TALENT MANAGEMENT – Articles

It is not always easy to be truly objective about oneself. When discussing career development programs, AETHOS often talks about the importance of a personal board of advisors – individuals who know the person in question from different walks of life. They can speak to professional as well as personal strengths or challenges. Besides mentorship programs, organisations can, however, also support their employees through other means.

The current economic and geo-political context is putting refreshed strain on the sentiment across many markets. The question now more frequently being raised by functional leaders is, “How do we as an organisation ensure to keep our workforce that we have so painstakingly rebuilt just months ago? And, “How do we foster loyalty when financial resources are being squeezed?” [...] Psychometrics can be applied to assess cultural fit, to spot development potential for executives, or to identify areas in which an individual is likely to be able to significantly drive performance. Looking at them through the lens of wanting to drive loyalty, the answers for the following five questions should be found [...]

Hospitality organizations cannot afford to drop the ball on sustainability. Clearly, they have done well in handling the immediate urgencies that have come out of the crisis, while addressing some fundamental sustainability practices and programs. Yet, there are seemingly more resources wished for, and required, to better engrain and align sustainable thinking within the organization and to proactively build sustainable skills. This is not only a question for a company’s HR executives: the onus is on an organization’s leadership team. Specifically, the leadership team must ensure that HR is not bogged down by the tactical implications and roll-out of initiatives that help ‘keep the head above water’ during a crisis. On the other hand, HR should continue to push for the necessary resources, and commitment, to embed sustainability. Whilst the financial and economic implications of the recent past are very real, so are those of the failure to address sustainability.

Focusing too much on overcoming a crisis, to returning to normality, runs the risk of losing sight of what the realities are. Do we not always have to somehow overcome one crisis after another? Do we not always have to fight for talent, to overcome an economic crisis, or to review operating costs because of raising food prices, rents, etc.? Do we not have to deal with either the consequences of entering or exiting a political union, a labour union, or some other type of interest groups? Are there not always, somewhere on the globe, some sort of conversations about protectionism as it relates to the local labour market — followed by talks about the need to open up the market to attract and retain people from elsewhere?

Mobile technologies have streamlined data collection more than ever but knowing how to link and act on that business information is the key here. Leaders should therefore not assume that near-instant learnings always entail fast solutions or outcomes. On the contrary, there is a psychological phenomenon known as the "speed-accuracy trade off," which implies that one can do things "quickly" or "correctly" but usually not both simultaneously. This means that organizations are well advised to start thinking early about the feedback loop, the information that they are interested in gathering, how they plan to use it, and the process (and time) it takes to build and develop such data.

Companies that apply new learnings of the enchantment economy only to product offerings or curated experience packages will fail to fully capitalise on the economic rebound and recovery. This is because the most basic component of guest experiences must also be considered, i.e., the people delivering on brand promises. Sadly, many hospitality organisations across the globe continue to struggle with entice employees back to work. It is reasonable to deduce that the economic recovery might be at risk if employees themselves are not ‘enchanted’. The obvious question becomes how businesses can effectively accomplish this.

I recently connected with Dr Thomas Kyritsis, Senior Lecturer at Le Cordon Bleu and Director for the Master and Bachelor programmes which the organisation runs together with Birkbeck College, University of London, Our conversation started on the impact of Brexit on education and the UK hospitality industry but quickly moved to other topics. Are industry executives still ‘taking the plunge’ to pursue their own entrepreneurial endeavours? If so, what trends or shifts in consumer behaviour should individuals keep in mind that might shape the industry …?

Social and economic disruptions often shift people’s behaviours ― sometimes in small ways, other times more seismic. On this point, AETHOS conducted a ‘COVID Gap’ analysis for the C-suite within hospitality organisations at the end of last year. Yet, our ongoing interactions with industry investors and operators reveal that the pandemic has affected considerably more than an organisation’s senior leadership teams. Industry feedback consistently indicated that last year’s disruption clearly had a lasting impact throughout the organisational chart. We therefore examined empirical data to clarify the nature and extent of these apparent cultural shifts to organisations.

