Attracting, Motivating, and Keeping Hospitality Talent: 2020 and Beyond

Rob Kwortnik, Ph.D.Associate Professor of Service Marketing and Director of Graduate Studies

Our Agenda

n The shrinking hospitality talent pooln Competing for talent in that pooln Gen Z goes to work (finally!)n Being the “Get” hospitality brandn Brand-centric H.R. strategyn Engaging talent with internal marketing

Attracting and Retaining Hospitality Employees is Difficult

Causesn Tight labor marketsn Lower unemploymentn Growing competition for good employeesn Perceptions of hospitality as a job,

not a careern And of course:

Traditional Methods of Recruiting

n Ads and Announcementsq Internal

n Job Postingsn Employee referrals

q Externaln Direct mail and email campaignsn Brochures and videosn Newspapersn Trade and professional periodicalsn Radio and TV

n Job fairs and open housesn Employment agencies and

search firmsn College recruitment and

internship programsn Internet…

Popular Internet Recruitment Sites and Resources

n www.monster.comn www.careerbuilder.comn www.hcareers.comn www.linkedin.comn www.harri.comn www.glassdoor.comn www.indeed.comn https://jobs.google.com/

Social Media & Corporate Websites

n For building and communicating a distinctive employer brandn For image promotion that focuses on the organizationn For telling employee stories about careers and day-in-the-life

Examples: Kimpton Hotels and Resortsq Corporate website Brand website Brand FB page

Encourage Soft Recruiting through Social Sharing

Alternative Recruitment Strategies

n Talent scout cardsn Point-of-purchase messagesn Banners/billboardsn Business layoffs/closingsn Partnerships with vendors & competitorsn Spotting→Poaching (not from each other: think

outside of traditional hospitality: government services, banking, convenience stores, clothing retail, tattoo parlors….)

n China

Members of Generation Z are Getting Jobs. Finally!But They are Different. Very Different.

Gen Z or iGen was born after 1997. We’re in the 2nd year of Gen Z graduating from college and entering the workforce.

What makes the Gen Z cohort different?

n Different view of the worldn Different formative experiencesn The most racially, ethnically, and

socially diverse generation in historyn Smartphones and social media “always on”

And why is this important for employers?

The Gen Z Cohort is Coming of Age Now

Gen Z Cool

Source: Think with Google

Today’s College Students Are Career Focused

n When asked, what type of programming or information would be most helpful during their first year at the Hotel School? 1) Career/Internship Information2) Clubs and Organizations3) Work study / Working at the Statler Hotel

n When asked, to rank order the following hospitality business areas based on what they plan to pursue post-graduation: 1. Finance, Real Estate, Consulting, Investment Banking, and Development (55%)*2. Human Resources and Law (17%)3. Marketing & Operations (F&B, Hotel Operations, Revenue Management) (14%)

*However, they don’t want the i-banking lifestyle

Source: Cornell University Hotel School 2019 Freshman Survey

But Their Definition of a Career Differs from Ours

n When asked, to elaborate on career interests, 30% of freshman students mentioned entrepreneurship: q “Being an entrepreneur is my end goal, and I hope to achieve that goal

through the lens of hospitality.”q “I am interested in entrepreneurship and would love to involve music and

hospitality.”q “I am looking to pursue entrepreneurship and real estate investing/

development.”q “I am very interested in being in control of my own destiny, so I am

interested in entrepreneurship within real estate.”q “My interest is entrepreneurship in the context of sustainability.”

Source: Cornell University Hotel School 2019 Freshman Survey

Gen Z Wants to Work Differently

Gen Z values different things than you or me. These values influence what they want from jobs and careers.

Their Impression of “Work”—the Influence of Tech

Gen Z’s approach to work is fluid and collaborative, not fixed and isolated: n Have laptop will work wherever—except a cubiclen Work life is social life—beer and bonding experiencesn Long hours are fine—just feed me, do my laundry, give me a haircut, and maybe a massagen How about housing?—the China model for F&B workers

What about Pay?

