One of the fundamental truths in human resource management is that how a firm treats its employees determines its performance (Darwish, 2013). This means that firms which offer their employees proper treatment experience growth and enviable performance. On the other hand, companies whose record of employee treatment is poor should expect disappointing performance. It is therefore surprising that despite their poor treatment of employees, firms in the budget airline industry continue to witness impressive growth. Given the vital role that employees play in any organization, the airlines should not expect their growth to be sustainable. Without better treatment of and investment in the welfare of the employees, these airlines are facing an uncertain and difficult future.
How managers are ignoring HRM lessons
Before delving into a discussion on how budget airlines are ignoring HRM lessons, an examination of existing research on the HRM practices of these airlines is needed. Such budget airlines as Ryanair have been the subject of extensive research. Alberto Nortili and Wong (2014) to conduct research on the HRM practices of this firm. According to their findings, Ryanair’s practices are wanting and could set the stage for the company’s collapse. They noted that the management of the company has adopted an autocratic control approach (Nortili & Wong, 2014). These scholars also observed that the employees of Ryanair endure stress and are not motivated. Nortili and Wong are not alone in shedding light on the poor treatment of employees at Ryanair. Jody Gittell and Greg Bamber (2010) also conducted research which established that Ryanair treats its employees poorly. The employees work in stressful conditions and their welfare is not safeguarded (Gittell & Bamber, 2010). As a result of its poor HRM practices, Ryanair has suffered high employee turnover. This company represents the others in the budget airline industry which have failed to invest in employee welfare.
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Business schools remind learners that the HRM practices of an organization are a significant determinant of the level of success that it witnesses. An examination of the HRM policies and practices of the budget airline industry reveals that the managers in this industry dismiss and have ignored this lesson. Employee training is one of the essential components of HRM. It is common practice for companies to cover the cost of training (Buchanan & Finegold, 2017). Firms which shield their employee against the need to pay for their own training clearly recognize the value of their employees and training. This cannot be said about the budget airline industry. In the case study, it is mentioned that the employees in this industry are expected to shoulder the cost of training. Another failure that the managers in the airline industry have committed concerns the method used to deliver training. This industry has adopted the classroom model of training. This model possesses a number of serious flaws. For example, it is nearly impossible to teach practical lessons which require hands-on involvement, in a classroom setting. Practical approaches such as using simulators are far more effective in training (Bohlander & Snell, 2010). In addition to being more interactive and engaging, these approaches expose employees to real-world scenarios. Besides, most established airlines offer practical training using such methods as simulators. The practices of the budget airline industry are indeed peculiar and counter-productive. It is evident that the managers in the budget airline industry do not appreciate the value of practical and real-world experiences.
Narrow and unfair criteria for promoting employees are another issue where the managers in the budget airline industry fail miserably. To be moved onto permanent contracts, the airlines in the industry require employees to meet set sales targets. In itself, this promotion policy is not odd. Promoting employees based on their performance is a common practice across many industries (Harzing & Pinnington, 2010). However, the airlines fail to make considerations for other important issues such as the academic qualifications and the length of experience of their employees. These issues are key indicators of the competence of an employee. Furthermore, the sales targets that the employees are required to meet only impose pressure. One of the lessons about HRM that the managers are ignoring concerns the need to safeguard employee health. Instead of subjecting their employees to immense and dangerous levels of pressure, firms should create an environment that facilitates healthy relaxation and realization of realistic targets (Bohlander & Snell, 2010). Making sure that employees are not overworked is another lesson that the managers in the budget airline industry appear to be ignoring. Effective HRM involves assigning employees workloads that are fair and manageable.
No organization is obligated to offer their employees incentives that are not stipulated in law. However, effective HRM holds that if they expect loyalty and high productivity, firms must go beyond the minimum stipulations of the law. They should offer their employees incentives that are far more attractive and competitive than what competitors offer (Bohlander & Snell, 2010). The budget airline industry does not operate in line with this philosophy. The firms in this industry require employees to cover the costs of such essential items as food, parking, security vetting and criminal record checks. These firms are clearly mean and ungrateful. Establishing respectful relationships with prioritize the welfare of employees is another crucial aspect of HRM (Nieto, 2006). Managers need to treat all their employees with respect. Respect-based relationships enhance trust and employee engagement. In the case study, it is stated that the budget airline industry has adopted a management approach that involves bullying and macho-management. Instead of cultivating a culture of respect, the managers in the industry use fear to control the employees. That this industry is achieving success is indeed surprising and very difficult to explain.
