Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 1

Opal Ruiz

Analyzation of HRM polices for competitive advantage in the workforce; CIDOT HR policies

Human Resource Management

International College of the Cayman Islands

Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 2

Abstract

Through the utilization of a literature this research paper is to analyze and identify HR practices

and policies which enable organizations to gain a competitive advantage in the work force. This

research paper will also provide an overview on the Cayman Islands Department of Tourisms,

vision, mission, values, and business objectives. The HR practices which will be discussed

throughout this paper include; non-financial and financial benefits such as work life balance,

advancement opportunities, as well as opportunities for learning, training, and professional

development. The paper will then analyze the HR practices of the Cayman Islands Department of

Tourism which support the organization in achieving a competitive advantage as well as offer

suggestions on how the department can improve and implement HR practices to increase its

future potential in increasing its competitive advantage in the workforce.

Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 3

Analyzation of HRM polices for competitive advantage in the workforce; CIDOT HR

policies

Introduction CIDOT

The Cayman Islands Department of Tourism was founded in 1974 and it presently falls under the

Ministry of District Administration, Tourism and Transport (CIDOT, 2016). The Ministry

manages and directs various activities for departments which have corresponding goals as it

relates to the protection of the environment, support of the local economy, and ultimately to

promote the Cayman Islands as the leading tourism destination for visitors (CIDOT, 2016). In

accordance with the Cayman Islands Department of Tourism Annual Report 2015-2016 CIDOT

is a public sector department that is responsible for the short and medium term strategic planning

and destination management for the Cayman Islands tourism industry.

The vision, mission, and values of CIDOT are very important and relevant to the

organization as it outlines the overall goals of the department which all employees should strive

towards attaining. The vision, mission, and values enables employees to understand how they

can contribute to the shared goals of the department it order to achieve its mission statement.

CIDOTs vision is to responsibly lead the tourism industry and position the Cayman Islands as

the warm weather destination of choice; which it turn leads to its mission which is to attract and

retain visitation to the Cayman Islands by developing and implementing sustainable policies and

initiatives for the benefit of all our people (CIDOT, 2016). Furthermore, CIDOTs values

encourages a culture of continuous improvement and in line with this, its values are for

employees to; be courageous, be innovative, and to be the brand which is Caymankind (CIDOT,

2016).
Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 4

As CIDOT is a part of the Cayman Islands Government much of its HR policies and

practices are determined and guided by the Public Service Management Law (2013 Revision) as

well as the Personnel Regulations (2013 Revision) however, there are certain HR policies which

are determined at a departmental level (CIDOT, 2016). According to CIDOT (2016) the HR Unit

is dedicated to developing and retaining a team of professionals with personal characteristics and

competencies required for achieving the departments mission. CIDOT HR Unit also strives to

develop a team oriented environment; maintaining the guiding principles of the Government

Personnel Law which will encourage elevated levels of job performance ultimately resulting in a

peak in departmental performance (CIDOT, 2016). This research paper will identify HR policies

and practices that allow organizations to gain a competitive advantage in the work force as well

as how the CIDOT utilizes its HR policies and practices to obtain a competitive advantage. This

research paper will also suggest ways in which CIDOT HR practices can be improved in order to

obtain higher competitive advantage in the workforce. Methodologies used include a literature

review of HRM articles and journals, local legislation applicable to CIDOT as well as internal

HRM documentation provided by CIDOT.

Review of Literature / Introduction - competitive advantage in the workforce

According to Khan, Awang, and Zulkifli, (2013) organizations are increasingly

acknowledging the importance of employees, therefore, resulting in the implementation of

efficient HR practices which may enable significant organizational development which is

regarded as a competitive advantage in business. As a matter of fact, research from Delery, 1998;

Huselid , 1995; Pfeffer, 1994; & Walker, 2001 indicates that effective HRM policies can be used

as a method for obtaining competitive advantage in the workforce. In addition, other researchers

have also concluded that the employees or human resource of a firm is hypothetically one of the
Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 5

most vital sources of sustainable competitive advantage for the organization therefore HRM

polices impacts the firms performance by improving employee behavior (Kok & Hartog, 2006;

Zheng el al., 2009; Pardo & Moreno, 2009; Becker & Gerhart, 1996; Delery & Doty, 1996;

Ferris el al., 1999; Huselid, 1995; Pfeffer, 1994). Organizations can obtain a competitive

advantage in the work force by having HR polices that provide an appealing and diverse

compensation package which includes both financial and non-financial features.

