Category Archives: Employee Benefits

How Employee Feedback Can Help Hoteliers

Feedback is important for any industry, as it shows quite clearly what works, and what could be improved upon. In the service industry, there are different types of feedback. Customer feedback is most commonly discussed and used, while employee feedback tends to remain focused within the HR circle. Increasing the scope of what is asked within the feedback can improve the hotel service by astonishing amounts. This is because employees know the business in and out. They have regular experience with anything that they recommend or believe is not good practice.

5-questions-on-your-new-employees-mind

Identifying Problems
A customer will give a hotelier comprehensive feedback. But a hotelier benefits from employee feedback as well, as a problem can be brought to light before a brand new customer is aware of it. Hoteliers strive to give customers an unforgettable experience so that they come back and/or spread good word of mouth about the hotel services. Anything that prevents the customer from having to face something that leads to a negative point in the feedback should be adopted.
Consider a hotel that is known throughout the city for its dinner buffet. Feedback from multiple customers shows that customers prefer multiple options for dessert (as the rival hotel buffet has started providing) instead of just a fixed dish. Had employee feedback been the norm, this problem at this hotel would have been recognized long before, because employees would have noticed it themselves during regular customer interactions.

Making Employees Feel Valued
When a customer tries a restaurant, even when the food and wine is excellent, if the service isn’t up to par, the overall impression of the establishment is diminished. Of course, correct training of employees is important. However, it is not enough to just hire the right people. Hoteliers need to boost morale and make employees feel that they matter to encourage better performance.
According to Hubspot, 39 percent of employees don’t feel valued at their workplace. When management invites employee feedback, it suggests that employee opinions are considered to be essential. This helps form a connection between employee and employer.
Customers notice when they walk into a place and the energy of the employees is so infectious, that it starts rubbing off on them. The instant impression of any place where employees are enjoying their work, and even having fun while doing it, is overwhelmingly positive. To create such an atmosphere, the employees have to feel valued at their workplace. Inviting employee feedback is one such tool that makes them feel like a part of the business. Hoteliers can achieve wonders with employees who are driven by motivation that is more than just a weekly or monthly monetary return.

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Reduce Workplace Injuries, Boost Productivity

High levels of customer satisfaction in the hospitality and leisure industries are critical to the success of any property. It is even more challenging to maintain customer satisfaction while reducing costs associated with employee injuries and the workers’ compensation claims. Employees are continually trained on the nuances of customer service skills and customer interactions in order to achieve the best levels of service. However, maintaining a high level of productivity is difficult when employees have been injured. Increasing injury rates result in higher workers’ compensation insurance, medical care, and claim costs.

Taking a look at the causes of work-related injuries, implementing standardized work practices, and making simple changes can yield a significant decrease in injury risk and an increase in productivity. A single property within a national hotel chain has been able to decrease its workers’ compensation costs by $500,000 in the first year while improving its customer satisfaction ratings.

Within the U.S. hospitality and leisure industry, food services and accommodations employees represent 12.9 million of the 15 million employees. In 2014, the recordable injury rate among these employees was 3.6 injuries per 100 full-time employees. These injury rates can be higher among employees in departments such as housekeeping and banquet operations. One study indicated that up to 95 percent of the housekeepers indicated they experienced severe to very severe physical pain.

Any effective ergonomics and process improvement program should include aspects such as management support, employee involvement, training, problem identification, early reporting of injury symptoms, evaluation of hazard controls, implementation of hazard controls, and evaluation of progress.

Productivity

Effective administration and implementation of each aspect is important, but knowing which changes will bring the most improvement in productivity and injury reduction can make a big difference.

 

Let’s take a look at housekeeping: Their work ensures proper cleaning as well as maintaining the visual standards of the brand. Over the past decade, consumers’ expectations of luxury as it relates to hotel rooms have increased. Furnishings are more luxurious and often include thicker mattresses, plush duvets, decorative bed skirts, and the inclusion of a variety of pillows.

