, especially in cost-effective budget hotels.

Here are the articles to explain, Analysis of Human Resource Management Problems in Budget Economy Hotel

Compared with high-end star hotels, the advantages of budget hotels exist mainly manifested in low prices, a good environment, and professional service. They stand favored and loved by the people, and their development prospects are particularly broad. However, there are still many problems that cannot ignore in the development process of budget hotels. Such as imperfect management mechanisms and a lack of respect and care for employees.

This seriously restricts the problems and improvement of human resource management efficiency and quality of budget hotels. Which is not conducive to obtaining good human resource management results, affecting customers to obtain a good experience. This leads to the deterioration of the reputation of budget hotels.

Therefore, budget hotels must strengthen the comprehensive management of human resources, detect and properly deal with problems in human resource management promptly, promote the steady and effective advancement of human resource management, and promote budget hotels to conform to the development trend of the times and provide our customers with efficient and high-quality service.


  • Budget hotel;
  • human resource management problems;
  • problem;
  • optimization strategy;
  • incentive mechanism

With the rapid development of the market economy and the maturation of science and technology, budget hotels have shown new characteristics in the process of operation and development. The increasingly fierce market competition and the era of continuous progress have put forward greater challenges and more requirements for the human resource management of budget hotels.

Strengthening human resource management is an important prerequisite to stimulating employees’ service initiative and enhancing their sense of responsibility. It is also an effective measure to improve service efficiency and promote customers to obtain a good experience.

Therefore, in the future development of budget hotels, they should pay attention to and strengthen human resource management, always maintain a sense of development that keeps pace with the times, actively update human resource management concepts and explore new management models in line with the development of the times. Adapt to changes in the external environment quickly and promptly, and promote the further improvement of the effectiveness of their human resource management.

Overview of budget hotels

The connotation of a budget hotel

As early as the 1950s, budget hotels appeared in the United States, and many countries and regions called them limited-service hotels. Which are hotel management forms between star hotels and ordinary guest houses and hotels. Its most prominent feature is that it is affordable and cost-effective. It provides guests with relatively complete facilities and services at low prices. Its service model is “b&b” (bed +breakfast). At the end of the 20th century, budget hotels began to appear in our country.

With affordable room rates and relatively perfect service measures, the market quickly expanded. And it stood trusted and favored by many business people and ordinary tourists. Up to now, a large number of budget hotels such as Jinjiang Inn, 7 Days, Hanting Express, and Rujia Express have appeared in our country. The service targets of this type of hotel are generally working-class, business people, ordinary self-financed tourists, and student groups emphasizing the comfort of guest rooms and the standardization of services, highlighting the characteristics of cleanliness, hygiene, comfort, and convenience.

Its consumption level is about in the low-to-mid range. It usually only provides accommodation services to customers and breakfast is provided directly by suppliers. There is no separate catering department, and it will not provide customers with meals, bars, shops, entertainment, and other services. Compared with high-end star hotels, the most prominent advantage of budget hotels is “economy”. But the affordable price does not mean that their service quality is poor.

Human resource management of budget hotel

Human resource management mainly refers to the comprehensive integration and optimization of the internal human resource structure through a series of scientific and reasonable methods and measures, relying on the recruitment, training, application, evaluation, and motivation of employees, to fully stimulate the enthusiasm of employees for work, promote their potential to stand deeply explored and fully realized, enhance competitive advantages for enterprise operation and development, maximize enterprise value, and promote enterprises to obtain good and generous benefits.

In a nutshell, the content of human resource management is more complex, mainly involving employee recruitment and selection, employee training, employee performance management, employee safety, and health management, and many other contents. The human resource management of budget hotels mainly refers to the scientific and rational deployment of human resources based on fully considering the nature of budget hotel operations, business characteristics, service models, and other related factors, combined with rigorous, scientific, standardized, and feasible management strategies, through staff training, performance appraisal.

