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The Macro View for Private Clubs

Clubs have a unique set of challenges. Members want dining that is casual, yet sophisticated and programming and amenities that are family-friendly, convenient, healthy, affordable and high quality. Members also want state-of-the-art renovations that keep fitness centers, pools and spas, dining rooms, golf courses and other facilities up to date. Behind the scenes, clubs must keep employees happy and motivated to maintain high service standards. To do all this, clubs must be aware of the latest information on changing lifestyles, demographics and trends. To help, this issue of Club Trends identifies what your club needs to know for 2015 to stay ahead of the game.

Economy

The country continues to climb its way out of the recession. The stock market has hit highs in certain areas, unemployment has dropped below 6 percent and as of this writing, consumer confidence has reached some of its highest levels since 2008, reports Gallup. Some of these numbers—in particular the unemployment rate—may appear hollow as seasonal hirings and individuals settling for jobs they initially may not have wanted inflate employment figures.

In 2015, experts expect the economy to improve further. More Americans will have jobs and much needed financial security to spend and fuel business. According to Kiplinger, GDP growth will climb over the three percent mark thanks in large part to improving job figures (November saw 321,000 new hires, the most in nearly three years) and consumer confidence. Kiplinger predicts approximately 3 million new hires this year. Businesses will continue to spend more—up five percent in 2014, and are expected to increase 7 percent more in 2015. Retailers will see similar growth in 2015 as they saw in 2014, at around 4.5 percent growth.

Lifestyle and Luxury

As we enter 2015, the economy is in better shape than it was a few years ago, especially among the wealthy. According to the 2014 Ipsos Affluent Survey USA, the affluent population (those in households that earn $100,000 or more annually) grew from 62.5 million to 67.5 million in the last year—an 8 percent increase. Median income as well as spending went up during this time.

Even though many wealthy individuals are better off financially than they have been in several years, they are becoming more strategic with their purchases.  Interestingly, the Ipsos study found that although affluents still purchase luxury items, a large percentage make visits to mainstream outlets like Amazon (74% of affluents), Target (72%) and Wal-Mart (69%). Other results can be found for automobiles that many affluents can be found driving: Ford (25%), Toyota (24%), Honda (21%) or Chevrolet (19%). Other research groups provide similar findings as the recent memory of the recession still looms in consumers’ minds.

We also find affluents spending their money more on experiences than finite goods and services. A Luxury Institute survey of 500 “pentamillionaires,” those who have $5 million or more in assets, revealed that 80 percent of respondents felt the significance of luxury products such as handbags and watches had declined. On the other hand, those surveyed placed more value in purchases that gave them more long-term satisfaction. Respondents expected to spend 33 percent more on travel and 20 percent more on dining. Says Luxury Institute CEO, Milton Pedraza, “People are less interested in watches and more interested in building lasting memories.”

Affluent spenders are also smart shoppers. Sixty percent of survey respondents believed that the prices of luxury brands were too high relative to a product’s actual value. Big brand logos were seen as a turnoff, too. These affluents have embraced frugal shopping. In fact, respondents said their nonluxury spending increased by almost half and 40 percent believed that luxury goods could easily be replaced by a less expensive, though just as reliable, item.

These affluent are not just Baby Boomers (those born between 1946 and 1964) and the Greatest Generation (those ages 65 or more). Collectively, Millennials or Generation Y (born between 1980 and 2000) at 14.7 percent and Generation X (born between 1965 and 1979) at 12.9 percent represent more than a quarter of individuals with $2 million or more in assets, reports Nielsen. There are approximately 5 million millionaire Millennials and 10 million Baby Boomer millionaires, according to The Schullman Research Center. Generation X has 4 million millionaires.

Millennials are leading the way in planned luxury spending, too. Data from Schullman Research Center tells us that 82 percent of Millennials, compared to just 47 percent of Generation X and 49 percent of Boomers, are planning to buy more than one luxury item in the next year. Number one on Millennials’ lists is a luxury vacation (XX%), compared to 27 percent of Gen X and 29 percent of Baby Boomers.

