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EXECUTIVE SUMMARY

Purpose of this Report

Strategic overview of employment

The purpose of this report is to obtain and analyse strategic information about the employment conditions in both the UK and China in order to assist the globalization plans of the Excelsia International Hotel and Leisure Group, USA.

Findings & Conclusions

Based upon the analysis conditions in China and the UK, several conclusions can be drawn. Firstly, it can be concluded that there are some specific trends in the workforce globally that will affect the working conditions in future around the globe. Secondly, it can be concluded that there are very stringent laws in the UK economy and the minimum wage rate is also high that makes it unattractive for the investment. On the other hand, there are

are regulations in China as well but it is flexible in some of the areas and the minimum wage rate is also significantly low. It makes China more attractive for the investment for Excelsia but it must be noted that there are very few opportunities for hotel and leisure industry in China.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

Chapter / Section	Page No.
Introduction	4
1.1 Introduction to the Company	4
1.2 Purpose of this Report	4
1.3 Scope of this Report	4
2. Findings & Discussion	4
2.1 Recent Trends in the World Labour & Employment Conditions	4
2.2 Global variation in Employment Conditions	6
2.3 Employment Conditions in the UK	6
2.4 Employment Conditions in China	8
3.  Conclusions & Recommendations	9
4. References	10

 

 

 

1. Introduction

1.1       Introduction to the Company

This report has been prepared for the Excelsia International Hotel and Leisure Group, which has been operating in the USA for the last several years and is considering a ten years long international expansion into other continents including Europe and Asia. So far, the company has operated in USA only and does not have any international exposure or experience of dealing in any other country.

1.2       Purpose of this Report

In order to expand operations overseas, the management of the Excelsia International Hotel and Leisure Group is interested in gathering and evaluating strategic information on the hoteling and leisure industries in other countries. This strategic information includes: the nature of the existing employment conditions; customer and market expectations; and legislations relevant to the industry. In order to obtain this information, the Group has hired an external HRM Consultant and the report has been prepared as part of this requirement.

1.3       Scope of this Report

Within the overall aforementioned mandate, the scope of this report remains limited to the analysis of the employment conditions. In the light of the Group’s requirements, one EU country i.e. the UK and one non-EU country i.e. China have been selected as case studies.

2. Findings & Discussion

2.1       Recent Trends in the World Labour & Employment Conditions

The employment conditions around the globe have varied greatly in the recent times. There are some new trends in the world labour and employment conditions that are impacting the employers in almost all sectors of economy (McMichael, 2011). For example, the literacy rate around the world has increased in the recent years and it has contributed to the income of individuals and their bargaining power. As the bargaining power of labour increases due to factors such as education, it becomes difficult for the employers to hire employees and it also affects the overall economic conditions in an economy. The recent trends in world labour and employment conditions include the following:

• Aging of Population: The average age of people around the world is increasing in both the developing as well as developed countries. The aging of population has contributed to one important change in employment conditions as the retirement age has been revised in the US from 60 years to 65 years. It can also contribute to the change in other employment conditions such as wage rate for young labour as there is shortage of young labour all around the globe (Mander, 2014).
• High Unemployment Rate: Though the population is aging around the world but still there is insufficient employment created within many developing as well as developed countries. As per a report by United Nations Organization (UNO), there were 3.1 billion unemployed workers around the world in 2008 and the number has further increased since then. The high unemployment rate allows the employers to dictate the employment conditions in their favour as more labour is available for work (Mander, 2014).

Labour Mobility: The labour mobility refers to the movement of labour from one area to another or one country to another country. The labour mobility has increased significantly in the last few years as people from developing…