And other methods, comprehensively stimulate the enthusiasm of employees. And promote them to play an active role in the operation and development of budget hotels. So that service efficiency and quality stand comprehensively improved, and our customers stand brought a good service experience. To improve customer satisfaction while promoting the smooth realization of hotel business goals.

The main problems in human resource management of budget hotel

The management mechanism is imperfect and lacks respect and care for employees

At present, many budget hotels have not yet built a mature and perfect human resource management system, lack unified planning and scientific arrangements for internal personnel, and lack respect and care for employees, making it difficult for employees to have a strong sense of trust and belonging to the hotel enterprise, which directly affects the work attitude and work efficiency of employees, resulting in unsatisfactory hotel management results.

For example, a fast and economical hotel with operations all over the country has a flat management structure, including three levels the store manager, duty manager, and staff. The latter two undertake more work content. However, the imperfect human resources management mechanism and the lack of enthusiasm of employees make the hotel service efficiency deteriorate, making it difficult for customers to get a good experience, which is not conducive to the steady and sustainable development of the hotel.

The division of labor between managers and employees is clear, and the authority is too great. The management model of unified orders and absolute obedience to leaders exists adopted. And there is a lack of respect and care for employees.

Management philosophy lags and lacks attention to human resources

Many economical hotel management concepts are lagging. And the value and significance of human resource management stand not correctly recognized. And there are even situations where human resource management exists underestimated.

Failure to support the development of human resource management from the aspects of capital, manpower, system, etc. has caused the functions and advantages of human resource management to be unable to be fully utilized and has also caused a series of problems such as insufficient enthusiasm for work and unreasonable job arrangements. Which have effectively affected the customer experience and the improvement of hotel performance.

Lack of incentives and serious loss of personnel

In the operation and development of budget hotels, incentive mechanisms stand generally implemented by foremen, supervisors, etc. But due to various factors, the management of many hotels has full control over work procedures and service quality. Making it difficult for ordinary employees to get the respect and care of leaders.

At present, individual budget hotels have not formulated incentive mechanisms. And do not pay attention to rewards and punishments for internal employees. Many employees have formed a negative mentality of slowing down, resulting in the loss of hotel personnel. The problem is more prominent.

Low staff literacy, lack of professional training, and talent reserve

In recent years, a large number of budget hotels have expanded rapidly in China. However, these hotels generally only conduct simple onboarding training for employees. In addition, many employees and even managers and supervisors have a low degree of education. And there are generally problems such as weak professional knowledge and poor service concepts. Which have greatly affected the hotel management efficiency and the improvement of service quality.

Many domestic budget hotels lack training awareness and talent reserve awareness and have not formulated mature and reasonable career development plans for different employees, making it difficult for employees to see their development prospects, resulting in many employees leaving their jobs and the loss of hotel employees is serious.

The performance evaluation system is not sound and lacks effective supervision

Many budget hotels in China attach more importance to performance management and have created performance evaluation systems one after another. However, some objective problems have effectively affected the improvement of the performance evaluation system. For example, some budget hotels have formulated a top-down evaluation system.

The hotel headquarters is responsible for setting standards, and local branches are responsible for implementation. But the implementation mechanism is relatively rigid, lacks flexibility, and does not consider the attitudes and suggestions of employees.

In addition, the supervision mechanisms of these hotels are imperfect. And there has been a separation between short-term performance evaluation and the company’s long-term development strategy. Many branches overemphasize interests and evaluation results in the performance appraisal process, fail to correctly recognize the nature of the appraisal, and ignore the connotation of corporate cultural management, making it difficult to guarantee objectivity and fairness in the performance appraisal results.

Poor risk resistance

At the beginning of 2020, the new crown epidemic suddenly broke out, causing many industries and many companies to force to shut down, especially the service industry represented by hotels. To compress expenditures and reduce operating costs, many hotels reduced wages and benefits during the epidemic prevention and control period, and many employees and even senior management resigned, causing the hotels after the resumption of work to fall into the dilemma of staff shortage, which is not conducive to the smooth completion of hotel work, but also effectively affects the customer experience, which is very detrimental to the development of the hotel.