Das vergangene Jahr 2020 hat vielen soliden Firmen den Boden unter den Fuessen weggerissen. Allerdings gibt es auch Unternehmen, die 2020 schwarze Zahlen geschrieben haben – teils aufgrund der Geschaeftmodelle, teils wegen der Agilitaet und Kreativitaet von Fuehrungspersoenlichkeiten und Managementteams. Diese Agilitaet beizubehalten bleibt daher sehr wichtig. Der Jahresbeginn ist ein guter Zeitpunkt, um das alte Jahr Revue passieren zu lassen und vom Erlebten zu lernen. Wir raten Unternehmen und Fuehrungskraeften immer dazu sich die folgenden drei Fragen zu stellen: 1. Was muessen wir weiterhin so machen wie gehabt? 2. Womit muessen wir anfangen, um ein positives Momentum zu gewinnen? 3. Womit sollten wir aufhoeren, um negative Konsequenzen zu vermeiden?

“I recognise,” Susan said, “one has to grasp opportunities when they present themselves.” The year 2021 is one such instance – “for HR professionals, it provides the chance to really leave a lasting positive impact on the way hospitality organisations are facing the uphill struggle, but also the opportunities that present themselves after a year of destruction to build back better”.

Throughout 2020, AETHOS witnessed first-hand how industry leaders and teams have deliberately, or inadvertently, shifted their performance dynamics in response to COVID. These shifts can be considered ‘gaps’ because they often have negative or unintended effects on the business and people practices of organisations. Intriguingly, these performance gaps are easily detected in the psychometric patterns of senior executives. AETHOS thus decided to gather empirical data and find out what new patterns might have emerged.

The Annual Hotel Conference was held October 8th – in line with the overarching theme of ‘re-shaping’, ‘re-generating, and ‘re-inventing’, delegates were able to participate in an interactive roundtable discussion focused on professional development opportunities. The conversation centred around identifying and securing one’s next career step.

The hospitality industry finds itself in a state of flux. Many organisations have had to restructure – thus not only forcing many executives to re-evaluate their professional careers, but also the organisations themselves to more critically assess internal workflows, staffing levels and productivity, as well as general business strategies. ‘Change management’, ‘adaptability’ and ‘innovation’ are certainly the buzzwords which are front of mind.

Many hospitality students and professionals around the world recently participated in AETHOS’ series of development webinars. These sessions offered attendees the opportunity to complete the 20|20 Skills assessment to gain a personal SWOT analysis to help them navigate these challenging times of occupational crisis and change. Interestingly, the attendees consistently voiced certain concerns and follow-up questions.

Many hospitality students and professionals around the world recently participated in AETHOS’ series of development webinars. These sessions offered attendees the opportunity to complete the 20|20 Skills™ assessment to gain a personal SWOT analysis to help them navigate these challenging times of occupational crisis and change. Interestingly, the attendees consistently voiced certain concerns and follow-up questions.

"... it is difficult to imagine anything people will crave or need psychologically more than a healthy dose of enchantment following weeks of monotony, restlessness, and anxiety that accompany COVID-19 quarantines." But what exactly are the core elements of enchanting experiences? Many people have talked around this question, but few research studies have actually delved into the nature and relevance of enchantment as a psychological construct or consumer motivator. Perhaps the closest guiding principle used by the tourism-hospitality industry has been the notion of the ‘experience economy.’ This reflects the philosophy that businesses compete in today’s market by offering increasingly memorable experiences versus strictly focusing on the quality of products or services. Moreover, some research has modeled the ‘ideal’ features of such ‘memorable experiences.’ Namely, the trend over the past decade or so has been for consumers to seek experiences grounded in (i) aesthetics, (ii) authenticity, (iii) education, (iv) entertainment, (v) escapism, (vi) newness, and (vii) a sense of transformation.

One wonders [...] if the days of the expatriate are numbered and if those entering the business 10, 20 years from now will have the same options open to them. My visit to Singapore also took in the HICAP Update conference. During the ‘Investment Outlook’ panel, when asked to name his number one cost-saving measure in relation to his firm’s hotel portfolio, one of the region’s leading investors half-jokingly replied, “Get rid of the expats.” While this raised a chuckle from the audience (at least 50% expats themselves), there is some seriousness in his statement that reflects an increasing move to localise many management positions in the hotel sector. The fact is that foreign executives are expensive when compared to local hires, often requiring significant additional cost above base pay in terms of allowances and benefits, such as housing, schooling, relocation, insurances, etc. With labour costs typically being one of the heaviest line items on a P&L, it is no wonder that hotel owners are keen to lessen their dependency on imported expertise.

