As the Huffington Post reported, the policy, as designed, “will attract the most highly professional people who are inspired by a highly competitive workplace”.  That certainly is a statement of intent we all seek, but usually in the employee-employer relationship, which over the last thirty years has been fractured, scuttled, devalued, diminished and so forth – you are welcome to use you own descriptive.

What does this new approach to hiring and semi-retention really mean?  Firstly, a touch of recent history.  This is the first Casino to be built in Atlantic City since the opening of the Borgata Hotel Casino and Spa in 2003, just before the economic slide began, which has been devastating to this resort Destination.  Coupled with the success of Gaming operations in neighboring Pennsylvania and the new initiatives in the New York City environs, the Revel has been considered the potential “silver bullet” for revitalization, projected to provide over 5,000 full-time jobs and $2.4 Billion in revenue.  This is not small time, although the hopes might be a stretch (you gotta dream).

This is also a union town, represented heavily by Unite-Here, Local 54, which represents 14,000 members within eleven existing casinos.  Not surprisingly, the Union and the Revel have not reached any contract terms. Unite-Here, correctly, I believe, deduced that the Revel was treating these workers as Independent Contractors, which, of course, flies in the face of Union tenets of seniority, shifts, bidding, vacations, Pension Fund and prime assignments, to name a few benefits of membership.  The Union also postulates that this hiring policy with term limits is also age discrimination, where the company, Revel, counters that it simply wants to keep its work force "fresh" for what are called "high-touch" positions that are key to the Revel's “image” (I am sure that I do not have to draw that picture).  Essentially, the guest contact workers (cocktail servers, dealers, bell staff, valets and front desk personnel) would need to compete for their positions every four, five or six years with other applicants, and they would lose their positions if not the best qualified (this determination could be a problem).

This could be quite an epic confrontation with entertainment and gaming companies watching all the maneuvering, posturing and the legal briefs, as they evaluate the cost of image.  For organized labor, this challenges the very bedrock of their movement.  For the average citizen and employee, this is just another example of the need to reorient your career steps and goals, recognizing that we all are really contractors. There is neither loyalty nor security in Corporate America, and we must build our own portfolio of skills and expertise with multiple companies and then move on.  For Atlantic City, which is trying to reinvent itself as a Destination, this will not be good copy.

In the Gaming world you have Steve Wynn, with Hotels you have Ian Schrager, in Travel and Leisure you have Sir Richard Branson and every major city has a shaker in the Restaurant arena (in the Boston area, we have Christopher Myers and the upcoming Sean Griffing).  Some might even include Donald Trump. At their core, they conduct the performance of their enterprises on the business stage.  What great fun to watch and absorb the lessons of the masters.

Somehow they have their fingers on the pulse of public perception and dreams – the aspirations - what might fly.  They continually push the envelope, making us all more creative and competitive.    In many cases they move their respective industries forward.

Typically, in our own businesses the closest we have to an Impresario is our Marketing leader.  Their role is to visualize the essence of our business, do the research and due diligence of the marketplace, distill our message and deliver that to our audience, creating our edge, our distinction.  It is more than tactics and strategies – it is energy, creativity, and a touch of theater.  Most of our marketing folks have those ingredients, not always evident, for business tends to be very conservative.  But, if we give them the curtain call, they can perform, and we become spellbound with their capabilities.

Showmanship can also result in a comedic parody, a bit of the old snake oil salesman.  We have seen them, too – bigger than life, just too big.  Yet, we are still bedazzled with their moxy and chutzpah.  They understand entertainment, and isn’t that what it is all about and what sells.  The true impresarios know how to package those concepts, presenting the excitement, stimulating the senses and creating the WOW.  They ooze confidence.

Kudos for these Impresarios, maestros of the mystique, conductors of Hospitality theatre.  They push us to do better, to craft a more memorable Guest Experience.  Otherwise, we have a bland, homogenized product, a sentiment to mediocrity.

The Law, as defined by the Fair Labor Standards Act (FLSA),  is straight forward.  Employees will earn the Federal minimum wage of $7.25 per hour, unless they are tipped employees (earn more than $30 per month in gratuities).  In this case the employer can take a “tip credit” and pay those employees only $2.13 per hour. 