Optimization strategy of human resource management in budget hotels

Optimize the human resource management system and give full play to the functions of human resource management

In the process of carrying out human resource management work, budget hotels should actively optimize the human resource management system and formulate a rigorous and mature human resource management system. Through various methods such as rotation and training, the potential. And the value of existing human resources stands deeply tapped, and the advantages of employees promoted to fully utilized.

It is also possible to flexibly arrange positions based on clarifying the strengths of different employees, to maximize the effectiveness of human resource management functions. City convenience hotels have done a good job in this regard, not only adjusting the human resource management system with the times but also implementing a rotation system to actively tap and use the advantages of employees, promote them to exert their abilities and charm in suitable positions and promote the continuous improvement of hotel performance.

Adhere to a customer-centric and innovative human resource management model

The development of budget hotels is fundamentally based on adhering to the customer-centered service concept, which also directly determines that hotels should innovate their human resource management models based on adhering to the customer-oriented. First of all, budget hotels should correctly realize that what employees want is not just a job, but a career that can realize personal value.

Therefore, it is necessary to provide employees with suitable salaries and good occupational safety and security. At the same time, hotels need to innovate the operational content of human resource management and emphasize the planning and construction of strategic projects, such as formulating mature and reasonable human resource policies, improving staff training mechanisms, and providing human resource support for business development.

Secondly, budget hotels should be good at developing human resources in learning and management innovation. If you want to improve the value of human capital, you should actively build a learning organization, create a good learning atmosphere, encourage and guide internal employees to improve and break through themselves, expand their knowledge horizons, and improve their business capabilities, to better serve customers and bring customers a good experience.

Improve the salary structure and implement incentive salary design

At present, many budget hotels implement a job salary system, that is, the salary level of the same level positions is the same, which will suppress the enthusiasm of outstanding employees to a certain extent, and it is difficult to retain outstanding talents. Therefore, budget hotels must adjust the salary structure and implement incentive salary design. First, implement a broadband salary system. Workers’ unions in the same level of positions receive different basic wages due to different levels of education.

Generally speaking, the basic wages of workers with a bachelor’s degree are slightly higher. Then those of workers with a college degree or below. At the same time, the salary content enriches, and the enthusiasm of employees mobilizes through various forms. Such as setting performance compensation and issuing benefits, and forming a flexible and motivating salary system. At present, Hanting Express Hotel has vigorously implemented a broadband salary system and achieved good results. Which not only reflects the hotel’s emphasis on high-capable and highly educated talents. But also helps the hotel retain high-level talents.

Secondly, build a salary structure system based on performance as the main basis. And divide the monthly salary of hotel insiders into two parts: one is the basic salary, and the other is the performance salary. Adjust the ratio of the two rationally and properly grasp the relationship between performance and salary. To stimulate the enthusiasm of employees while achieving effective control of core positions and important management personnel.

Improve the salary structure.

The human resources management department should improve the current salary structure according to the importance of the position. While keeping the total income of employees unchanged, the current monthly salary should divide into two parts: “Basic salary” and “performance salary”. The “basic salary” is the employee’s basic monthly salary, and the “performance salary” is the employee’s performance salary. Divide the wages of employees in important positions or decision-making management into a certain proportion. Generally about 20%, and then honor them after the performance evaluation is competent.

This can not only mobilize the enthusiasm of employees for work, but also implement the necessary control over employees in important positions or decision-making management, promote budget hotels to actively change their operating mechanisms and ideas with the development of the times, give full play to the role of human resource management innovation, and use various reasonable and effective human resource management measures to attract and retain more talents.

Strengthen the training of employees and build an excellent service team

The steady and sustainable development of budget hotels is highly dependent on a management team and staff. With outstanding professional capabilities and high comprehensive literacy. Therefore, professional training for managers and ordinary employees should be strengthened to promote them to master more knowledge and skills and provide customers with more professional and better service.

