LOOKING FOR A CAREER IN THE HOSPITALITY BUSINESS?

What do employees want in terms of recognition and when do they expect it?  The answers may surprise you?  Also Praise Publicly – Good or Bad?

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I still get asked all the time “how the market is” or what I am seeing in the market and the truth is I am starting to hear some of the same old things.  “We have advertised and are not getting any good applicants” or “we thought we would get a better response to our ad.”

Yes the economy is improving and unemployment has fallen below 8% for the first time in a while and we in Canada now sit at 7.9%.  Bt what does that mean?  So I have done some digging to try and put it in perspective.

In 2004, the year that was widely regarded as the start of the economic boom.  Do you remember setting new sales/occupancy records and starting to feel the crunch when it came to finding line staff? I do, I was still in ops at that time!   Well, in 2004 the unemployment rate was… wait for it… 7.8%!  YEP that is .1 lower than we are right now.

In 2005, when I got out of ops (largely because it was getting so hard to find staff) the unemployment rate was…7.0%.  So from 2004 to 2005 it actually dropped .7%.

In 2008 what is considered the height of the boom with an absolute frenzy to try and lure, pay and retain staff the unemployment rate was…6%.  So a full 1% drop from 2005.  In fact from 2005 to 2006 the unemployment rate dropped from 7% to 6.8%.  In 2007 it dropped to 6.4%. 

The most dramatic drop in our unemployment in the last 10 years was in 2005 – NOT in 2008 when it was hard to hire.

The point I am trying to make is that we are entering “pre-boom” unemployment numbers.  I want you to go back to 2004 and remember the challenges you had finding staff.  The truth is we are at that same point for available talent.  For those of you who are of the mind set that the market is ripe with talent – it’s not.  It is 2004 all over again and the economy is growing just as it did back then.  Staffing challenges are coming (if they are not already here for you).

If you have not made changes to your Retention/Attraction policies – Now is the Time to do so.  Within the next 12-18 months your business is going to get busier and staff are going to become hard to come by.  As I have preached, the best way to attract good people is to take care of the people you have – right now.

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There are a couple of “philosophies” I come up against with regularity in my profession – most of which I work hard to discredit.

 The one that is on the top of my mind today is “I have hired people through a recruiter and they didn’t work out.”  I get the point – you have paid to find what at the time looked like a great person only to have them leave your establishment for another.

 There are a couple of things at play when this happens and I want to try and give a fair and detailed account of what some of the variables could be.

1. Often times when a position is described to me I am not given full disclosure and everything is made to sound positive and rosy.  I preach honesty to applicants (you will know that if you are a regular reader) and leading someone down the garden path only to pull the rug out from them does NOT increase retention.  I believe that there is someone out there for every position and being honest from the start is the ONLY way to find them.  I am not a sales person.  I give the Good, Bad and Ugly about every position I work on and let the candidates make the decision whether or not they want to pursue the position.
2.  Hiring Managers change the plan without telling me. I spend 30 – 45 minutes with a candidates and drive home the important or key factors of a position as told to me by the client only to send a candidate (whom  I believe to be totally prepared) in to an interview that takes a hard left turn leaving them and me confused and a little frustrated.  Going back to the full disclosure and honesty point – this is the wrong way to recruit new candidates.  I am sorry to tell you this but when I debrief with that candidate I will be honest and tell them “I don’t know what happened” and “I am as surprised as them.” Then I will tell any further candidates that I am not sure of your approach either – I have a reputation to maintain too! I just received a phone message from a candidate who was told by the client that they have not yet decided if they are promoting from within or hiring from the outside after I was engaged to “find them a manager” as they were having no luck on their own.  I want to be clear here – you ARE allowed to change your mind.  All I ask is that I be informed for the sake of everyone’s time and reputation.
3. Just because you use a recruiter does not mean that the people will stay for the rest of their life.  We recruit or FIND people.  Keeping them happy and productive is 100% your responsibility.  If your people are leaving that has more to do with your culture and climate than the recruiter who found them.  I never “recommend” you hire any single candidate over another.  I just provide you as many options as I can and let you make the decision – after all I do not have to work with them, you do!  So if your people are leaving and you want to use the recruiter as a “scapegoat” go ahead, or you can look at the real problems and fix them.
4. Using a recruiter as a last resort is a mistake.  After you have invested $1000’s posting interviewing and getting frustrated a recruiter becomes the “last hope.” Often including a recruiter at the beginning will save you a lot of $’s.  I will incur all of the advertising, post your position on my website, send through my network and save you a lot of time and money.  The truth is that is what we do and our network, resources and reach is generally far longer and deeper than your might be.  
5. Recruiters are expensive.  Well I got tired of hearing that too so I have created a very reasonable and effective option for you and even guarantee your money!