Literature review on compensation package (financial and nonfinancial benefits)

As mentioned, when an organization has a good compensation or benefits package this

can be beneficial in the organization achieving a competitive advantage; according to Chew and

Chan (2008) remuneration is an important contractual and inferred arrangement between the

employee and the organization. As stated by Rumpel and Medcof (2006) financial compensation

is money provided to an employee from an employer for services provided. Although, financial

compensation is largely accepted as the most important factor for attracting and retaining skilled

employees money alone is no longer sufficient in swaying an employees decision to apply

greater commitment or to remain with the organization (Chew & Chan 2008). In accordance with

research by Schlechter, Thompson, and Bussin, (2015) non-financial benefits have a substantial

impact on how an employee views the attractiveness of an employment offer. Furthermore, non-

financial benefits that are included in compensation packages characteristically include

opportunities for training, flextime programs, and career advancement (Rumpel & Medcof,

2006). Moreover, these non-financial benefits are usually assimilated with financial

remuneration in an effort to provide a more comprehensive, efficient, and more diversified

compensation and benefits package (Rumpel & Medcof, 2006). As previously mentioned

organizations are realizing that paying salaries above the market level is not adequate on its own
Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 6

to motive, encourage and retain employees (Whittaker, 2010). Whats more is that Whittaker

(2010) went on to say that the initial satisfaction and motivation may have improved as a result

of increased salary or receiving a performance bonus, however the impacts were short lived in

comparison to the motivating impacts of non-monetary benefits. As mentioned by Rumpel and

Medcof (2006) non-financial compensation provided by organizations also includes training

opportunities.

Literature review training benefits and access to continuous learning

It is important for HR polices to provide learning and training experiences in an effort to

improve the skills of the organizations employees (Schlechter, Thompson, & Bussin, 2015).

According to Stavrou-Costea (2002) training and development programs are of primary

importance to HR practices. In addition to providing employees with the required abilities to

perform well in their present and future duties, training also provides opportunities for

employees to share experiences by developing a better understanding and to be of assistance to

each other (Stavrou-Costea, 2002). As a result training and learning opportunities foster the

increased development of organizational cohesiveness, employee commitment and ultimately

increases employee productivity (Stavrou-Costea, 2002). Additionally, training and learning

opportunities can assist employees in advancing within the organization.

Literature review on advancement opportunities

Organizations with HR practices that provide employees with opportunities for

advancement and promotions may have a competitive advantage in the work force. According to

Glen (2006) it is important for HR practices to provide skilled and high potential employees with

the access to achieving experience-based career leverage prospects which swiftly develops their
Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 7

careers and increase their individual marketability. Furthermore, career advancement

opportunities include having HR polices that assist employees in pursuing and achieving their

career goals (Schlechter, Thompson, & Bussin, 2015). In consonance with Armstong and Murlis

(2010) opportunities for career advancement and development are logical necessities which bind

employees to an organization as they fulfill individual needs such as self-actualization and

professional and personal development.

Literature review on opportunities for personal and professional growth

It is important for HR policies and practices to provide employees with ample

opportunities for personal and professional growth and development. Training relates to any

procedure provided by the organization in order to advance learning amongst its employees

whereas career development is associated with how much employees grows individually in

conjunction with the organization upon the completion of training opportunities (Taplin &

Winterton 2007; Ansari, 2011; Bhatti et al., 2013; and Sengupta & Dev, 2013). Additionally,

employee satisfaction is not just about money as HR tactics such as rewarding employees for

past performance with increased salary and position in the form of promotions and lateral moves

to new positions are equally important to employees (Ciani & Guddy 2012; Campbell, 2008).