It is not only Baby Boomers who can afford the club lifestyle. Although at different parts of their lives, many members of Generation X and Y are financially ready to join clubs.

Fitness

The fitness industry is booming. More than 52.9 million Americans belong to more than 32,000 health clubs around the country, says IHRSA, the International Health Racquet & Sportsclub Association. The U.S. Bureau of Labor Statistics predicts a 23 percent increase in fitness industry jobs during the next 10 years to satisfy demand. Also, the wellness industry has more than doubled in recent years to $500 billion and could reach up to $1 trillion by 2020. As shown by the Club Trends summer recreation issue—fitness is in.

Source: American College of Sports Medicine

If not working out with a trainer, Americans can use fitness devices and apps to measure and monitor their workouts. These apps can measure anything from heart rate to sleep patterns, caloric intake and speed, and some can even connect with other users to engage in healthy competition. FitBit leads the market with 3.3 million units sold from April 2013 to March 2014, reports NPD Group, a market research firm. Although this represents a small portion of American consumers, FitBit sales have increased 500 percent year-over-year.

Number six on ACSM’s 2015 list is exercise and weight loss. These programs are expected to increasingly promote regular exercise with responsible dietary habits. Unfortunately, obesity continues to be a significant problem for Americans. According to the Center for Disease Control and Prevention (CDC), 34.9 percent (78.6 million) of American adults are obese. The groups with the highest rates of obesity are non-Hispanic blacks at 47.8 percent, Hispanics at 42.5 percent and whites at 32.6 percent. Older adults, too, have higher rates of obesity at 39.5 percent of those ages 40 to 59, 35.4 percent for adults age 60 or more, and 30.3 percent for younger adults ages 20 to 39. This epidemic continues to strain the nation’s health care system and the pocketbooks of those dealing with weight-related health problems. The regions most affected by obesity are the South and Midwest.

Among very young people, those ages two through five, the obesity rate has dropped 43 percent in the last decade, says the CDC. “This is the first time we’ve seen any indication of any significant decrease in any group,” says Cynthia L. Ogden, lead author of the CDC report. This is particularly important in the long-term as children who are overweight during those years are five times more likely to remain overweight as adults. Among today’s adults, obesity figures remain flat. 

Golf

Youth Initiatives

For years golf has sought to appeal to young people to grow the game—and they have with some success—but the total number of golfers in America has remained stagnant in recent years. At no other time has golf attempted to recruit as many young players as they do now.

Junior golf programs continue to introduce millions of young golfers to the game. First Tee is one of these programs, reaching more than 300,000 youth around the globe annually. Importantly, children from wide range demographics participate. Seventeen percent of First Tee participants are African-America, 15 percent are Hispanic and 6 percent are Asian. More than a third (37 percent) are girls. PGA Junior League Golf has expanded dramatically in recent years. From 2012 to 2014, the program grew from 1,500 young players to 8,900 in 2013, and to 18,000 this past year.

Not all approaches to attract younger golfers are traditional. TopGolf, a golf/sports bar hybrid, is gaining popularity across the U.S. and England with a lighthearted, fun approach. In the driving range portion of the facility, players hit golf balls equipped with a computer chip onto a special range which, instead of greens with pins, has large pits lined with sensors that can tell where a ball has landed (via the computer chip). A signal is then sent to a screen located next to the tee box and the golfer is given a score—the closer the ball lands to the “pin,” the better the score. Players are allowed to team up or go head-to-head while waiters serve food and drinks.

Behind the driving range are a bar and grill, outdoor seating and additional areas for fun and games, making it a popular venue for young people, even those who do not golf. From 2012 to 2013 TopGolf attendance increase 53 percent, hitting more than 2.2 million visits last year. In response, TopGolf has rapidly expanded its facilities across the country and can be expected to grow in 2015.

