Mr. O’Halloran

Human Resources, Recruitment & Training

Attracting and Retaining Key Employees

By Robert O’Halloran, Professor & Chair, Hospitality Management, East Carolina University

The classical time-tested method for maintaining a cadre of key employees calls for the recruitment of men and women who not only have the technical experience and background which the job requires, but also the personality attributes and abilities which make them effective leaders (Fiedler, 1967). This dated but topical observation illustrates that recruitment and selection are critical to the retention of employees in a high quality work force. It is as important today as it has been over the years. Each position will have its own criteria and requirements for knowledge, skill sand and attitudes/ behaviors (KSA) that are necessary for an individual to be successful in that job. Some skills and attributes that are often noted are communication, management ability, work experience, human and/or interaction skills plus the technical lodging and/or food service skills needed for a particular job. The key question is: how can organizations; hotels, resorts, restaurants or any business attract the key employees they need and then keep them.

As potential employees consider careers, companies are developing selection criteria to match their needs but hopefully the needs of those sought after employees. Company incentives that are typically valued by employees include salary, position image, geographic location, company size, promotability, training programs and of course in these economic times, benefits. Additionally, company criteria will match the candidates with skills needed for specific positions that could focus on human resources, management skills, accounting, finance, marketing and/or other criteria as described as KSA above. Additionally, it can be argued that practically recruiters often make their decisions to hire or not only based on set criteria and prior experience but use criteria such as physical appearance, references, grades in school (when appropriate) and ultimately the interview. Hospitality companies must decide as Mintzberg (1975) states “the basic question”, "What do managers do?” This is in part answered by the three basic management roles as described by Mintzberg; interpersonal, informational, and decision-making.

In today’s marketplace candidates are looking to match themselves with the right company and often are concerned about geographic location and personal fit as an employee.

The ability of the candidate and the company to find common ground, matching the needs of the company with the needs of the candidate is critical.

Finding Talent: Recruitment

From a company perspective a checklist for recruitment planning may resemble some of the following:

Assess the candidate’s ability to do the job Yes_____ No_____?
• What are criteria that we will use to accomplish this?

Is the pay and benefit package competitive Yes_____ No_____?
• Who and/or what is our competitive set?

Is the candidate a cultural fit? Yes_____ No_____?
• How do we measure this?

Does the candidate have the needed communication skills Yes_____ No_____?
• How do we assess this? Interviews, presentations?

At the interview

Were behavior interactions with management positive Yes_____ No_____?
• Behavioral examples

There are more areas to address, but planning for recruiting key employees needs to be well thought out. Organizations also need to assess the image of their company as image can help attract and recruit the optimal employees.

Attractive Companies (Money helps but is not always the deciding factor)

Companies need to provide an opportunity that has the optimal attraction factors. Obviously base salary will be a key but can and should be complemented by short and long term incentives. Base salaries could be augmented by commissions, and/or other incentives. This option would depend on the actual job and its requirements. Incentives could be based on profit performance and/ or other pre-agreed goals. Profit sharing might also be an option.

On the benefit side, as health care costs continue to increase employee benefit packages are increasingly important. What if any does the employee contribute to the plan? Many organizations cannot provide full coverage without a cost sharing arrangement with its employees. Additionally, an optimal retirement plan will assist employees seeing themselves staying with the organization for the long term. Like an interview the recruitment process is mutual and the candidate must plan for recruitment in the same manner the company might. Additionally, if the company is a long term employer; a career path can be matched and aligned with retirement programs that will be optimal for all.

Candidate Planning

As important as salary and benefits are, many candidates, especially those in demand, consider other factors when assessing companies. For example, some candidates will look at the diversity or lack thereof of a company and/or its green or sustainability practices. A candidate’s checklist beyond salary and benefits might resemble the organization’s checklist in some ways and could include:

What is the image of the company from the candidate’s view?
• Positive, personal, impersonal?

Is this a diverse company?
• How will they assess diversity studies? Ranking? Awards?
• How does the company compare with companies known for their positive diversity practices?
• What is the diversity of the current workforce; are statistics available?

Who are the customers, guests and clients of the company?

Does the company participate/give back in/to the community?
• In what ways; hands-on, donations, events?

What vendors does the business use?
• Are they diverse and are they sustainable companies?

What are the sustainable criteria that would be values?
• Recycling?
• Sustainable construction?
• LEED certification?

These types of criteria are often screening criteria for candidates who may have benchmarked companies that they would really like to work for and with. An organization needs to begin with the enough; we will attract, recruit and retain high potential employees.

Retention

A question for a new hire is will s/he be accepted as a key part of the management team. Are new hires treated as well as long time employees? If the optimal candidate is secured, then both sides of the equation (organization and employee) must work collaboratively to think about today and tomorrow. Remember this is a high potential recruit; so the company and candidate will need to know what their career plan will look like? They will want to know the timeline for potential promotions and growth in the organization? A company can and should have a succession planning process in place. The match between company and employee needs to reflect a long term plan that could address employee goals to be a general manager, director, owner or franchisee?

Education and training programs will also be critical and align with this timeline. In the recruitment phase, an organization has already assessed the candidate’s qualifications. A solid and continuous learning and education/ training program will be attractive to candidates and employees and can add tools to the basket of KSA to enhance their personal and professional value for themselves and the organization.

Mintzberg (1975) who was previously mentioned notes that effectiveness is significantly influenced by his/her own insight into his/her own work. Actual practice and constant feedback in a real life or simulated situation are the keys to proper manager education and training. In conjunction with this, a manager must be aware of the environment he/she works in, the functions of his/her job, the different personalities in these positions, and the situational characteristics that occur.

Too often do people view the hospitality industry as a pass through career? This author, discussing the leadership in our industry with a noted executive management researcher, asked if the research ever focused on the hospitality industry. His response was swift and negative, noting that too much turnover would keep him from studying the industry. While that may be an individual’s study it does reflect a general view of an opinion of our industry that is transient. A solid recruitment and retention plan can assist in dispelling this attitude. Hospitality industry managers, perhaps more than any other managers, are constantly in the decision-making mode simply by virtue of walking through their operations. They are besieged by guests, employees, owners, etc., to make quick decisions with imperfect information. The very nature of the industry makes the figurehead role a natural one. Hospitality is a service industry and concentrates heavily on guest contact; therefore, managers are constantly on stage. They must be acknowledged and compensated for these roles in some fashion that benefits the organization and the individual.

Professor O’Halloran is Chair of the Department of Hospitality Management at East Carolina University (ECU). He has operational experience as a general manager and as a training manager for Jolly Roger and Trans Pacific Restaurants. He has experience in the front office and food and beverage departments and worked as a hospitality management consultant. He is a Commissioner for AH&LA’s Certification Commission and was elected as Vice Chair. He is a member of the Board of Trustees of the AH&LEF. He is also a member of the Educational Institute of AH&LA Faculty Advisory Board. Mr. O’Halloran can be contacted at 252-737-1604 or ohalloranr@ecu.edu Extended Bio...

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