A Whole New World: Recruitment in 2010

Lee Jamieson explores how the events of 2009 have forever changed the Middle East’s recruitment practices in the hospitality industry

The global economic crisis made 2009 a difficult year for the region’s hospitality industry. Tales of recruitment freezes and redundancies from many of the major operators dominated the region’s media and many hoteliers will continue to tread with caution in 2010.

“Recently, there has been a lot of uncertainty in the markets,” confirms Hilton Worldwide vice president for human resources in the Middle East Caroline Stevens.

“Due to the dual impact of the global economic recession and the threat of the H1N1 virus, we have adopted a cautious and disciplined approach to recruitment in the region.” Hilton is not alone in its trepidation. The industry as a whole is stepping into 2010 with a degree of caution and is alert to any fluctuations in the economy.

Cool Climate

An astonishing 71% of HR directors put recruitment on hold last year because of the economic climate, according to Catererglobal.com. However, there is evidence that the recruitment freezes of 2009 are finally lifting and that the number of redundancies is falling.

“I believe that the hospitality industry is actively recruiting again,” notes Rotana corporate vice president for human resources Joseph Abou Yaghi.

“However, organisations are still cost-cautious and nowhere near as aggressive in their recruitment approach as in the past.”

These freezes have drastically changed the recruitment landscape in 2010 and operators are adapting their strategies to capitalise on new opportunities and protect loyal employees from redundancy.

“Towards the end of last year, we finally started to see some movement in the region’s hospitality industry,” says Accor Hospitality Middle East managing director Christophe Landais. “However, we are still monitoring recruitment very closely – especially for middle management and management positions, and we are giving priority to our existing Accor associates whenever possible.”

Positive Outcomes

It seems that the recruitment freeze has also had a positive impact by forcing hoteliers to take stock and resource their operations more effectively. Many chains have used the freeze to invest in the development of their workforce and identify strategies to improve retention.

“We have focused on the retention and accommodation of our existing employees rather than recruiting new personnel,” explains Rotana’s Yaghi. “In fact, the number of new recruits for all our pre-opening properties in 2009 was small when compared with the number of Rotana inter-property transfers.

“We wanted to reduce payroll expenses within our existing hotels and avoid over recruitment for our new developments.”

The redeployment of existing staff into new areas of the business as a form of redundancy protection became a pan-industry trend in 2009. Catererglobal.com reported that 46% of HR directors had moved employees within individual hotels and 42% had transferred employees to other properties within the hotel group. This has reversed a deep-rooted recruitment trend in the region: employing people for very specific duties with little opportunity for expansion.

“Since the economic downturn, operators have been combining job roles and employing people into more dynamic, flexible roles,” explains Mövenpick Hotels and Resorts vice president human resources in the Middle East Craig Cochrane.

“For example, instead of employing a receptionist and a waiter in an executive lounge, there is now an expectation that the same person will perform the check in and deliver food service at breakfast.

“This trend also extends to managerial levels where certain functions are combined under one leader to realise cost savings. For example, we’ve seen this in finance and purchasing,” he adds.

Multi-Skilling

It is hoped that the events of 2009 could foster a more versatile and efficient workforce throughout the industry. Now deployed across the region, these developments have the potential to create cost savings for employers and offer clearer progression routes to employees.

“The business situation in 2009 had a positive impact upon the development of our internal employees,” confirms Rotana’s Yaghi.

“Certain employees were ‘forced’ to invest more belief in their subordinates and build up their skills. It goes without saying that this has been very positive for both the employees and the employer.”

For sceptics, there is evidence that multi-skilling (as it has become known) can work effectively in the region’s hotels. In fact, it is nothing new at all and has been used in the Middle East’s budget brands for many years.

This is, however, the first time multi-skilling has been deployed systematically further up the star rating. For example, Accor has been widening the responsibilities of its employees in all hotels by extending the recruitment model used in many of its budget and mid-range brands like Ibis, Suitehotel and Novotel. “In these properties, multi-skilling is already in place and our associates are trained accordingly,” says Accor’s Landais. “It’s important to the way in which we do business.”

In recent years, the authenticity of the hospitality experience has become increasingly more important for guests — a trend that has increased the demand for locally recruited employees.

However, beyond Dubai, many hoteliers still find it difficult to recruit and retain good quality employees from local sources. In some regions, operators have had to take on more aggressive recruitment campaigns and make bigger investments into the personal and professional development of local employees.

“Candidates with Middle East experience are in high demand and can be very hard to find,” says Yaghi, “and, of course, everyone is competing for them!

