Plan For Success(ion)

Software lets hoteliers map future personnel moves.

By Adam Kirby, Associate Editor -- Hotels, 5/1/2008

Until a couple years ago, Hilton Hotels Corp. relied mainly on spreadsheets to streamline internal job succession. The corporate human resources division tried to keep professional profiles of its tens of thousands of employees, so that when a job opened up within the organization, Hilton could identify candidates for promotion.

That system worked, but it was far from perfect. Records were not automatically updated, and property-level reviews were not standardized, leading to inconsistencies. Additionally, the spreadsheet format was not conducive to alerting human resources to those employees deemed “ready now” for leadership roles, says Anthony Chen, Hilton’s director of succession management.

Chen wanted a more automated and searchable way to view promotion candidates, so Hilton implemented the succession software solution from San Mateo, California-based SuccessFactors. The software automates the performance review process, creating a searchable database laying out relevant employee information including skill sets, interests, career aspirations, willingness to relocate, experience and languages.

“We know we have a lot of talented people within our company, and everybody in those managerial positions at our hotels obviously has different skills and competencies. A general manager at a Garden Inn, for example, may have a different skill set than one at an Embassy Suites, given the different types of guests,” Chen says.

With the Web-based SuccessFactors, Hilton human resources can easily sort and search the employee database to quickly identify prospective promotion candidates who meet the skill requirements for an open position, Chen says. Additionally, SuccessFactors integrates with the popular PeopleSoft human resources management platform used by Hilton, saving time by eliminating redundant data entry.

Hilton currently uses SuccessFactors to fill general manager and executive vacancies in the Americas, but the system will be expanded to include international properties this year and may eventually incorporate lower-level positions, Chen says.

The benefit of broad, standardized employee profile visibility is obvious for large hotel companies like Hilton and others using SuccessFactors, including Mandarin Oriental Hotel Group and Marriott International, but even tiny startups have found value in the product. Vancouver-based Boutique Hotels & Resorts of British Columbia, which began operations last year and has a portfolio of five properties, uses SuccessFactors as much for staff retention as for succession.

Boutique Hotels believes strongly in rewarding staff performance, and the software’s standardized performance reviews give company executives a complete view of who is deserving of recognition, says Christine McLeod, Boutique’s director of culture and people development. It likewise gives managers the tools to conduct thorough and ultimately more useful staff reviews, she says.

“One of the biggest gifts you can give someone is feedback on their performance,” McLeod says. “Especially now that we are in a really tight labor market, managers are often afraid to give people feedback because they don’t necessarily have the words to give feedback that could be construed as negative. They are afraid their staff is going to leave and that we cannot replace them.” But on the contrary, she says, most employees appreciate an honest review, as they serve to make employees better and thus enhance their career growth.

Hyatt Looks Online For Headhunters
When internal succession is not an option, hoteliers may turn to headhunting services to recruit manager-level replacements. Hyatt Hotels & Resorts still goes that route, but less so since late last year, when it signed up with the New York-based online headhunting marketplace BountyJobs.

Randy Goldberg, vice president of recruiting for Hyatt, likens BountyJobs to a sort of eBay for recruiters. Employers post vacant positions and success bounties (as a percentage of salary) to be paid after placement. In turn, registered recruiters sift through job openings and forward the résumés of prospective employees. There is no cost to use the service unless a position is successfully filled.

The turnaround time between posting a vacancy and receiving résumés is far faster than with traditional headhunting services, Goldberg says—sometimes as quick as 24 hours—and the quantity and quality of applicants is better as a result of automatic access to about 5,000 recruiters. BountyJobs also allows hoteliers to limit the scope of recruiter access to those specializing in certain fields.

Hyatt properties are not required to use BountyJobs to fill open positions, though Goldberg certainly encourages it. Besides the advantages of speed and access to a broader base of recruiters, it benefits the Hyatt corporate office to have a real-time, centralized listing of high-level openings across the company.

“I get a bird’s eye view,” Goldberg says. “As an example, we’re seeing a few revenue manager positions posted there, and as I see that happening, I can see where we need more job strategy. It gives me a better idea where I need to focus our recruiting efforts.”

Direct comments to: adam.kirby@reedbusiness.com