 At then end of the day – keeping your people happy and productive is not the fault of the recruiter.  It is your responsibility as an employer to create an environment where you staff are happy and productive.  If you want to blame me – go ahead, but that won’t help your business.

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Shockingly over 50% of Execs & managers in the hospitality industry have resigned when they felt that they did not have enough input or collaboration!  89% feel they can improve the quality or effectiveness of their role if asked and 63% feel “under-utilized.”

There is value in asking your staff for input.

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Born & raised in Calgary, graduated from Hotel & Restaurant Management at SAIT in 1998. In 1999, Patricia developed her hospitality consulting company PMK Consulting and has since assisted several hotels and restaurants with service excellence, marketing and cost effectiveness. In August of 2000 Il Sogno opened as what was considered at the time a forward thinking/ cosmopolitan Italian dining room. Introducing Calgarians to the ‘new’ Italy: the young generation of Italian food & beverage professionals, combining that with the passion she has for being raised in Calgary: what she calls “one of the best cities in the world” has given local Calgarians the chance to enjoy a world class restaurant right here in Calgary. Her ambition and desire for excellence in the food and beverage industry has brought many young chef’s, servers, and sommeliers through the doors of Il Sogno and has inspired them to make their own mark on the Calgary dining scene. Patricia’s goal has always been to have Il Sogno serve as a place of trust that allows for memorable moments to be shared amongst diners.

So we were talking about stampede last month and I am wondering if any if not all of you have taken my advice, put on your cowboy boots and are kicking up your heels? Well, I definitely have! Here’s what I have discovered. This city is even greater than I thought. 

It is what you make it….not to get all philosophical on you, but it’s true!  I can not even tell you how many people I have come across that are the “classic Calgarian”…”been there done that” “try to leave town” at stampede time and yes I WAS her, but honestly, it is exactly what you make it.

Now those who only think it’s about beer tents, two steppin and craziness, have not truly experienced The Calgary Stampede and the infinite opportunities for business that result from it.  Let’s talk a little about some of those corporate events that are held around town…did you know that they raise money for countless local charities from our attendance? Live entertainment is everywhere around the city! Famous Dj’s play at Flames central like Kaskade, Benny Benassi and Deadmaus, rockbands play private events like Trooper, April Wine and as I mentioned last month Lynard Skynard.  The Pengrowth Saddledome books talent like Bon Jovi, Jason Aldean, Miranda Lambert and Kid Rock.  Then of course there is the Coca Cola stage where One republic, Loverboy and Theory of a Deadman are playing for the price of entry to the grounds. Not to mention the up and coming country bands that get an opportunity to play at countless venues, and the local Calgarian band that won the chance to open for Bon Jovi on Youtube! The round up center exhibits national arts, crafts, and photography and sculpture competitions. The rodeo itself is really something to see; barrel racing, steer wrestling, bull riding, and its crazy! The chuckwagon races are also fun and followed by the Grandstand show and nightly fireworks.  There are so many things going on around town that there is even an application for your Iphone that tells you where the nearest pancake breakfast and/or barbeque is at…..yes that is right for your Iphone!

Let’s talk about the benefit here; networking, money for charity, tourism and employment. Really?  Still not convinced that there is something to see here?

If the Calgary stampede attracts over 60,000 people to this city every year why wouldn’t we want to support more events that bring this influx of people here? Filling our hotels and restaurants while passing through the gates at the Calgary zoo and Heritage Park? Booking out venues like Flames central and Fort Calgary for outdoor events? Why is it so difficult for our local business men and woman get permits or approvals for such events?  If Calgary has such a great sense of community and spirit then why do we not gather to support these festivals and events to enhance the vibe and fill this city with fun for everyone ALL year long? Let me repeat myself here; networking, money for charity, tourism and employment year round? Think about the potential!

I recently attended Lilith Fair at McMahon stadium and it was a gorgeous day, filled with great music and good friends. Sugarland, Erykah Badu, Colbie Caillat, Sheryl Crow and of course Sara McLachlan played all evening and I found myself looking around and thinking what a shame it is that we do not support  booking this venue for more outdoor concerts and or festivals.

Lilac festival on 4^th street, Sun and Salsa in Kensington is on July 25^th, Calgary Folk festival on Princess Island park plays on July 22^nd through the 25^th, also on Princess island one of my personal favorites Shakespeare in the park plays July through August, where a great way to spend your evening is pre-booking a “picnic basket” at River café and enjoying it while you watch the play. Who doesn’t love Shakespeare?

