Re-Engaging Staff for Success in Today’s Market

The recent financial crisis has unquestionably wreaked havoc on hospitality organizations with reduced occupancy rates and a much leaner workforce. Nevertheless, this economic environment has also brought out the best in our industry through greater innovation and creativity as “pockets of resistance” figure out ways to weather the storm and beat the odds.

One area that’s getting more attention is how to re-engage employees in today’s radically changed environment to provide the “wow” factor that keeps guests coming back and recommending. (And yes, that still matters, even during price wars! Check your own experience.)

Now is actually the best time to start thinking outside the box about ways to re-motivate staff—even when budgets are tight, liquidity is drying up and RevPAR is trending downward. It is true that there may be a general reluctance to survey associates or implement innovative training programs in the aftermath of a reduction in force (RIF), but the absence of either may convey a feeling of indifference. This impression can only aggravate deteriorating conditions and possibly hasten a downward spiral.

Most Important: How Employees are Treated During Difficult Times

The fact of the matter is that while some hospitality organizations experience low morale after layoffs, there are others that appear relatively unfazed. What sets apart one workforce from another is how employees are treated during these times and how well management communicates with staff.

Giovanni Angelini, former CEO and Managing Director of Shangri-La Hotels and Resorts, who recently retired, had some parting advice published by premier newspaper TTG Asia:

“The single most important factor is how an organization deals with its employees, especially during difficult times—how employees are reassured of job security, how they are motivated, trained, evaluated, promoted,” said Angelini. “During difficult times the industry tends to cut training, employee surveys and the overall human resources functions. This is extremely dangerous as by taking this approach the memorable customer experiences will disappear.”

Why not Conduct Employee Surveys after Layoffs?

One reason that companies may be reticent to survey their employees after layoffs is because the questions do not reflect the fact that key motivational drivers have dramatically changed. Therefore, sending out the same list of survey questions as before might be counter-productive.

According to Dr. Daniel Mount, Associate Professor in the School of Hospitality Management at Penn State University, it is vital that employee surveys be designed to take into consideration changing market conditions and also customized to meet the specific needs of each organization:

“Historically I have found that employee responses on specific survey items change more in turbulent times,” said Mount. “The importance of items also changes significantly during these kinds of uncertain economic conditions where a rise in unemployment is a factor. For example, in a downturn the compensation and benefits issues begin to take on less importance, as employees seem to say, ’I have a job and, while I would like to make more money, it is not that important right now.’

“However, in a strong economy, compensation and benefits do take on greater importance,” continued Mount. “Employees seem to say, ’The hotel is obviously making money and we are not getting our fair share, there is plenty of opportunity elsewhere.’ The economy, and operating/staffing decisions made by hospitality organizations can directly impact employees and so there is a greater likelihood that their actions can have a powerful influence on employee satisfaction.

“In a time of turbulent change, employee satisfaction and items that affect it are turbulent as well,” added Mount. “Companies should be focused on staff surveys during these times to stay connected and engaged with their employees.”

It is important to remember that not staying connected with staff members can be detrimental, because once an economic recovery is underway, employees are more likely to bolt! When companies lose vested skills and talent, they incur increased costs for recruitment, assessment and training. And guest satisfaction also suffers, along with the invaluable loss of repeat business.

Surveying Employees whether Times are Good or Bad

According to Linda Lang, the impact of employee engagement on guest satisfaction is an ongoing process. Lang is Vice President of HR for Millennium Hotels & Resorts, the North American arm of London-based Millennium and Copthorne Hotels plc (MLC).

“The level of employee engagement continues to have a cumulative effect upon guest satisfaction,” said Lang. “Each positive interaction multiplies over time to create a good feeling among both associates and guests, and this translates into a higher level of guest satisfaction. So it’s very important to survey our employees consistently whether times are good or bad.”

Obviously the downturn continues to force many hotel properties to do “more with less” and that has translated into reduced headcount and axed expenses. Often this has the chilling effect of lowering morale and making it even more difficult to engage staff. Many HR professionals have found that open and improved communication with their staff members can get them more involved as active participants, increase guest satisfaction and soften the severity of present market conditions.

“With regard to our industry’s present financial circumstances, the first and foremost thing to keep in mind is to be objective and straightforward in our communications with associates,” continued Lang. “You simply cannot marginalize the economy’s impact with a lot of spin. We have to acknowledge that it has been devastating to everyone and the people we all work with. We have nothing but compassion and sympathy for those who have taken the brunt of the impact. And although I do think things will turn around, you cannot sugar-coat it.”

Focusing on Areas Still under Your Control

In addition to straight talk, it is important when gathering feedback to be mindful of the fact that there are certain things that are beyond management’s control in the present environment. Many organizations are so cash-strapped that they cannot make improvements in certain areas (such as compensation or benefits). So survey questions should instead focus upon controllable factors.

“What we are doing now with UniFocus’ STAFFScope is utilizing a condensed list of questions,” said Lang. We went through a distillation process to reduce 40 questions down to 10 so that we can zero in on those areas where we still have a degree of control. These are the critical areas where we can have the most impact to effect positive change, such as communication, team effectiveness, implementing ideas, and enabling everyone to make a contribution.

