Transcript Hilton Management Group’s Human Resources Team

Human Resources
Issues in Lodging Industry
2008
HAMA Conference
April 10, 2008
Discussion points
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Talent Availability
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Total Rewards: Compensation & Benefits
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Organized Labor
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Employment Law Trends
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HR Technology
Talent Availability
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The number of workers in the 55-and-older
group is projected to grow by 49% between
2004 and 2014 – resort communities need this group to fill job
requirements.
By 2010, 10 million U.S. jobs will go unfilled
according to the Bureau of Labor Statistics.
Over the next decade, only 30% of 20-year-olds
will obtain a college degree while two-thirds of
new jobs will require one.
Competition for graduating hospitality talent is
more competitive with candidates getting
multiple offers prior to graduation
Availability in resort communities is even more difficult
Talent - In business news
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Winning the Talent Wars
Business Week, Feb. 2007
“The fight to hire and retain top talent is among the chief
concerns of businesses today.”
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The Battle for Brain Power
The Economist, Oct. 2006
“Competition for talent is a major driver for corporate success.
Talent has become the most sought-after commodity.”
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Building Talent Pipelines
The Corporate Executive Board, 2006
“As CEOs cite recruiting challenges as the central cause of
organizational underperformance, investment analysts continue
to press executive teams on recruiting effectiveness.”
CEO Challenge 2007
The Conference Board, 2007
“The most notable difference is the international rise of finding
qualified managerial talent from 11th place to fourth place.
Clearly, CEOs from around the world are paying more attention
to this challenge
Do you understand the
generations that you employ?
Ages
Years
Traditionalists
61 Years +
Born before 1946
Baby Boomers
43 – 61 Years
Born between
1946 and 1964
Generation X
27 – 42 Years
Born between
1964 - 1980
Generation Y
7 – 27 Years
Born between
1980 - 2000
Talent Management
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Talent is the largest single recurring expense in an
operation
Recruiting, rewarding, motivating and developing
that talent takes expertise and on-going focus
Systems and processes need to be implemented
to ensure talent acquisition and retention
Review of current trends and benchmarking
competition
Creation of long term goals and short term
incentives
Total Rewards Strategy
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The Total Rewards Strategy is a formal statement
of what the employer will provide to the
employee, and conversely, what the employee is
expected to provide to the employer in exchange.
It provides a basis from which an organization
can design, administer and communicate rewards
programs to maximize motivational impact.
When effective, it results in employees who are
satisfied, engaged and productive.
Total Rewards and
Compensation
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Every organization has a Total Rewards Strategy
whether intentional or by default
Several models exist, but they all contain some
reference to:
􀂄 Pay.
􀂄 Benefits.
􀂄 Work-Life.
􀂄 Recognition.
􀂄 Affiliation.
􀂄 Career & Development.
Total Rewards: Compensation
& Benefits
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Organizations need to leverage and assess their
competitive total compensation
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Implement on-line benefits management including
enrollment and administration functionality
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Conduct benefit cost analysis in support of
new/changing business needs
What makes a good incentive
plan?
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Addresses business objectives.
Has measurable performance criteria.
Provides clear line of sight to participants.
Rewards more for better performance.
Is understood by the participants.
Has a “sunset,” so plan changes with needs.
Incentive Pay – Pay for
Performance
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Cash compensation.
Short term (one year or less).
Pay at risk.
Based on Organization/Company, Group/Team
or Individual performance.
Has to be re-earned.
* Management Incentives * Gratuities/Pools
* Individual Incentives
* Commissions
* Tips/Pools
* Profit Sharing
Compensation Strategy
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What is the role of pay?
How is the labor market(s) defined?
Where will the organization position employee
pay against its competition for labor?
How much risk or leverage will be part of pay?
What will be communicated about pay?
What are the roles for governance, and who is
responsible?
Organized Labor
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Card Check Neutrality on the rise
Positive Employee Relations Training (for your
management teams)
It’s not just the Hotel & Restaurant Union
Wages
Benefits
Remaining union-free requires constant reassessment of the Total Rewards strategy (at least
annually)
www. Unionfacts.com
Employee Free Choice Act
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Not law – yet!
