Mr. Fernandez, Sr.

Diversity Issues

A Holistic Approach to Diversity Management Spurs Business Growth

By Gerald Fernandez, Sr., President & Founder, Multicultural Foodservice & Hospitality Alliance

Inclusive diversity initiatives yield results

Management of diversity initiatives in the hotel and lodging industry must be inclusive and proactive in order to be successful and sustainable. Taking an inclusive approach to diversity management involves looking at the entire company and its stakeholders. Being proactive suggests that an organization seizes opportunity as opposed to reacting to a problem.

For example, the hotel industry was forced to react to the NAACP Hotel Survey when it was initiated in 1997. This widely publicized survey was viewed by many as a challenge to the industry's commitment to African-Americans and other minority groups.

Despite the fact that the lodging industry has long been a good place for Blacks and other minorities to find employment, not enough has been done to help minorities advance to higher levels of leadership. By not having a clear industry wide strategy for leveraging diverse talent and perspectives, the lodging industry is open to scrutiny by minority special interest groups.

Workforce diversity efforts are not enough

All too often companies focus their efforts only on workforce diversity with little or no emphasis on other business strategies where sound diversity practices can yield benefits. Diversity and inclusion as a business strategy needs to involve much more than just the management of employees.

Lodging leaders must recognize the need to manage their diversity image across all internal and external platforms. The best corporate diversity programs at top Fortune 500 companies target at least four primary audiences for strategic diversity messages. These audiences include their workforce, their customers, the communities in which they operate and their suppliers. All four of these constituencies must be engaged and properly managed if a company or industry wants to be seen as genuinely inclusive.

Corporations who are recognized by magazines and diversity organizations like DiversityInc.com, Fortune Magazine, and Hispanic Business all include multiple constituencies in their diversity outreach. Examples such as Marriott International, Hyatt Hotels & Resorts and Hilton Hotels, have clearly stated diversity objectives that go well beyond workforce diversity management.

In fact, Marriott has three diversity vice presidents who each have distinct responsibilities as part of their overall diversity strategy. Not surprisingly, Marriott earns high marks for Asian, Black, Hispanic and other consumer groups because they are engaged with these communities on issues that matter the most to them.

The business case has been made for Marriott and its strategic plan reflects a focus on leveraging diversity for corporate, as well as individual, growth.

Diversity management is really about leadership

Today's workforce exhibits diversity at every level of leadership and includes diversity of gender, thought, ethnicity and lifestyle. The challenge is to manage human resources in a way that ensures the best possible results for the business.

The quality of diversity management depends on leadership excellence. Great leaders understand the need to create teams where people can thrive regardless of their differences. Great leaders bring people together across cultural and ethnic dimensions to deliver results for the enterprise.

However, besides cultural understanding, leaders must have the awareness and competency to bring the best out in their employees. It is no coincidence that companies where diversity is paying dividends employ some of the industry's best leaders. At these companies, people of diverse backgrounds are thriving because:

It is important for leaders of the lodging industry to have an understanding of how diversity management and inclusion as a business strategy is viewed by customers, investors, and the communities in which they operate. Leaders must appeal to ALL people who make up their stakeholders.

21st century leaders must have a global mindset

It is important for leaders to understand that guests and clients may make decisions about which hotels they stay or hold meetings based upon diversity and minority outreach.

Social responsibility in the business world has long been discussed in Europe. Today U.S.-based companies are embracing the concept as part of Diversity and Inclusion programs. This social responsibility approach is being embraced by consumers regardless of their racial or ethnic background.

More and more often, consumers are asking the question: "What kind of corporate social citizen is this company and what does this brand stand for?" Starbucks has been able to capitalize on consumer interest by publicly stating its support for free trade coffee. Kimpton Hotels has gained customer loyalty through its commitment to "Dress for Success," a women's employment initiative which operates across the U.S.

In this new multicultural marketplace, leaders must know how to guide and direct both employees and customers. Immigration issues are widely debated in Europe as well as in the U.S. As in the States, population growth is slowing in both the U.K. and many European countries. This demographic reality puts pressure on businesses to find employees.

The internet has changed the business equation

Lodging leaders recognize that customers have more choice and increased access to tremendous information due to the World Wide Web. Branding on the web is powerful and effective especially when applied to diversity messaging. Guests and potential employees now use the internet to research companies.

A Google search of the "Best Companies for Diversity" yields over 5 million listings. The Marriott International homepage comes up number five on the list and, more impressively, is included on every web link in the top ten! This is not an accident. Hyatt and Hilton perform quite well when you conduct a web search of their diversity commitment. More importantly, all three hotel companies have results to back up their diversity recognition.

Minority Business Enterprises are (MBE) Growing

According to the Census Bureau's 2002 Survey of Business Owners, minority businesses are growing four times faster than the national average. Between 1997 and 2002, U.S. business ownership increased by 10%. During that same period, black-owned businesses grew by 45%, Hispanic-owned businesses increased by 31%, and Asian-owned businesses jumped by 24%.

Minority ownership in the lodging industry is still dominated by Asian Indians but Black ownership has grown significantly. Donnell Thompson, Chairman of NABHOOD (National Association of Black Hotel Owners, Operators and Developers) has predicted that "the Association will have 150 Black hotel owners within the next five years."

The growth of minority hotel owners and operators has increased dramatically in the past ten years. AAHOA (The Asian American Hotel Owners Association) blazed the way and now Black businesspeople have embraced the lodging industry as a vehicle to create wealth. Groups like The Marathon Club have emerged to take advantage of market opportunities for dealmaking in the emerging domestic market. The Marathon Club (TMC) is dedicated to increasing the involvement of people of color in the American wealth creation process.

Communities of color have high expectations

Minority markets are growing and will respond to whichever businesses reach them with a culturally appropriate message. Those lodging brands that are leading the diversity charge have assumed a deliberate and determined path to inclusion, one that will serve them well both in this time of multicultural transition and in the future.

Gerald A. Fernandez, Sr., is president and founder of the Multicultural Foodservice & Hospitality Alliance (MFHA), a national non-profit organization that promotes the social and economic benefits of diversity. He founded the Alliance with support from Cargill, Coca-Cola, General Mills, Nation's Restaurant News and PepsiCo, Inc. in 1996. Gerry holds a Bachelor of Science degree in foodservice management from Johnson & Wales University, where he also earned a culinary arts degree in 1976. The university awarded him an honorary Doctorate in business administration in 1999. Mr. Fernandez, Sr. can be contacted at 401-461-6342 or gerry.fernandez@mfha.net Extended Bio...

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