Hiring and Building A Team Post-Covid
By Jeff Brainard
We are now more than four years past the start of lockdowns from COVID-19, which ushered in the most dynamic changes in our workforce since WWII. As we progress forward, the difficulties in building a sustainable team post-pandemic are some of the most daunting tasks for leaders. To determine how to build a team in today’s environment, we first need to understand what has changed and how it has changed. There have been multiple studies by the American Hotel and Lodging Association (AHLA), Harvard Business School, Microsoft and many others providing ominous statistics on workforce numbers, turnover and workplace changes. Many of us have experienced firsthand the challenges associated with filling key roles from housekeeping to senior leadership and the impact on the team that remains, as well as and especially, on our guests.
As the direct impact of the pandemic and governmental mandates that restricted our industry fade, we must look at how hospitality has adapted and what our “new normal” has become. Largely, many properties and management companies have worked hard to return to the previous standards of service. To return to those standards, we are implementing technology wherever possible to supplement touch points previously handled by team members. In other cases, services were altered or even eliminated due in part to staffing shortages and continually rising operational costs.
The comment that I have heard the most is that “people have changed.” My reply to that has been, consistently, yes, they have, but that isn’t a new phenomenon. Workforce changes have been continuous throughout time. Although the impact of COVID-19 to the business and hospitality world was dynamic, changes were already underway. While the pace of change accelerated significantly, our reaction to those changes have established new trends in our business.
Prior to 2020, there was an evolution already underway with workplace culture including a rise of hybrid work, remote positions, increasing use of consultants and contract labor. Culture changes were taking place in all industries; however, hospitality was somewhat slower to see the impact. The changes we experienced were in response to an already low unemployment rate and a shortage of key skilled team members in many areas of the country. Rising wage costs and growing competition with retail, warehouse positions and other entry level roles was impacting hospitality more than cultural changes or requests for remote work at that time.
When COVID-19 hit in early 2020, technology was our crutch and as an industry we scrambled to deal with a world that couldn’t travel, dine out, meet, host events or celebrate. Remote work became the standard for positions that could be performed off-site, layoffs were significant and the future of the hospitality business was questioned. Slowly, leisure business returned, followed by individual business travel (IBT) and eventually group. During this recovery time, standards changed, offerings were reduced and staffing ramp-up was limited and cautious. However, by the first quarter of 2021, there was a significant shift with increased demand, and hotels and resorts started balancing limited staff, changing restrictions, and shifting needs to deal with an inability to deliver services that guests weren’t just expecting, they were demanding.
Thus began the hospitality hiring frenzy that we are still dealing with in many ways today. The challenge in today’s workforce in hospitality isn’t dramatically different from many others. Increasing wages is the most popular and cited result of the restaffing push. However, wage changes alone can’t staff properties and pay increases do not build a team culture. Many of the wage increases for leadership roles, as well as some hourly positions, are no longer sustainable, and recently, there has been a shift in labor rates to address rising operational costs elsewhere.
So, the question now becomes: How do we build successful teams post-pandemic given these factors? The reality is there is no magic bullet, but there are clear steps that successful organizations have taken to build teams and win in the new marketplace. The most effective groups are looking at three key areas:
- Workforce Culture
- Return to Accountability
- Front Line and Upper Management Training
1. Workplace Culture
Forbes defines workplace culture as “The shared values, belief systems, attitudes, and the set of assumptions that people in a workplace share.” What exactly does that mean? How does it impact hiring? This is great for team members once they are in the organization, but how does it impact hiring and retention?
Effective managers who live the company’s culture are the best way to attract talent. Recruiters, HR systems and AI screening tools have become an even greater part of modern hiring strategies. Strong managers being hands-on in hiring is more important than ever. Culture is much more about connecting with team members versus any motto or value printed on a poster in a break room. At Southern Management Companies, we talk and live by the “3 Rs” and the “3 Ms” - doing the right thing at the right time for the right reasons and My Mission, My Team and Myself. It is a simple, focused and effective way to communicate that our culture is about doing the right things for people, period - internal and external. If this message permeates an organization, word will get out, which helps make you an attractive workplace. It also allows the team to hold the company and its leaders accountable for “walking the talk,” which is essential in an effective culture.
We’ve all heard the notion that “People don’t leave companies, they leave bosses.” Yes…ish. People do leave bad bosses, but people also leave organizations that don’t support a positive culture through leadership. With word traveling faster than ever on social media and sites such as Glassdoor, ensuring messaging matches actions has never been more important in the hypercompetitive environment in which we all work. Hospitality, especially, is a very large industry but a very small business!
A recent study by Deloitte shows 94% of executives and 88% of employees believe a distinct corporate culture is important to business success. What is missing from this study, as well as similar polls, is that no one discusses specifically how culture produces success and its role in constructing teams.
Culture can span distance, positively impacting remote workers, hybrid workers and those brave souls who show up at the office every day! It does so through the consistent reinforcement of positive management and accountability to performance and effort. Culture spans differences in roles, location and even skillset. It is the unifying force that allows us to leverage our peers’ energy to create a positive work environment, even if that collaboration with the team is over Zoom.
The importance of management and consistency in applying standards and expectations that are aligned with culture cannot be understated, and that brings us to our first significant inflection point in a post-pandemic.
2. Return to Accountability
In the early days coming out of the pandemic, standards were lowered, people were hired and teams were assembled based on availability. Cleaning rooms, checking in guests, preparing meals, selling space, etc., all were impacted by staffing challenges. Properties made accommodations previously unheard of to retain staff as the uncertainty of the business and government regulations appeared to give team members additional leverage in the workplace. The resulting negative impact on high performers was significant due directly to the limited accountability on low or no performers.
