“Why do they wonder why their people and clients are less engaged? It is not rocket science.”
The above comment was from an industry elder, now retired, who felt that the industry would face a long road back unless it does revert back to the traditional models which built success in the past. He went on to say:
“The industry has always been about people. I understand that digital plays a bigger role today but even that has not been invested in properly. Leadership teams have increased their rewards, which is fine, if they continued to invest in the pillars which make businesses tick over but they haven’t. They have cut their investment in people development. They haven’t invested properly into digital until the crisis struck in 2020. HR has become almost the weakest voice at the board, too often patronised. Of course, it spells trouble. If one doesn’t invest now of all times in people and HR then when will they? There seems an arrogance in leadership today which is out of place. Leadership is about service and humility. Egos should be boxed away until the industry has something to truly shout about again. I will be stronger, if leaders continue as they are presently then they are selling the industry short.”
Strong words but the facts do support many of his assertions. Many agree that there is a need to invest back into structures which have been eroded over the last twenty years. The above elder is not alone if his thoughts. Another former hospitality leader who has moved into retail supports the above view:
“Hospitality has been slow to change during the pandemic. It has always been good at talking a great story but less good at walking the walk. Retail has faced huge challenges and is miles ahead in its thinking and how it has adapted. How many from hospitality have watched the actions of other industries and learnt? Very few. Far worse, it talks great words about people but not that many really do invest as they say. It is often smoke and mirrors. Hospitality needs to step up; otherwise it will be a very long road back. I don’t see many being much different to how they were in 2019/20. They say they understand things have changed but where are their actions?”
Hospitality is being challenged to change or to face a long road back. There will, of course, be many who counter these arguments and say that they have everything under control. Maybe but the “great resignation” is in full swing and companies are being hurt. How are they responding? What strategies are in place to reverse the trend beyond improving pay?
A more middle of the line observation was made also last week by an MD: “The biggest change is in how clients think. My biggest realisation is discovering that our narrative has been in need of change. What worked in 2019 does not work today and yet most sales teams are peddling the same old lines. Clients desire more transparency, trust, and real value add. They don’t trust words as there has been such little trust around, so the narrative needs to change. It has become important for us to show how we will work as partners that we do place their interests at the heart of a process that we are more than about the transaction. Today companies will need to invest in changing their narrative and also into developing strategic relationships of value. Many gave up on the old relationship piece but now are finding they are in need of it. I suspect that is why EP has done well during the pandemic; it is trusted when others aren’t. We come to talk as we know we get an honest opinion. We have taken that and implemented that into our process.”
If one takes the above, the comments can be distilled down to a simple belief; invest once again back into HR, relationships, people, and a client-focused narrative. Aren’t these the base pillars of old? Why were they eroded?