Teamwork | KRG Hospitality

Las Vegas CEO Offers Vaccination Bonus

by David Klemt

One CEO in the hospitality and lodging industries is offering employees a bonus for getting the Covid-19 vaccine.

William McBeath, president and CEO of The Cosmopolitan of Las Vegas, is incentivizing the resort’s staff with cash bonuses.

Conversely, workers who decline inoculation must take weekly Covid-19 tests.

Cash Incentive

Per the Review-Journal, the largest daily newspaper in Nevada, McBeath is using a tiered approach to the bonuses.

If the resort meets the vaccination goal, the property could pay $1 million to staff.

According to reporting, The Cosmo is pushing for at least 80 percent of staff to receive first doses of a Covid-19 vaccine by the first of May.

The tiered system works as follows:

60 Percent Vaccination Rate: $50
70 Percent Vaccination Rate: $100
80 Percent Vaccination Rate: $250
90 Percent Vaccination Rate: $350
100 Percent Vaccination Rate: $500

The most an employee stands to make is a one-time bonus of $500. Clearly, the 80 percent vaccination rate bonus is an amount the resort finds motivational and a reasonable cost.

Weekly Tests

There are a number of reasons someone may decide against a vaccine. Operators must understand that vaccination is a personal choice.

Requiring staff receive vaccinations is a slippery slope. Setting aside legal ramifications, doing so will likely result in staff attrition, awful PR, and long-term damage to a business.

That’s to say nothing of the failure in emotional intelligence that forcing vaccinations on employees would highlight.

Instead, McBeath’s approach respects an individual worker’s autonomy. The president and CEO isn’t forcing The Cosmo’s staff to receive vaccines. Rather, he’s incentivizing workers to reach the goal set for the resort.

There are no credible reports of Cosmopolitan employees facing termination for refusing vaccination. I was also unable to find any reports of retaliation.

According to Review-Journal reporting, unvaccinated workers will undergo Covid-19 testing. Starting May 1, Cosmo employees who work a maximum of three days per week will be given a test once per week. Those who work four or more days per week will be tested twice per week.

Nevada Seeks to Increase Occupancy Limits, Reopen State

McBeath’s May 1 deadline makes even more sense when one considers current occupancy limits and reopening plans.

Currently, casinos in the Silver State are operating at 50-percent capacity. On May 1, the Nevada Gaming Control Board will be responsible for deciding gaming floor occupancy. In preparation, the NGC wants more of Nevada’s hospitality workers to receive vaccinations.

Additionally, Governor Steve Sisolak has set a June 1 date against reaching 100-percent occupancy statewide. So, The Cosmo’s goal of 80-percent staff inoculation by May 1 makes a lot of sense.

Operators in hospitality and lodging can use McBeath’s incentive program in their own businesses. If it’s crucial to them and their businesses, operators should set a staff vaccination rate goal and implement a bonus schedule that appeals to workers while remaining realistic.

Image: Zachary DeBottis from Pexels

Is Gen Z the Workforce Solution?

by David Klemt

Is Gen Z the solution to the industry’s workforce problem?

That’s one big question posed during the 2021 Restaurants Canada Show.

A panel consisting of Philip Mondor, president and CEO of Tourism HR Canada; Adam Morrison, president and CEO of Ontario Tourism Education Corporation; Jody Palubiski, CEO of the Charcoal Group; and Lori Wilson, manager of people and change at BDO Consulting have answers.

The Problem

Canada’s hospitality industry is facing a labour shortage. In fact, that has been the case since before the pandemic.

According to several sources, the hospitality industry is Canada’s fourth-largest private-sector employer. And yet, there’s a labour crisis.

This is partially due to Baby Boomers retiring. As they leave the workforce, there’s a disparity in the number of people in Canada working or seeking work.

According to a January 2020 report from The Globe and Mail, there were at least 60,000 empty positions in foodservice before Covid-19 lockdowns.

Mondor concurs with that article’s sentiment. He expects “a very large shortfall” over the next year that could force the industry into a four-year recovery.

The Solution?

Neither Wilson, Mondor, Morrison or Palubiski see Gen Z as the solution to Canada’s labour shortage problem.

Now, that isn’t to suggest that operators and managers should dismiss Gen Z. Rather, Mondor suggests including this generation as they enter the workforce without viewing them as the only solution.

“Relying on youth alone is not going to meet the demand,” says Mondor.

Instead, Mondor posits that new Canadians—immigrants—will play a significant role in the hospitality industry moving forward. In fact, Mondor expects immigrants to make up 50 percent of Canada’s workforce.

Recruitment and Training

Palubiski says that what separates Gen Z from other generations is how connected and informed they are. Screen time provides Gen Zers plenty of information about social, regional and global issues.

To recruit Gen Z, Palubiski suggests brands and businesses be transparent about their stances on issues such as sustainability and the climate.

However, that approach to recruiting isn’t just effective when it comes to Gen Z—employees and guests alike want to know where a brand stands.

Morrison says that it’s important to be cognizant of the employment market. Knowing what people are being paid, even if an operator can’t match or beat that rate, is helpful. It’s also part of an effective strategy, says Morrison, to understand the ambitions of candidates to see if available roles will match their motivations.

Retention

Once an operator has built a team, the next step—training—is key to staff retention. And not just training for the specifics of one particular role in a restaurant or bar.

Rather, the panel agrees that this industry does a poor job of documenting transferrable skills. For example, operators can help develop employees’ leadership and conflict resolution skills (among many others) that they can take into other careers. Operators must explain that benefit to employees and help nurture it.

Additionally, the panel suggests looking at training and retention in the following ways to adapt and make businesses in this industry stronger:

Invest in people, don’t just hire them. That means training and developing their skills and careers.
View hiring and training as investments, not costs.
Everyone makes mistakes. True leaders admit their mistakes, fix them, and move forward.
Ask this question: Do your employees feel a greater affinity for this industry and your business after they’ve started working with you?

In parting, operators and managers should consider this: Palubiski had to furlough 950 employees due to the pandemic. A staggering 95 percent returned when they were called back. That is effective hiring, training, development and retention to emulate.

Image: Jason Leung on Unsplash