FootGolf is a golf variant that industry leaders are watching, and for good reason. Instead of clubs, players use their feet to kick a soccer ball from the tee to a large hole—breaking many longtime golf traditions—to appeal to young players. In 2013, 157.5 traditional courses closed (.5 represents a 9-hole course) and just 14 opened, says the National Golf Foundation (NGF). FootGolf, on the other hand, grew from a fledging number just a few years ago to now more than 200 courses nationwide, according to the U.S. FootGolf Association’s figures.

Golf managers are also looking for other, less dramatic ways to improve young golfer turnout. Some of their ideas include Wi-Fi on the course, golf cart speakers, more mini-golf and high-tech training centers and additional games to keep this target demographic interested. Resorts are dropping rates to appeal to young golfers who typically have less disposable income, and have even added mini-golf at championship level courses, says the New York Times. 

Despite the tremendous work done to appeal to younger generations like Millennials, Gen Y plays less than half as much golf as Boomers (93 million rounds compared to 207 million rounds per year, according to NGF), leaving a large gap to close.

Other Changes That Could Affect the Future

Golf technology and devices will grow in popularity, and will help golfers in several ways. Two thirds of committed golfers are using distance-measuring devices or apps for the majority of their rounds, says a National Golf Foundation (NGF) survey. Seventy-eight percent of these golfers reportedly had more confidence in their shots, 52 percent saw quicker pace of play, 39 percent shot better scores and 34 percent simply enjoyed the game more. As the sport continues to find ways to appeal to larger audiences who want an easier game, these devices could play a larger role. Predictions from the Metropolitan Golf Association in New York forecast that Drones that can measure distance, monitor pace and play and order food for golfers could become popular in years to come.

As success stories such as Pinehurst No. 2 have shown the industry, sustainability will remain a top priority for many golf managers. The California drought, fewer rounds played and greater public environmental consciousness will likely encourage managers to cut their water bill and go “brown.” The Metropolitan Golf Association in New York predicts that down the road, not only will clubs go “brown,” many will use genetically altered turf that require little water and even plastic tee boxes.

Tennis

Unlike golf, tennis is growing definitively. The latest data shows that tennis participation grew in 2013 by 4 percent, building upon 2012, says the Physical Activity Council (PAC). There are now 17.68 million players and the number of those who play more than 21 times per year grew by 5 percent. PAC data also reveals that there are more than 15 million Americans who are interested in playing but have not yet done so. There are 13 million more who consider themselves players but have not played in the last year. Together, these 28 million Americans create a wealth of untapped potential for the tennis industry.

The game’s popularity among young people has skyrocketed in recent years. According to the U.S. Tennis Association, participation for youth 6 to 11 years old increased 13 percent from 2011 to 2012. Many children are taking the game seriously as competition for those 10 and under doubled in that span. And as more Americans fit tennis into their workout regimes, including the increasingly popular fitness/tennis hybrid, CardioTennis, the sport is poised to grow next year. 

Other Recreation…

As seen in the Club Trends summer 2014 recreation issue, sports like pickleball, squash and paddle tennis have caught fire throughout America. The number of pickleball players has more than tripled since 2010 and continues to grow. Likewise, squash popularity has more than doubled in the last eight years, and paddle tennis facilities are regularly sprouting up in parts of the country. More people are staying active longer into their lives, giving more opportunities for these and other club related sports to grow.

Food and Beverage

2014 was a year of growth for the restaurant industry, despite residual effects from the recession and increasing food costs in pork, dairy and other items. Fast casual dining is still on an upward trajectory thanks to billions of Millennial visits, says NPD Group, and diners’ emphases on locally grown food and a more casual atmosphere have been acknowledged by many restaurant managers. And much like in the travel industry, in food and beverage, Americans want an experience to take with them.

Similar to 2014, in 2015 locally grown and raised produce, meats and seafood will remain high priorities for consumers, says the National Restaurant Association’s, “What’s Hot in 2015” forecast. “Hyperlocal” sourcing (e.g., rooftop gardens) will continue to grow in popularity. Although these in-house gardens can come with a high price tag upfront, they can eventually pay for themselves. Other trending hyperlocal foods include ice cream, cheese, pickles, bacon and beer.

