The hospitality industry orbits around two factors, the staff (employees) and the guests. The fact is that hospitality industry has become highly fast-paced and competitive and due to this, numerous of issues are faced on daily basis by HR department. The issues currently faced by HR in the hospitality industry are the usage of internet, safety issues, theft, harassment claims, inexperienced managers, non-existing procedures and policies, retention, management skills and turnover. Other issues are mostly related to employees, such as shrinkage, morale, training, and recruitment.

The Internet is being used by employees in the hospitality field for personal reasons instead of activities related to the world. With respect to jobs, employees find themselves in unsafe scenarios. Occupational safety rules are required to avoid lawsuits and injuries. A huge supply of raw materials is maintained by hospitality organizations. The risk of getting these materials stolen by employees has got higher. The whole staff can get affected by the negative influence of harassment happening in the hospitality business. Employees suffering from harassment are unable to provide best services to guests. Overseeing other departments often are required by managers in the hospitality industry, however, managers lack essential training for it. A whole department of inefficient employees can result due to an inexperienced manager.

Lawsuits related to employment and hearings related to unemployment are some legal proceedings that may be faced by HR in the hospitality industry with respect to non-existing procedures and policies. Employee turnover is found in hotels and restaurants that have poor management. A huge amount of finances and time get consumed in training, hiring, interviewing and locating new employees. Morale has become one of the biggest concerns in relation to recruitment and retention. Service standards are influenced heavily by low morale.