An opportunity for people to have fun; that really is what these events require to be “successful”….well and maybe a little sunshine! Word gets out there and people want to visit and take part! We often get so caught up in everyday life we forget to give ourselves permission to have fun!

Whether it was the Great job we did during the 1988 Olympics , the Busy vibe of 17^th avenue during the “Great red mile” , the excitement of the Grey cup win in 2008 or most recently the line ups at the Ship and Anchor at 8am because your favorite team is playing in the World cup people are attracted to “the vibe”.  The vibe of a community, of a celebration and any opportunity to gather together and nurture our “spirit”, it is what we all have in common. Sure there might be alcohol available, yes people will be celebrating because life should be celebrated and sometimes we need to find a reason. 

So why not use your voice at the next community meeting, BRZ planning meeting and/or city council meeting? Ask the question what is your plan to make this great city more vibrant and attractive to visitors on vacation, planning conventions and or festivals.  Ask why it takes a building permit and 6 months of planning to get approval for a tent in an outdoor event. Ask why the retailers in Inglewood have to practically build a temporary extention of there store fronts because tables just won’t do for a street fair anymore and if it is for safety reasons then how do they do it for Comedy or Jazz festival on Rue St. Denis in Montreal where thousands of people gather over 10 city blocks to attend these festivals? Are we thinking inside or outside of the box? Does it matter if it works?

Because the way I see it…this city is pure potential, the people in it are truly hospitable by nature and well let’s be honest we love the braggin rights….we really know how to have a good time!

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Harely Carbery was born in Victoria, BC. He grew up in his families Dairy Queen slinging burgers and ice cream. After attending Camosun College in Victoria he graduated with a Hotel & Restaurant Management Diploma. Working for Fairmont Hotels & Resorts across Canada for 7 years took him from the Banquet Rooms at the Algonquin in St. Andrews, New Brunswick to the kitchen in Mt. Tremblant, Quebec to Managing The Wildflower and Wine Room Restaurants at the Chateau Whistler. While in Whistler he fell in love with wine and became a Sommelier through the International Sommelier Guild. Now in Las Vegas, after a short stint as F&B Manager at the Ritz Carlton Hotel he made the move to L'Atelier de Joel Robuchon as AGM/Sommelier and finally Wine Director of Joel Robuchon Restaurants, Las Vegas at the MGM Grand Hotel & Casino.

Las Vegas is an interesting and amazing city for many reasons, many of which I have already discussed. One of my favorite things about Las Vegas is really how small it is within the hospitality community. Las Vegas is a large city of approximately 2 million people. It is not uncommon to “run into” friends and colleagues all over town, whether it’s at one of the big strip casinos or a small local’s restaurants off the strip. This is even more remarkable considering Las Vegas has over 30 million visitors every year!!

This really surprised me to find after living in much smaller communities like Whistler and Mt. Tremblant. It is quite refreshing after a long day of what seems like a never ending turnstile of guests from all over the world to have an actual community feeling in a place like Las Vegas.

Some people look at you strange and that you might just be a little crazy when you tell them you actually live in Las Vegas. Yes there are many of us that call Las Vegas home and we have built a great network of hospitality professionals. Keep in mind it is still a big city with all of its vices and excitement but you can find a feeling of a small town if you know where to look.

I highly recommend living and working in Las Vegas, you never know who you’ll run into.

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Summer is finally here!  Some parts of the country are definitely getting more than others.  In Calgary we are finally warming up (and by that I mean NO chance of snow in the forecast!) and the east is in the midst of what I consider unbearable weather (30+ with high, high humidity – you can have it!) 

Most resort hotels are seeing great numbers with 90 – 100% occ’s through the summer and restaurants gearing up for good numbers as well.  Summer is a funny time as business spreads out across the country.  City establishments see sporadic numbers as locals try to get out of the city as much as possible and tourists come in droves for the festivals & events or just some sight seeing.

Here in Calgary we are bracing for the Calgary Stampede.  I am not sure what the numbers are looking like right now but I do know last year was not good.  In years past it is virtually impossible to get a hotel room in the city center and even the hotels well away from the Stampede Grounds have very little to offer. Last year the downtown properties were slashing prices and under cutting one another to get “heads in beds!” It is going to be interesting to hear the aftermath of this year.

I know Vancouver is starting to recover from the Olympic “Hangover.” Business was brisk in the downtown core during the Olympics but I do know that may establishments did not fare as well as they had hoped.  Hotels forced to block rooms at set rates, restaurants out of the core not seeing the volume they hoped for.  And now they wait for business to stabilize a return.