“Rotana is expanding across the Middle East, so we are participating in job fairs across the region in search of local talent. We want to help local people plan a long-term career with us and to embrace our values.”

The development of the local workforce is also the lynchpin of Hilton’s entry into Saudi Arabia.
With experience in short supply, Hilton has deemed it necessary to take a hand in developing the kingdom’s hospitality industry to secure effective recruitment throughout its long-term expansion plans.

“We are dedicated to developing local talent in the Kingdom of Saudi Arabia,” says Hilton’s Stevens.

“With ambitious expansion plans in the Kingdom, we are currently recruiting and developing Saudi Nationals to take on a bigger role in the hospitality industry. So far, we have had great success and this has given us a foundation to build up our recruitment strategy.”

With intense competition for the most talented candidates, it is essential for employers to start casting their search beyond their usual recruitment zones. Understandably, employers prefer to recruit people already living the region, but many believe that local talent pools are in need of reinvigoration and fresh blood.

“The industry has been highly incestuous in the past with the same people simply moving from one hotel to the next,” explains Kershaw Leonard managing partner Mike Hynes. “New blood is needed and so switched on hotels are beginning to draw upon talent pools in other service industries through specialist recruitment companies.”

“It is certainly the time to stop looking solely for new employees with years of expertise within the same field,” adds Yaghi. “Instead, we should welcome fresh blood with the right attitude and see what new ideas these employees can bring to the table.”

Casting the net wider

Source markets continue to evolve and offer new opportunities to recruiters. The bulk of the industry’s working population currently derives from India, Sri Lanka and the Philippines, with Australia and South Africa also remaining firm favourites. However, the popularity of online job portals and developments in the global economy are revealing new source markets with reserves of untapped potential.

“More and more companies are looking at places like Vietnam, Indonesia and some of the more accessible Eastern European countries like Bulgaria and Serbia,” continues Hynes. “There, they can find the affordable staff they need with the right kind of working attitude required.”

Also, it is likely that the BRIC (Brazil, Russia, India and China) countries will continue to grow as source markets for all industries. As their economic emergence gathers pace, they will be well-positioned to offer the dedicated, educated and talented employees of tomorrow.

Interestingly, the economic downturn has opened a window of opportunity for recruiters to poach talent from expensive source markets in Western Europe.

“We’re seeing more talented candidates coming to the Middle East from Western Europe willing to negotiate on contracts,” explains The Hospitality Company managing director Lynne Zarbhanelian. “For example, I’ve just been interviewing some candidates who had area responsibilities, but have been taken back to unit responsibilities in the current economic climate. So now they’ve come over here in an attempt to regain what they had before the recession hit.”

The sudden increase in high-quality candidates on the job market who are willing to be flexible over pay has created a unique opportunity for employers. Those that are financially able are finding it easier to recruit talented individuals — and specialist recruitment consultants are feeling the pinch. “We are now relying less on recruitment partners and external sources to provide candidates for roles,” says Mövenpick’s Cochrane. “The increased availability of candidates who are actively searching for jobs has enabled us to reduce our recruitment costs.”

Specialisation

In 2009, 16% of candidates applied directly to hospitality companies, whereas only 2% made direct applications in 2008. Consequently, applications through recruitment agencies have dropped from 14% to 10% in 2009. Recruitment consultancies have been forced to reposition their services in the current climate and offer more specialised solutions. For example, The Hospitality Company is well-positioned to offer a solution to the industry’s most persistent recruitment problem: the talent squeeze on middle management positions. According to Catererglobal.com, 54% of HR directors operating in the Middle East are experiencing retention difficulties for supervisory roles. Last year the figure stood at 42%

“There is a huge gap in middle management and hotels have always struggled in this area,” explains Zarbhanelian. “Recruitment consultants like us can leverage specialised networks with global reach to find the right candidate and reduce the man hours involved in this type of search.

It can take one person an entire week to interview and whittle the candidates down to the final three and with more candidates in the market, this can become expensive. Recruitment consultants can take all of that away and let the HR department invest their energies in other areas.”

As the dust settles on 2009, hoteliers must rethink their approach to recruitment for the year ahead — and those with the right strategy will discover fresh opportunities to capitalise on.

Useful Contacts:

Catererglobal.com
An online job portal recruiting for the high end of the hospitality industry.
Contact: Peter Willis on +44 207 769 9104 or
peter.willis@catererglobal.com
Website: www.catererglobal.com

The Hospitality Company
Specialises in recruiting middle managers for the hospitality industry.
Contact: Lynne on +971 4 885 2006 or lynne@hospitalitydubai.com
Website: www.hospitalitydubai.com