For menus, less will be more. Instead of extensive menus loaded with decisions for diners to make, simpler menus, focused more on the quality of food than quantity, appeal more to today’s consumer. The trend has already begun: from 2013 to 2014, the number of menu items at the nation’s top 500 restaurant chains dropped 7.1 percent, says Technomic.

Signature beverages that set one restaurant apart from another will increase. At one restaurant in Washington, D.C., Slipstream, drinkers are encouraged to combine various spirits with flavors, such as smoky or sweet, instead of picking a typical beverage. This personalizes the experience and opens up the menu to new possibilities. Growing in popularity are gin, mini cocktails, craft beer and hard cider, reports Andrew Freeman & Co. (AF&Co), a restaurant and hospitality-consulting firm. Food flavors and menu items to look for are tacos, scrambled eggs, spicy and sour flavors, meat spreads, and Asian and Spanish cuisine.

Source: National Restaurant Association

These foods are also increasingly healthy. A report by Johns Hopkins revealed that new menu items in 2013 had 12 percent fewer calories than in 2012. This bodes well for both the consumer and the restaurant industry, to help fight obesity and to appeal to Americans’ growing focus on health.

Travel and Lodging

Americans love to travel and are already planning more trips, but perhaps there is no better way to measure this than through the hotel industry. A record 113 million room nights were sold in July of this year, the most nights ever sold during a month, says STR Global, a hotel industry research firm. June and August also shattered monthly records as the hotel industry enjoyed never before seen success this past year.

In the Wall Street Journal webinar, The Guest Experience: Top Trends to Look for in 2015, industry leaders offered their thoughts on upcoming trends and best practices, saying that 2015, like 2014, will see growth as more Americans travel. Operationally, hotels will continue to cater to the Millennials’ desires, not only because they are a large market that enjoys traveling, but also because their behaviors and values have a trickle-up effect. What they do, other generations follow.

Hotels are expected to upgrade their tech features, including faster Wi-Fi and their mobile website for users to quickly book reservations, check-in and check-out. “Quality high-speed Internet is as important as hot water and water pressure to hotel guests,” says Mark Woodworth, president of PKF Consulting USA, a hospitality consulting firm. Many hotels will continue their focus on creating practical, yet sophisticated room areas. Ergonomic designs will be emphasized, such as outlets that can be easily accessed while in bed. Also, healthy food options, such as healthy vending machines that can be accessed well into the night will come into a more prominent role.

Shaping a lasting experience will be key. More people, particularly Millennials, are using travel to search for something more than a week at the beach. Cutting edge hotels are designing rooms and facilities to satisfy these desires, from unique, one-of-a-kind rooms, to communal-style lounge and dining areas that connect visitors. These hotels also put lodgers in the thick of things, connecting them with local events, people and eateries.

BOX:

Sources of Travel Spending in 2013

Source: U.S. Travel Association

Luxury resorts have rebounded nicely since the economic downturn, too—spurred in large part by record corporate travel spending—and investors looking to capitalize by buying luxury resort properties. Golf courses, tennis courts and massive conference areas are just some of the amenities being added to high-end destinations, says Bloomberg. These all-inclusive resorts give lodgers a one-of-a-kind experience.

There is also another type of vacation that is getting attention. Multigenerational vacations—those that include three or more generations—have risen 36 percent according to a summer 2014 survey by AAA. The biggest reasons for this increase, as one can expect, is money and time. The other important factor is the growing number of grandparents in the U.S., who make up 25 percent of all American travelers.

Multigenerational vacationers look forward to these trips. According to a Preferred Hotel Group survey studying multigenerational travel, 91 percent of Millennial and 80 percent of Gen X respondents said they try to take a multigenerational trip each year. Seventy-seven percent of all respondents said the same. Forty percent of children play an active role in planning the trip and more grandparents than parents pay for the vacation. Social media also makes a significant impact as 40 percent of those surveyed mentioned that seeing photos and videos of destinations on platforms like Facebook influenced where they went. Their most popular destinations are the traditional ones—Orlando, national parks, the Caribbean and Western Europe.