The Dynamics of Supply and Demand Means Better Pay:

n Research indicates that college graduates expect to make $60,000 in their first jobn Most will earn on average $50,000

n Class of 2019 Cornell Hotel School B.S. graduates average starting salary: $65,600q Average signing bonus: $8,000

n For hospitality/ops jobs, the average starting salary was: $56,000 q Average signing bonus: $5,600q Average salary for hotel property jobs: $50,000q Average salary level for F&B jobs: $57,000

1: Provide Professional Development and Upward Mobility

Key: Prove that there’s a career path:

n Map out career progressionn Highlight opportunities for cross-functional movementn Assign mentorsn Tell success stories

Michael Bayley

President and Chief Executive Officer, Royal Caribbean International

Chloe Robb

Operations Manager, Galgorm Spa and Golf Resort

https://www.galgorm.com/careers.html

Royal Caribbean’s First Hotel Ops Rotational

2-year program

q 3 months – Hotel Ops (shipboard)q 6 months – Onboard Revenue (shoreside)q 3 months – Entertainment (shoreside)q 3 months – F&B (shoreside)q 3 months – F&B (shipboard)q 6 months – Hotel Ops (shoreside)

Mentorship: Each member of the program has a mentor assigned through the 2 years

Career Development: After 2 years, rotationalemployees go into a management role as a shoresidedepartment Lead or Manager or Assistant Department Head onboard

How to Engage Your Team: The Royal Way“Since coming onboard, I have been able to do incredible things through this rotational:

- Manned the Guest Services line during a “hurricane cruise” where the itinerary was

extended by 3 days due to the weather

- Plated hundreds of dishes during the famous weekly Lobster Night in the Main Dining Room

- Officiated a wedding onboard

- Danced in the 70’s Disco Inferno Show

- Ate in every specialty restaurant onboard (I even competed the Sushi Making class!)

- Taught guests salsa dancing during the Noche Latina

- Threw a surprise anniversary party for a pair of suite guests, along with a Royal Genie

- Did a “Secret Shop” of a shore excursion in Jamaica, in which I got to climb a waterfall

- Helped sell future cruises in the NextCruise office

- Conducted a simulated USPH inspection of the galleys onboard

- Assisted in running the Family Science event in Adventure Ocean (we made volcanoes!)

- Served as a Mobile App & Voom Internet Consultant

- Hosted a Napkin Folding class in the crew bar

- Assisted in putting together a top secret Royal Way pop-up event (“Operation Energize”)

- Watched the Aqua Show from a bird’s eye view in the tech/lighting booth 6 stories up

- Worked a shift in the Engine Control Room

I have truly been involved in every aspect of the operation!”

2) Focus on Company Culture to Create a Community

“A service culture is where an appreciation for good service exists, and where giving good service to internal as well as ultimate, external customers, is considered a natural way of life and one of the most important norms by everyone in the organization.”

(Gronroos 1990)

Values at the Heart of Royal Caribbean Culture

Values Engaged: The Royal Way

Ritz-Carlton Gold Standards

http://www.ritzcarlton.com/en/about/gold-standards

Employees are Stars at the Beverly Hills Hotel

Employees are Family at the Resort at Pedregal

https://www.youtube.com/watch?v=AKknWn0609M

3) Be the “Get” Brand for Job Applicants

Google gets 2 million applications per year.

The top companies for new college graduates:1. IBM2. JP Morgan Chase3. Amazon4. Tesla5. Deloitte

There are no hospitality brands in the top 25Source: Handshake

Fortune’s 100 Best U.S. Companies to Work For--2019

https://fortune.com/best-companies/2019/

1) Hilton2) Salesforce3) Wegmans Food Markets4) Workday5) Kimpton Hotels & Restaurants6) Cisco7) Edward Jones8) Ultimate Software9) Texas Health Resources10) Boston Consulting Group

25) Cheesecake Factory 31) Marriott32) Hyatt89) Four Seasons97) Delta Airlines

None of the 25 most popular employers for recent college grads are in the top 25 of best companies to work for—though Deloitte is close at #26

https://www.b.co.uk/the-lists/northern-ireland-companies/

Fortune’s 100 Best U.K. Companies to Work For--2019

23) IHG42) easyJet49) Hyatt

https://www.forbes.com/sites/johnwelsheurope/2018/12/05/50-best-places-to-work-in-the-u-k-according-to-glassdoor/#25f276ee41b1

“Get” Brands have Recruiting and Retention Power

Four Seasons’ Manager in Training (MIT) Program.

n Assigned to Rooms or F&B MIT and at least two rotations n Positions are not guaranteed after the MIT program;

however, the People and Culture team strives to place successful MIT performers in manager roles

n Four Seasons is all about corporate culture and treating people the way they want to be treated

n Upper management, direct supervisors, and even other employees are genuinely invested in one’s development as a future leader/manager.

n The MIT program also includes a mentorship program where someone outside one’s department in a higher management role meets with MIT staff every month.

n “The job is not big bucks,” but the experience of learning a new field and building a strong foundation for F&B operations more than compensates.

