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Can we do it better in terms of Human Capital and set apart from our competitors?

 
For most small and medium size businesses comparison with competitors in terms of staying close to "standard practices" and "average key performance indicators"  is a fair measure to justify that things happen because of the market problems, and not because of "me", and the Hospitality Industry can be included in that believe. But in today's world, success is about differentiating from competitors, doing things better and setting apart from old ways and standards, and Human Capital is one of the key factors to achieve it, helping us push our business to a whole new level.

 "The systems run the business, the people run the systems". - It is true, the more prepared the business gets in terms of strategy, business model, processes and technology the more productive it can become, but people are who make all these elements possible as they are the vehicle for execution, and the more connected they feel with their jobs, the more comfortable they feel about their managers, and the more aligned and attached to the business, the lower the chance of losing them, and greater the room to increase productivity.

In three of my recent experiences, 1 hotel and 2 restaurants, I had the chance to watch firsthand how employees were primarily hired or promoted because they had either the knowledge, the years in the industry, or both that managers were expecting for the specific position. But, when this people stepped in they felt like they did not belonged in the job or team, that managers were expecting too much from them, without proper instruction, or they did not match to the type of working atmosphere and challenges ending up on a Voluntary or Non-Voluntary Turnover issue, something was definitely missing.

In our last post we talked about Voluntary Turnover reasons, from a study published by Profiles International, and kept their order open for review of our readers with the promise of an update. Well here it is, Profiles International showed us:

-          30% of job-leavers were unhappy with management and the way they managed, meaning "People leave people, not jobs"

-          25% felt they had no recognition for good work, there is a need for reward, public acceptance and glow

-          20% complained of limited opportunities for advancement, either vertically or horizontally. Lack of promotions, team building (team leadership), knowledge and skills development, among others.

-          15% cited inadequate salary and benefits, low isn't it?

-          5% were bored with the job, meaning I am not where I should either job or company, happens

-          5% cited other reasons (retirement, career change, sabbatical, and travel)

Good management, reasonable recognition and clear path for development are key factors for reducing turnover and engage employees.

In a study from Aberdeen, delivered in 2010, businesses that invest money and time to develop employees obtain higher levels of engagement and become, in average, 25 -50% more productive than their competitors. Greater success comes by constantly evaluating employees with both, objective and subjective, tools or assessments.

For example, assessments that objectively measures behaviors needed to succeed in a specific job, or job matching technologies, helps to understand how fit is a person for the needs and challenges of a job. Understand in advance if the candidate has what it takes in terms of knowledge and experience is important, but also knowing in advance if he can cut it in terms of business expectations, and how to develop him even further to be a high performer is also key.

But higher the position, higher the need to go deeper and wider. By just knowing, in theory, if the person can manage people, complex tasks and more responsibilities is not enough. Subjective assessments like 360 evaluations can give us a more profound perspective of people skills and competencies. Understand if managers are aligned with the organization, where the opportunities for skill development are, give them the means to learn and grow, motivate them to help their people to do so too, and publicly recognize them for the achievements can really make the difference to impact productivity, bottom line results, and separate real businesses from their competitors. Other means for reducing turnover and increase productivity will be discussed in future posts.

Check this figure where a Aberdeen Group nationwide study compares Best-In-Class businesses, with Industry averages and Laggards.

Figure - Performance on Key Metrics

http://www.shl.com/PDF_Documents/Aberdeen-SHL-PreVisor-Merger.pdf

 
The difference between businesses is the use of assessments for employee hiring and development. Investment pays itself.

Sources:

·         Bud Haney and Jim Sirbasku. "40 Strategies for Winning in Business"

·         International Society of Hospitality Consultants, Top Ten Issues in the Hospitality Management Industry

·         Jim Muehlhausen. "The 51 Fatal Business Errors and How to Avoid Them"

·         Aberdeen Group, "Talen Assessment Strategies, a decision guide for Organizational Performance"

·         Profiles International, http://www.profilesinternational.com/tom00305.htm

 


  Javier Tomé

Javier Tomé is President and HR Solutions Director at People & Organizations for Business (POB Consulting). A Systems Engineer from Universidad Metropolitana of Venezuela, Javier started as a software developer, and promoted to Manager Level in a short time because of his drive, proactive thinking style, leadership, and expertise development.  He earned a Master's degree in Management Consulting from the Universidad Complutense de Madrid, Spain.

Passionate about food, restaurants, and hospitality, he obtained a Culinary Arts' degree at Le Cordon Bleu Miami, which introduced him to the Hospitality Management Industry. He has worked as a cook, chef and restaurant manager, in both restaurants and hotels. 

Javier has been involved in Business Consulting for the last 10 years, developing knowledge and experience in several fields and industries.   Dedicated to helping business owners and executives develop their businesses to their fullest potential, he works with them through Organizational Modeling, Strategic Focus, and People/Culture best practices.  His stated goals include helping professionals in the industry to become more productive and successful.

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Javier Tomé, President/ HR Solutions Director

People & Organizations for Business (POB Consulting)      www.pobconsulting.com

 javier.tome@pobconsulting.com           p: +1 (305) 509-5160