I have heard that some of the Downtown operations in Toronto are seeing the return of the stock market big spenders while some of the outlying areas and towns are seeing operations closing due to lack of business.

Companies with the $’s are taking advantage of cheaper and more available trades to expand and build while the business levels are low, anticipating a better economy when they are done, acquisitions are happening everywhere (it is tough to keep track of exactly who owns what anymore) and what used to be considered landmarks or institutions are closing their doors.

The landscape has changes and will continue to change – I believe for the better.  Yes the “recovery” has to this point been long and slow (I have actually heard of more people closing down since the recovery was announced than during the recession).  Line staff labour is going up – way up in some provinces. How do we adapt, change or survive. There are a lot of ideas out there.  Once thing I believe to be true is – if you don’t adapt or change you may not survive the new look hospitality industry.

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It is hard to believe that it is Canada day tomorrow.  Here in the West, summer has finally arrived and the weather is hot and sunny.

 I just saw on the news that there is some concern in Europe about the recovery and effectiveness of all the stimulus packages. But the signs I am seeing here in Canada are actually pretty encouraging.  Yes the recovery is slower than (I) expected and there seems to be a great number of businesses that survived the recession and were forced to close in the recovery period.  Many businesses are changing hands or closing but the strong are surviving. 

I spoke at length during the “boom” about companies that were busy by default.  What I meant was that there were a lot of businesses offering sub-par product and sub-par service but they were making money because there was just no where else to go.  I also talked about how when people actually had to scale back and make a choice about where they should go and where they should spend their money; they would remember the establishments that operated with integrity and class during the boom.  And guess what – that is what happened.  That is what I mean by the strong are surviving.

But there are good signs out there.  Occupancy is on the rise and I have had more than a few operators tell me that they are touching on 2008 numbers – great news.  There is increased rubber tire traffic to hotels and the resort hotels though down in tours are up in FIT’s.

I think that the Corp market will take a while before they start to spend and take their people off on luxurious off sites and rewards.  There are a lot of “high tech” options out there and they are being utilized by big business.  Don’t worry, the corporate market will return – probably next spring or fall.

I was reading an article about how QSR revenue is in decline in the US due to an increase in full service and fine dining revenue.  People have more disposable $’s and are choosing finer options again.

On the job front – we are seeing those positions such as sale managers, directors, area managers (positions that were the first to be cut in the recession) returning.  I am getting lots of calls to fill positions that went unfilled, vacated or eliminated 12-16 months ago.  That is great news.

Business has changed, people have changed, expectations have changed and sentiment around services and food have changed (supporting local, 10 mile rule, Ocean Wise etc.) has your business.  If you haven’t, you may be feeling the pinch of recovery.

Be daring, get out of your comfort zone and “Burn your Boats (another Robin Sharma reference)!”  I mean come up with something truly original and inspiring and don’t give yourself an easy way out – “well, we tried it for 4 weeks and didn’t see any results.” Stay committed to changing your business to meeting today’s needs and lock the back door so you can’t sneak out if it doesn’t go as you planned on your first attempt.

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Meet the needs of your staff and they will gladly help you meet your needs – this is important!  Gone are the days of “do for me and maybe I will do for you.”  You staff want you to recognize their INDIVIDUAL NEEDS and meet them.  In return they will perform for you on a high level.  This is a main ingredient to the “retention recipe.”

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Now with Brown-Froman, Ryan Cheverie is quite literally an icon in Vancouver’s cocktail scene, and he’s only been here for five years. Ryan was previously the restaurant manager and “bar keep extraordinare” at the Hamilton Street Grill in Yaletown. Ryan started slinging drinks about 10 years ago in Halifax and has gotten to play with some of the world’s best and brightest mixologists in North America: Tony Abou-Gamin, Dale DeGroff, Brian van Flandern, Murray from ZizZag Cafe and more.

Well, it wouldn’t be Canada if there wasn’t somebody bitching about the weather, and it’s my turn. Honestly, I’m not in possession of any stats, radar maps, rain gauges, weather vanes or anything of the like to prove it, but to my untrained eye, the weather in Vancouver has been extremely lame and unco-operative for the whole of 2010 up to this point.

We can’t win, in February we had patio weather the one time we wanted snow. Ever!  Now you need 2 heaters, a blanket, and like a hot toddy or something to tough it out on a patio past Sundown.  It’s JUNE for God’s sakes, what the hell!?

