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Introduction
High
turnover, low wages, meager customer service are
experienced by most
workers in the hospitality industry. US Department
of Labor estimates
the leisure and hospitality sector2 is expected
to add 472,400 jobs
during the projection period (between 2007and 2016),
rising at an average
annual rate of 2.9 percent and reaching an employment
level of 1.9
million in 2016. This represents one of the fastest
growth rates and one
of the largest increases among all industries.
Analysts agree companies that outperform their competitors
consistently
do more in the areas of employee recognition and
engagement. MGM Grand is one of the major players
in hospitality and leisure industry that consistently
outperforms its competition. This article will
highlight
MGM Grand’s recent achievement as being selected
as Recognition Professional International’s
best overall
employee recognition program.
“
The
Great Differentiator”: Employee Recognition
MGM
Grand Las Vegas
John
Shigley, Executive Vice President and Chief Financial
Officer, at MGM Grand Las Vegas stated that “ having
happy motivated employees is one of the great
differentiator that makes us great in our industry.”
MGM
Grand boosts one of the lowest turnover rates
in Las Vegas and they have significantly outperformed
their
competitors. How did they achieve this distinction?
MGM Grand executives cite their employee recognition
program as a major contributor to their ongoing
success.
Corrine Clement, Executive Director of
Communication
at MGM Grand Las Vegas stated have a framework for “brand
pillar’ and “core service
standards” enable them to make an investment
in their employees. Other executives mentioned demonstrating
commitment, respect, and fairness at all levels
has
resulted in an environment where employees
feel valued, appreciated and supported.
Recognition
Professional International (RPI), formerly National
Association of Employee Recognition, is a nonprofit
association that studies, develops and promotes systems
that enhance
employee engagement and performance
through employee recognition. Recently they named
MGM Grand Las Vegas its Best Practice Winner
for having the best overall employee recognition
program. According to research done by RPI, employee
recognition programs that support core business initiatives
motivate employee’s performance and
strengthen the company overall profits. RPI
has established seven standards of effective employee
recognition. These seven standards are intended
to
provide guidance for the creation and maintenance
of a recognition system, and for independent
evaluation
of any system for Best Practice rating and/or
benchmarking.
The
7 Best Practice Standards are:
Standard
1: Recognition Strategy
Standard
2: Management Responsibility
Standard
3: Recognition Program Measurement
Standard
4: Communication Plan
Standard
5: Recognition Training
Standard
6: Recognition Events and Celebrations
Standard
7: Program Change and Flexibility
Companies
submit their programs to be evaluated on the basis
of the seven best practices standards. A panel of
experts reviews the submission to determine winners
in either Best in class category or “Best Overall
Recognition
Program” award. Winners are announced at RPI’s
annual conference. MGM Grand Las Vegas was selected
at the 2007 Best Overall Recognition Program.
What
things set MGM Grand apart?
In
a video interview conducted by Maritz Incentives
senior leaders and employees at MGM shared how the
company
maintains its high marks on the employee recognition
scale. They cited both informal and formal programs
such as hosting the monthly Employee of Month luncheons,
recognition posters, the star of the month
board, coffee chats, annual galas, mandatory training
on employee recognition, pats-on-the back and accountability
measures. MGM Grand Las Vegas aligned its core
values
and business goals with employee recognition.
One senior executive stated before new recognition
programs are rolled out, the company seeks feedback
from previous employee recognition champions and
focus groups to ensure support of their core business.
Employees stated time and resources are allocated
to celebrate their diverse employee population.
As
one employee put it, “we’re part of a
team, a family, and that makes coming to work everyday
fun.” MGM
Grand recognizes the values of:
1.
Aligning employee recognition with core business
goals
2.
Measuring employee recognition consistently
3.
Commitment from senior leadership
4.
Continuous evaluation of what’s working (measurement)
5.
Employee Involvement
6.
Respect for the Individual
Research
findings show that formal, informal and day-to-day
recognition programs, when linked to the organizations
values and goals, can create a culture of recognition
that enhances employee engagement, performance
and retention.3 Given this industry’s employment
outlook, it appears employee recognition
programs
are a strategic factor for business success. MGM
Grand Las Vegas has certainly shown that through
its
employee recognition efforts, they have set the mark
in the high stakes leisure and hospitality sector.
For
more information about RPI, visit www.recognition.org
Denise
White is principal consultant with Michael White
and Associates, a consulting firm that engages
all levels
of an organization to meet their highest potential
through strategic planning strategies, retention,
coaching,
team development and personal growth. A former
member
of RPI (formerly known as National Association
for Employee Recognition) she served as Executive
Vice President and on the Board of Directors.
__________________________________
1
Recognizing Achievement, Fostering Pride, Treasury
Board Secretariat. Corporate Leadership Council.
February
2003. [Accessed 13 December 2007]
2
Bureau of Labor Statistics, www.bls.gov/opub/mlr/2007/11/art4full.pdf [Accessed 21 December 2007]
3
Recognition Professionals, Inc. www.recognition.org [Accessed
29 December 2007]
Employee Recognition – White – 1-15-08. Used with permission from the author.
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