To date most of the legal activity has been around Overtime application and questions of who should participate if there is a tip pool or shared tip arrangement within the enterprise.  Now, we are moving into the arena (the gray domain) of what type of work is performed within that hour for which those tip eligible employees are paid.  The Law, again, is straight forward.  Non-tipped job related activities within a job description cannot exceed more than 20% in the workweek.  And, the Feds give an example – “a waitperson who spends some time cleaning and setting tables, making coffee, and occasionally washing dishes or glasses is considered to be engaged in a tipped occupation even though these duties are not tip producing”.  Now, do not forget the 20% caveat.   So, let’s get that stop watch out and invite the Time and Motion experts and auditors in. 

Once again, not many of us are lawyers, and many of us have not managed a bar or a restaurant, but most of us at some point in time have worked a tipped position in Hospitality.  We in service positions know when you are busy, you are flying, and, when you are not busy, you are cleaning, prepping or supplying, getting ready for the next rush.  We also know that if we do not pay attention to this down time or break in the action with our preparation or replenishment activities, the next rush can be a killer – on us and our Guests.  Our gratuity potential may land in that lurch.  Management wants to stress productivity, keep payroll expenses to a minimum, and meet Guest Expectations.  That’s the business!

Enter the reasonable man.  He observes the dilemma.  He knows that Management will always “push the envelope” to save money and willingly pay big bucks to those legions of lawyers to ease their pain, when challenged.  On the employee side it appears to be more a question of fairness and protection under the law.  The reasonable man also knows that to chart everyone’s activity throughout a week, create a standard for everyone’s specific service position and then measure and audit forever is really nuts, too.  Insanity costs money and just wait until other service employees get wind of this case.  Oh boy!

There is no doubt that some management somewhere has exploited the law and their workers. Is the Applebee’s case an exception or the norm? No matter, this is how it all starts, not quite Norma Rae, but a local shout, turning into a clamor.  So, the sooner and faster a compromise or greater legal definition is arranged, the better we all will be served.  We have the Guest Experience to deliver, lest we forget!  Our Guest does not care how long it took to refill the salt shaker or to vacuum the rug or lug ice to the bar.  But, they would almost unanimously back employee pay complaints.  Time to settle this baby!

Every once in awhile, you find a source which brings the marketplace into play and provides some guidance – never the total answers but the indicators, trends, data and opinions which ring true for those of us who study the Customer Experience.  Our business is about people – how to provide for their lodgings, meals, entertainment, recreation, shopping – the gamut, away from home.  Our report card is how we delivered on what we said we would; was this done with respect, care, sincerity, honesty and the like.  If we frame an Experience, we better provide the results expected. 

We need to touch those various Generations out there who have very specific needs and biases, so we better study up and learn about those ever-changing dynamics.  The February, 2012 issue of Customer Relationship Management magazine featured three articles about three very distinct Generations – all of whom we serve, some probably better than others.  I would like to “borrow” many of the salient thoughts from each to help build a more complete composite of that Generation and Consumer.  Certainly, from a marketing and business perspective, we may learn a few things to help us understand which each needs, what to avoid, and how we can better reach them.

Generation Y – The “Millennials”, born between 1977 and 1994, numbering about 72.5 million.  By the way, their spending power is almost $200 billion a year.  So who are they:  probably in their first job or unemployed, perhaps still living at home (their investment in the future), burdened by student loans and a fickle economy.  They watched their parent’s life implode – pension erosion, foreclosures, layoffs, etc.; they have decided to have fun.  They rove about in tribes and admire Brands which are aspirational and inspirational in making a difference.  Since they are so technically connected, they share everything, and word-of-mouth marketing is of utmost importance.  These are children of the Cyber Revolution; the Internet and mobile devices, where everything is visual and contextual, are normal aspects of their lives.  They seek Brands which are engaging and endorsed by their friends. You reach them through their various media.  Did you know, Millennials dine out 3.39 times a week, in comparison to 2.54 for Generation X and 2.34 for Boomers.  Order up!

