Hotel & Motel Management - October 1, 2007 - (Page 8)

8 At Your Risk In memory of Anthony Marshall, we will run some of our favorite past “At Your Risk” columns throughout 2007. This column originally ran in the Oct. 3, 2005, issue. By Anthony Marshall 1939-2006 H&MM October 1, 2007 | HotelMotel.com Nip vendor bribes in the bud before they bloom I pressed him for details. Ben said that when he started his new position at the hotel, the retiring catering director spent a few days with him and gave him the heads up about an “additional compensation” package. “Here’s the list of approved catering department ﬂorists, photographers and musicians with whom we have ‘special’ arrangements,” his predecessor explained. “Book these particular choices for our clients and you will get a 5-percent commission sent directly to your home by the vendor at the end of each month. It’s been a perk of the job here for years, but don’t broadcast it around; it’s a secret. So, when these guys call to introduce themselves—and they will—just give them your home address, and you’ll receive a monthly cashier’s check from them. How sweet is that?” The sweet turned sour when a disgruntled musician refused to pay the “commission” and reported the kickback scheme to the new general manager. He immediately ordered an investigation and discovered, to his profound displeasure, that such commissions had been going on for years. That didn’t make it OK in his book. “It’s not fair to ﬁre me,” Ben vented to me. “It was a customary part of my position’s compensation.” I listened, but knew I couldn’t let him off the hook with that excuse. “You took a commercial bribe, which is a crime,” I pointed out. “Didn’t you see red ﬂags go up when it was explained that the vendors would issue cashier checks directly to your home?” Ben wilted in his chair. This was clearly not the vote of support he was seeking. “As director of catering, you’re an agent of the hotel, and owe it your loyalty. Taking a bribe violates trust. And, receiving it at home by means that are clearly ‘under the table’ makes it a kickback. Both the vendors and you violated the law and could go to jail if charges were pressed and you were guilty.” Employees who accept kickbacks generally know it’s wrong. Greed clouds their honesty and judgment, but it never works out for them in the end. All hotel employees should be advised of their company’s policies against accepting vendor gifts, meals, trips, whatever. These policies should be clearly stated in the employee manual, as well as in general training sessions. Most managers insist on a zero acceptance policy that leaves no doubt about what is acceptable and what isn’t. A vendor’s gift is considered to be commercial bribery or a crime because it’s not a gift from the heart, but one targeted to inﬂuence the purchase of a good or service from a vendor—and one not exclusively determined by merit and price value. A concierge is particularly vulnerable to such “gifts” from vendors because his or her inﬂuence can steer guests to a particular restaurant, attraction or nightspot. My fallen graduate immediately called his family’s lawyer after our chat. He didn’t like what he heard from him, either. “Your actions may be considered the commission of a ﬁrst-degree Class E felony,” the lawyer warned. He had received in excess of $1,000, and the deposits easily could be traced to his bank account. How does a hotelier prevent kickbacks? First, announce and publish to all employees a zero tolerance vendors’ gift policy. Admonish all employees to immediately inform the personnel department of any vendor offerings or advances. Instruct employees who might already have accepted a vendor’s favor without permission to immediately report it to the director of personnel. Such a disclosure often is grounds for the incident being excused by the company. The goal clearly should be to eliminate the acceptance of employee kickbacks and not simply to catch or punish employees. Management should further instruct all employees to immediately report any offers of kickbacks disguised by such common euphemisms as, “This cash gift is just a ‘thank you’ for your business.” Or, “We give these to all of our clients; this is yours.” “ I wanted you to hear it directly from me,” he conﬁded across my desk. “I was dismissed today without reference. It’s just not fair.” It was an odd opener because just a few months ago he had called to share his elation at being promoted to catering director for a high-proﬁle urban hotel. The promotion was a career pinnacle and he was on top of the world. I now listened to him sympathetically, but also more than a little curious. My guest, let’s call him “Ben,” had been a student of mine years ago and was now married with two children. Ben explained that the hotel’s new general manager had summoned him to his ofﬁce. “I can’t believe you were stupid enough to take kickbacks,” his boss sternly told him. “Report to the personnel ofﬁce for your check and exit papers. Sorry, but you’re ﬁred.” This wasn’t a reality television show. This was reality. Some key words to watch out for are, “It’s just between us.” Employees must be aware that commercial bribery is a crime, and they should also be praised for informing management of any vendors who offer one. The American Hotel & Lodging Assn.’s Lodging Law issue for May 2005 includes an article by Banks Brown titled, “A bribe by any other name.” He writes: “The history books are full of people who gave or got kickbacks. So are the jails.” Ben didn’t go to jail; he just lost his job. But without good references, it will be tough for him to ever match his previous position or salary. That’s an awfully big sacriﬁce for a mere 5 percent additional compensation on a ﬂower arrangement. Ben would even call it criminally unfair. But the law just calls it criminal. hmm@questex.com Satisfaction Trends The best employees feel excited about the future IN THE details Creating employee advocates Pride prompts recommendations Employees must feel appreciated Empowerment is important By Jonathan By Jan Barsky McDougal H&MM H&MM Columnist Columnist E ngaged, satisﬁed and emotionally connected work teams create employee “advocates.” These committed employees are not only hard workers, but also serve as promoters of your company. What makes an employee feel this way? What experiences at work create such devotion? What does it take to create employee advocates? A Market Metrix study of more than 70,000 hospitality employees surveyed over the past year shows that employees are more likely to recommend their hotel as a great place to work when they feel especially proud about their jobs, and feel good about their opportunity to advance. On average, 95 percent of employees who said they would recommend their hotel as a great place to work (advocates) also reported a strong feeling of pride. Managers who are good at recognizing and empowering employees, and who demonstrate passion about guest satisfaction, have the most success in developing proud teams. And 83 percent of employees said they were excited about their opportunity for advancement. Companies that provide career path opportunities, with promotion from within the business, were best at inspiring employees. Emotional connection The Market Metrix Employee Metrix tool measures the emotional connection, satisfaction and engagement of employSee Employees | page 14 http://HotelMotel.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - October 1, 2007

Hotel & Motel Management - October 1, 2007 Contents Independents Rely on Guest Feedback Models Showcase Aloft, Element Brands Trainers Emphasize Communication, Cooperation Perspective At Your Risk Satisfaction Trends Sales Clinic Energy Star Update HotelWorld Update Trends & Stats Dressing Walls in 'Green' Music Programming Provides a Sound Solution Remote Check-In/Out for Leisure Travelers Q&A: Western U.S. Pipeline Softgoods - Beds and Bedding Transactions A Cause Célèbre Awards People on the Move Events Cleaning and Maintenance Solutions Marketplace Ad/Editorial Index Classifieds Checking Out

Hotel & Motel Management - October 1, 2007

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