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FLIGHT CENTRE TRAVEL GROUP The character and structure of Human Resource Management (HRM) is in a constant state of evolution as organisations all across the globe are adapting to make their practices consistent with today’s expectations. One such company is the Flight Centre Travel group (FCTG). A long standing and dominant force in the travel industry, this essay pursues to account for the way the company runs its HR management practices, and offer some insightful suggestions from the view of an internal employee on how they can better improve some of the policies and strategies to benefit them and their employees.

Recruits and inducts new staff The recruitment and induction process run by FCTG is expeditious and thorough, though for some it feels tedious. The HR team often responds promptly to job applications, in most cases within 24-48 hours. This is in the form of an email, followed by a 10 to 15-minute phone interview. Following a successful phone interview, candidates are invited to a group interview at the head office. It is also when the trainers explain the job and the company is depth, and surprisingly give anyone the chance to leave the interview at any point in time if they do not feel that the job is for them. This selection process is approximately four hours long, incorporating a calculation based test, geography test, a roleplay, and a one-on-one short interview. Roughly a week after the interview, successful applicants receive a phone call from head office notifying them of their success, informing them which store they have been placed in, and then arranging a start date for training. The training process is four weeks long, with three weeks done in head office and one in store, and an assessment on the last day which determines who will progress onto being a consultant and who will not progress further with the business. The company even provides accommodation near the head office, transportation and reimbursement for money spent during the three weeks in there where it is required, i.e. for those who live in regional areas. During training, “novices” are taught customer sales skills, have morning workshops with a few suppliers that FCTG partners with, and they learn the basic systems that they’ll be using in store. They also get the chance to meet their team, and get used to the environment of their store before officially starting on their first day as novice travel consultants.

Manages staff performance and engagement As novices begin their career with FCTG, they are enrolled into a Certificate III in Travel, with continuation onto Certificate IV after completion. They’re given monthly worksheets to complete and have a trainer who comes in to collect their work, speak to them regarding their time in store, and answer any questions they may have. This is one way FCTG manages staff engagement, as their experience and work in store is vital in assisting them to complete their worksheets. The company also uses a learning system called Compass, which is full of training modules and information for staff to use and refer to whenever they like. FCTG keeps their staff up to date and engaged through continued head office training sessions which also help improve staff performance. These continue long after consultants begin their career in store, and offer great refresher courses as well. They also include leadership information and training for those consultants who are interested in taking on a leadership role with the company, providing them the motivation to stay involved and committed to their role for a chance at the advancement.

Identifies and advances high performing staff The most straightforward way Flight Centre tracks and manages staff performances is through monthly Key Performance Indicators (KPIs) such as number of bookings, average dollar earned per file, and Total Transaction Value (TTV). These are tracked on monthly targets, and they are what stores and upper management use to identify and reward high performing staff. Each area of stores hosts a monthly event called “buzz night”, where they come together to recognise and award the best performers from their area of stores. And as apparent from the above information, FCTG

focuses on training their staff and recognising their high achievements so they can be determined workers and therefore be promoted to leadership roles after just their first year with the company.

Ensures that staff operate safely FCTG encourages their staff to not only operate safely, but within legal confinements through extensive training and education surrounding Work Health and Safety, and consumer protection laws.

Advances a diversity agenda across its staff and management base FCTG has a great philosophy when it comes to their hiring process that results in an incredible amount of diversity within their company. As long as you’re passionate about travel and can deliver authentic interactions with customers, you’re fit for the job.

Encourages staff to stay at the organisation FCTG has a certain solid internal structure as the company focus on advancing their internal employees for management and other upper structure roles rather than hiring externally. From personal knowledge and experience, almost all but a couple of employees working in their North Sydney head office as recruiters, trainers, etc., are internal employees who started as novice travel consultants themselves. This strong commitment to their own staff means more of them are motivated and more inclined to stay with the company, as they know there are abundant opportunities of growth for them. The company is also very focused on rewarding their employees, and the incentives that they and their partners provide encourage staff to stay with the organisation so they can continue to reap the rewards of their hard work.

Resolves disputes and/or negotiates pay and benefits Until now, FCTG has had a standard salary plus commission structure, offering no negotiation. But from the next financial year beginning July 1 2018, they will offer their employees a choice between two pay structures: 1. Higher base + lower incentives, which will be great for part-time employees who have significantly less chances to interact with customers and create sales compared to full time employees. 2. Lower base + higher incentives, which would suit full time employees who are able to make more sales and earn more commission.