In an effort to reduce injury risk while maintaining or improving customer satisfaction within a housekeeping department, we reviewed common tasks and identified the tasks that were most likely to cause injury. A detailed study was conducted of these common housekeeping tasks, such as cleaning bathrooms, changing and making beds, and removing trash and soiled linen. The evaluations determined the extent of injury risk factors and opportunities to improve the quality of the services performed. After the analysis, recommendations were made related to the selection of appropriate tools, the modification of techniques for cleaning showers and bath tubs to decrease awkward postures and minimize forces, and the identification of methods to minimize awkward postures and forces while changing beds and handling trash and dirty linens. One key factor in the success of these changes was training the employees in the appropriate methods, injury risk factors, and the proper use of tools. The changes made within the housekeeping department decreased duvet-making time by 32 percent while maintaining a standard look; reduced the number of awkward shoulder postures by 72 percent; and reduced the number of awkward back postures by 45 percent. Guests indicated an improvement by a 5 percent increase in customer cleanliness ratings.

Another department that commonly experiences a high number of injuries is the banquet operations department. Within the banquets area, server and setup tasks were also evaluated. Following similar principles, tasks were identified that had previously caused injury or were difficult to perform. Evaluations were again conducted and recommendations were made. These recommendations involved working with vendors to identify the changes to carts that could make the most impact on decreasing push/pull forces while not decreasing the load on the carts. Additionally, standardized methods of room setup and table movement were established. These simple changes and employee training yielded a decrease in injury risk, improved employee morale, and increased efficiency.

Maintaining high levels of customer satisfaction while minimizing employee injuries and workers’ compensation costs in hospitality and leisure industry is critical to the success of any property. Evaluation of tasks by a qualified professional (such as a certified professional ergonomist) can ensure that risk factors are appropriately identified and that the recommendations will adequately reduce injury risk. Minimizing costs, reducing injuries, improving efficiency, and improving customer satisfaction ratings are benefits of a successful ergonomics and process improvement program.

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Filed under Claims, Employee Benefits, Employee Practices, Health, Hotel Employees, Hotel Industry, Injuries, Insurance, Management And Ownership, Risk Management, Training

Are you ready for overtime changes?

overtime
By now I’m sure most of us have completed our 2016 budgets, but how many of you have started strategic discussions about the effect the proposed overtime regulations in the United States could have on your hotels?

If not, now is the time to start.

On 30 June 2015, the U.S. Department of Labor released its proposed changes to the overtime regulations under the Fair Labor Standards Act. If adopted, these changes will affect roughly 4.6 million current salary-exempt employees. While this will affect all segments of the American workforce, given the pay scales of our industry, hoteliers will be significantly affected by these changes, making more employees eligible for overtime compensation.

Under the current regulations, to be eligible for the overtime exemption employees must meet the duties and responsibilities tests under one of the administrative, executive, professional and/or computer professional exemptions. In addition, they must be paid a minimum weekly salary of at least $455 per week (or $23,660 per year).

The new federal overtime plan would increase the minimum weekly salary of $455 per week to $970 per week or $50,440 per year, a 113% increase. This change also would include automatic periodic increases to the salary threshold.

This means that regardless of the duties and responsibilities test, if a salaried employee makes less than $970 a week, he or she would no longer be considered exempt for overtime compensation. Hours would need to be tracked and overtime paid for every hour worked in excess of 40 per week.

As a leader in the hospitality industry, this should have your full attention.

The comment period for the proposed changes ended 4 September 2015, and we should expect to receive the final ruling sometime early to mid-2016. Once released, the changes will be effective within 60 to 120 days. And while we don’t know whether the DOL will adopt the current proposal or bring a new idea to the table, we should expect some changes to the salary threshold, as its last increase was in 2004.