Opportunities for personal and professional growth is considered a form of non-financial

compensation likewise the notion of work like balance is also recognized as a non-financial

benefit.

Literature review on work-life balance

Organizations with HR practices that address the issues of work life balance have a

competitive advantage over other organizations who do not adopt such practices. Research by
Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 8

Asiedu-Appiah, Mehmood, and Bamfo (2015) indicates that work-life balance is a notion of

employees being able to create and maintain an adequate balance between their social / personal

life and their paid work life. Whats more, organizations are making significant efforts to

develop good WLB in an effort to improve employee output and decrease employee turnover

rates (Asiedu-Appiah el al., 2015). Additionally, as stated by Asiedu-Appiah el al. (2015) WLB

supports employee loyalty and commitment and results in improved employee productivity.

Furthermore, the development of any organization can only be achieved through the interests of

its employees therefore; the significance of WLB ought not to be ignored or overlooked (Asiedu-

Appiah el al., 2015). Research by Asiedu-Appiah el al. (2015) indicates that when employees are

unable to effectively balance family demands and work demands it can diminish productivity,

increase absenteeism, decrease employee commitment and lower employee morale. In addition

to HR practices supporting the importance of WLB likewise is it equally important for

organizations to have programs that recognize the performance and efforts of its employees.

Literature review on ongoing recognition of contributions to the organization

Recognition is an imperative practice which shows employees that they are valued for

their contributions (Homewood Human Solutions 2012). However, it is important to note that

recognition programs should be personalized and delivered in a way that is meaningful to

employees (Homewood Human Solutions 2012). Additionally, according to Schlechter,

Thompson, and Bussin, (2015) employee recognition programs give distinctive attention to

employees efforts, performance, actions and behaviors. In agreement with Zani et al. (2011)

non-monetary rewards including recognition and praise are recognized as motivating factors for

employees and thus leveraged by organizations to stimulate employee performance.

Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 9

CIDOT / GIC HR practices noncontributory pension scheme and health insurance

As previously mentioned, CIDOTs HR practices are guided by the Public Service

Management Law (2013 Revision) and the Public Service Management Law (2013 Revision).

CIDOT provides a very attractive compensation package which includes not only a competitive

salary but also provides very generous noncontributory pension and health insurance programs.

According to the Personnel Regulations (2013 Revision) civil servant employees, their spouses,

and dependent children are entitled to free non-elective health insurance which provides medical,

optical, and dental benefits. Additionally, all civil servants including employees of CIDOT are

entitled to remuneration in regards to pension contributions to the Public Service Pension

Scheme (Personnel Regulations, 2013 Revision). The Personnel Regulations (2013 Revision)

states that employee and employer pension contributions are paid into the Public Service Pension

Fund on behalf of the employee by the employee at a rate of 6 % of the employees salary.

Employees employed by private sector organizations are required to contribute to their health

insurance premiums and pension contributions and therefore noncontributory pension and

insurance programs provided by DOT allows the department to have a competitive advantage in

the workforce.

CIDOT / CIG HR policies on work life balance (flextime and legislation)

In relation to work-life balance the department recognizes that this an importance factor

which affetcs employee performance and productivity. According to CIDOT workplace rules

annex the typical working hours of the organization is from Monday to Friday from 8:30 to 5:00,

however, CIDOT may operate a flextime policy from time to time which is subject to approval.

The flextime policy typically allows the employee to come in at an earlier hour and leave earlier
Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 10

or start at a later hour and leave later or vice versa. In Addition to CIDOTs flextime policy, as

civil servants employees are also provided with additional types of leave which facilitate a good

work life balance. These benefits are enshrined in local legislation known as Personnel

Regulations (2013 Revision). According to the Personnel Regulations (2013 Revision)

employees are eligible to apply for both part time and full time study leave as the discretion of

the appointing officer or head of department. The Personnel Regulations (2013 Revision) also

affords CIDOT employees with paid leave in the form of maternity, paternity, vacation, sick,

time, compassionate , compensatory, bereavement and special leave. Therefore the Personnel

Regulations (2013 Revision) provides mechanisms that support employees in maintaining a good

work life balance. As previously mentioned CIDOT believes in the principle of maintaining a

good work life balance and as a result its HR policies and practices are aligned with this belief.

