APPLYING RISK MANAGEMENT TO HUMAN RESOURCES: AN EXPLORATORY STUDY OF CROATIAN HOTEL INDUSTRY

Five years after joining the European Union, the effect on the Croatian economy and society is visible through a positive impact on exports, GDP growth, labor mobility, and a number of other indicators. Nowadays, more than ever, ‘employees’ is the buzzword of choice among Croatian employers, politicians and the media. The reason for that lies in the fact that Croatia has had a long-term negative outflow of national working population (age 20-64). The causes for the negative labor mobility in Croatia can be found in the high rate of seasonal employment, inferior work conditions (wages, protection of workers, paid overtime etc.) and overall low satisfaction with quality of life. This negative trend of Croatian labor mobility has been more pronounced in less developed and rural areas. In the past, the labor force from those areas was extensively employed during the tourist season by the hotel industry. Any potential risks in human resource management arising from the current situation in the labor market can influence profitability and the financial performance of the Croatian hotel industry. Therefore, managing risk in human resource management should be incorporated in the risk management processes of the hotel industry. This study aims to investigate human resource risk management practices in the Croatian hotel industry. Data was collected using an on-line questionnaire from November 1, 2017 until March 1, 2018. Descriptive statistics were used to analyze the collected data. The research findings revealed that human resource risks are both recognized and managed in the Croatian hotel industry. The study also shows that there is still room for improvement in implementing human resource risk management processes in the Croatian hotel industry.