Dennis Gonzalez, ’19

Four Seasons MIT,

Washington, DC

4) Build—and Protect—Your Customer and Employer Brand

The Brand Promise is the experiential takeaway from the service—how the

service transforms customers’ needs and wants into a satisfying experience.

Remember: you have internal customers, too.

Your Brand Integrates the Organization

For service firms, most everything communicates the brand: n Advertising (creative)n Social media (content) n Web sites (IT/E-Commerce)n Physical facilities (engineering) n Employees (human resources) n Service processes (operations) n Call centers (customer service) n Reputation management (customer reviews)

The brand is the thread that ties these elements of the service system together to co-create value with customers for delivering satisfying, profitable service experiences.

Evidence of the Brand Promise through People

http://www.statlerhotel.cornell.edu/

Service Employees

n Are the servicen Are the organization in the

customer’s eyesn Are the brand and marketers

“In a service organization, if you’re not serving the customer, you better be serving someone who is.”

--Jan Carlzon, former CEO, SAS

The Goring: “Impeccably English and Perfectly Individual”

Clarify How the Role Activates the Brand

Recognize and Reward Employees for their Effect on Reputation

We recently stayed in The Grand Central for 9 nights on the 17th floor in a Disabled Adapted Room.

My partner uses an electric wheelchair and we were just blown away by the room…. At breakfast we

were practically treated like royalty. Nothing was too much…. All the staff were really friendly but we

cannot write this review without a special mention to Judith and Arthur who went out of their way

to make out stay really special. THANK YOU…. Also a special mention to Nicholas who always came

over for a chat and knew which kind of Beer My Partner drank. All in all a brilliant stay….This hotel

will be our PLACE TO STAY every time we visit Belfast. Thanks again to all. We would recommend this

Hotel to ALL DISABLED TRAVELLERS

Recognize and Reward Employees for their Effect on Reputation

So where do I begin with this review that will do justice to Bishops Gate Hotel! I organised our class reunion and chose

Bishops Gate hotel as the venue, from the moment I met with Donna to discuss what I wanted to the actual reunion last

night everything was faultless. Donna was amazing to work with, from personalised menus with the school logo on them,

to uploading an 80’s playlist for me, I can’t thank you enough. The waiting staff last night were brilliant, attentive and so

professional, the food was just superb, so thanks to the chef, and wow did we all have the best night. Thank you Donna

and all the staff at Bishops Gate Hotel from all the ladies that came along to St Mary’s class of 1983 reunion last night,

nothing like making new memories. Thanks for being a part of it.

Source: Trip Advisor

The Trend ContinuesOwn Your Brand Reputation

The Impact of Online Review on Consumer Choice

Source: C. Anderson, Cornell Center for Hospitality Research

The Impact of Online Reviews on Hotel Pricing

Source: C. Anderson, Cornell Center for Hospitality Research

5) Link Personal and Professional Passions

https://www.youtube.com/watch?v=4vSVPEX_g9g&feature=player_embedded

25hours Hotel Company HR Recruitment Video

https://www.youtube.com/watch?v=zIgVSQLKc34

Your People Make the Service Experience

https://www.youtube.com/watch?time_continue=2&v=DfaYKYFYHBk

Westin Name Tags

Hyatt’s Public Pride

6: Use Internal Marketing to Promote the Brand Inside

Internal

Marketing

Interactive Marketing

External

Marketing

Company

(Management)

CustomersEmployees

enablingpromises

keeping promises

settingpromises

Source: Adapted from Mary Jo Bitner, Christian Gronroos, and Philip Kotler

Internal Marketing Communications: Ritz-Carlton

n Link internal and external marketing messages (“two-way branding”)n Communicate messages to internal customersn Bring the brand alive for employees by weaving it into the company

fabric and hitting internal-customer touchpointsn Involve employees in brand marketing

Internal Marketing Professional Development: Iron Hill Brewery

Internal Marketing Social Recognition: Holiday Inn Lancaster

Feature Staff and Back-of-House “Sneak Peaks” in Social Media

Compete for The Power of People

“The importance of customer service is forever clear: even the most delicious lobster isn’t good when service is poor, because poor service leaves a bad taste in your mouth.”

William F. Orilio, hospitality consultant

Thank you!