I’ve had the pleasure of knowing Shane Green for more than a decade. Over the course of his career, Shane has held leading operational positions at some of the most luxurious hotels and hotel companies around the world. Recently, he has re-focused his efforts with his training solutions company, SGEi. As President and Founder of SGEi, Shane leads a team of professionals who inspire iconic brands ranging from NBA to Net Jets Inc. and BMW to MGM Resorts International to “reprogram” their employees’ experiences, mindsets, and service habits to create loyal customers and raving fans.

A 2009 article in Supply & Demand Chain Executive was perhaps the first authority that began publicly highlighting the increased emphasis and value-proposition of having a Chief Commercial Officer (CCO) in the C-Suite. This role has complexity, nuance and diversity that transcends that of a President, Vice President or even Chief Operating Officer. The aim is to better harness the entire commercial power of an organization and brand. In simple principle, this means being responsible for aligning commercial strategy and the development of an organization, but in practice it entails a myriad of competencies and activities tied to marketing, sales, product development and customer service, which when properly integrated, drive business growth and market share. The role can be notoriously difficult to fill with a “superstar” because it demands a professional with domain knowledge of the relevant field combined with strong marketing, financial, business development and technology skills. Arguably the role becomes even more specialized in the hospitality industry, whereby internal and external brand promises hinge on a dedicated people-first mentality.

Leaders in any industry admit to having anxieties associated with making tough choices, especially choices that affect their employees’ lives. The level of accountability and responsibility implicit in serving in a CEO role isn’t for everyone. Mythology refers to the Titan Atlas who carried something very heavy, possibly the weight of the world, on his shoulders. It is typically assumed that this was a punishment that came down from Zeus, king of the gods, after Atlas sided against Zeus in the war of the Titans vs. the Olympians. But the famous Roman author Vitruvius claimed this “burden” was actually a reward, for "through his vigorous intelligence and ingenuity, he was the first to cause men to be taught about the courses of the sun and moon, and the laws governing the revolutions of all the constellations.” Indeed, we have likewise consistently found that modern leaders view their power, influence and responsibility as a great privilege.

Approximately a month ago, following Ritz Carlton’s previous announcement about moving into the cruise line sector, I contemplated the issues that must have been discussed in the board room prior to committing to such an endeavour. It stirred my thinking about a company’s transition into a new business area that requires new skill sets and a firm’s transformation from a company culture perspective to accommodate and welcome a new talent pool into its realms.

Job candidates predictably distort the way they present their competencies and credentials out of concern for making a favourable impression and wanting to be liked by hiring professionals. These distortions, called social desirability biases, can be unconscious behaviours or they can reflect deliberate deceit. Behavioural clues to assess lying are too generalized to be effectively applied by most people. Rather, we outline a three-part strategy for due diligence on candidates that reduces bad hires resulting from erroneous information. Each component of the three-part strategy can be useful separately, but the components are especially powerful when used in tandem as a system of checks and balances.

Some would excuse the malaise (in the casual dining industry) because of the soft economy, demographic changes, and even the weather. However, that doesn’t explain the remarkably few success stories who must compete for similar customers and are at the mercy of identical forces as the failing brands. In my view, the casual-dining segment is mired in a management carousel that, for over a decade, has bounced senior management from one company to the next on the basis of little more than their title.

The hospitality industry remains one of the backbones of the economy in the Middle East, and the food and beverage (F&B) sector is certainly contributing its fair share. In the past, many regional businesses opted for an internationally recognised concept, but, nowadays, the market has matured and witnessed diversification. The UAE, in particular, has become a foodie destination in its own right and there is a notable appetite – from investors, developers and the consumers – for home-grown concepts. Not surprisingly, new outlets have sprung up (from ‘Cougley,’ to ‘Cocoville,’ to other home-grown start-ups such as Folly, Hikina, Matto Italian Restaurant, Publique or Ruya). The list is endless.