With restrictions in our rear-view mirror and workforce availability stabilizing, we now have the ability to evaluate business and performance using more “normal” measures. Looking at RevPAR Index, Gross Operating Profit and turnover are keys, but now, more than ever, are productivity, quality, service delivery and teamwork.
We’ve discussed culture and a key to culture is accountability. Are team members accountable for their quality of work and are they producing at the levels we need to grow our business? Successful cultures dictate that teams are aligned and working toward a common goal, and extraordinary teams generate extraordinary results.
Similarly, to culture, multiple studies have been conducted on what creates successful teams. The overlapping keys are Engaged Leadership, Strong Team Communication, Aligned Culture and Accountability for Performance. Setting goals, timelines and expectations isn’t enough. Teams led by engaged managers and leaders who hold team members accountable and communicate positively and effectively are essential.
We’ve leaned heavily on our top performers to carry the weight of work while others “get up to speed.” It is time that we invest in and reward the top performers while simultaneously using their example to develop team members who may not be performing to that standard.
In addition, a true talent evaluation is likely necessary for all organizations. Some pioneers like Jack Welch utilized the Vitality Curve, ranking A, B and C players. There are many different practices, but understanding where you are on a purely talent and productivity basis is essential. The evaluation should be objective and done with a group of leaders and established measures.
Whatever process is used, it is essential that prior to the evaluation, leadership has a plan in place to address the results and support the team members in the team environment as well as individually. Investment should be made primarily in top performers with a support system established for others to create a positive, safe but focused environment for performance. Though there will likely be transition when implemented, when handled properly, the culture will support the change. Looking for qualities of performance versus experience will be essential when replacing roles. Holding people accountable, celebrating wins, communicating constructively and, at times, separating non-productive team members enhances an organization and strengthens teams. The fear of losing someone cannot override making a decision or change. If your culture is consistent, the team will resolve to work together to cover until a new and better-aligned team member is added.
The next step in this process is identifying the traits that successful and productive team members have in your organization. We must shift our hiring methodologies to focus on those specific traits versus simply experience in the business and we must train leaders to identify the difference.
3. Front Line and Upper Management Training
For the past four years, our front-line managers and many upper management personnel in hospitality have been dually tasked with line-level roles in addition to their management responsibilities. That has weakened their management muscles and created an environment where previously clear lines of responsibility have been blurred. Add to that an increase in hybrid and remote work, especially in sales, accounting and even human resources, and you potentially have a broken team culture.
Gallup found that “just two in 10 employees strongly agree that their performance is managed in a way that motivates them to do outstanding work.” Businesses that want to hold on to talented team members must take this number to heart.
The training of managers to invest in top performers, teach versus direct and support development through ongoing communication is essential to building successful teams. With rising costs in hospitality, training and additional spending have been reduced to ensure flow is maintained. However, training managers in the new and evolving needs of teams is essential. Personnel costs outweigh the next three highest costs in hospitality combined. Reducing turnover while improving productivity demonstrates that training is an investment and not an expense.
Understanding what team members are looking for is a great first step, as it varies by role, experience, education and generation. Teaching managers to identify the motivating factors for the individuals on their teams versus attempting to motivate a team as a collective is a critical first step. Team members don’t lose their individual needs and drivers just because they are part of a team, department or group. In fact, those motivators may be more important to individuals so that their contributions to the success of the team are recognized. Recognition is important, but ongoing communication and feedback are the lifeblood of building and maintaining a successful team or workgroup.
The new workplace places a premium on communication. With team members no longer together at your morning “stand-up,” finding ways to involve and engage remote team members must be part of the mix. Moreover, as noted in accountability, evaluating performance for remote team members must include their connectivity to the teams they work with. It is essential that out of sight does not mean out of mind. Out of sight is a privilege, and while it is part of the new normal, productivity and accountability are essential for team success. Working with remote team members takes training, tact and strong communication skills. Working with remote team members means managing with the same expectations as if they were onsite. That will require great effort in communication and engagement from the remote team member and can’t represent a burden to the onsite team. Managing that balance is key.
It is important to realize the needs of the manager as well. Managers require more frequent and direct communication, openness in decision making processes and consistent application of culture. As organizations look to evolve and deliver services that more closely align with the changing demands of consumers, the vision set by leadership must align with the training and direction given to their management teams.
Training on clear, direct and effective communication, along with education on emotional intelligence, will provide our managers with the tools to effectively lead and develop teams. Providing guidance on how to coach and hold individuals accountable within a team structure will further breed the confidence necessary to take proactive action when necessary.
Finally, listening skills are essential. Managers need to refresh their hearing to listen for what is and isn’t being said and use their experience to help identify the missing elements when teams are misfiring. The ability to make small adjustments and look at things differently is often the difference between success and mediocrity or even failure.
Summary
Building teams post-COVID is generally similar to pre-2020 with a couple of key differences. The emotional intelligence (EI) of teams has changed, and the need for managers to be trained in EI is critical. The setup of the workplace is now impacted by hybrid and remote workers. The pressure of wage and expense growth on flow is a steadily increasing tax in all areas.
These changes force all hospitality professionals to look at our teams differently. Creating an inclusive, engaged and positive workforce requires greater effort and maintenance than ever before. Connecting personally, addressing performance and productivity consistently and continuing to offer positive reinforcement to team members is crucial. For example, organizations that utilize team member surveys, must follow up, develop actions and direct ties to their feedback. Actions that don’t tie to culture or solicited feedback are often the difference between team members staying or leaving.
Building effective teams requires a more dedicated commitment than ever before, and successful organizations have become the landing spot and desired destination for talent. The ROI on effective teams can be exponential, provided there is strong cultural alignment, a framework of accountability and productivity and a consistent investment in the teams and leaders.
