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EP Insights & Action

Expert observers comment on the Industry. This magazine is designed to bring together the thought leadership, ideas and opinions of leading consultants and operators from across the industry. EP's vision is to create an open narrative and debate that explains the perspective and thinking on the market and Industry. It will help all progress, so let us know your thoughts, subscribe and be involved.


INSIGHTS PEOPLE 1ST The 21st century manager Martin-Christian Kent, Executive Director at People 1st explores how the changing role of managers can help to create quality jobs. How a fresh approach can help businesses attract and retain talent. The recent publication of the Taylor Review, examining the future world of work, highlighted some of the critical challenges facing UK businesses. Whilst its authors praised the UK economy’s job creation, it was clear that there is also a need to create ‘quality jobs’ if standards of living and productivity are to rise. The hospitality industry doesn’t fair well historically against the six measures used to assess quality jobs, but our new research – The Performance and Talent Management Revolution – shows that this is changing. In the face of rising costs, recruitment difficulties and changing employee attitudes, businesses are rethinking their people strategies and there is a renewed (and overdue) emphasis on staff retention and engagement. Managers are a critical part of the solution, but having strong management base isn’t without its challenges. 16% (7,535) of hospitality businesses report that their managers lack the required skills to meet their needs. They are faced with two key management challenges: how to develop and support current managers to get the most out of the existing workforce and how to identify, develop and nurture tomorrow’s managers. Supporting today’s managers The role of a manager has changed tremendously in the past decade, but this isn’t apparent in some hospitality businesses. The industry has traditionally had a strict hierarchy where ‘what the manager says goes’, and, as our forthcoming report on the chef shortage shows, this is still seen in many kitchens. It’s an important factor undermining chef retention, and it needs to change. Managers need to be able to engage, motivate and inspire their teams in ways we haven’t seen before. They need high-level people management skills, as well as a broad skills base from finance to marketing. Most businesses have an annual engagement survey, but we are increasingly working with clients to support a deep-seated change in the way managers engage with their staff, giving their team a real voice and stake in how their business or unit performs. It means that the external brand values of a business are consistent with the internal ones, and that managers are embodying them. Businesses are increasingly developing these essential management skills, whilst others are bringing new managers with this skillset in from other sectors. They are also looking at how managers are measured and incentivised, so key people metrics, such as staff retention and engagement, stand side-by-side with financial ones. One of the key tools in any manager’s armoury is performance reviews – taking time out with each team member to give them an opportunity to feedback and to understand their thoughts and ambitions. The trend for regular, informal chats works well in hospitality, but managers need to have the right skills to get the most of these encounters and, critically, follow up and respond. Tomorrow’s managers Individuals who show ability as waiting or bar staff, chefs or room attendants are often promoted to management roles without the required development or support. Identifying future management talent early on is key and, again, regular performance reviews are a vital tool. More businesses are talent-spotting through performance reviews and developing staff before they become managers. Many are turning towards the new apprenticeships as a means to develop and promote staff. Our recent survey with levy-paying employers showed that nearly a third were using apprenticeships for management progression, opening up new opportunities to work with universities and third-party providers to enhance their management training. Falling unemployment and Brexit means that if businesses want to attract and retain talent they need a fresh approach to their people strategies. Many businesses are on that journey and managers are key to its success. This has the potential to revolutionise the hospitality workplace – and demonstrate that our sector not only creates jobs, but quality jobs. 20 | Insights & Action | October 2017

INSIGHTS BLINK CAFES Should we listen to Vanilla Ice for management advice? Simon Carey, Director at Blink Cafes explores whether companies who try to provide all services should instead collaborate for the best delivery. “Stop, collaborate and listen.” Did musician Vanilla Ice have it right as a management philosophy? Well perhaps if we put the words in a slightly different order, then he did. Maybe stop, listen and collaborate might be a better order of events. Are companies at risk of trying to be the “Jack of all trades” to secure a contract? Is collaboration a better approach to deliver the best customer and client experience? So let’s stop for a minute and take stock of what it is we are trying to achieve in a typical catering contract. A typical contract normally covers a wide range of different offers and services. This would usually include a mix of coffee bars, fine dining, hospitality, retail, grab and go, micro markets and lots of different food counters. Is it possible to be the best provider in all of these different offers? Does this not just lead to mediocrity in some of them? We then need to listen to what clients and customers are looking for. I often hear them asking for “best in class”, specialists or an offer that is as “good as the high street”. The question is; can one company deliver the best solution for all of the offers required? This leads us to collaboration. Would it not be better for caterers to collaborate with specialists for some of the services? I appreciate there would be a loss of turnover and income for the caterer, but the client and customers would be delighted with the offer. This should then lead to a longer-term contract. It should be completely fine to argue that there is someone who is better at operating coffee bars and that a partnership can be formed for that particular service. I am strong believer that the best results are achieved when several parties work together and specialists deliver what they are best at. If you look to the wider world for inspiration, we could look at the food halls that have sprung up around the globe, pulling together the best food providers under one roof. Great examples include Time Out in Lisbon, Hudson Eats in NYC and even Street Feast in London. It is also important to note that some of the leading brands in the world are looking If you look to the wider world for inspiration, we could look at the food halls that have sprung up around the globe, pulling together the best food providers under one roof. to collaborate with SMEs in order to bring in new ideas and specialists into their companies. John Lewis, IAG and BUPA have all started incubators to collaborate with new partners. They have admitted they need support in certain areas. They fully understand that by improving one area it will develop their overall service. All they have said is “Come and show us what you can do and if it’s successful, come and work with us.” I think we should encourage collaboration and appreciate the benefits it can bring, rather than be fearful of it. Back to Vanilla Ice for the reason behind this: “anything less than the best is a felony”. | 21

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