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All Back Issues » November/December 2006 Issue

What Really Counts
When the goal is fine foodservice, take a look at The Venetian’s approach to human resources.
by Stephen Michaelides

people & productivity                                              
(Facing page) left to right: The Venetian’s Tamir
(Facing page) left to right: The Venetian’s Tamir Shanel, director of food & beverage; Olivier Dubreuil, executive chef; Pete Boyd, VP food & beverage; Paul Pusateri, senior vice president; and Robert Gerst, VP human resources. (Above) left to right: Pete Boyd, Chef Olivier Dubreuil, and Paul Pusateri.


Pinot Brasserie, a French bistro.


Ciao, the team member cafeteria. It also serves as the site of regularly scheduled “Town Hall” meetings between Pusateri and team members.
Ciao buffet, the team member cafeteria.
Ciao buffet, the team member cafeteria.

The Venetian (Las Vegas), with its 3,014 rooms and gondola rides along a quarter-mile waterway that weaves and twists through an assortment of high-end shops, opened May 4, 1999, at a cost of $1.5 billion. Less than four years later, the Venezia Tower (connected to the original) opened. It added 1,013 rooms: cost, $275 million.

Not content with being one of the largest resort hotels in the world, 73-year-old Sheldon Adelson, chairman of the board, Las Vegas Sands Corp. (parent of The Venetian) and billionaire with a net worth of $20.5 billion, decided to build another tower, larger and more luxurious than the Venezia. Currently under construction immediately north of the existing resort, the Palazzo Resort will add 3,000 suites bringing the total number of rooms to 7,000. That’ll make The Venetian the largest hotel on the planet. It will house 11 more restaurants to complement the 18 existing ones.

This is all about hiring, training, retaining, and treatment of “team members” at The Venetian. Some of this will be F&B specific, some, an appreciation of human resources and how it has developed a system of team member training combined with a liberal sprinkling of compassion and understanding for human behavior that is different from other systems presumed to work wonders with employees.

Here’s a quote from the guest directory found in every room. It summarizes the spirit of what The Venetian is all about: “We welcome you to an experience of impeccable service and attention to detail that has made The Venetian synonymous with unparalleled luxury.” The Venetian is not blowing smoke.

Tamir Shanel, director of food & beverage, and Pete Boyd, VP, food & beverage, talk simply, but candidly, about team member competencies and what it takes to maintain those skills: the “impeccable service, the attention to detail.”

“Candidly” is the operative word here because, no matter where you go in The Venetian and no matter with whom you talk, you are privy to a forthrightness about what it’s like to work there that not only is refreshing, but reassuring that, hey, maybe there is something to be said about the life of being a hotel employee: someone who enjoys coming to work, hates to go home at the end of the day, and, as a matter of fact, looks forward to returning the next day.

Shanel joined The Venetian from the Four Seasons (Las Vegas) a little more than a year ago. If you should deign to suggest that standards at The Venetian are not so elevated as those at the Four Seasons, not only is he quick to tell you that’s not true—that they are essentially the same, based on services provided to guests—but he will scold you for the implication.

It’s not easy to find someone who will talk favorably about the values of a company. Most speak ill of them or suggest they are simply token fancies like mission and vision statements companies dream up and frame, then hang everywhere for eyes to see and common sense, for the most part, to disregard.

Mission and vision statements ought to explain succinctly what the hotel believes it will achieve and/or accomplish and how it plans to do just that. Too often, hotel companies write those kinds of statements, failing to understand what the hotel is all about, what its plans are for the future, and how, within the constraints of the organization, it can establish a road map, as it were, to deal with the present and meet the goals for the future.

Very few at The Venetian pooh-pooh any of these models, each a component of the resort’s business plan. Mission, vision, and values are there because they make sense. They are not beyond the realm of possibility. They are feasible and achievable and team members and management know that. The spirit of these strategies is noticeable dozens of times throughout the day as employee works with employee and together they bond with guests.

So when Shanel speaks about these strategies, espousing and trusting them, you believe him. “There is something about the ethics of this place that pleases me,” says the 15-year-veteran of the Four Seasons. “The size of The Venetian is different from the Four Seasons— that I will grant you. The momentum is different, but our drive is as powerful and strong. I did not come here with lower expectations.”

“Sheldon Adelson put us into this marketplace as one of the crown jewels of Las Vegas and of America,” says Boyd. “A guest who comes here, either to stay, eat, drink, or play, expects the same standards and quality of service they’d expect elsewhere. At our rates and the way we position ourselves in the marketplace, they anticipate the same standards. It’s our team members, from top to bottom, that make sure we meet those standards.”

By the way, The Venetian is the largest Mobil 4-Star resort in America.

