NEW YORK — Corporate diversity, equity and inclusion efforts are in the spotlight as hotel companies reassess their high-level priorities. As a result, CEOs are speaking more honestly about the topic and sharing more transparency into their organizations.
However, creating a sustainably gender and racially diverse workforce from the property level to C-suite requires time and investment, particularly during this period of hiring challenges, speakers said at the recent NYU International Hospitality Investment Conference.
Executives from brand companies, third-party management companies and ownership companies offered some insights into how they’re addressing DE&I issues in today’s operating environment.
Set a Strategy and Measure
“The Marriott C-suite is 50% female. Vice president and above is about 44% female and 21% people of color,” said Marriott International CEO Tony Capuano. “While that’s OK, we’re wholly dissatisfied with that. It requires constant focus and a deliberate proactive effort.”
Hilton CEO and President Chris Nassetta agreed, calling DE&I “a game of inches.”
“You set a strategy, you chunk it out, you compensate people for it and you treat it like any other integral part of the business,” he said. “Like any other objective — like unit growth or brand strength — this is an essential part of our success.”
'Diversity' Has Different Meanings in Different Situations
Companies may have different goals for their organizations or even locations within an organization.
“’Diversity’ means something different around the world,” said IHG Hotels and Resorts President and CEO Keith Barr. “Think about local issues in different communities. For example, it may mean building processes to hire more women in Saudi Arabia.”
Accor Hotels CEO Sebastien Bazin said that Accor has a corporate responsibility in the hiring process every time a hotel opens.
“Accor hires 80,000 new people per year. I lose 30,000, and the best thing we can do is play a role as a social elevator, to give a hand to the underprivileged in a local community, give them a job, train them, offer them mobility and welcome them,” he said. “This is our priority. The tip of the iceberg is insignificant if you don’t know how to dive in.”
Representation Matters
As the hotel industry works to sell itself better to potential employees seeking long-term careers, representation at all levels makes a huge difference.
“Early in my career, there weren’t that many people who looked like me, but I followed those who did,” said Mit Shah, CEO of Noble Investment Group. “I wanted to understand how they thought [and] what motivated them. Now, what we’re doing collectively in this industry — between ForWard, Castell Project and others — will all have inordinate impact. This is an industry built on talent, and talent is different from experience.”
Capuano reminded conference attendees that today’s workforce may be more scrutinizing.
“This next generation of labor, when they decide what company they want, they look and ask whether there are people who look like them,” he said. “It’s so important to continue to push and push and push.”
Identify and Tackle Challenges
Accor Hotels CEO of North America Heather McCrory said reflecting diversity can be particularly tough in staffing big-box convention hotels.
Big-box conventions hotels attracted more men than women, McCrory said, adding that her organization started more long-term planning to overcome that obstacle.
“We identified all the women in the organization who could run these hotels,” she said. “We talk to them, have conversations, almost encourage them strongly to take hold of the opportunity and then give them the tools to do it. This can show results but it takes a long time.”
Consider Benefits
With hiring so difficult for many hotels, speakers suggested tailoring benefits to fit the workforce. Offering benefits that actually appeal to potential hires, in addition to competitive wages, can go a long way in retention and employee satisfaction, while helping fill critical positions.
“We put a big focus on wellness programs and child care,” said Sloan Dean, CEO and president at third-party management company Remington Hotels. “Ninety percent of our housekeeping staff is female, so one solution is providing direct child care solutions for people. We also offer English as a business language courses.”
Editor's Note: Chris Nassetta serves on CoStar Group's board of directors.