Jack Welch’s quote, “No company, small or large, can win over the long run without energized employees who believe in the mission and understand how to achieve it,” is more in play today than ever before. During the past 13 months, all club leaders have been challenged operationally, financially and politically to chart and navigate the COVID-19 pandemic challenges. Reacting daily to the “urgent” has been in play at every turn, from government mandates and financial sustainability to fear and uncertainty about COVID-19 outbreaks among members and staff. Through this unprecedented journey, naturally, leadership began to call audibles that were incongruent with the mission, vision, brand and employee core values. Primarily due to clubhouse closures and dining room restrictions, our culinary and clubhouse service teams took the brunt of the staff furloughs and reductions. Today, we face the reality of those decisions and struggle to get our team back as states are reopening.
Since the onset of the pandemic, the hospitality industry lost more than $240 billion in revenue and more than three million employees, resulting in 110,000+ restaurants to close permanently, according to the National Restaurant Association. While clubs lost access and use of the banquet facilities and dining venues, golf and outdoor recreational activities kept the dues and initiation fees coming in. In almost all cases, clubs fared better than hotels, resorts and restaurant venues. The Ethos | GSI Executive Search position and early advice to our club clients was to do everything possible to keep long-tenured key staff engaged and on the payroll. We suggested that clubs solicit donations from the membership and raise a member employment fund to support club employees’ compensation and benefits. Our reviews showed that the clubs that quickly raised a member employment fund to extend wages and support came through the pandemic “shelter in place” period in a much healthier position than those that released staff within the first 90 days of the pandemic. While many directors and club general managers faced different individual challenges based on their state’s leadership and restrictions, there was not a perfect playbook from which to operate. Clubs were in crisis mode, and in some cases, lost commitment and focus to the employees and the club’s mission.
Employment Challenges
Today, the challenges and the pandemic are not over; though, we are beginning to return to normal as more than 168,000,000 vaccines have been administered to date in the United States. The February jobs report lists the most significant gain for hospitality employees as 355,000 jobs came back while 13% of the workforce remains unemployed. Today’s challenge for club leadership is intense competition to get employees to return to work. In some cases, employees became discontented and at a loss, feeling the employment bond and trust with the club was broken. Industry workforce surveys indicate that employees are not in a hurry to come back due to the fear of getting COVID-19 and losing extended unemployment benefits. News and media outlets reported that more than a third of all states’ workers receive more unemployment compensation than they would get paid on the job. The additional unemployment extended funds meant to help workers could be hurting workplaces in the process.
Winter’s H-2B visa reductions in Arizona and Florida are causing cross-sector hospitality industries to fight for the same cooks, bartenders and service personnel that the clubs employed pre-pandemic and are now looking to replace today. Hotels and restaurants generally have had a gratuity compensation advantage over clubs. One manager in a large club community related, “I have three clubhouses and enough staff to operate one to our member quality standards. I am not sure what I am going to do, and the board and membership believe club management is failing in our leadership role.” Also, extended dining room closings have led to “culinary and service inconsistency, which is the number-one problem voiced by members today,” according to Mike Kelly, founder of the 59 Club USA, a performance management company that uses sales and service performance data to enhance customer service.
Employment Solutions
Our playbook for clients today is to operationally reposition for the next phase of the pandemic and the gradual return to full reopening before current predictions of a return by 2022 fiscal yearend. To do so, implement and practice the following:
Be transparent with the membership and employees.
- One family, one team.
Work to rebuild trust.
- Advise that the club will have a better plan in the future based on this experience to avoid losing key staff again.
Review all compensation and benefits, adjust wages and be competitive in the employment marketplace. Remember, exemplary service underwrites dues satisfaction and price value.
- Historically, clubs have maintained employee tenure and a full-service team through offering better benefits, generally not provided in other hospitality sectors (restaurants and hotels).
Restructure PTO hours and time off for a better work-life balance.
- Allow employees to roll over all PTO until the pandemic ends.
Increase employee benefits beyond health insurance—invest funds now based on hours worked to:
- Assist employees with quality childcare, especially if their public schools remain closed or virtual.
- Issue gas cards based on the number of hours worked.
- Develop a transportation plan to the club via a statewide-sponsored metro van use plan or through a bus service operated or contracted by the club.
Invest in a larger human resources team to assist and support employees. Remember this truism that happy employees generate more engagement and happier members. Stop downsizing the department from which you need the most significant help.
- Implement educational member service training programs.
- Increase employee reward programs (a monthly Peak Performer Award program).
- Increase employee celebration events, like cookouts and BBQ lunches for all agronomy, housekeeping, facility engineering and support staff; an employee car wash led by the senior management team; increased holiday bonus plans; back-to-school backpack giveaways to all employees with school-aged children (loaded with school supplies); and more.
- Implement an employee food and supply pantry to assist employee families with food and supplies needed at home during this and future pandemic periods.
Begin educating and cross-training for promotion from within.
- Start your own “Club University” to train future supervisors and managers of the club. Actively commit to promotion from within. (See Jack Welch, “From the Gut.”)
Revise and update the club’s strategic plan.
- Review and recommit to the mission, vision and brand quality and standards for the club.
Revise your employee core values and employee review system. Assess and revalue the leadership at the top and upgrade if needed.
- Stop reviewing your employees annually. Start reviewing and discussing performance and growth quarterly.
Implement the Covey “Four Disciplines of Execution” at your club today.
- Engage in a formal internal goal setting and achievement paradigm for real success. We continue to work with our clients to implement this program into their club leadership for a revised approach to goal setting and a defined, measurable achievement plan with excellent results.
Find new sources of employees.
- Work with churches and their volunteer groups to create a new workforce. The club makes a donation commitment to the church for employment assistance. Generally, it attracts retired couples. The club provides all training and uniforms, limits hours, creates a winning environment where parishioners are getting compensated, and builds a donation fund to the church for a special project or needed equipment. The fund is built on the number of workers and hours worked over a 6-8-month period or cycle.
- Work with high school coaches or athletic directors in the same manner. The club makes a donation commitment to the school or the athletic program for new equipment or projects. The coach coordinates or directs team players to work part-time at the club. The club provides all training and uniforms, limits hours, creates a winning environment where student team members are getting compensated, and builds a donation fund to the school for a particular project or needed equipment. The fund is created on the number of workers and hours worked over six months or a cycle.
Finally, be transparent with the membership on the club’s operational challenges. Implement a refreshed member communication program as soon as possible. Immediately commit to revising and redeveloping a living strategic plan that is reviewed annually and then reported and acted upon monthly. Hold monthly member talks and share planning and comment card feedback with the membership. Members need to know the facts, and more importantly, everyone needs to understand what club leadership and governance are doing about the problems. Stay committed to your employees as they bring life to the club’s “sticks and bricks.” By educating and engaging the group, they will underwrite and deliver the club’s mission for success at your club. Through this commitment, employees that are valued, continually educated, promoted from within, and well taken care of have “golden handcuffs” and become your greatest recruiters. You will not be short on getting your team back on the club field for success through them.
Robert Jones is a founding principal at Ethos Club and Leisure and president of GSI Executive Search. He can be reached at 972-341-8133 or [email protected].