Senior VP Paul Pusateri walks the length and breadth of the resort almost every day. It takes him about an hour and a half to do that. For you and me, maybe 20 minutes or less. But Pusateri spends time with team members—stops and talks with them. “How can I expect them to greet every guest and say hello (genuinely) and smile and give recognition if, when I’m walking through, I can’t give them the same sort of recognition and courtesies I expect from them with our guests. If I’m in a hurry and spending only half my time walking, I think to myself, ‘I blew it.’”

Pusateri is nuts about retention: a critical component of an employee training strategy. “Look,” he says, “It’s not only having them choose to stay … about retaining them. It’s about what your responsibility is to make sure they want to stay.” So he walks and talks, and on some days it takes more than an hour and a half.

Boyd agrees. “We are asked to oversee. We need to be out with the guests, observing their behavior, their attitudes, observing how our team members respond to and relate with them, checking service levels. We do this daily. If I disappear from the floor, I’ve lost my effectiveness.”

Interesting stat: When a manager quits or is fired and you have to hire and train a replacement, it’ll probably cost the equivalent of one year’s salary to do that. Pusateri’s background is rooted in foodservice (he won an IFMA 2005 Silver Plate Award for exemplary lodging foodservice), so he shares with Shanel and Boyd a passion for it that percolates throughout all of food & beverage, eventually influencing the way human resources taps prospects for F&B positions. Each of them interacts with F&B team members, front and back. “If you are an F&B guy,” says Pusateri, “no matter what kind of job you ultimately find yourself in—general manager, VP, director, whatever—you always find an opportunity, at some point during the day, to be in the kitchen or the dining room. It’s very familiar turf. You do that often enough and the chef or manager or anyone else in charge of hiring will reference that dynamic when interviewing prospects. HR, too, understands that dynamic and capitalizes on it in terms of how they recruit.”

Bob Gerst, VP, human resources, notes that when he asks new hires (about 25 every week) during the Wednesday orientation, “What’s the attraction, why did you decide to work here?” Most of the time, this is what he hears: “We understand that the managers here really care for their team members.”

Other responses, according to Gerst, in order of apparent significance: “They know someone here and they really like and respect that person. Also, they’ve heard of the growth opportunities with The Venetian. Remember,” says Gerst, “we grow organically. We don’t go out and shop other properties. When you grow like that, you have openings for thousands of new jobs. That’s good for an employee’s career. Lastly, our all-inclusive benefit package is very important.”

The word gets out. “We never have a problem attracting candidate flow. That’s not the issue. I get 35,000 resumes each year. We do very little advertising. All of the stuff we offer here—from a decent work environment to our benefit package— makes this a very special place,” Gerst says.

Gerst tells you that no one on the Strip offers the benefit package The Venetian does. Very little, if anything, is excluded. And, for everything in the package— 401(k) excluded, for obvious reasons— management picks up the tab.

Each of the 6,339 team members (with more to come when the 3,000-room Palazzo Resort opens), at one time or another during the day or week or month, craves some manner of recognition. It’s not just Pusateri walking through the casino smiling, talking, and glad-handing. It’s making sure everyone knows what’s going on.

“The idea,” says Gerst, “is to keep all team members apprised of what’s happening here so they feel part of The Venetian family and engaged as part of it. If we don’t do that, we are ignoring them. On the other hand, to have them understand and be aware of what’s going on, makes them feel they are, indeed, part of our culture.” There is an internal TV station, there are newsletters.

ONLY NONUNION RESORT
There is also this: The Venetian is the only resort on the Strip that is nonunion, which might explain why security is a little more intense than elsewhere. Although no one we spoke to wanted to be quoted on the record, most agreed that, in a very real sense, team members who belong to a union have a tendency to divide their loyalties between it and the hotel and, because of those divided loyalties, might not be willing to embrace totally the hotel’s values, mission, and vision. The incentive to improve, to do better, is not so powerful. Unions, too, have their own spins on mission and vision statements. They have their own set of values. Regardless of how heartfelt those statements and values might appear, they exist, essentially to articulate and underscore what the union has to offer: protection and indemnification from management abuses.

But given the benefit package, numerous community and diversity awards won by The Venetian, internal awards and rewards programs that recognize outstanding employee performance, and pay grades and scales, there is little a union can offer except what we’ve highlighted. Where there is no management abuse, there is no need for union involvement. The local unions have failed to organize The Venetian. Their only threat? To protest in front of the hotel using bullhorns to antagonize guests. That, too, failed.

How impressive are employee conditions, how well does the system work, why does management exercise unalloyed affection for and nearly unencumbered awareness of employee concerns and needs, why is it that Bob Gerst has little trouble rounding up the usual suspects? Here’s a hint of how good everything is: Employees at The Venetian are so devoted to their jobs that less than 19 percent quit or are asked to leave. The industry average: 46 percent.

Is the turnover so phenomenally light because The Venetian is such a great place to work and that its culture extends to and involves not only the guest but the employee?

