World Labor Situation

The success of a company in the market is heavily influenced by its employees. These are the personnel who carry out duties under the supervision of managers. To flourish, a company needs have the essential staff to carry out responsibilities efficiently. They must have the necessary skills to fill the available gap on the job. As a result, the Human Resources department must discover the most qualified candidates for job openings in the organization’s many departments. The firm’s strong success allows it to pursue foreign direct investment. Globalization in the world is a driver for foreign direct investment by businesses as it means the opening of the world for people in different countries to interact with each other. However, globalization is facilitated by the increased technological advancement in the world. This paper will look at issues that should be taken into consideration when staffing a new hotel in Spain.

Nations have different laws and regulations that govern firms operations. Employment terms and conditions for the employees are also different in various countries. Employees need a conducive environment to enable them to execute their duties efficiently. Some of the issues that must be considered are security and health of the employees, labor unions, and labor laws among others. The business must employ workers as per the requirement by the law to avoid them getting into conflicts with the set laws. Spain economy is among the largest in the purchasing power parity and fourteenth by nominal GDP globally. According to fortune.com, despite the country having a fast growing economy after the 2007-2008 crisis, it has high unemployment level of about 21.6%. The number of Spaniards who are jobless in the market is 47.7%. These have been caused by the open-ended labor contracts which businesses have used to create an economy which is less dynamic. Majority of the contracts signed in Spain are temporary making the employers dump the workers when they notice any sign of an economic downturn in the market.

The executive team must be aware of some issues in Spain when taking into consideration staffing of the new hotels. Some of the factors to consider are;

Availability of low labor costs

Labor costs for any firm reduce its profit margin. Therefore, companies must look for ways to have fair wages and salaries for its employees. Spain has a high unemployment despite a high number of its population being elites. Over four million people are unemployed affecting both female and male workers of all ages. The managers are provided with a vast pool of employees to choose from in Spain. The human resource department must carry vigorous recruitment exercise to get the people who are qualified to fit in the job post. The firm should avoid Importation of employees as it may be costly but concentrate on highly selective recruitment campaign of available job seekers. These are both fast and cost-efficient way for the firm to get employees in the new hotels started in Spain.

Business climate and culture of the Spaniards

The country has an industrious tradition with the workers working for long hours despite the low pay they get. Spain has a large market for any company with about 46 million people. The large numbers of unemployed skilled people in Spain is a determinant of their low pay by corporations. Majority of enterprises hire workers on either permanent or temporary basis, but the common is temporary for firms to make them be on the safe side during low economic periods. The cost of living in Spain is little with low petrol prices, the price of water, bus and taxi fares. However, during the economic crisis in 2008, the cost of living was very high with high rates in all products and services. The climate of the country is pleasant making the quality of life for workers excellent. According to the quality of live index in 2009, the state was ranked 68 out of 100 regarding the quality of life it offers to employees (“Business Environment in Spain”).

The work in Spain is divided traditionally into two parts; morning from 10 am to 2 pm and evening duty from 4 pm to 7 pm. The employees are used 2 hours lunch break where they do not only sit down and eat but also have meetings.

Laws and regulation of employment

Spain like many other foreign countries has different working terms and conditions. The people of the country who are the potential workers are hardworking, polite, etc. the minimum salary in the nation is €750 in a month. The determinants of the salaries and wages by the employers are the industry, experience of the workers and the expertise needed to execute the duties. The working hours that the law states is 40 hours in a week with the working time that do not exceed 9 hours in a day. Employees with less than 18 years’ work for maximum 8 hours in a day. If the employer expects the employee to work overtime, it must be stated in the contract before commencement of work and an agreement reached between the two regarding the payment of the extra hours. Full-time employees are entitled a minimum of 22 days holidays which must be paid. Additionally, there is 14 days holiday which is not included in the paid vacation for both local and national and other holidays due to marriage or moving to a new house (Landed, 2014).

Finally, employees must have conducive internal and external environment to be able to execute their duties accordingly. Foreign countries have different rules that govern employees and businesses must comply with them to avoid getting into trouble. Business should acquire qualified employees to carry out their duties efficiently. The discussed issues about should be considered by managers to enable them not get into conflicts with the employees and also the laws and regulation in Spain. They also make them reduce the costs they may incur in the employment in the country. The aim of all businesses is to get qualified staff at the most economical prices as possible. Research is needed to enable firms to know foreign markets to be able to make informed decisions and avoid making mistakes that might cause business failure.

References

How Spain Wound Up with One of The Worst Job Markets in the World. (n.d.). Retrieved from http://fortune.com/2015/12/01/spain-job-market/

“Business Environment in Spain.” Working in Spain | Expatica Spain. Retrieved from www.expatica.com/es/employment/Business-environment-in-Spain_104045.html.

”Working in Spain.” Working in Spain | InterNations, www.internations.org/spain-expats/guide/working-in-spain-15498.

Landed, S.L, (1 June 2014). Just. ”Working Conditions.” Just Landed, Retrieved from www.justlanded.com/english/Spain/Spain-Guide/Jobs/Working-conditions.