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Filed under Employee Benefits, Finances, Hotel Employees, Hotel Industry, Labor Issues, Management And Ownership

Hospitality Industry Legal Update: “Why Union Leaders Want L.A. to Give Them a Minimum Wage Loophole”

“Some see thinly veiled self-interest at work in labor’s quest for waivers in minimum wage laws. Glenn Spencer of the U.S. Chamber of Commerce said that Southern CaliforniaLA minimum wage in particular shows the potential benefits of such provisions for private-sector unions at a time when many are struggling to stanch long-term declines in membership”

One of the most divisive issues that Los Angeles City Council members expect to confront when they return this week from a summer recess will be a proposal by labor leaders to exempt unionized workers from the city’s new minimum wage.

The push for the loophole, which began in the final days before the law’s passage, caused a backlash rarely seen in this pro-union city and upended perceptions of labor’s role in the fight to raise pay for the working poor. Union activists were among the most stalwart backers of L.A.’s ordinance raising the wage to $15 by 2020, and argued against special consideration for nonprofits and small businesses.

Rusty Hicks, head of the Los Angeles County Federation of Labor, said the union waiver would be a routine protection against challenges to the ordinance under federal labor law. “This is about staying consistent with previous provisions and crafting something that will withstand legal scrutiny and delay,” Hicks said in May. In California, he added, “we’ve seen every city that has passed a minimum wage include this kind of a provision.”

A Times review of other cities’ minimum wage laws, as well as interviews with labor leaders and legal experts, suggests the truth is more complicated.

Guarantees that organized workers should be allowed to bargain for a subminimum wage appear to have scant legal justification, some experts said. They are not a universal feature of local wage ordinances, in California or other states. San Diego, the largest California city to raise its minimum wage in recent years before L.A., did not include such an exception.

For more: http://lat.ms/1OLyDlk

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Filed under Employee Benefits, Hotel Employees, Hotel Industry, Management And Ownership

Hospitality Industry Insurance Update: “Will Workers’ Comp Pay For Medical Pot For Back Pain?”

A workers’ compensation judge (WCJ) found Dr. Reeve didn’t prescribe medical marijuana and concluded that the pot program wasn’t reasonable and necessary medical care as required by workers’ compmedicalmarijuana…the appeals court had found the certification required under the Compassionate Use Act by a person licensed in New Mexico to prescribe and administer controlled substances is the functional equivalent of a prescription.

In a state where medical marijuana is legal, a recent court decision has reinforced a previous one regarding pot prescriptions under workers’ comp. 

Miguel Maez suffered injuries to his lumbar spine in February and March 2011 while working for Riley Industrial in New Mexico.

Maez received temporary disability benefits under workers’ comp. Dr. Anthony Reeve treated him for back pain starting in June 2011 and prescribed medication for pain management. He also referred Maez to another doctor for spinal injections.

During a test required for pain management patients, Maez tested positive for marijuana. Dr. Reeve told Maez that if he was going to continue to take marijuana, he needed to have a license for Dr. Reeve to continue administering other narcotics.

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Filed under Employee Benefits, Hotel Employees, Hotel Industry, Insurance, Management And Ownership, Risk Management, Workers' Compensation

Hospitality Industry Management Update: “New Year, New Challenges: What Hospitality Employers Need to Know”

As state and federal budget cuts tend to wane, the Department of Labor (DOL) is expected to step up enforcement against hospitality employers in the coming year. restaurant workerBecause the DOL considers the hospitality industry as a “fissured” industry, owners, franchisors, franchisees and management companies should be prepared to deal with inquiries, particularly in the areas of tipped employees and the misclassification of employees.

According the U.S. Bureau of Labor Statistics, the hospitality sector added 321,000 additional jobs in 2014. With all those new employees, as well as the continued addition of jobs we expect to see in coming year, here are our top predictions for labor law issues that will play a vital role in the hospitality industry in 2015.

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Filed under Employee Benefits, Hotel Employees, Hotel Industry, Hotel Restaurant, Labor Issues, Management And Ownership, Training

Hospitality Industry Management Update: “Assessing the Midterms’ Impact on Lodging”

AH&LA is hopeful that final action on a long-term TRIA extension occurs in the coming weeks during the lame duck session.Vote The Senate passed its reauthorization bill earlier this year on a huge bipartisan vote, but action has stalled in the House.