Hence in order for its employees to maintain a good work life balance the department operates a

flextime program and provides additional leave benefits.

CIDOT non-financial benefits Employee Assistance Program

Moreover, as CIDOT is a part of central government employees and their immediate

family members also have access to free counselling services which are facilities by the

Employee Assistance Program (Ministry of Health Services, District Administration and

Agriculture, 2001). According to the Ministry of Health Services, District Administration and

Agriculture (2001) Employee Assistance Program provides group and individual counselling for

issues that involve marriage, family, stress, relationships, domestic violence, substance abuse and

depression. EAP provides confidential referral and counseling services that support employees

and enhances organizational efficiency (Employee Assistance Program 2016). According to an

article published by the Ministry of Health Services, District Administration and Agriculture
Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 11

(2001) government membership in the EAP program includes over 3,000 employees and the

program is offered as an additional benefit to civil servants. The services provided through the

EAP are of significant non-monetary benefit CIDOT employees and as mentioned are of no cost

to the employee. Similarly, like membership to the Employee Assistance Program employees are

also eligible to membership to the Civil Service Association

CIDOT non-financial benefits Civil Service Association

As civil servants CIDOTs employees are also eligible for membership and other

associated benefits through the Civil Service Association. Whilst work unions are not legally

recognized and accepted in the Cayman Islands, the Civil Service Association is the closest

organization in the Cayman Islands which is able to provide assistance and representation for its

members on HR and workplace issues. In accordance with the Public Servant Management Law

(2013 Revision) the Cayman Islands Government acknowledges the Cayman Islands Civil

Servants Association as the appropriately appointed representative of the Head of Civil Service

and of the civil service, additionally Chief Officers and the Portfolio of Civil Service are likewise

to recognize the Civil Service Association and liaise with the Association when it is necessary in

regards to human resources issues for which they are accountable. This is an added benefit of

being employed the CIDOT and the wider Cayman Islands Government that is not available to

employees of private sector organizations. Therefore, Civil Service Association membership

provides CIDOT with a competitive advantage in the local work force. Likewise, another non-

monetary benefit of CIDOT employment is opportunities for training and educational assistance.

CIDOT training and educational assistance

Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 12

According to Amy Bothwell Manager, Human Resources CIDOT provides its employees

with financial assistance in the pursuit of training and certifications. Correspondingly, in keeping

with the departments desire to provide employees with educational assistance opportunities

CIDOT Educational Assistance / Study Leave Policy states that employees are entitled to

financial assistance towards courses and paid study leave. In consonance with CIDOTs 2015-

2016 Annual Report 25 employees participated in training in David Allens Getting things

done and seven employees completed training in various subjects such as business continuity,

disaster planning, leadership and hospitality workshops. The report also indicated that five

employees advanced in furthering their education at various levels which include Associates,

Bachelors, and Masters degree programs (CIDOTs 2015-2016 Annual Report). Also, three

senior managers participated in the Top 100 Civil Servants Leadership Conference (CIDOTs

2015-2016 Annual Report). According to CIDOT Training and Capability Development Policy

the department recognizes the importance of the development of employees for personal growth

as well as for succession planning. The policy also states that Departments Training and

Development Policy is to support and provide training opportunities that will improve the skills,

abilities, and knowledge of all employees. Whilst CIDOT employees are able to receive various

training and educational assistance through CIDOT HR policies employees are also entitled to

continuous learning opportunities through wider government programs and initiatives.

CIDOT / CIG Access to continuous learning

Additionally, as the CIDOT is a component of the Cayman Islands Government its

employees are eligible for continuous learning, educational, and training opportunities through

various government lead initiatives and programs. Most recently for the month of August 2016

the Office of the Deputy Governor launched the CIG first ever Development Month which
Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 13

included sessions for essentially all learning needs (thehub, 2016). As indicated by a blog from

the Deputy Governor Hon. Franz Manderson major themes covered throughout Development

Month included Health and Wellness, Core Skills, Mentoring, and Innovation (thehub, 2016).