Generation X – “MTV'ers”,   born between 1965 and 1976, numbering about 49 million.  They are like an Oreo cookie, sandwiched between children at home and aging parents, which accounts for, in addition to the world “boom and bust”  events in the last twenty years, some of their cynicism and self-reliance – no smoke and mirrors work here.  They are also very connected, using technology to be informed, whether it be personal, business and most certainly shopping.  This generation has a high number of women college graduates, who have entered and stayed in the workforce, therefore delaying marriage and offspring.  The emphasis is on the balance between work and family.  Additionally, a high number of immigrants are now in this grouping, and diversity is treasured.  Gen X’ers have less income than predecessors, therefore tend to be more risk-averse, very independent and less trusting, whether it be government or  Corporate America; they value honesty and transparency.  The touchstones are family, diversity and honesty with the Internet as the window to their consumerism.  They need a break!

Baby Boomers – born between 1946 and 1964, numbering about 76 million.  No retirement plans for this crowd, and, until the housing market rights itself, they are stuck in their homes, worried about their pensions, health and life expectancy.  Their Golden Years plans have been eroded.  Priorities have also shifted or been abruptly disrupted where interest in material things has moved to greater interest in the ethereal – acquiring more experiences rather than more stuff.  With their own mortality in the rear view window, this generation is looking at ways to retain the vitality of their youth – looking good, feeling good. Sixty is the new forty! This may be seen with their objectives in financial well-being, the physical (health, fitness and appearance), social interaction, mental stimulation and the spiritual sphere.  Additionally, they have again embraced family, recognizing that their earlier engagements with their children might have been fragmented (half of all Boomers have been divorced once, and 25% divorced twice).  Lastly, in the face of misconception, they are pretty well wired and engaged with Social Media, but just prefer to speak with a real person when making a purchase decision or solving a problem.  Where is Ponce de Leon when you need him!

What have we learned from this wonderful source, Customer Relationship Management.  For one, each Generation has its own quirks and definers.  Secondly, the profiles can change quickly – just look at the Boomers and their economic realities.  We have seen that all three are technology savvy and marketing must be driven in that direction.  Remember what has happened when e-books hit the market – talk about a transformation of an industry with speed.  We have seen that Consumers want authenticity and honesty and Brands preferably representing something good for society – deceit and fluff will be uncovered (and communicated) quickly.  Lastly, it is all about engagement and relationships with the most successful marketing plans ageless, focusing upon the Experience.

Florida, especially the Miami area, wants to expand their efforts, Kentucky is now talking Gaming, Detroit Casinos have begun to make money again, and riverboats are moving ashore.  The scene in the Southwest and California through Washington and Oregon is more settled, as the shake-out of smaller and less dollar sound operations disappear, while others redefine and renovate their operations.  Nevada has begun to escape their doldrums, and Las Vegas strides along to the tune of their own drummer.  But, the message is loud and clear -  join the parade, get on board, bring the chips and dips – Gaming is the joyous salvation. 

Right now, the pro-Gaming voices have the edge – quite a loud, resounding voice.  For the States and affected cities and towns the voice carries a legitimate message.  Casinos will create jobs and bring monies to municipal coffers in our current time of naught.  This is very attractive, and we shall deal with the problems associated with Gaming later.  This is a legitimate refrain, but I expect there are few who think that Gaming is a panacea, rather a short term fiscal tourniquet.  We’ll tackle those other problems down the road. Yup!

Conceptually, over the years Gaming has evolved.  It is no longer the free-standing bingo parlor, the slots and/or the tables with maybe a short order restaurant or two.  That type of operation simply did not differentiate sufficiently, certainly not enough to woo back the players, particularly after a deadly two to three year abyss from our world-wide recession.  Successful Gaming operations are now a full service Destination, where players can still gamble but also enjoy recreation, fine dining, shop top Brands, sleep, get spa-ed and be entertained.  This is the new model; you can see it with the more recent gaming operations and certainly those on the books.  To manage a Destination takes a much broader skilled Management set, the difference between a Croupier and a CEO.  It is a variable skill set and business acumen.  Actually, as of late,  we are learning that non-gaming business is at a par, if not above Gaming revenue. 

These successful executives understand the full spectrum package – what drives their Destination, focusing upon product, facility and services – almost holistic.  They continually survey their Guests and Customers to gain insight, correct problems and manipulate their model for the future.  This conversation is on-going, leading to loyalty, advocacy and return visits.  These Executives also validate their operational standards and protocols all the time, through QA and Mystery Shops, always fine-tuning the operation.  Lastly, they know that Service creates the distinction and the reputation – that frames the Memorable Experience and on-going message.