Okay, enough whining, but in the real world, people go out more when it’s sunny, while they’re out they spend money which pays servers, cooks, restauranteurs , as well as infinite other service oriented industries that see much more throughput during  this summer cycle of the economy. In fact, in many restaurants and bars peoples very shifts are dependent on the weather, sometimes hour-by-hour. As in:  ‘Okay Suzy, you’re scheduled for the patio today and the forecast looks mediocre so you can come in and set up but if it rains, you’re out of here, no matter how much you paid for that days worth of parking.”

So the weather sucks boo-hoo, poor Vancouver, enough of that. Thing is; I’ve been in the business of selling alcohol in one way or another for ten years or so now and let me tell you, it’s a pretty resilient industry. People drink just as much to commiserate as they do to celebrate. Economy good? Bust out the Cristal. Economy bad? Let’s just drink three bottles of Korbel instead. Either way, the liquor industry wins, it’s recession proof, but I’m beginning to wonder whether (pun intended) it’s weather-proof.

Every day I hear retailers complaining about their back rooms being full of ready-to-drink coolers and ciders that haven’t sold because the sun hasn’t shone, how beer sales are way down because people aren’t taking that camping trip to the one place on earth where beer is a perfectly appropriate breakfast beverage.  It’ll be interesting to see whether a bad season makes a bad year, or will we as a market just drink more come the frosh week-thanksgiving-Christmas-New Years booze luge that ramps up in a few months.

In the end though, there’s no way of knowing, statistics will come in, numbers will be crunched and there’ll be plenty of blame and/or credit to go round–weather, economy, demographics, who knows? Admittedly many of us could probably stand a little less exposure to UV and ABV, but what fun would that be?

Cheers

Ryan Cheverie – Brown-Froman: http://www.brown-forman.com/

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Egon von Foidl, is a seasoned hotelier with significant international experience in the development and management of deluxe hotels, resorts, golf and spa operations. His practical skills, hands-on management style, combined with a strong sales, marketing and PR/promotions knowledge, as well as fiscal responsibility, has earned him high recognition within the hospitality industry and awarded him the prestigious “CANADIAN HOTELIER OF THE YEAR AWARD” in 2003. What makes his experience unique is, that he not only brings many years of operational experience, but also re-positioning, development, design, and opening experience of hotels, resorts, condo/resort, golf courses and spas operation to the table.

Last Friday I visited Huntsville Ontario, meeting place of the upcoming G8 meeting. Roads are newly paved, landscaping looked fantastic, new benches, new street lights, flags everywhere, wow I was impressed. I guess it shows that the Government wants to look as good as possible to the visiting leaders. It is fascinating how the government finds Millions to upgrade a region in particular towns such Huntsville, Bracebridge and Gravenhurst and that for a 48 hour visit by world leaders.

I remember my many meetings with various Ministers of Tourism in Ontario, requesting marketing dollars and other support for the industry, in particular for areas with annual occupancies of 45%. I was always being told we have no money. I guess they found some to showcase their egos. In the nutshell good for the industry and I do hope that Huntsville and Toronto get as much international exposure as possible.

Spend last month a week in Costa Rica and had a very pleasant surprise to see the quality of properties, specifically in the resort destinations. Being a seasonal destination most hotels only operate in the 50% occupancy range for the year, but with lower labor costs, taxes an owner can make a very good living.

Had a great meeting with the GM of the Hilton at the Toronto Airport, who let me know how they are doing with their labor negotiations and how tough it still is to make a good REFPAR. I guess that are the daily challenges of a GM, please the owner who most of time is an investment company, who looks at the property as an asset and it better be a performing asset otherwise we divest in it. Not much fun to be a GM at present, but as everything in life the industry will go through its circle and maybe one day focus again on guest and staff satisfaction.

On the development front, news is that Marriott International and Ian Schrager  Hotels have expanded the list of locations where they plan to open their new International Lifestyle Edition Brand. Locations mentioned are Honolulu and Istanbul, new to the list are Mexico City, Barcelona and Bangkok.

Wyndham is also expanding aggressively with strong focus on the Fareast.

Locally the new resort and spa owned by Swarovski in the Okanagan open and received very favorable PR in the Globe and Mail, two Relais and Chateaux properties closed, the Aerie on Vancouver Island and the Inn at Manitou in Ontario. The industry is still going trough a very challenging period and it is sad to see unique properties such as the Aerie and Inn closing. To be an independent non branded property is getting tougher and tougher and only some very marketing savvy owners and managers survive.

Let’s keep our fingers crossed, keep the faith and love the industry.

Have a great and successful summer

Egon von Foidl

President/CEO, HRG Hospitality Resources Group International

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