My father worked for the Midland Bank (better known today as HSBC) for 33 years. His brother, too, had been employed by the same bank. In addition, their father had similarly spent the majority of his professional life at Midland. Their respective generations were of a time when you picked a profession and, if you were lucky enough to be offered a job, you then dedicated your working life to one company until you reached retirement age.

Wherever I go, I see signs of people wanting to hit the pause button, to take a moment to assimilate what is happening around them. [...] Wearing my hat as an organisational advisor in talent management and human resources, I have been asking myself, ‘Is hitting the pause button the right thing to do? What is needed for leadership talent in the hotel industry to adjust to and not be overwhelmed by the continuous catching up to keep up-to-date with progress?’

Millennials (aka “Generation Y” or “Echo Boomers”) are the talk about town. A day rarely passes without a new report explaining what this generation wants out of life and how their value set are economic and cultural disruptors. As consumers and employees, GenY is therefore fast becoming the focal point of marketers, as well as cultural, religious and political leaders.

AETHOS Consulting Group was honoured to co-sponsor “Next, A Future Leaders Summit” together with HTL Capital Advisors as part of HotelsMegaMeet in Sydney last month. “Next” was aimed at providing rising stars of the Australian hospitality industry with an opportunity to learn from, and to interact with, leading players from the industry as well as their peers. Key takeaways of the event included:

There has been much discussion lately about disruptors – present and future – to the hospitality industry and what this means for leaders and strategic planning. What measures should an organization take to position itself to compete in this “continuously disruptive” environment? A quick answer that comes to many is “better use of technology” – to digitally transform the business.

The sobering truth is that personal and professional development hinges on the ability to be self-critical. Some might use softer language like “contemplative, introspective, and reflective,” but that undermines the rather raw and unforgiving nature of the task itself.

How you feel about and treat yourself directly affects your relationships – and in the hospitality industry managing internal and external relationships is a fundamental and critical business skill. Often success in building relationships is rightfully credited to factors like a person’s level of Extroversion, Service Orientation, or Emotional Intelligence... Yet, a critical element that can be overlooked or minimized in the mix is Self-Esteem.

There’s a right and wrong way to mine for talent. It’s tempting to follow the latest crazes in testing, assessment, and interviewing – striving for some elusive silver bullet. Even iconic, trend-setting organizations fall prey to innovative-sounding approaches that ultimately fail. For instance, BusinessInsider.com famously reported that Google recently abandoned its legendary interviewing tactic of asking brainteaser questions in favor of interviewing against a set of competencies that were relevant to the role in question. Competency-based assessments have long been best practice in HR and workplace psychology. Google learned that lesson the hard way, and lessons like that cost money.

Studies generally show that assessment outperforms traditional behavioural interviews 4:1 in predicting job performance, so a targeted and valid assessment can give organizations a major competitive edge in identifying and retaining top talent. But that’s only the first part of the equation. The other part is to correctly choose and use these tools.

Determining whether an employee “can be saved” or “coached to greater success” isn’t a simple “yes or no” question. It’s an educated risk or assessment. The best guess answer is arguably grounded in the CHIC variables, which define a continuum of likely coaching success.

While there is no specific timeline surrounding the "foundation years" of one's career, most people can actually cover these objectives within a two-year period. It does not matter if you are an Ivy League graduate or someone with a high school degree; the following three actions are simple to understand and are non-discriminatory in nature: (A) Be a sponge (B) Secure a mentor and (C) Keep in mind the "Critical Three"

Coachability goes beyond the simple notion of training or trainability, which often involves teaching a specific set of skills in a highly structured manner. Coaching, for lack of a better term, is a more intuitive process whereby an individual “absorbs” knowledge, attitudes, and skills via guided (versus highly structured) learning and development. It’s more nuanced since it partly involves an employee’s self-directedness in identifying and seizing learnings opportunistically, as well as an employee being positively motivated to devote time to attend structured learnings too. In other words, the most effective coaching clients have the insight, awareness, and self-directedness to recognize and seize leanings wherever they reside.