So, we will see the deluge of new Gaming Operations, and they will be an entirely different model from years ago, run by true Hospitality professionals who can deliver on the promise.  Gaming might not be the panacea for everyone, but at least those driving the momentum understand how to manage the dynamic better than their predecessors.  Tally-ho!

So, I was surprised to read that the Feds have recommended (law due in July 2013), that this Transportation industry, much like Health Care with Medical Residents and the Airlines with Pilots, must provide some further time off.  As Jon Gold with the NRF (National Retail Federation) suggested, “New federal rules that limit truckers to 70-hour work weeks are bad for the economy.  NRF believes that these changes will drive up retailer transportation costs and make trucking less safe due to the fact that more trucks will have to be added onto our already congested roadways to make up for those drivers on mandatory breaks". Really!

For us in the Hospitality Industry, most of our deliveries are made in the morning, particularly our perishables and food stuffs.  Dry goods arrive scattered throughout the day.  I remember this pattern as a former Receiving Clerk/Assistant Purchaser at the Mt. Washington Hotel, Bretton Woods, NH (admittedly, not your most easily reached destination or easy route).  Truckers are our Lifeline!

The government in their wisdom has retained the existing 11 hour drive day, although recommending a rest break within the first 8 hours on the road and two consecutive nights off before the restart of a driving week.  Hmm!  Driving a car, I am pretty well spent after four hours and continually need to prime my pump with coffee, bathroom breaks, a burger, etc.  These road warriors certainly deserve some relief.  I mean, 70 hour work weeks – how many in America or anywhere else work those hours consistently.

The NRF goes further with their reasoning.  “The rule would not improve safety (as intended) but potentially make trucking less safe because more trucks would have to be added on the roads during the busiest daytime hours in order to make up for lost productivity and reduced driving times.”  Hmm, again.  So, there would be no impact on road and driver safety with better rested and energized Truck Drivers, because their companies will be pushing to make up for lost productivity.  Isn’t that the name of the game already?  Push-shove!

We need to think about this a little more, starting with that 11 hour day and 70 hour work week, which is very impressive.  None of us want more trucks on the road or our deliveries rescheduled or impacted, but this does sound like “crying wolf”.  These macadam matadors already face sufficient trials on the road.  Just visit any Truck Stop across the country to see just how glamorous their careers are.  Give’m a break!

We try to fill those shoulder seasons and off days and hours. Heads in beds, seasonal specials, Early Birds, get two for one, heavy discounting. It is hard to make a living, much less retain a committed staff. Status quo!  Our Corporate Offices continually hammer us to cut costs - a corner here, lop an expense there - yet remain true to our mission.  Yes, Sir!

You wonder when the backlash will occur and from what front. It could be the government, manipulating Immigration, Wage and Hour, even Standards. They love to rumple about in our underwear drawer. Perhaps Organized Labor will challenge the working relationship you currently enjoy with some changes from the NLRB. Our Associates have yet to be sold that Hospitality is a good career – they are pretty well beaten-up. The Consumer will ultimately say they have had enough, which may be either good or bad for your business.

What halcyon days we enjoyed in the past decade - new building abounding, conversions galore, grand multi-use plans, ATR way up, occupancy soaring. Then, boom and bam, several years of tears and hand -wrenching.  What did we learn? Now, we are told days of Wine and Roses are on the horizon.  But, hold the phone.

We are cyclical as an industry, and planning is not a strong suit. We are all Consumers, too, and what makes us think our Guests are different than we. Most absolutely know a good Experience, when we travel, visit a restaurant, seek lodging or recreation. Our Guests are no different. We need to again become relevant for the future through the eyes of our Guest/Customer.

We need to validate the Guest Experience all the time. Talk to your Guests, bring them into the family, make them feel special, respect their patronage. Invest in your people; they are your Ambassadors and carry your message. Keep an eye on the competition. Enculturate your Associations to better represent your interests. Manage costs, but do not strangle what makes you special. What you do, do well. No scrimping! Above all, emphasize service. That is the true differentiator in our business!

It is very difficult to resurrect a reputation, once diminished! Corporations do not have a face, but you do - the face of Hospitality. Put a little Ed Koch, the former Mayor of New York, in your conversations, by asking, “How am I doing?”  You lose your touch, you lose your name.

