There is a fabulous wine store in Chicago (where I live) that is probably the largest in the United States. People come from all over the Midwest to shop their prices and selection.
The owner happens to be an acquaintance of mine, and one day I saw him and commented on a particular employee of his who gave me superb service. His reply really hit me: “Bill, thanks for your comment. We work hard to find these kinds of people, because it’s your bad employees who cost you money. Your good employees are free.”
I started thinking about this when I read the Publisher’s column by Tom McIntyre in our February issue, as well as Don Vance’s “Today’s Manager” article in the same issue.
Mr. Vance made a fascinating point when he quoted U.S. Bureau of Labor Statistics data that show projected job growth far outpacing workforce growth, even if we shut our borders to all immigration. There will be 75 million baby boomers retiring, and only 45 million from “Generation X” available to fill their jobs. (If anyone wants to ignore the Social Security implications of that fact alone, do so at your own risk). Mr. McIntyre wrote an editorial about what employees can do in little ways to enhance the club experience and make members and their families happy to frequent their clubs.
Here’s what all of this means to me, and what I think the implications are for the future of our industry:
Demand for just about any labor at the service end of the business sector will be intense over the next decade. Clubs will have to compete for quality employees with other segments of the service spectrum, and the price is going to go up. We must face this fact in our budgeting and dues structures, so we can compete for the best people.
When you find a gem of a person, do just about anything to hold on to them. Remember, your good people are free. A few months ago, I wrote about a waitress at my club who, through her friendly professionalism and infectious enthusiasm, changed my entire attitude towards our club’s dining facilities and made me a regular customer. You know she had that impact on everyone she came in contact with.
If your bad people are costing you—and they are—don’t carry them just because the hassle of replacing them is something you don’t want to face.
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If your bad people are costing you—and they are—don’t carry them just because the hassle of replacing them is something you don’t want to face. The core reason General Electric has continued to be so successful is because it takes the whole process of human resources so seriously. Workers get evaluated and are told the truth about their performance and given a chance to improve. But they are also told they will be gone if they don’t meet a set of specific standards. We need to be as rigorous in our own HR policies, and not use the excuse that “we can only afford minimum wage.”
When all is said and done, we are a service business that imparts a degree of enjoyment because of the experience we provide. All of this is an extension of who we hire and how they are managed. It is in our own interests to hire the best, and keep them. After all, they are free.
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