Accommodation Industry Results from the 2008 Canadian Tourism Sector Compensation Study

In 2009, the Canadian Tourism Human Resource Council, and the Saskatchewan Tourism Education Council, partnered with Hay Group Limited to conduct the 2008 Canadian Tourism Sector Compensation Study. This was a national project that encompassed 2,016 organizations and 76,195 incumbents across Canada. Four primary industries in the tourism sector were covered by this study, including:

Food and Beverage Services

Accommodation

Recreation and Entertainment

Travel Services

As many as 166 organizations from across Saskatchewan participated in the study, 32 of which were identified as properties in the accommodation industry. More specifically, 6% were luxury hotels/resorts, 62% were mid-market hotels/resorts, 9% were economy hotels/resorts, 12% were inns/bed and breakfasts, 9% were cabins/campground/RV parks, and 3% identified as other. This wide range of respondents provided results that were representative of the accommodation industry as a whole.

Those occupations that were benchmarked in this study include: Accommodations Service Manager, Catering Manager, Director of Sales and Marketing, Executive Housekeeper, Banquet Server, Front Desk Agent, Guest Services Attendant, and Housekeeping Room Attendant. Not surprisingly, Saskatchewan’s base wages for most positions ranked lower than our provincial neighbours, Alberta and Manitoba, as well as nationally.

If Saskatchewan workers are earning less in base wages in the accommodation industry, are they making up for it elsewhere?

Yes and no. Using the same benchmark jobs in comparison with Alberta, Manitoba and national averages, the total cash (base wage plus bonuses and incentives), brought Saskatchewan into a more competitive pay range. In fact, Catering Managers made it to the top of total cash averages.

This study also provided information on challenges related to compensation that are specific to employers in the accommodation industry. The top three challenges listed were:

1. Shortage of labour and a competitive labour market.

2. Difficulty in attracting and retaining employees, as the industry is perceived as low paying and temporary.

3. Rise of fixed cost and salaries.

Many people think turnover is related to wages, but that’s not necessarily the case. According to the study, two reasons staff is leaving workplaces in the accommodation industry are because of:

• Return to school – This reason was highest for full-time employees in small companies, and part-time employees in large companies when reward investment was low.
• A better opportunity from a business outside the tourism sector – This reason was highest for employees in larger companies when work/life balance was low.

This study provides employers with compensation information they need to both hire and retain employees. As our province moves from a motto of “good enough” to “great” accommodation organizations should be mindful of what’s going on in the rest of the country.

Research for the 2010 Canadian Tourism Sector Compensation Study will begin this summer. Every participating organization will receive a detailed report of the findings. If your organization is interested in participating in the upcoming compensation study, please contact Darcy Acton, Manager of Industry Human Resource Development, at darcy.acton@saskatourism.com.

Training Increases Business Revenue--It Takes Money to Make Money!

A Case for Training's Return on Investment (ROI)

Surprisingly, many managers in the tourism sector do not think training employees provides a return on investment for their organization.

We know that training is a good tool for improved human resource practices within organizations, but when it comes to recognizing the monetary benefits many of us are on different pages. Some employers view training strictly as a cost with no attached value. If we look to another business function—marketing, we can draw some parallels to the human resource function and understand there may be a return on investment for training your staff.

Organizations often engage in marketing to expand their customer base and increase the amount of money people spend on their goods and services. Marketing professionals outline their strategic plan and budget for items, such as advertising, with the intention that people will see these advertisements and spend money within their organization. If marketing plans are executed properly, the extra revenue the company earns will exceed the cost of marketing and a return on investment can be seen.

Can we use this same analogy when training our employees?

The same concept the marketing department illustrated for their advertisements can be applied to the human resources department (or function). In addition to budgeting for advertising, let’s create a budget for training. Because most organizations aim to increase revenue, let’s aim for the same outcome: customer expenditures. To illustrate further, in the examples below, let’s see how training has the potential to affect ROI.

Example #1 – An organization that does not support training in the workplace.

A customer walks into an organization in the accommodation industry, which she found in an advertisement on the Internet. The customer walks up to the Front Desk Agent, and is not greeted with a smile; in fact the Front Desk Agent is texting on a cell phone behind the counter. Instead of greeting the customer with a smile, the Front Desk Agent looks annoyed as the customer approaches. The customer provides her name and confirmation number. Rather than be discreet, the Front Desk Agent repeats the customer’s name and room number loud enough for everyone in the lobby to hear. As the Front Desk Agent hands the room key to the customer, she resumes texting behind the counter.

Example #2 – An organization that supports training in the workplace.

A customer walks into an organization in the accommodation industry that was referred to her by a friend. The customer walks up to the Front Desk Agent, who greets her with a smile and asks: “How may I help you today?” The customer provides her reservation information and is immediately given a directory of the hotel services, highlighting the spa that is world renowned and a restaurant that is known for its great wine menu. The Front Desk Agent provides the customer with her room key and directs her to the elevator. Before the customer leaves, a Guest Services Representative offers to carry the customer’s luggage and the Front Desk Agent encourages her to call “0” for more information or assistance. The customer is escorted to her room and proceeds to book a reservation for the restaurant that night and a massage in the spa the next morning.

In Example #2, both the Front Desk Agent and Guest Services Representative are trained professionals who know that providing customers with an experience that leaves them wanting more will increase sales, sometimes even more than a great advertisement in a magazine. While an advertisement may entice people, your employees can provide an experience that will not only keep them coming back, but will encourage them to refer your business to family and friends. More revenue means increasing your ROI.