We in business know the value of a Script.  We have one in front of us when we make sales calls, which typically shows some history and research.  We use a Script to explain to an employee body shifting policies and procedures.  We certainly have something at eye level when we address a crowd, for it is the rare speaker who moves the speech along without benefit of notes, index cards or the like.  Most of us do not have the usage of the tele-promptor.  However, these Republican gents, working the crowds in Iowa, New Hampshire and, soon, South Carolina and Florida, pretty much have their positions down and memorized and trumpet a unique ability to circle back to their dogmas and positions, no matter the question or context. Boring, but what agility!

Public speaking is nerve-wracking enough for most of us.  You do it because you must, as circumstances demand, and certainly the higher up you are in the organization, the greater emphasis on communication and speeches.  It goes with the territory.  Beyond practicing a speech or presentation, over and over, I try to picture my audience in their underwear – not for salacious reasons, but more to level the game.  This helps to remove the “scared to death” syndrome.  But, then comes the Q&A, where one must be on their toes and guard in order to parry the audience thrusts.  You can really get into trouble here.  You try to be honest, succinct with your response, but when the event is over, you always think, “I wish I had said 'X' differently”.  Not a mistake, rather greater clarity of purpose.

It is all part of the process, but can you imagine all those recorders, microphones, cameras and note pads, capturing your every move, word, gesture – all in the name of learning about the candidate and why they are different and deserve my vote.  Mostly, we are looking for that gaffe and memorable moment, of which there are certainly plenty.  What great fun.

You can see why the best and the brightest do not want to have anything to do with this process and subsequent invasion of privacy and family.  Plus, when we tally up the cost of all this activity at year end, we also might learn that all the money which supported the blarney could pay off the National Debt.  That is really disturbing.

Every four years we have this theater – a vaudevillian political troupe which travels state to state.  We are informed, we are entertained, perhaps (remotely) even transformed.  Personally, I think there are few voters who have not made up their minds – just a good story line to keep the tension and air of excitement. 

We can poke holes and criticisms all we want, but the process is still the best in the free world, although, sadly, influenced by the largest checkbook.  The platforms get tiresome, but the mistakes and personal exchanges are lively.  Damage control becomes an art form, with “teachable moments” abounding.  There are some terrific characters in this Republican cadre of candidates, and that slate shall be further winnowed.  Then the big show starts in earnest this summer.  Find a good seat, butter that popcorn, tighten the seat belts, crank up the A/C.  This could be a Barn Burner, cascading towards November!

These folks will always have a negative comment, typically leading to a visit by Management to assuage the situation.  Naturally, nothing in the Hotel Guest Room is up to par.  It might be the lights, temperature, television or the bed.  Give me fresher towels, I need more soap, change my room.  On the dining front, the dissatisfaction commentary ranges from a poorly stirred martini, cannot read the menu, return of the entrée, there is a draft.  Airline counters entertain hundreds of these a day.

So, our staff whirls about, trying to correct the deficiencies, never understanding that no matter what they do, it is not enough.  You simply will not please these people.  They sometimes are loud, even screamers.  Their faces become florid with distain and contempt.  We try to draw them to the side, but it is their show.  We can only soften and shield the noise and minimize disruption. 

Interestingly, others in their party are just as horrified with this type of behavior.  Yet, they are not enablers, just captives, for the behavior will not change.  The association is embarrassing, and you just expect some scene will take place. It's coming, you just do not know what the focus might be.  That's unnerving.

We do know that the loud and obnoxious always get attention, and we react, if for no other reason than to contain the outbursts from contaminating our space.  That is the real lesson for our employees – placate the interruptions.  Use all your skills to diffuse the situation, because we have other Guests who are watching and wondering.

And, these folks do get away with murder.  Upgrades to suites, complimentary cocktails and gift cards, even free meals and “comped” services.  They know exactly what they are doing, moving beyond the squeaky wheel to the shrieking monster.  Their dander is up; the blood is coursing; they will have their moment.

If one of these Patrons arrives at your establishment, and you can identify the characteristics or are aware of prior history, mollify them if you can and then simply tell them they are no longer welcome.  Retail does this quite effectively with those who abuse return policies.  Maybe, that is the right term – abuse.  Why take it, for running a business is tough enough. In-depth Customer Service Training can also give your staff some much needed expertise to diffuse and deflect. The Customer is always right, but not all the time!