"Bringing in someone from outside [the sector] can lend new perspectives and experiences and produce extremely positive outcomes. The key is to know where to look, identify the needed skill-set, and then be sure to have a systematic on-boarding process in place to set up your new leader for ultimate success."

Dr. Jim Houran assesses global leadership profiles and specifically hones-in on the potential challenges faced by employers and senior executives on the African continent. Dr. Jim shares best practices in driving performance in the work place and identifies key issues that need addressing - the psychometric GM and CEO/COO profiles revealed in the article provide a data-driven response to the critical question posed as to what types of leaders will meet the guests defining the new haven of hospitality. Arguably that answer is leaders who are “technical capable but perhaps not fully prepared in their service mindset.”

CEO turnover among the world’s 50 largest hotel firms in 2013 was 10% down from a 2012 figure of 16%. Leaders who took office in 2013 were Sébastien Bazin (Accor), Lee Chee Koon (Ascott), Wolfgang Neumann (Carlson Rezidor), Frank Fiskers (Scandic), and Peter Gowers (Travelodge). New CEO arrivals always tend to prompt speculation from employees, shareholders, analysts, media, and industry colleagues as to the likely performance of the hire and of the hiring organization. Such transition events also give us a chance to take stock, look at the CEO role in the hotel world from a holistic standpoint and explore the profile of these industry titans.

There are three major shifts within the industry and the workforce as a whole that drive the growing need for transformation within the HR department and the relationship between business leadership and HR professionals. Considering each on a case by case basis, it is subsequently questioned whether there are no other talent management tools beyond the established that are worthwhile applying.

Industrial and workplace psychologist Dr. Jim Houran is looking at the accuracy and effectiveness of a new form of hiring - social recruiting. Studies reveal that even for low-level positions a failed hire costs a company double the person’s annual salary. At higher levels, the cost can be six times annual salary. Corporate leaders and HR pros tend to agree that hiring is the most important thing any organization does, yet the best method for recruitment remains debatable.

The article takes an in-depth look at how leaders must possess both creativity and problem-solving skills to excel on the job. it is argued that these skills can be taught and are not necessarily innate.

Chris Mumford directs this year’s crop of graduates in search of money towards sales and marketing jobs in the luxury hotel sector.

Effective talent management leads to superior performance yet McKinsey & Company found that “talent has been the most under-managed corporate asset over the past two decades.” Chris Mumford looks at how companies can better manage this valuable asset.

The hospitality market is ever evolving, but hoteliers seem to struggle to adapt to changes in the work environment. Can they beat the constant labour shortage by adjusting to the needs and expectations of today's workforce - those of Generation Y.

20|20 Skills™ and Regent Hospitality Services share strategies to maximize HR and training programs. These best practices enhance short-term productivity and reinforce a culture of thinking and working smarter and more strategically.

Many companies are downsizing and cost cutting but also taking advantage of the opportunity to assess their talent and to upgrade where necessary.

Can investing in the health of your human capital bring a substantial return? HVS Executive Search examines the benefits of company sponsored wellness initiatives and highlights recent examples in the hospitality industry.

The passing of Sarbanes-Oxley, acquisition of hotels by non-traditional owners and Green Revolution are forces that have pushed the hospitality industry to develop new competencies within its talent pool.

Employee assessments are neither universally used nor always trusted by hiring and training professionals. This article presents insider information that debunks common beliefs about employee assessments, and helps companies decide whether the use of assessments is in the best interest of their business.

Chris Mumford reveals how employers are looking for new ways to make their staff feel valued, in his article for Hotel Report.

Why does the casual dining sector still employ so-called “leaders,” yet winds up persistently lagging behind relevant metrics for the industry? Dave Manasbach prescribes the perfect recipe to revive this sector in an article for the Restaurant Finance Monitor magazine.

Cognitive ability is often undervalued by organizations that otherwise strive for high performance and a competitive advantage. A renewed focus on nurturing this competency will strengthen talent management across all employment levels.

The recession has motivated organizations to refocus on the critical issue of professional development for employees who have survived downsizing. We discuss how employee reviews are a strategic tool for performance management.