Faculty & Research
HR Executive Roundtable
February 23, 2010: HR Executive Roundtable
Participants at the recent Cornell HR Executive Roundtable focused on how to generate light for employees in the midst of economic gloom. Held during the February 2010 HR in Hospitality™ Conference in Las Vegas, the roundtable comprised two sessions focused on key HR issues for hospitality managers: changes in HR law and the difficulty of maintaining a balance between brand management and controlling costs. The roundtable conversation then continued with participants leading drill down discussions where all conference participants were invited to join in and ask questions.
The first session of the roundtable, chaired by David Sherwyn, associate professor of law at the Cornell School of Hotel Administration, looked at prospective changes in employment law and regulations. Cornell professor Bruce Tracey chaired the second session, addressing employment brand management challenges. The roundtable was produced by the Cornell Center for Hospitality Research in association with the Cornell ILR school and HR in Hospitality™ Conference. By special arrangement, all conference participants could attend the roundtable, which drew more than 150 observers.
Although hotel companies would prefer not to reduce staffing levels, the economic reality is that reductions in demand have forced unpleasant decisions, including eliminating programs and layoffs. Participants in the brand management session said that they have reinforced employee-focused programs, including open and honest communication, making employees aware of business levels, improving training, and making sure that employees know that their efforts are appreciated, even though salaries will not rise.
Employees have been appreciative of these efforts. For example, Debbie Brown, vice president of HR at Four Seasons, stated, "Our engagement scores have remained fairly high, due primarily to the openness and honesty of our communication with our staff." In the same vein, Carolyn Clark, senior vice president of HR at Fairmont Hotels & Resorts said, "We've been extremely conscientious in making sure our employees understand how the economy has affected our business, and we have gone to great lengths to keep our employees motivated and performing to the best of their abilities."
Loews is one of the firms that has emphasized training. Alan Momeyer, vice president of HR for Loews pointed out that employees at his firm and many others are being asked to take on additional responsibilities. "As such, we need to provide our employees with learning and development opportunities to ensure they possess the knowledge and skills that are necessary to remain effective," he said. In addition to training, Diane Turek Pire, senior vice president of HR at Wyndham, noted: "People need to know that we appreciate their devotion and performance, especially during these difficult times."
In the HR law session, Sherwyn pointed out that proposed law and regulation changes at all levels have created considerable uncertainty for hospitality managers, for example, in sexual harassment claims. "Some states have reduced the standard for sexual harassment or they are holding employers strictly liable for the actions of their supervisors," he explained. "Our panelists urged employers to be careful when examining claims." One panelist observed that the "standard letter" stating that a supervisor's actions violate policy may actually constitute an admission of guilt in some jurisdictions. Instead, based on his observation of court cases and experience, Gregg Gilman, a partner at Davis & Gilbert, urged employers to do the right thing and investigate claims thoroughly for both legal and employee relations reasons because courts are results oriented.
As was the case in the brand management session, participants in the HR law session concluded that the key to employment law issues is to create a culture of trust and maintain a reputation for honesty and fairness.
In addition to the Cornell roundtables, the fourth annual National HR in Hospitality™ Conference & Expo featured a keynote address by Jonathan M. Tisch, chairman and CEO of Loews Hotels, who also focused on the critical importance of maintaining employee involvement in a difficult environment. The conference, which drew more than 400 registered participants, is produced by Human Resource Executive Conferences™ in partnership with Cornell University's School of Hotel Administration and ILR School. Registration will open in September for the fifth annual National HR in Hospitality™ Conference & Expo, scheduled for April 4–6, 2011, at the Marriott Wardman Park Hotel, in Washington, D.C.
March 17, 2009: HR Executive Roundtable
HR Executive Roundtable Program
Although changes in U.S. labor law dominated the discussion in the HR Executive Roundtable, held in Orlando in March 2009, participants also examined the need to reposition their firms for future growth opportunities. Organized by the Cornell Center for Hospitality Research, the roundtable was cosponsored by Cornell's School of Industrial and Labor Relations, and the HR in Hospitality™ Conference, the nation's foremost human resources conference promoter.
Both the economy and the proposed Employee Free Choice Act (EFCA) drew the attention of the nineteen participants, most of whom were corporate vice presidents of human resources or principals of law or consulting practices. Although the current HR focus is on careful use of resources, they also discussed the changes in the competitive landscape.
"For those companies willing to make the investments and take some risks, there's market share to be had," pointed out Jo-Anne Kruse, executive vice president of human resources, Travelport. "We need our HR team to ensure the operating organization is well positioned to meet these unique growth opportunities."
In the meantime, Alan Momeyer, vice president of human resources at Loews Corporation, pointed out that companies must address employee motivation and morale during the economic downturn. "We are conducting a company-wide vulnerability audit, to identify areas of concerns among our employees. Then we can dedicate attention and resources to areas where they're needed most."
Roundtable participants agreed that the nearly inevitable prospect of labor law reform will require a renewed emphasis on the human resources function. If adopted, the Employee Free Choice Act would revise the union organization process. The current law provides for secret ballot after a certain percentage of employees have signed cards in support of a union. However, the new proposal would allow certification of a union without an election, provided a majority of employees sign union cards.
"Employers need to maintain a policy of positive human resources and be sure to communicate constantly with their employees," explained Cornell professor David Sherwyn, who is academic director of the Center for Hospitality Research. "It may be too late to work on communication when a union begins its efforts to organize."
Roundtable participants observed that another reason to establish early communication efforts is that the EFCA proposes to increase penalties against employers for unfair labor practices during an organizing campaign and provides for contract arbitration. Employers generally may not discuss working conditions with employees during a campaign. Consequently, employers need to have their communications policies and information set far in advance.