Demographics

It is no secret that America is becoming more diverse. According to Pew research, a majority of the U.S. workforce will be Hispanic by 2050, representing 55 percent of the nation’s workers ages 18 to 65. By 2044, whites will no longer be the majority, reports U.S. Census Bureau projections. Further, 21 percent of today’s Americans speak a language other than English in their homes.

There are 87 million Millennials in the U.S. and 76.4 million Baby Boomers. Together, they make up more than half of the country’s population. In between these two is Generation X, which has a little more than 50 million members. An additional 20 million make up the Silent Generation, those born between 1925 and 1945.

These generations have become increasingly diverse. The oldest Millennials (those born in 1980) are only 57 percent white, and are 21 percent Hispanic and 13 percent black. The newest generation, Generation Z (or the Plurals), edges closer toward having a non-white majority.

Today’s affluents are also more diverse. Hispanics represent 8 percent of the affluent population, and African Americans and Asians each make up 7 percent, says the 2014 Ipsos Affluent Survey USA. Seventeen percent speak a non-English language in their homes and 11 percent are immigrants.

Technology

Technology is more rapidly shaping our day-to-day functions. As people become used to these advancements, they will continue to integrate into new areas. The first iPad was launched in 2010 with much support, but also much skepticism. People were not sure how practical it could be and if there was any business purpose for the tablet, but history quickly proved those critics wrong. Tablets—including iPads—are ubiquitous in the workplace, even convincing luddites to buy in. Although not every new gadget will have the same impact as the iPad, technology as a whole is breaking new ground everyday.

Among affluents—the majority of whom are Boomers—tech use is heavy. Eighty-eight percent have visited a social media site in the last week, says the 2014 Ipsos Affluent Survey USA. The most visited social media platform was Facebook. Forty-eight percent own a tablet for personal use, up from 9 percent in 2011, and 77 percent of affluent households have one. Nearly just as many, 47 percent, have a television connected to the Internet. Sixty-four percent have paid a bill on their smartphones in the last month and approximately half of affluent smartphone and tablet users have made a purchase on these devices in the last year.

Internet of Things (IoT)

All around us, many devices in our offices, homes and that we carry have been programmed to communicate with one another. All hooked up to the web, these items and their communication networks are coming to be known as the “Internet of Things” (IoT). From smart phones and watches (“wearables”) to smart thermostats, which can be programmed to your home schedules and temperature preferences to help cut costs, and even plant monitors that can measure and send users a plant’s health—the Internet of Things is a quickly growing market.

Cisco Systems predicts that IoT will have generated $14.4 trillion from 2013 to 2022. Gartner, an information research and advisory firm, believes that 26 billion of these devices will be in communication with one another by 2020.

As we’ve already seen, it won’t be only Gen X and Y buying these devices either. Research by Acquity Group, a branch of Accenture, reveals that 53 percent of Millennials plan to buy in-home IoT technology within the next five years, compared to a still significant 32 percent of Boomers. Generation X is expected to lead the way in wearable fitness technology with 59 percent planning to buy a device in the next five years. With IoT still a new or unknown concept to many Americans, these numbers could grow dramatically in upcoming years. Perhaps unaware that smart thermostats are part of IoT, 45 percent of Boomers expect to own a smart thermostat in the next five years, while only 35 percent of Millennials say the same, reflecting the two different stages each group is in.

Wearables

Wearables, “smart” technology that you can wear, are gaining momentum. Devices like FitBit, which tracks your physical activity on a wristband, “smart” watches and Google Glass, which connects you to the Internet via glasses, seemed unnecessary or even intrusive when first launched, but are now gaining the trust of consumers. Apple watch, the first kind of the brand, could sell up to 60 million units in 2015, according to industry experts.

Early adopters are already using these wearable computers to communicate with one another, read the news, and share information instantly. Recent years have shown us the many benefits (and some downfalls) of this new media and how it can be applied to the workplace. Wearables are no exception.