How can the organisation can better structure its HRM practices and policies to advance employee performance and organisational outcomes? Employee health and wellbeing should be the cornerstone for all businesses and organisations. Unfortunately, it seems that too many modern businesses and companies are beginning to focus more on their accomplishment of business-associated performance outcomes at the expense of their staff members’ wellbeing (Baptiste, 2007). FCTG takes pride in monitoring and assuring the physical health of their employees. All throughout the training and induction process, they emphasize the availability of their fitness and wellbeing group called Healthwise. The company offers a free gym for those working at the head office, and discounted gym memberships for all other employees at a wide range of partner gyms, plus personal training, and nutritional guidance. They also come in store roughly every 4-6 months to speak to and asses each team member’s “bio age” based on things such as their diet, exercise levels, blood sugar, cholesterol, etc. This age is used as a basic indication of each person’s physical health in relation to their actual biological age. It is often an eye-opener for some employees, as it gives them motivation and a starting point to improve their

health before their next visit. This is consistent with research showing that relationship behaviour that is formed as support, and the development of trust improved and benefitted employee wellbeing within the workplace (Baptiste, 2007). However, despite their focus and emphasis on physical health, FCTG appears to lack enough support for the mental health of their employees. The CSIRO (2013) suggests that the psychological wellbeing of staff is the responsibility of the organisation, and there must be easily accessible ways for employees to voice their needs at the local/ store level. It is understandable that psychological health can be difficult to identify and treat as it can substantially vary from day-to-day, and is easily influenced by a number of factors (Renwick, 2003). That is why FCTG must find an effective way to raise awareness and be engaged in the alignment of strategies, partnerships, accessibility, and most importantly, sufficient communication (CSIRO, 2013) regarding emotional wellbeing in the workplace. The CSIRO encourages the promotion of psychological wellbeing for employees through various initiatives and projects, close interactions with employees at all levels of the organisation, and even one on one life coaching for securing a healthy work-life balance. As of currently, it is not quite clear who employees can turn to in times of emotional turmoil. Even more-so, for novices the job can be quite overwhelming and at first will feel physically and emotionally draining, but it is hard to know who you can openly express these feelings to. The support chain is muddled, and more often than not, when employees turn to their direct managers they simply offer them time off work or refer them to speak to their area manager, but never actually offer the kind of emotional support and advice needed to aid impaired emotional and mental health. Perhaps FCTG could incorporate a strong focus on psychological health with their Healthwise store visits, and offer more straightforward support channels through mediums such as counselling and life coaching for those who need it. Just as important as employee wellbeing, is employee engagement and commitment. The subject of employee engagement has gained considerable recognition in recent years yet its definition remains inconsistent, and its concept convoluted (Shuck and Wollard, 2010). It can however, be agreed upon that if this part of HR management is not properly addressed and acted upon, employees fail to be fully committed to their work as a reaction to the mismanagement (Markos and Sridevi, 2010). FCTG conducts regular surveys for employees to voice their opinions. However, these surveys are often not about their feelings regarding the entire company, but rather nearly superficial questionnaires about their area of stores. And although they ask what employees do and don’t like about their area, they do not focus on how the employee feels about their position in the company as a whole; instead choosing to ask trivial questions such as whether they like their area name, and if they prefer chocolate or alcohol as gifts for achievement awards. This can prove to be insufficient and problematic, as Andriotis (2016) suggests that companies need to have a strong feedback system if they are to be successful in receiving measurable evaluations about what actually matters to their employees. This means FCTG needs to look at implementing a performance system that holds all staff accountable for their level of participation and engagement shown (Markos and Sridevi, 2010) if they are to improve their level of staff engagement and interest. Lack of employee wellbeing and engagement within a company could easily spell trouble for an organisations bottom line costs and profit. As Stirzaker (2016) states, “a healthy and engaged workforce takes less time off sick and works more efficiently…decreasing bottom line expenses.” This is essentially drawing out that healthy and happy employees will cost a company less. A study by the Bureau of Labour Statistics (2014) showed a 22.2% increase in job growth for the “Fortune Best 100 Companies to Work For”, and these companies overall had hired new employees at a rate that was five times higher than the national average, showing a significant investment in their employees. FCTG really takes advantage of this attitude, offering their employees a multitude of benefits and rewards. These range from discount travel and paid “travel educational” leave on top of the standard four weeks paid annual leave, to health/ wellbeing and financial planning, and even profit sharing through stake and share purchases. This has kept them floating at the top of the travel industry for years, as they invest in their own people. But regardless of the money FCTG spends on its employees, it needs to focus more on employee engagement if it is to maximise its profits. Markos and Sridevi (2010) emphasize that the best performing US firms are focused not only on engaging all of their employees, but also advancing and promoting their highest achievers. Although FCTG works hard to recognise their best employees, it cannot be emphasized enough that they need to work and focus on keeping them interested so they do not take their skills to another competing company; and so-in listening to their needs they can address any issues before they result in the loss of talent.

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