Labor unions play critical roles in agitating for the interests of their members. These unions challenge employers to offer fair compensation, create proper working environments and take all necessary measures to enhance the welfare of employees (Tait, 2016). The demands that these unions make place them on collision paths with employers. It is therefore not surprising that the budget airline industry is strongly opposed to union membership. Effective HRM requires creating room for dialogue and employee representation. While it may be against their financial interests, firms should permit and even encourage their employees to join unions. The budget airline industry fiercely opposes any attempts to join trade unions. Such companies as Ryanair are very arrogant in their dismissal and opposition to union membership. The letter that the company wrote is disrespectful and a representation of poor HRM practices. Overall, Ryanair and other budget airlines have failed to adopt proper HRM policies and practices.
The massive failures of the budget airline industry point to a leadership problem. Organizational leaders should and must shoulder the blame for the failures of their firms. One of the fundamental traits that nearly all effective leaders possess is empathy (Marques & Dhiman, 2016). Through empathy, leaders are able to aggressively pursue policies that guarantee employee welfare. The failures discussed above are clear evidence that the leaders of the budget airlines are ineffective. If they were empathetic, the leaders in the industry would recognize the importance of attending to all the needs of their employees. Another trait that defines effective leaders is strategic thinking. This trait enables organizational leaders to predict the future and prepare accordingly. The airline industry faces an uncertain future. To survive in the tough environment of tomorrow, the airlines must prioritize the welfare of their employees. Since they treat the employees poorly, one can argue that the budget airline industry has a leadership problem.
Using theories to explain success of budget airlines
The success of the budget airline industry flies in the face of established HRM principles. As the discussion above has revealed, the airlines in this industry have committed serious violations. These violations would set the stage for the collapse of a firm in a normal industry. While the success of the industry is surprising, there are a number of motivation theories which offer explanations for the success. However, it should be noted that these theories do not go very far in explaining the success. Reinforcement theory is among the motivation models that help to explain the success. The main foundation of this theory is that companies can either use rewards or punitive measures to manage employee behavior and performance (Amos et al., 2009). While rewards encourage positive behaviors, punishment is imposed to dissuade employees against destructive practices. The budget airline industry uses both rewards and punishment. For example, employees whose sales records are impressive are promoted onto permanent contracts. The airlines have also created profit-sharing schemes that reward permanent employees when the share price increases. Some of the punitive measures that the airlines have adopted include warning employees against union membership and the culture of fear that exists in the industry. Given the success of the industry, it is reasonable to argue that the rewards and punishments are effective in controlling the employees. Therefore, the reinforcement theory explains the success of the industry.
The success of the budget airline industry defies nearly all the other theories of motivation. For example, Maslow’s hierarchy of needs identifies the needs that have to be met to secure employee commitment. Essentially, this theory challenges employers to meet the needs of their employees if they (employers) expect commitment and productivity (Sommerville, 2007). The budget airline industry is mostly concerned with financial success. The firms in the industry have achieved this at the expense of employee welfare. The equity theory that John Adams advanced also raises further questions regarding how the budget airline industry has achieved success. This theory posits that the level of employee productivity matches the reward that they receive (McPhail, 2015). The success of the budget airline industry suggests that the employees in the industry are very committed and work tirelessly. However, the firms in the industry fail to reward this effort. The two factor theory that Herzberg developed also sheds light on the HRM practices of the budget airline industry. This theory holds that such factors as job security, working conditions and remuneration shape employee performance (Wright, 2009). When employees are guaranteed of job security, offered competitive pay and work in decent conditions, they respond with improved productivity. When one applies this theory to the budget airline industry, they are left with more questions. Despite working in difficult conditions and lacking job security, the employees in the industry are still committed. It is evident that the success of the budget airline industry is inconsistent with most motivation theories.
The discussion above has revealed that while some theories explain the success of budget airlines, most of the theories shed no light on how these airlines have found success. To fully understand why the theories do not go very far in explaining the success, it is helpful to examine such companies as EasyJet and Ryanair. As was pointed out in an earlier section, researchers have established that Ryanair’s HRM practices are unacceptable. This company does not invest in employee wellbeing. Due to the high stress that they grapple with, many employees have left the company (Bamber et al., 2013). Ryanair’s management is also brutal in its engagement with employees. Instead of adopting employee-centric approaches, the management resorts to bullying and autocracy. EasyJet is another airline whose success raises questions. Geriant Harvey (2007) conducted a study to determine the views of the pilots who work for EasyJet. He determined that these pilots hold negative views (Harvey, 2007). This finding reflects the HRM practices at EasyJet and the larger budget airline industry. Since the budget airlines continue to witness success despite their poor record in HRM management, HRM theories do not explain their success satisfactorily.