Sessions provided ranged from becoming an engaging manager to effective time management

and stress management (thehub, 2016). Moreover, CIDOT employees are also eligible for

educational advancement through the Civil Service College. According to thehub (2016) CSC is

providing employees with the opportunity for educational advancement through the Institute of

Leadership and Management (IML) Level 3 Certificate course effective September 2016.

Furthermore, CSC provides civil servants such as CIDOT employees with the opportunity to

pursue Certificates, Associates, and even Bachelors degrees in Public Administration among

other workshops and learning opportunities (thehub, 2016). Whats more is CSCs vision is to

engage, motivate, and realize the potential of civil servants through lifelong learning

opportunities (Civil Service College, 2016). Additionally, the CSC enables employees to better

manage their personal and professional career development leading to lifelong success (CSC,

2016). In Addition to learning and educational opportunities through CSC CIDOT employees are

also able to patriciate in CIG recognition programs.

CIDOT / CIG recognition programs

Although the CIDOT does not presently have its own internal employee recognition

program the employees of the department may be recognized through wider government

recognition programs such as the Deputy Governors Awards, the Chief Officers Choice and the

CIG Employee of the Year (Office of the Deputy Governor, 2016). According to the Deputy

Governors website, the Deputy Governors Award is designed to highlight the upstanding

efforts of civil servants throughout core government so that these employees can serve as role
Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 14

models, exemplifying the high standards that is expected for all civil servants (Deputy

Governors Office, 2016). Further to this the Chief Officers Choice is chosen form a list of

nominations of high performing civil servants within a particular ministry and at the end of each

month one outstanding employee will be recognized as the CIG Employee of the Month (Deputy

Governors Office, 2016). Ultimately, at the end of the year all CIG Employees of the Month

recipients automatically become nominees for the Deputy Governors Award which is the

highest level of the award system that recognizes the efforts and contributions of outstanding

civil servants (Deputy Governors Office, 2016).

How CIDOT can improve HR practices to improve training policy

It is essential for HR practices, not only to recognize the benefits of training programs but

also to develop plans for the implementation of effective training programs within the

organization (Stavrou-Costea, 2002). Whilst CIDOT provides its employees with funding and

assistance for training opportunities, its training program can be improved. CIDOT could

implement a training program in which all employees would participate in the departments

tourism industry stakeholders workshops (PRIDE, Know Your Cayman Islands and Promises).

As mentioned CIDOT employees are entitled to various training opportunities through Civil

Service College (thehub, 2016). Therefore the CIDOT should institute a policy to systematically

encourage, recommend and remind employees of the benefits and learning opportunities

available to them through the CSC. Perhaps this can be done by linking available training and

learning opportunities available to employees to their performance agreements. Additionally,

CSC provides government departments with individualized workshops which can be used to by

CIDOT to improve the skills and knowledge of employees at no additional cost to the

department. Furthermore, research by Stavrou-Costea, (2002) indicates that training and learning
Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 15

opportunities increases team cohesiveness, employee commitment employee productivity and

this can be of significant benefit to CIDOT. Accompanying the improvement of CIDOTs

training policy, CIDOT can also expand its HR polices to improve employee recognition.

How CIDOT can improve HR policies to improve employee recognition

Whilst the wider government recognition programs are a starting point the civil service is

a very large and diverse group of over 3000 employees which makes it considerably more

difficult for CIDOT employees to be recognized. Therefore CIDOT can improve its HR polices

by designing and implementing an employee recognition program that exclusively applies to

CIDOT employees. An employee recognition program enables unique acknowledgement to the

efforts, performance, behaviors and actions of employees (Schlechter, Thompson, & Bussin,

2015). Moreover, as indicated by Homewood Human Solutions (2012) employee recognition

programs are important as it demonstrates to employees that their contributions to the

organization are valued. The department may also implement a program which also recognizes

the tenure and dedication of employees by recognizing key employee dates including birthdays

and anniversaries. Once implemented the employee recognition program should be delivered in a

meaningful method to employees and should also be personalized (Homewood Human Solutions

2012). Additionally according to Zani et al. non-financial rewards such as employee recognition

can motivate employees and improve employee productivity. Therefore the CIDOT can improve

its HR polies by designing and implementing an effective and efficient employee recognition

program. Further to the improvement of the employee recognition program CIDOT can also

improve its HR polices to enable better work life balance for employees.