The new Senate Republican Majority, combined with a larger House Republican Majority, will significantly alter the policy landscape for the business community and the lodging industry, says the government affairs team at AH&LA.

The association anticipates a busy year legislatively that includes smaller, targeted measures getting to the President’s desk and being signed into law, though likely not any grand compromises on issues like immigration or the nation’s fiscal policy. When it comes to issues impacting the lodging industry, here’s what AH&LA expects to come down the pike:

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Filed under Employee Benefits, Employee Practices, Hotel Employees, Hotel Industry, Management And Ownership, Risk Management

Hospitality Industry Management Update: “Industry Groups Sue Over L.A.’s Minimum Wage for Hotel Workers”

The two industry groups are seeking an injunction to block enforcement of the hotel wage law, which was approved in September. The measure is set to go into effect in July for hotels with at least 300 rooms and expand a year later to hotels with at least 150 roomsla minimum wage…backers of the measure said it would prevent hotel workers from having to take on second jobs that keep them from seeing their families. They also argued that the hotels in Los Angeles have benefited from the city’s efforts at boosting the tourism industry.

Two hotel industry groups filed a federal lawsuit Tuesday challenging a new Los Angeles law that requires a higher minimum wage at the city’s larger hotels.

The lawsuit from the American Hotel and Lodging Assn. and the Asian American Hotel Owners Assn. contends that the City Council’s decision to impose a $15.37 per hour minimum wage is preempted by federal labor law and therefore unenforceable.

The two groups also say the city is interfering with labor relations and union organizing at its larger hotels. And they voiced fears that L.A.’s ordinance could be replicated elsewhere in the country.

For more: http://lat.ms/13aZQeG

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Hospitality Industry Insurance Update: “Think Your Workers’ Compensation Covers Everything? Think Again!”

Consider the risks involved when an employee travels overseas for work. Courts have often ruled that an injury or illness that an employee suffers while on short term assignment away from home—even if he or she is not working when it occurs—is work-related.workers comp But a basic workers’ compensation policy will probably not cover this type of claim. A foreign workers’ compensation policy will. Although no law requires employers to provide this coverage, you risk paying medical and lost-time costs out of pocket if you do not have coverage and a traveling employee becomes injured.

You might think your workers’ compensation covers all work-related injuries and illnesses. This could prove a costly mistake.

In most cases, workers’ compensation will cover work-related injuries and illnesses. But in certain special circumstances—which might apply to your company—the basic workers’ compensation policy will not provide coverage. This could leave your company on the hook for a costly workers’ compensation claim.

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Filed under Employee Benefits, Hotel Employees, Hotel Industry, Injuries, Insurance, Management And Ownership, Risk Management

Hospitality Industry Management Update: “Examining Hotel Labor Costs”

Labor cost is a major expense item throughout all operated and undistributed departments within a hotel. Not surprisingly, the labor-intensive rooms and food and beverage departments have the highest labor cost ratios.labor costs In 2013, labor costs represented 61.1 percent of total expenses in the rooms department and 59.6 percent in the food and beverage department. At the other end of the spectrum, labor costs are less pervasive in the administrative and general (48.8 percent) and maintenance (51.5 percent) departments.

As revenues continue to grow for most U.S. hotels, the combined cost of salaries, wages, bonuses, and payroll-related expenditures has declined as a percent of total hotel revenue. In 2013, labor costs represented 32.3 percent of total revenue, down from a high of 34.8 percent in 2009 but still above the long-run average of 31.2 percent. Labor costs measured as a percent of total revenue run from a high of roughly 35 percent at convention and resort hotels to a low of 22 percent at limited-service and extended-stay properties.

Strong growth in revenue, however, has the potential to mask the struggles hotel managers face to control labor costs. Therefore, it is important to also measure movements in labor costs relative to changes in other hotel operating expenses. While labor cost as a percent of revenue has declined significantly in recent years, labor cost measured as a percent of total expenses has remained relatively constant.

For more: http://bit.ly/111qTYD

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