First of all, budget hotels should increase the introduction of new people, expand the scope of recruitment for the society, universities, etc., raise the recruitment threshold, strengthen strict control of candidates, and select people with solid professional foundations and high comprehensive literacy to work in budget hotels, and eliminate any form of “relationship candidates”. Ensure the quality of talents from the source, and provide a reliable talent guarantee for the steady development of various businesses and tasks in the follow-up budget hotels.

Secondly, budget hotels should strengthen the professional training of internal staff, promote internal management personnel to update management concepts and change management methods promptly through training and learning, lead internal staff to strengthen the learning of the latest professional knowledge and skills, and promote the staff’s professional skills and service level to be greatly improved, to obtain good service results, improve customer satisfaction, and enhance customers’ sense of trust and belonging to the hotel.

Improve the performance appraisal system and strengthen incentives for employees at all levels

A perfect and rigorous performance appraisal system not only helps to stimulate the enthusiasm and initiative of the hotel staff. But also promotes the timely and high-quality completion of various tasks issued by the hotel. So that customers can get a good experience. Their stay in the hotel enhances their trust and belonging to the hotel. The performance appraisal system can be constructed and improved in the following ways.

First, there is a clear division of salary levels. The senior management of budget hotels should scientifically and rationally divide positions and ranks based on comprehensive consideration of internal job deployment, development of strategic goals, and other factors, and use this as a benchmark to formulate rigorous and reasonable salary standards for each position, to form a salary system that is compatible with the development of budget hotels and combines “basic salary” and “performance salary” to encourage and motivate employees to continuously improve their business standards and enhance service awareness to obtain higher salaries, and then provide our customers with professional and high-quality services. Secondly, adjust the performance appraisal cycle rationally.

For example

Rujia Hotel evaluates the general manager once a year. And the general manager who performs well can often receive generous year-end performance bonuses. However, the evaluation cycle is too long. And it is difficult to find the problems and shortcomings of the general manager in his daily work in time. Which has effectively affected the improvement of hotel operation and management efficiency. To effectively solve this problem, Rujia Hotel began to implement the “4+1” model. That is a quarterly assessment plus a year-end assessment.

At the same time, Rujia Hotel’s incentive plan has been adjusted to draw a certain percentage of the original year-end performance bonus and distribute it as a quarterly bonus. This measure is conducive to mobilizing the enthusiasm of the general manager and discovering work shortcomings promptly. And immediately taking effective measures to correct them. To promote the efficient and high-quality management of the hotel’s internal management work. To create huge profits for hotel companies.

Implement the ”shared employees” model to give full play to the value of employees

The outbreak of the new crown epidemic has highlighted the loopholes and problems in human resource management in many industries. And it has also made hotels deeply aware of the importance of stockpiling talents. In the operation and development of the hotel. The value of its employees can be fully realized through the following methods.

First of all, tap professional talents and reserve talent strength. During the outbreak and prevention and control of the epidemic, the hotel business has declined sharply. When streamlining the workforce, attention should be paid to retaining senior managers. And outstanding employees and striving to achieve maximum value with the least labor costs.

Secondly, the “shared employee” model is implemented. This means that employees will cooperate in short-term manpower output in a shared model. So that human resources can flow and the efficiency of social resource allocation can be improved.


After entering the 21st century, with the development of the times and the progress of society. The hotel industry has grown day by day, and competition in the industry has intensified, especially when people’s consumption concepts have undergone significant changes, consumption levels have increased significantly, and higher requirements for service quality are put forward. Today, our country’s budget hotels are facing important tests and challenges in the process of operation and development.

To achieve better development, budget hotels need to further enhance the awareness and problems of human resource management, continuously improve and optimize the human resource management mechanism, carry out regular training and effectively motivate employees at all levels, promote the in-depth exploration and full play of the personal potential and advantages of employees, and provide strong human resource support for the steady development of budget hotels, and promote the smooth achievement of the strategic operating goals of hotel companies.

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Analysis of Human Resource Management Problems in Budget Hotel; Photo by Christian Lambert on Unsplash.

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