While the international hotel giants battle to expand their empires in China and mull over branding and marketing strategies, there is something critical they can never ignore – staff.
“Talents are given priority in Marriott, their potential, loyalty, interest and team spirit matters,” says J. Willard Marriott, the founder of US-based Marriott International. “Take good care of your associates and they will take good care of customers, who will then return.”
As one of the leading international hotel groups, Marriott began operations in China in 1989. Now, its local presence is represented by 26 hotels, and by 2008, the portfolio will grow to 35.
Marriott is not alone in its rapid growth. By 2008, Shangri-La Hotels and Resorts, Asia-Pacific’s leading luxury hotel group, will add 17 more to its local list which already numbers 19; UK-based InterContinental Hotel Group (IHG), a worldwide hotel group, has a portfolio of 51 hotels, and plans to develop 74 more by 2008. Ritz-Carlton Hotel Company, the world’s leading high-end hotel brand, plans to have nine projects by 2009.
The aggressive expansion can be attributed to the upcoming 2008 Beijing Olympics and the development of China’s economy.
“But how to attract and retain staff remains a pressing task,” says Michael Malik, general manager with Beijing Marriott Hotel West, considered one of the best hotels in the Marriott chain.
Generally, academic credentials, work experience and English skills are the basic requirements on hotel recruitment lists. However, for most hotels, there are two things even more important personality and potential.
“We hire people for their attitudes,” Malik says. “Passion is the key.”
The recruitment policy of Portman Ritz-Carlton Shanghai (PRC), which has been ranked as the best employer in Asia and China for three consecutive years by Hewitt Associates, is simple. “We only get highly-talented people,” says Ralph Grippo, vice-president area general manager.
The group has developed a quality selection process known across the world when recruiting staff, to test whether candidates fit its culture. “It really works and helps us find suitable staff,” says Grippo.
Usually, high-level management aside, most hotel employees are local. The sources are various, including graduates from hotel-related training schools, talents from other industries or hotels, and internal recommendation.
At PRC, people through recommendation from its own staff compose the major source, accounting for 50 per cent of its total workforce.
“It is an efficient way, as our staff know who would be the most appropriate for PRC, and we reward those who succeed in any matchmaking with 500 yuan (US$62),” says Grippo.
Germany-based Kempinski looks for graduates majoring in hotel management abroad, such as France and the UK. “They have better English skills and more knowledge about Western nations,” says Li Bo, deputy managing director with Kempinski Hotel Beijing.
However, some people’s wariness of working in the hospitality industry remains a stumbling block to recruitment.
“Some people don’t think highly of hospitality they believe they need to work longer and harder in hotels than in other jobs,” says Winnie N.G, director of human resources at IHG China.
As more hotel groups expand into China’s secondary cities, recruiting suitable employees in the smaller cities is not as easy as it is in Beijing and Shanghai, she adds.
Getting the right person is the first step, but it all proves futile in the end if hotels fail to treat them properly.
Employment turnover is a reflection of whether hotels have done a good job in retaining staff. In Beijing and Shanghai’s four and five-star hotels, the average turnover is above 30 per cent.
“PRC enjoys the lowest turnover of 17 per cent annually,” says Grippo.
Hotels use a number of methods to achieve a lower turnover.
For Malik, the main one is to engage with workers and seek their opinions.
Staff, except for those at management level, annually receive a questionnaire on how they feel about their benefits, managers and salary. A third party from the US then conducts all-round analysis and eventually presents a final report, indicating how employees rate the general managers and whether they are doing a good job.
“This is successful, and shows Marriott shares everything with associates and is proud to gain satisfaction from them,” says Malik.
Cheong Waimeng, director of human resources with Grand Hyatt Beijing, says: “We listen to workers’ opinions, making them feel they are part of the Hyatt family, instead of just being labour.”
For international hotel group giants, being a powerful brand helps a lot. “A brand is in itself advertising, and can attract people automatically,” says Malik.
“A strong employer brand encourages people to stay with us,” agrees Winnie N.G. IHG often conducts brand promotions in China’s major universities, gaining more access to potential candidates.
Training and appropriate rewards are also important tools to help people stay.
But training is not only time-consuming but also expensive. Grand Hyatt Beijing under Hyatt International Corporation annually invests 800,000-1 million yuan (US$97,561-121,951) in training. At Kempinski Beijing, training costs account for 2.5 per cent of revenue. PRC Shanghai puts 1 million yuan (US$121,951) into training every year. Staff at all levels in Marriott can get 40 hours of training.
Cross-department training is an especially powerful method for the international hotel groups. Thanks to their huge networks, staff can be transferred to different departments or hotels within the chain, which can help them to realize their full potential and creates opportunities for promotion.
At IHG, the Assessment Centre Programme aims to provide a talent pool of potential candidates for promotion. “This is a good way to retain,” says Winnie N.G.
As for rewards, different hotels have different ideas.
Those who get annual best-performance certificates at PRC can bring their families to have a free dinner in the hotel. Every three months, the best five staff over the period are also given cash bonuses.
At Kempinski, monthly and annually-rated best staff get the chance to study or travel abroad for free.
“To become the best hotel, we will stick to the principle of taking care of our associates, handed down by Marriot’s founder,” says Malik. “We know the hotel would be in great trouble if our associates such as chefs and cleaners cannot come to work.”