Inspired by his participation at the BITAC Owners event at the Caribe Hilton in San Juan, Puerto Rico, this May, CEO Charles Oswald put together his thoughts on the current disruptions and complexities faced by the hospitality sector. Charles was joined on the panel by Heather Strauss, Director of Hotel Asset Management at Prime Group US, Zev Mandelbaum, CEO at Altree Developments, Ed Denton, Chief Development Officer, Commonwealth Commercial Partners, and moderator Gavin Fraser, Editor of Hotel Interactive Inc.
1. When managing client and owner relationships, what strategies are most effective?
Effective client relationship management is paramount in the hospitality sector. One critical lesson we've learned is the importance of delivering bad news early, with a plan. It aligns with our most critical core values of Transparency & Accountability. Clients appreciate it when you’re forthcoming and take responsibility, which helps manage expectations and build trust. When delivering bad news, having a well-thought-out plan to address it for the long term. This approach prevents the situation from deteriorating into a series of minor setbacks—"death by paper cuts."
2. Regarding labor management techniques, what innovative strategies have emerged to address staffing shortages and retain talent in the hospitality sector?
Staffing shortages have been a persistent challenge in the hospitality industry. Innovative labor management strategies are essential to address this issue and retain talent. Emphasizing flexibility and adaptability in work schedules can significantly enhance employee satisfaction. For instance, offering varied shift options, such as 4-hour shifts, 4-day workweeks with 10-hour shifts, and irregular shift timings, can cater to diverse employee needs.
Creating a culture of engagement and prioritizing employee well-being is also vital. Implementing programs focused on skills and career development helps retain talent by providing growth opportunities. Casting a broader net during hiring and refining candidate funneling techniques can also improve recruitment outcomes.
Another pressing issue is the influx of new and inexperienced workers post-pandemic. The hospitality industry has experienced a significant turnover in recent years, resulting in a workforce still finding its groove. Investing in comprehensive training programs and fostering a supportive environment has proven crucial to ensuring these employees meet the high standards expected by clients and the productivity expected by investors.
Lastly, companies must enable a culture that embraces mindfulness, learning to relax, and self-care to relieve stress and burnout. Doing these things well can favorably affect attendance, presenteeism, productivity, and retention.
3. How can technology be leveraged to optimize supply chain efficiency and labor productivity in hospitality operations?
Technology plays a pivotal role in optimizing supply chain efficiency and labor productivity. For recruitment, utilizing single-source job distribution platforms can widen the talent pool, while real-time labor productivity management systems help maintain a balance between productivity and quality.
Automating routine tasks through technologies like OCR for invoice automation, payment automation systems, and inventory management tools can streamline operations and reduce manual workload. Additionally, having the right Business Intelligence (BI) system with early warning indicators enables proactive decision-making, helping businesses avoid potential issues.
4. How can hospitality businesses foster a culture of adaptability among their workforce to effectively respond to changing market dynamics and challenges?
Adaptability is crucial for the hospitality workforce to respond effectively to changing market dynamics. Flexible shift options and introducing remote and hybrid work models in select situations can enhance adaptability. Mobile apps that allow employees to select available shifts give them greater control over their schedules, contributing to job satisfaction and retention.
Seasonal business patterns and sudden changes in portfolio size can strain staff. To address this, consider utilizing contract labor during peak periods and exploring outsourcing options for accounting, revenue management, or e-commerce strategy. Embracing automation in various operational aspects can also enhance efficiency and reduce the need for constant manual intervention.
5. With the rise of automation and AI, how do you see the future of labor management evolving in the hospitality sector?
Automation and AI will heavily influence the future of labor management in the hospitality sector. These technologies can predict business levels, enabling better preparation and planning. They can also improve hiring and job-matching processes, enhance employee communication, and streamline the delivery of guest services.
By efficiently handling simple tasks through automation, employees can focus on more complex and value-added activities, improving guest experiences and operational efficiency. As technology continues to evolve, its integration into labor management practices will be pivotal in shaping a resilient and adaptive hospitality industry.
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