To amend the National Labor Relations Act to
establish an efficient system to enable employees to
form, join, or assist labor organizations, to provide
for mandatory injunctions for unfair labor practices
during organizing efforts, and for other purposes.
What is EFCA?
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Certification on the basis of majority sign-up:
Would provide for certification of a union as the bargaining representative of a
unit of employees if the National Labor Relations Board (NLRB) finds that a
majority of those employees have signed authorization cards designating the
union as its bargaining representative. In addition, it would require the board to
develop authorization language and procedures for establishing the validity of
signed authorizations.
At the time the bill was introduced, a group of workers hoping to unionize were
required to sign authorization cards indicating that fact. Once 30% of potential
members signed the cards, the National Labor Relations Board (NLRB) would
then schedule a supervised election in which members would vote on whether or
not to unionize. Even in cases where large majorities of potential members
expressed a desire to unionize, the election process could still be ordered.
A company had the legal ability to allow its workers to have union representation
(without going through the NLRB) if a majority of potential members supported
unionization. The Employee Free Choice Act would make this recognition
mandatory, taking away a company's ability to force a majority of potential
members to go through the NLRB election process.
EFCA continued
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First-contract mediation and arbitration: Would declare that if an
employer and a union are engaged in bargaining for their first contract and
are unable to reach an agreement within 90 days, either party may refer the
dispute to the Federal Mediation and Conciliation Service (FMCS) for
mediation. If the FMCS was then unable to bring the parties to agreement
after 30 days of mediation, the dispute would be referred to arbitration, and
the results of the arbitration would be binding on the parties for two years.
These time limits could be extended, however, if both parties agreed to do so.
Stronger penalties for violations while employees are attempting to
form a union or attain a first contract: Violations of the National Labor
Relations Act would now face the following punishments.
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Civil fines of up to $20,000 per violation against employers found to have
willfully or repeatedly violated employees’ rights during an organizing
campaign or first-contract drive.
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An increase in the amount an employer is required to pay when an
employee is discharged or discriminated against during an organizing
campaign or first-contract drive to “three times back pay."
Employment Law Trends and
Compliance
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On-going education and communication is a necessity
as laws are ever changing
Create systems and processes for reviewing local
based HR practices
Provide guidance and support for employee relations
issues at a variety of levels to manage escalation of
grievances/complaints
Immigration/Foreign Workers
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Many U.S. based employers forced to look overseas
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Temporary work visa vs. green card
H-1B visa used for professionals
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Where degrees are required
No requirement to prove lack of U.S. employee availability
TN “Treaty NAFTA” Professional
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U.S. teens less apt to take summer jobs, and college students
moving towards career-building internships
U.S. unemployment relatively low, so seasonal workers tough
to find
Canadian or Mexican
Must prove job offer and eductional/experience requirements
L-1 Intracompany Transfers
H-2B VISA Program
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H-2B VISA program established in 1990
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H-2B VISA demand is increasing
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Capped at 66,000 per year – some relief later
For seasonal/peak load needs
Inability to fill with U.S. based personnel
Law expired in September 2007
Caps are being reached earlier each year
In Fiscal 2008 all 66,000 granted during first 3 months
H-2B workers are certified as non-immigrants, go
home after 4 or 5 months
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Limited burden impacts (healthcare, e.g.)
Four gov’t agencies must approve/certify
H-2B VISA Program
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H-2B workers generally MORE expensive than
U.S. (application, transportation, housing) to
be competitive
Legislative status – House and Senate moves
to make cap exempt permanent or extend are
currently blocked at urging of Hispanic
Caucus
Program is under assault to due “abusers”
Legislation introduced would make program
unusable for most employers
HR Technology
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Technology to assist with compliance data
Recruiting technology – key to recruiting Gen
X and Y (On-Line applications; Marketing MySpace, Facebook, LinkedIN, and
SecondLife, e.g.)
Employee Portals – allowing them to manage
their own information and data
Questions for the panel?