Does your organization train employees to ensure that your customers are getting the experience they're looking for?

We’d love to hear your feedback! Let us know if your organization measures return on investment for training.

Managing Expectations through Consistent Process

Over the years, I’ve had plenty of people share their experiences with me and ask my advice on whether the organization they work for is doing things properly. As a human resources professional, I love to hear everyone’s stories, but am sometimes disheartened at the outcomes and ponder: How could this situation have been handled differently?

Below are examples that outline how two different employers mismanaged their employees’ expectations through a lack of consistent process.

Example One:

An employee, who was with an organization for a year, traveled frequently and was being reimbursed for meals. There were no set guidelines and when this person was on the road, she bought food and submitted expense claims for reimbursement upon returning to the office. After following this process for a year, her boss unexpectedly denied an expense claim. The expense was for water and chips the employee bought as a quick lunch while on the road. Her boss didn’t think this was a “proper” lunch and didn’t want to reimburse the claim. As similar claims were always approved in the past, the employee met with her boss to clarify the situation. The boss informed her that all expense claims during the year of a similar nature were wrongly processed. The employee was confused, as the items on all these claims were clearly stated and approved by this same boss. When the employee asked for clear guidelines on what was eligible and what was not, the boss felt it was unnecessary and refused to provide these guidelines. The employee left the meeting confused and disappointed. Not only had her boss taken issue with a $2.49 claim, but had refused to provide any guidelines in order to ensure that no additional expense claims were denied in the future.

Example Two:

An employee worked shifts at the same organization and on the same site for three years. When the employee started, there was an expectation that any out-of-town work was given to the newest hire. The employee gladly obliged, as this seemed to be the organization’s practice. Naturally, three years later this person was no longer the newest employee. Even so, he was informed that because another work site needed extra workers he was being temporarily transferred. When the employee’s boss spoke to the staff, it was stated that all employees would take turns working in the remote location for two week intervals. Ironically, the last employee to work the out of town shift was the newest hire.

In each of these situations, it was not the outcome that bothered the employees, but the process in which it was handled by the employer.

Here’s my take on how both these situations could have been handled better: Employers should manage employees’ expectations by being consistent in applying processes. This generally makes employees more comfortable with the outcomes. Without any set expectations, employees will set their own. When management’s expectations differ from employees’ as a result, it creates a situation where staff feels like something has been taken away. Not doing anything about these situations runs the risk of employees becoming disengaged.

What’s the best way to prevent this from happening?

Set expectations and be consistent with them.

This blog entry was written by Darcy Acton, Manager of Industry Human Resource Development. For more information, contact Darcy at (306) 933-7466 or darcy.acton@sasktourism.com.

Don't Let This Happen to You

Once upon a time, in a land not too far from here, an 18 year old entered a drinking contest at a local bar. As his friends and the bar staff cheered him on, he threw back 25 shooters made from two different liquors in 15 minutes, not to mention the six beers he consumed before his victory. About 45 minutes later, a friend put him in a taxi, took him home, and left him lying on the stairs in the heated entryway of his apartment building, thinking he would sober up and make it upstairs. He lost consciousness and died within two hours. His blood alcohol level was 0.32, about four times the legal limit.

This is a true story. A $230,000 lawsuit was filed against the owner of the bar and two employees who oversaw the drinking contest. The establishment was placed on a five month suspension and lost the right to operate VLT’s, pending charges. The case attracted national media attention and cost the owner of the establishment revenue and a lot of bad publicity.

There are countless cases like this popping up all over the country. Many provinces have responded by increasing fines for over-serving and have cracked down on reckless activities such as binge-drinking contests. In some cases, bar owners, servers, and party hosts have been criminally charged and found guilty of failing to provide duty of care. Here’s the truth: If you provide alcohol to an individual to the point where he/she becomes intoxicated, you are responsible for that person until they become sober. This is the law.

From 2007 to 2008, the number of alcohol-related injuries and fatalities increased in Saskatchewan. In 2008, there were 987 injuries and 74 deaths in alcohol-related crashes in the province. This is a substantial increase from 2007, when the province saw 849 injuries and 45 deaths. The need for good risk-management strategies is a must.

That's why the Saskatchewan Tourism Education Council (STEC) developed the Serve It Right Saskatchewan (SIRS) program. The SIRS program provides consistent training for the sale and service of alcohol to ensure that alcohol-related activities are conducted in a socially responsible manner. This program is applicable whether you work on premise (lounge, bar, club) or are involved in other activities (special events) that include the sale and service of alcohol. When implemented properly, SIRS training can help you and your staff reduce the risk of liability and enhance the safety of your premises.

Investing in the development and training of your staff will make a difference in the face of a risky situation. SIRS addresses ways of identifying intoxication, how to handle situations involving minors, effective approaches in discontinuing the sale or service of alcohol, and facts and figures on legal responsibilities and liabilities. The $30.00 per person investment will allow you to take a major step in ensuring that your staff is well informed and prepared to responsibly serve customers.

SIRS is supported by the Saskatchewan Server Intervention Program (SSIP) committee and is comprised of representatives from the Saskatchewan Liquor and Gaming Authority (SLGA), Saskatchewan Government Insurance (SGI), the Hotel and Hospitality Association (SHHA), the Saskatchewan Ministry of Health, the Wines and Spirits Association, and the Royal Canadian Mounted Police (RCMP).

Help reduce the risk. For more information, visit our website at www.sirs.ca or contact STEC at (306) 933-7186.

What can we do as an industry to reduce Saskatchewan’s recent increase in alcohol-related injuries and deaths?