An opportunity that's too good to be missed
The number of organisations in the hotel and catering industry involved in the Investors in People standard has doubled over the past year, but it is still below the national average.
Evidence shows that those organisations yet to wake up to the maxim "Better People, Better Business" are sacrificing competitive advantage. The fact is that the more motivated and better skilled the work-force, the better the chance of business success.
Only 19.5% of employees in the hotel and catering industry work for an Investor in People organisation, compared with 25% of employees nationally. Yet, failure to focus sufficiently on people as a core business element increases the risk of high staff turnover, poor customer service and reduced competitive edge.
While the number of business failures in the sector has declined by 8% over the past year, I believe that if more companies in the sector committed to Investors in People, we would see the number of business failures decline still further. More importantly, the performance of those in business would be enhanced.
Better service
Companies that have adopted the national Investors in People standard have proved that it raises levels of service, improves customer care and boosts the bottom line.
The New Inn at Tresco on the Isles of Scilly employs 23 people in high season. The husband-and-wife management team saw sales revenue increase by 12% and repeat business increase by 18% year on year as a result of achieving the Investors in People standard. A reduction in staff turnover achieved lately has meant a saving of £20,000. A recent English Tourist Board mystery-guest survey awarded the New Inn 100% satisfaction rating, making special mention of the warmth and genuine friendliness of the staff.
Larger organisations have also benefited. Rockley Park in Poole, Dorset, caters for 105,000 holiday-makers every year and employs 250 staff in high season. Since achieving the standard, Rockley Park has seen bottom-line profitability increase by 20% year on year, with repeat bookings also up by 20%.
Sales increases
The De Vere Hotels group employs 2,700 people nationwide and over the two years it took to achieve the standard it saw average room occupancy increase by 12.6% and sales increase by 15.6%, despite the recession.
In addition, Investors in People accreditation is increasingly becoming a key requirement when tendering for major business and public sector contracts.
There has been a misguided tendency among small businesses to regard Investors in People as relevant only to larger organisations. This myth could explain why the hospitality and catering sector, which is made up of predominantly small- and medium-sized firms, has been slow to take up the standard.
Yet the evidence of those who have become Investors in People demonstrates that the principles involved are of benefit to all businesses, whatever their size and management structure.
To help organisations compete more effectively by adopting Investors in People, the HCIMA and Investors in People UK have produced a self-help pack designed specifically for small- and medium-sized businesses within the hospitality, leisure and tourism sector.
Extra help
The pack, Shaping your team for success, has been designed specifically to help organisations that may not have the in-house expertise or knowledge to go it alone.
It has already been field- tested successfully by 100 small- and medium-sized businesses, as well as several large, well-known hotel groups.
The guide cuts through the jargon of personnel management and gives examples of best practice which employers can readily relate to. It includes management guides, adaptable appraisal forms, training plans, detailed case studies and a contacts list.
The guide is essential reading for any owner or manager looking to increase the profitability and competitiveness of their business. The aim is to raise the status and professionalism of all those working in a highly customer-focused industry.
Failure to invest in people is a risk few businesses can afford to take. For organisations that want to remain viable, adaptable and competitive into the next century, the guide represents an opportunity not to be missed.
