Southwest Airlines HR Strategy

Southwest Airlines HR Strategy

Executive Summary

Effective human resource management is core to the success of large business enterprises. In cognizant of this, Southwest Airlines Company pursues employee centralism as a core business strategy. This report identifies the implications of the company’s strategy on human resource management. The benefits of employee centralism include reduced turnover, increased productivity, and customer satisfaction. Notably, the report concludes that Southwest should hire for attitude rather than attitude, given the many benefits of hiring employees with the right attitude.

Types of Strategies of Southwest Airlines: Employee Centralism

Employee centralism is one of Southwest Airlines’ operational strategies. Customers who have traveled with the airline describe its employees as happy, who stop at nothing but make the customer happy (Jewczyn, 2010). Employees at the company are allowed to be human and vulnerable as they pursue company goals. In addition, Southwest Airlines puts its employees first through a myriad of measures. Firstly, the company empowers employees to help the company and the customer. Also, the airline trusts its employees to offer services on behalf of the company (Jewczyn, 2010). The company has also set high standards for employees, holding them to account on various fronts. Also, it fosters passion among its employees, something that eventually manifests in how they treat customers.

Implications on HR

The benefits of putting employees first include reduced employee turnover. Hence, there is no need to hire and onboard recruits. Although some turnover is inevitable, the benefits of retaining employees are many (Hollenbeck et al., 2019). Firstly, it costs a company a lot of money to hire and train new staff. Besides, productive time may be lost from the time an employee leaves an organization until the time they are replaced. Aware of these factors, Southwest always strives to keep employees. There has never been involuntary layoff or furloughs throughout the company’s history.

Another implication of putting employees first in HR is increased productivity. When employees feel engaged, they are willing to go out of their way to support the company in achieving its goals (Hollenbeck et al., 2019). The story of employees’ willingness to go out of their way to serve the company has been registered multiple times at Southwest. For instance, at one point, a staff member at the company took a stranded employee home. Engaged employees also record lower absenteeism and high corporate profitability. Besides, positive employee experiences often spread outwards. Companies with happy employees will reflect their satisfaction while serving employees. The result is customer satisfaction.

Business Strategies for Each of the HRM Implications

Southwest Airlines implements different business strategies to fulfill its HR needs. One of the measures to ensure reduced turnover is to pay employees competitively. The airline was one of the first to implement the $15 per hour minimum wage. Besides, the company has leveraged its employees’ productivity to pursue further market penetration. The employees act as a pillar as the company expands.

HR Strategy

Considering how employees are valuable to Southwest Airlines’ progress, the company should hire for attitude and not aptitude. That means hiring people who are mentally prepared and love their jobs. Companies are tempted to hire people with superior skill sets, thinking they will be most productive. However, that is not always the case. One of the best strategies to hire people with the right attitude is to conduct a live simulation exercise. Those who demonstrate the right attitude and a willingness to learn should be hired.

References

Hollenbeck, J. R., Noe, R. A., Gerhart, B. A., & Wright, P. M. (2019). Human resource management: Gaining a competitive advantage. Mcgraw-Hill Education.

Jewczyn, M. N. (2010). Integrative Business Policy With a SWOT Analysis of Southwest Airlines: What Are They Doing Right in Today’s Economy?. Journal of Business, 1.

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You have been told the HR Director is pleased with the work you have completed for the organization and would like to take your contribution to the next level. She would like you to review several strategic reports on the organization and provide feedback on how you think Southwest HR should move forward.

Southwest Airlines HR Strategy

Review the recommended sources in addition to your own research.

Compile a strategy recommendation to the HR Director to be used for company-wide decisions. Include the following information in your report:

An executive summary of the HR strategy project
An analysis of current strategies and issues
Identify the type of strategy Southwest Airlines is following.
Identify 3 HRM implications for Southwest Airlines.
Develop and justify business strategies for each of the 3 HRM implications.
Determine an HR strategy.

Review the Southwest Airlines Co. SWOT Analysis via the “Business Source Complete: SWOT Analyses” in the University Library. Enter “Southwest” in the search bar for access to the company profile. Once you have selected the appropriate year, select the PDF full text.

Use an additional source in your recommendation. Cite all sources.

Format your citations according to APA guidelines.