The discussion on HRM practices of budget airlines would not be complete without a look at how these practices are a violation of UK laws. The Health and Safety at Work etc. Act of 1974 is among the laws which guide employee management in the UK. One of the fundamental provisions of this law is that “it shall be the duty of every employer to ensure, so far as is reasonably practicable, the health, safety and welfare at work of all his employees” (“Health and Safety at Work”, n.d). As observed earlier, budget airlines make their employees work for long hours in very stressful conditions. These practices threaten the health and overall wellbeing of the employees. Therefore, the budget airlines are in violation of UK employment laws. It is important to note that while such airlines as EasyJet and Ryanair disregard UK employment laws, there are other airlines which serve as models of compliance with legal requirements. British Airways is one such company. As part of its HR strategy, this firm ensures diversity and provides its employees with competitive and fair remuneration (“British Airways HR”, 2012). The HR strategy is undoubtedly in line with UK employment laws.
The need for reform
It is true that despite their poor treatment of employees, budget airlines are still achieving success. However, this success cannot be guaranteed. Unless these airlines adopt better HRM practices, they risk failure. Going into the future, the airlines must implement reforms. The reforms are needed to promote employee welfare and to enhance the competitiveness of the airlines. These reforms will achieve two goals: increase the share of the airlines of the business travel market in Europe and enable the airlines to gain dominance in the long-haul travel market. Adopting policies that do not involve compromising employee wellbeing is among the strategies that the budget airlines can pursue. Already, a number of budget airlines have entered the long-haul market. One of the strategies that these airlines have adopted is using lightweight planes whose interiors passengers find to be appealing (Bryan, 2017). This is a cost-effective approach that spares the airlines the need to implement cuts which negatively affect their employees. Better employee training is perhaps the most promising strategy for budget airlines that desire to enter the long haul market. Established legacy carriers dominate this market. Their focus on excellence has allowed them to gain a competitive edge. With their focus on minimalism, it would be very difficult for the budget airlines to gain a foothold in the long-haul market. However, through employee training on such issues as soft skills, these airlines can establish a significant presence in this market (Writz, 2015). The airlines need to adopt recruitment policies which focus on competence. Such budget airlines as SIA have achieved growth thanks to the rigorous recruitment policies that they have adopted (Writz, 2015).
Passengers who constitute the market for business travel tend to be comfort-conscious. This means that since they offer minimal services, the budget airlines would be unable to appeal to these passengers. To compete for these passengers, the airlines need to overhaul their employment practices. Rewarding employees for excellent performance has been shown to be effective (Writz, 2015). The budget airlines should offer their employees competitive compensation packages. This will motivate the employees to provide excellent services to the business customers in Europe. It is worth noting that the employment reforms that the budget airlines implement will have a minimal impact on their efforts to appeal to the European business travelers. Such other policies as enhanced customer experience promise to be far more effective. Therefore, even as they improve how they treat their employees, these airlines should place greater focus on the facilities that they offer passengers.
The leaders of the budget airlines have failed to implement reforms. The onus is on the respective human resource departments to push for change in the treatment of employees. The HRD plays a number of critical functions in any organization. Attending to the personal problems of employees and conducting human resource planning are some of these functions (Ciuntu, 2012). The HRD is also required to perform employee recruitment while rewarding and compensating employees for their effort. This department is also expected to handle all labor and union relations. From the discussion above, it is evident that the budget airline industry has failed in the HRM function. The respective HRD of the different airlines should wake up and perform their functions. This is the only way that employees in the industry will be treated better.
The airline industry has failed to promote employee welfare. To solve the HRM issues that the industry faces, professionalism and strict adherence to ethical guidelines is needed. The Chartered Institute of Professional Development (CIPD) has developed a code of conduct that could benefit the budget airline industry. This code addresses a wide range of important and relevant issues. Establishing relationships that are based on trust, uphold integrity and professionalism and demonstrating responsibility are among the provisions of the code of conduct (“Code of Professional Conduct”, n.d). As they adopt this code into their HRM practices, the budget airlines will be compelled to treat their employees better. For example, the airlines will be respectful in their engagement with employees. Instead of writing an arrogant letter warning employees against joining labor unions, such airlines as Ryanair will engage their employees in productive discussions.
In conclusion, the budget airline industry has revolutionized air travel. These airlines have made air travel accessible to many through their cheap tickets. As a result of their innovative approach, the airlines have achieved tremendous success. However, this success has occurred at the expense of employee wellbeing. The airlines have refused to create favorable working conditions and deny their employees the opportunity to join labor unions. Moreover, these airlines bully and intimidate their employees who are expected to pay for essential items and services out of their own pockets. The practices of these airlines defy established HRM standards and principles. If these airlines wish to protect and replicate their growth in the future, they need to adopt employee-centric HRM practices.
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