According to Workforce, employees in a variety of industries and positions will soon be able to punch-in and out the moment they enter and exit their workplace (helping to reduce labor costs and compliance risks), reorganize staff to focus on busy areas to boost customer service and perform other tasks to increase workplace efficiency—for the most part, hands-free. Instead of looking down at a phone or computer screen, employees can better remain engaged with the customer or current task. Staff can receive live instruction and updates, and easily stay in communication with one another.

There are additional benefits to introducing wearables sooner rather than later to staff. Millennials, Generation X and even Boomers have quickly embraced new technologies in their personal lives, making workplace adoption of these advancements easier to implement.

New technology also records and aggregates information that could not easily have been measured before, from various worker productivity data points to qualitative data. Together this information can be used and shared to improve operations. One example is more specific incentives to “gameify” the workplace and better reward employees for exceptional performances.

Workforce

Today’s workforce is rapidly evolving and tomorrow’s will be no exception. In 2015, Millennials will become the majority workforce, overtaking Baby Boomers. A recent Brookings Institute study reveals that by 2025, Gen Y will make up 75 percent of the workforce. These Millennials, many of whom are children of Boomers, will continue to take more leadership roles and gain more clout in the working world, and despite the possible prestige from these new positions, many Millennials will still be in a continuous job hunt, creating what is known as the “gig economy.”

Two of the biggest reasons for Gen Y job-hopping are to seek higher pay and to fill in gaps in their skillsets. The average worker in 2014 received a pay increase of less than 1 percent, says Forbes. Of course, not everyone receives a raise each year, but of those who do get one, they could expect only a 3 percent bump in pay in 2014, according to Towers Watson, a leading compensation consultant. The sluggish economy is in large part to blame, but workers have been managing to earn more by simply moving to a higher paying position. The average pay increase after switching jobs was 10 to 20 percent higher than the previous employer’s pay.

The second reason for hopping is that Millennials want to survey their options before settling down. They are trying to build and compliment their skill set with each new position and so far have not envisioned themselves working at just a few organizations during their careers. According to Saba, a leading international talent management solutions firm, many in Gen Y will have had a dozen jobs by their 30s. “For Millennials, it’s more a matter of career exploration than climbing the traditional ladder,” says Emily He, CMO at Saba.

It’s not only Millennials who want to develop a full, complementary skillset. Data from Oxford Economics’ Workforce 2020 study reveal that employees’ biggest fear is not getting laid off, but becoming obsolete. This was true by a two-to-one margin. Also, only 41 percent of workers said their organization offers opportunities to expand their skill sets whether through training, access to the latest technology or other means.

Unfortunately, by switching jobs so often, many job hoppers are cutting into their income down the road. Fidelity research shows that on average, one in four people who leave their job—37 percent of whom are Millennials—left retirement savings on the table by leaving too soon. These employees lost $1,710 in savings through each transition. Over time, these loses can reach the tens of thousands.

Expect women’s role in the workplace will expand more. Lower marriage rates, higher rates of women with college degrees (in fact, more women today are earning their bachelor’s and masters than men, says the White House Council of Economic Advisors) all contribute to this trend. And according to research by Development Dimensions International (DDI), which studied more than 13,000 organizations worldwide, firms with a higher percentage of women in leadership performed better financially. Firms in the top 20 percent in financial performance had 37 percent of their leadership composed by women. Those in the bottom 20 percent had only 19 percent.

Will They Stay or Will They Go?

Retaining today’s employees is not easy, either. Although 59 percent of employees are content at their job, 21 percent plan to change jobs within the next year, says a recent CareerBuilder survey. Of those dissatisfied in their current positions, 58 percent had plans to leave their job, with 66 percent having concerns over their salary and 65 percent feeling they were not valued. Forty-five percent said they were unhappy with the limited opportunities for growth.

So what keeps an employee? Investing in them ranks high. Seventy percent of employees felt a raise was the best way to retain personnel, and 58 percent said better benefits. Fifty-one percent pointed to more flexible schedules and half said more recognition. Important to note, 55 percent responded that a title change does not play a significant role in deciding whether they left their job or not.