“On the other hand, the kind of questions that we don’t ask about are things that we obviously cannot change because of financials or other inhibiting factors,” added Lang. “This may include areas such as training programs, benefits, compensation or general organizational enhancements. Focusing upon the areas where we can effect change allows us to get a slice of the apple, do a comparative analysis to get the bigger picture, and then put an action plan into place.

“It’s vital to engage our associates in the survey process and so we have put into place a modest stand-alone incentive plan in all of our properties,” said Lang. “This is designed to increase the level of employee participation and to achieve a minimum score, even if it’s not necessarily on the positive side. Then we take action where we can have the most impact by focusing attention upon those areas to bring about positive change; it’s exactly like the Hawthorne effect.”

Treating Staff as Active Participants: Good HR Policy and Great Business Sense

A fully engaged workforce can improve employee retention; conversely, a disengaged labor pool can spawn high turnover. The hospitality industry had a staff turnover rate of 31% in 2008, higher than any other sector; even more telling is the fact that 17% of employers said this problem had a negative impact on productivity, according to Personnel Today. Clearly this area warrants more attention.

Well-run hospitality organizations understand that recruiting and retaining good people can be more challenging than acquiring loyal customers. However, the latter cannot be done without the former.

“We have one of the highest employee retention rates in the industry, which translates into lower costs for recruitment, skills assessment and training,” says Marian Barbieri, Vice President of Human Resources for New Castle Hotels & Resorts. “Our property management teams know it’s in their best interest to ensure they have an engaged staff. UniFocus’ STAFFScope survey analytics give us the tools to reinforce our culture of instilling ownership in every team member to create more memorable experiences for our guests.”

Feedback from Property Managers is also Important

The process of engaging your workforce starts by recognizing their diversity and expectations and then investing time and resources in advanced human resources survey technologies. Then it is also critical for hospitality organizations/owners to get feedback from management at the property level.

“Another exciting tool that STAFFScope provides to us is that for the first time our property managers and our general managers each have customized surveys developed just for them,” added Barbieri. This will allow us to better understand our managers’ needs and how we can help them to develop in their roles, while giving our general managers the opportunity to share how our corporate office can support them with the tools and services their hotels and resorts need to be even more successful.”

Getting Everyone Involved

Expecting to get more out of your employees in today’s economic environment may seem like a lot to ask for. However, there is always a silver lining in the storm clouds and today is no different.

When resources are limited, why not enlist all employees to sell the hotel? Whether it is housekeeping and maintenance, front-desk staff or IT, everyone can make an impression on prospective long-term customers. All employees can also impact guest perception by contributing to the overall service experience. This approach can generate more involvement and enthusiasm.

Meyer Jabara Hotels has distinguished itself as an employer of choice within the industry by creating a culture where associates are encouraged to reach their fullest potential. Abigail Clarke is Director of Human Resources for Meyer Jabara Hotels, where she strives to help fulfill the company’s vision.

“Although we have eliminated some positions, our staff has really stepped up to take on more responsibility,” remarked Clarke. “They know that they can really do this. They are contributing more and making a difference; and we’ve seen our guest satisfaction scores go up. Our associates are also getting more involved in community activities and this has got them even more excited.”

A visit to a Meyer Jabara hotel goes beyond an ordinary hotel stay; each property features a unique destination that engages the guest in experiences which support the geographic area.

“The downturn has opened up new opportunities and that’s a positive for us and our guests,” continued Clarke. “Our associates are managing their time better and working harder. Communication is much improved and associates are more involved in the process of running the business as they provide guests with whatever they need. They are also taking more initiative than before and open to trying new things. And if anyone has an idea, we encourage them to let us know about it.

“Although everyone realizes these are difficult times, there are good things happening and we see improvement in communication with our staff,” added Clarke. “As a result, in our surveys associates have given management higher scores. And we know there are still lots of other opportunities where management and staff can work together for improvement.”

Conclusion

Although we have all read that there is general consensus that financial conditions have begun to stabilize, the bad economic news continues. That’s because there is often a time lag between bottoming out and when companies stop reducing headcount and start hiring again in earnest. But meanwhile, what happens to the employees that remain after several rounds of layoffs?

Staff members who still have jobs will tend to stay with the company regardless of the increased workload or other undesirable conditions. And this “holding pattern” may lead some management teams to think they can sideline any employee motivational programs or periodic surveys that gauge their attitudes and involvement. But this decision could turn costly when the economy rebounds.

One of the most critical areas where an organization can either succeed or fail is communication with their employees. It’s important to keep them in the loop, even if it’s not necessarily good news. This speaks to the aspect of human nature that affects how stressed-out staff members are, and that is the perception of control. Simply by focusing on those areas where a company has the power to effect meaningful change, there is a greater sense of direction and purpose throughout the organization.

Needless to say, it is vital that employee feedback systems continue to be part of the culture in hospitality organizations. Periodic staff attitudinal surveys and evaluations should be an integral component of the business and they must be done well, utilizing today’s best practices and technologies.

In summary, re-engaging your employees in today’s environment is fundamental to maintaining a competitive edge now and for achieving long-term success moving forward.