Club Mediterranee, also known as Club Med, originated during the 1950s in Europe as a nonprofit sports organization. Over the years, Club Med has expanded to one of the largest hotel resorts in the world, with locations ranging from Europe, to Israel, to the "American Zone."" The "American Zone- includes North America, South America, the South Pacific, Asia, and the Caribbean. .
In 1972, Club Med started to sell vacation packages in the American Zone. Upon Club Med's expansion into the American Zone, there have been some logistical problems with hiring and maintaining superior employees, including employee turnover. .
Club Med employs a wide variety of individuals to control each village. The main person in charge of each village is the general manager, or the Chief of the Village. The next person in the hierarchical order is the Chief of Services. After the Chief of Services, comes the GOs, or hosts. The GOs have a wide variety of jobs, ranging from entertaining guests (GMs) to general maintenance of the resort. The GOs are the young and personable employees that are expected to put in long hours on the job. GOs average about eighty hours of work a week. Their job is not considered "work- in the traditional sense, but a job where they can enjoy themselves, and at the same time make money interacting and facilitating activities with the GMs. .
Club Med's tribulations with staffing GOs are becoming a significant problem for Jacky Amzallag, the American Zone human resources director. Club Med is experiencing considerable turnover rates with GOs. Recruiting, interviewing, staffing, and training potential new GOs is a very costly venture for Club Med. Therefore, it is very important that they hire the right people that "fit- with the organization in order to keep the turnover rate of high-quality employees to a minimum.
In addition to high turnover rates, Club Med also faces cultural differences between its European managers/GOs and American managers/GOs.
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