Of those who did not want to leave their current position, 54 percent said they enjoyed their colleagues, 50 percent liked the work/life balance, 49 percent mentioned benefits and 43 percent—fourth on the list—were happy with their salaries.

Employers should therefore avoid offering a generic list of benefits to employees if possible. More and more employees want a benefits package tailored to them. According to a survey by wellness program provider Virgin Pulse in conjunction with Workforce magazine, there is a disconnect between employee offerings versus employee desires. While 72 percent of employees wanted a physical activity component to their wellness programs, only 53 percent of employers offered one. The most common wellness program offered was smoking cessation, which did not rank in employees’ top three wellness program desires.

Millennials, more so than previous generations, want to work for causes. According to the same Brookings study, 63 percent of Millennials want their employer to contribute to social or ethical causes they felt were important. Only about half of older Gen Xers and Boomers felt the same way. “Millennials as workers and consumers want the idea of social causes carried into the marketplace and the workplace,” says Morley Winograd, one of the study’s authors.

Gen Y walks the walk as well. A 2014 Deloitte study revealed that 63 percent of Millennials donate and 43 percent volunteer for causes. Important for clubs, 72 percent of this generation would like to work for a nonprofit organization, says the 2013 Millennial Impact Research Report.

For restaurants, keeping their facilities fully staffed is particularly hard. An industry once rife with young people has seen the number of employees ages 16 to 24 decline due to lower labor participation rates and an improving economy that now presents more job opportunities than in previous years, says the National Restaurant Association. The growing economy also means a growing restaurant industry. While restaurants expand services and facilities to satisfy increasing demand, they will need more employees who now seem hard to find. To accommodate, restaurants may need to look more for older employees to fill these vacancies.

Job hunters are also using new technology and media to aid their search. Beyond.com, a job search engine, reports that 83 percent of job seekers use their smartphones to search for jobs. But, a survey by CareerBuilder points out that only 20 percent of employers have a careers page made for mobile devices. Forty-five percent of those looking for jobs have already applied for a position using a mobile device, says a 2013 LinkedIn survey. This trend will only continue to grow.

Governance

The board of directors is a key factor in determining a club’s success. Therefore it is critical to have a well-composed board, full of forward thinking individuals from a variety of perspectives who can come together, discuss and debate policy to set the club’s course. Clubs that seek leadership roles for members with multiple perspectives and backgrounds can be better equipped to serve current and future members.

Nationally, nonprofit board composition does not reflect this attitude. For example according to a recent BoardSource report, 90 percent of board chairs are white, 54 percent male and 64 percent between the ages of 40 and 64. Similarly, 80 percent of nonprofit board members are white, 52 percent male and 68 percent between the ages of 40 and 64. Accordingly, 70 percent of respondents were not satisfied with their board’s levels of diversity, particularly because diversity has been a key part of their nonprofits’ missions.

Club boards likewise have low levels of diversity. According to Global Golf Advisors’ (GGA) Club Managers Thoughts on Governance 2014 survey, women only comprise 23 percent of board members. Nominating Committees do focus on characteristics vital to their board’s success: whether the member is in good standing, has served on a committee before and is considered a team player, but qualities that emphasize diversity, such as race, age and gender receive the lowest priorities.

Thirty-seven percent of GGA respondents indicated that their committees are inefficient and ineffective, and 36 percent have trouble finding younger business leaders to serve on the board. Many clubs have now put an emphasis on placing women in positions of leadership to appeal to more women and families. As we have seen from the Development Dimensions International’s study on women in leadership, this decision may improve the club’s performance in other areas as well. Given many clubs’ goals to shape their boards to match their desired memberships, emphasizing board diversity could help clubs appeal to a wider variety of demographics and lifestyles than the status quo.

Conclusion

Clubs have much to do to keep up, let alone get ahead. By monitoring and staying in tune with these trends, the club industry can continue to thrive in 2015 and beyond. 

Club Trends Winter 2015

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