More than that, says Boyd. “The people we consider have very high skill levels. That’s a given. But, at least 50 percent is the fact that they must have a good attitude. When we interview, we interview as much for attitude as for skill sets. I get involved in the interview process because I need to make sure the person we hire will fit on the team. I don’t need anyone yelling anywhere on the property, yelling at anyone for whatever reason—at a guest, another employee subordinate or superior, a peer. We are going to find skill sets. That’s not a problem. It’s not so easy to combine that with a work ethic. Attitude is everything.”

In the final analysis, team members— assimilated into the culture of The Venetian and made to feel an active part of the environment— understand that whatever it is they produce, whatever it is they achieve, causes The Venetian to run that much more efficiently and productively.

THE PROCESS
A brouhaha brews at The Venetian. Inside one of its high-profile departments, team members have resorted to backbiting, ostracizing, finger pointing, and accusations of elitism to victimize one of their own. The principles of The Venetian, so thoughtfully articulated in its vision and mission statements, have been compromised. The harassed employee, valued by management (he has letters from VPs stating how proud they are that he works for the hotel), has seen the writing on the wall and, convinced—through no fault of his own—he will be fired, resigns.

HR knows what’s going on and doesn’t like it one bit. This is not a brouhaha brewing in F&B, but it’s close enough that, should HR not step in to squash it, it could have an impact throughout the resort, perhaps shaping the disposition and behavior of some of the team members who find out about it. Although it is too late to save the employee, HR becomes involved. It will monitor closely what happens in that department to make sure nothing like this ever happens again.

Under normal circumstances, that sort of incident might be swept under the rug or, for that matter, totally ignored. But that is not how HR functions at The Venetian, or, for that matter—either philosophically or pragmatically—it is driven to function, a drive nurtured by conditions spelled out in its mission and vision statements. Robust and absolute in their resolve, together they convey the principles The Venetian and HR must preserve if they are to maintain levels of service excellence internally and competitively, be it at the front desk or in the kitchen. That this resignation never should have happened—the employee in question too valuable to let go—is moot. What concerns HR is that, with its tentacles everywhere and its tight relationships (through managers and directors) with all team members, somehow all of this occurred right under its nose.

It is, as noted, too late to save the employee. Yet, had he wished, he had recourse, available to every employee. He could have taken his case to what Gerst calls, “a peer review process.” Any hourly employee whose work is under disciplinary review up to and including termination can ask for a hearing before a group of three hourly team members and two salaried. This panel listens to the evidence presented by the manager, it listens to the employee disciplined (he’s allowed to bring in witnesses and other data and evidence to support his case). Then, the panel decides what merit the action has. It can uphold it, modify it, or throw it out. “And no one,” says Gerst, “up to and including Bob Goldstein [The Venetian’s president], can overturn the panel. That’s pretty darn powerful. It speaks of extreme fairness in our employee community.”

“The peer review is a great process,” says Shanel. “As an employee, you know our system is one of trust and of trustworthy management. You have the option of a peer review where, if you feel you’ve been misjudged, you can seek a vote of confidence from management.”

Says Boyd, “We certainly want our team members to move in the same direction we’re moving, and we’re going to work with them and coach and counsel them to get them in that direction. With the right attitude and appropriate skill sets, coaching and counseling help.” And if coaching and counseling don’t work and the employee in question doesn’t seem to fit squarely into the slot he or she’s been assigned, then—and this is the part that smacks of Venetian “family” and “compassion”—Boyd, or someone else in his F&B group, will try to find that employee a position more suitable. Boyd will be the first to admit that F&B may have erred in placing that person initially.

The peer review, the coach and counseling sessions, the concern for employee considerations— any wonder, turnover is less than 19 percent?

“Food & beverage is a very risky business,” says Tamir Shanel. “You manufacture a product and serve it within minutes of creating it. The guest pays for it after he has consumed it, with every right not to pay for it if it’s no good. You have very little leeway in terms of how you want to go about satisfying the guest, especially here at The Venetian where we insist on exceptional food, beverage, and service. You cannot attain this level—this performance— unless you are experienced and very good at what you do. The Venetian is no place for amateurs. It’s a place where you have to be very good at what you do to be able to deliver excellence. So, it starts with the chef, moves on to the service and management teams. Everyone involved has to be at a certain level to generate the best.”

Early on, we shared with you a quote from the room guest directory, warning you--given the audacity of its message and knowing what we knew--that The Venetian doesn't kid around, or, as we put it, wasn't "blowing smoke." Now that you've read our report, we thought we'd repeat it here: "We welcome you to an experience of impeccable service and attention to detail that has made The Venetian synonymous with unparalleled luxury."

Stephen Michaelides, a frequent contributor to Hotel F&B Executive, is president of Cleveland-based Words Ink.

 







  
        






         



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