How CIDOT can improve HR policies to improve work life balance

Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 16

Whilst, CIDOT currently operates a flextime program many employees may not be aware that

such program exists. During the orientation process new employees should consistently be

advised of the flextime policy. As mentioned by Yasbek (2004) work life balance refers to

polices created by organizations, as a part of its HRM. Such policies consists of the employees

right leave from work including maternity / paternity leave, vacation, time off to take care of

dependents, and ultimately includes the rights of parents to seek flexible working hours and part-

time work (Stevens et a., 2004). Additionally, the department could look into implementing

additional work-balance programs such as telecommuting, or job sharing. This is in consonance

with research by Moore (2007); Deery (2008); and Anderson and Kelliher (2009) which found

that flexible working programs such as telecommuting, flextime, compressed work time or

reduced work hours provide employees with options as to where and how much hours they work,

which in turn improved employee engagement and satisfaction thus enhancing employee

retention within the department. Also, it is imperative for CIDOT to create flexible options to

increase productivity without affecting the safety, personal lives and welfare of its employees

Asiedu-Appiah et al., (2015). Hence the availability of work life balance programs is important

as it allows employers to recruit and maintain productive employees who will be of a

competitive advantage to the organization (Jones et al., 2013).

Limitations / Future Research -This research paper did not analyze the CIDOT HR polices for

competitive advantage in terms of diversity, and inclusive workforce or provide a review on

literature based on competitive advantage in terms of diversity and inclusive work force. This

research paper also did not analyze the CIDOT / CIG terms of policies the current issue of pay

stagnation within the civil service or policies to address the issue of pay stagnation within the

civil service which may have an impact on its competitive advantage.

Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 17

Conclusion / Summary - In conclusion, based on the literature reviewed in order for

organizations to obtain a competitive advantage within the work force it is essential for its HR

policies and practices to incorporate programs to provide a good quality of work-life balance,

opportunities for personal and professional growth, access to continuous learning, ongoing

recognition, advancement opportunities as well as a good compensation and benefits package.

Organizations whose HR policies provide employee recognition programs, advancement

opportunities, and access to continues learning have a more engaged and productive workforce

which in turn enables the organization to achieve a competitive advantage in the workforce. The

Cayman Islands Department of Tourism is a component of the Cayman Islands Government and

as a result its HR policies and programs are fundamentally governed by legislation such as the

Public Service Management Law (2013 Regulations) and the Personnel Management Law (2013

Regulations) which enables CIDOT with a competitive advantage in the workforce. However,

there are certain HR policies that are exclusive to the Cayman Islands Department of Tourisms

employees. Such policies also provide CIDOT with an opportunity to achieve a competitive

advance; these policies include the flextime policy, the Training and Capability Development

Policy, and the Educational Assistance / Study Leave Policy. Employees of the CIDOT like other

civil servants receive generous compensation packages. The compensation package available to

CIDOT employees include access to continues learning through the Civil Service College,

noncontributory pension and health insurance programs, provision for work life balance

(maternity, paternity, study, bereavement, compassionate, compensatory, vacation, sick). CIDOT

nonetheless can improve its HR policies and competitive advantage by providing additional

provisions for improved work life balance including telecommuting and job sharing as well as an

employee recognition program that is unique to the department.

Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 18

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Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 21

Appendix A
Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 22

Appendix B
Running head: Analyzation HRM polices for competitive advantage; CIDOT HR policies 23

Appendix C
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Appendix D
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