CA Community Colleges Collaboration with Retail, Hospitality & Tourism (RHT) Snapshot: Coachella Valley Desert/Inland Empire Region
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CA Community Colleges Collaboration with Retail, Hospitality & Tourism (RHT) Snapshot: Coachella Valley Desert/Inland Empire Region
Table of Contents Executive Summary ........................................................................................................................ 4 Study Objectives: ........................................................................................................................ 4 Industry Background ................................................................................................................... 4 Methodology ............................................................................................................................... 5 Next Steps ................................................................................................................................... 5 One-on-one Interviews.................................................................................................................... 8 Overview ..................................................................................................................................... 8 Methodology ............................................................................................................................... 8 Findings....................................................................................................................................... 9 Finding: Current Business Environment ................................................................................. 9 Finding: Community College Involvement ......................................................................... 11 Finding: Skills Development/Expectations.......................................................................... 12 Online Surveys .............................................................................................................................. 14 Overview ................................................................................................................................... 14 Methodology ............................................................................................................................. 15 Findings..................................................................................................................................... 16 Finding: Employer Information ........................................................................................... 16 Finding: Employee Skills ...................................................................................................... 19 Finding: Training .................................................................................................................. 21 Finding: Awareness .............................................................................................................. 22 Finding: Interns ..................................................................................................................... 24 Finding: Tuition Assistance .................................................................................................. 24 Finding: Industry Credential ................................................................................................ 25 Finding: Hiring Authority .................................................................................................... 27 RHT Focus Groups ....................................................................................................................... 28 Overview ................................................................................................................................... 28 Finding: Applicant Preparation to Enter the Workforce ........................................................... 28 Participant Comments: .......................................................................................................... 28 Finding: Basic Skills ................................................................................................................ 29 Participant Comments: .......................................................................................................... 30 Finding: Education and Training ............................................................................................. 31 Participant Comments: .......................................................................................................... 32 Finding: Familiarity with Existing Players and Programs ....................................................... 33 Participant Comments: .......................................................................................................... 34 Page |2
Exhibit 1 Focus Group Participants .......................................................................................................... 36 Exhibit 2 RHT Focus Group Discussion Questions: ................................................................................ 37 Exhibit 3 Open Verbatim Comments from Online Survey Responses (spelling not corrected) Please share any additional insights or ideas that you have regarding the gaps that you see in workforce readiness/employee skills and educational programming as it might relate to your business. ................................................................................................................................ 40 What skills are most desirable for your newly hired employees to possess? ....................... 44 What skills do you find most often lacking in job applicants when you are hiring new employees? ............................................................................................................................ 45 What type(s) of training does your organization most often provide to employees? (Dept. Specific) ................................................................................................................................ 46 What type(s) of training does your organization most often provide to employees? (General) ............................................................................................................................................... 47 What methods does your organization typically use for delivering training to employees? 48 If cost is not an issue, what are two types of training or education you would most like to provide to your employees? .................................................................................................. 49 In what areas of your business are, or could, interns be utilized? ........................................ 52 Briefly describe the tuition assistance offered by your business. ......................................... 53 Exhibit 4: One on One Interview Participants .............................................................................. 55 Page |3
Executive Summary Service-sector jobs are an increasingly important part of the Inland Empire and Coachella Valley economy. This report, completed for the California Community College Chancellor’s Office with the support of the Desert Community College District, examines three industries-retail, hospitality and tourism – representing more than 148,000 jobs in the region. Results from this study are intended to be used as a tool to inform community colleges within the region regarding needs of businesses within the Retail, Hospitality and Tourism (RHT) business sector. Additionally, the research process will help increase industry awareness of the benefits that may be derived from growing a locally developed and suitably trained workforce from the entry level up through the career ladder to supervisory and management levels. Study Objectives: Identification of localized industry workforce needs and gaps in the areas of workforce readiness and incumbent employee training and development. Assessment of industry awareness and perceived efficacy of existing community college programs and services. Identification of desirable faculty and industry collaboratives. Exploration of opportunities to integrate college programs and services with industry needs. Improved integration of workforce and incumbent employee training with industry. Increased awareness of the benefits derived from employee training. Industry Background The RHT industries are an important segment of the nation’s economic and job growth. Direct spending from travel and tourism activity contributed more than $544 billion to the US GDP in 2013. On the state level, direct travel spending in 2013 was $109.6 billion, up from $106 billion in 2012.1 No less important are the estimated 568,500 accommodation and food related jobs supported by the California travel industry and the 86,500 jobs supported by retail.2 Within the study geographic area, the number of hospitality industry jobs is expected to grow from 146,169 in 2012 to 160,478 in 2015, an increase of 12,309 jobs or 8%.3 For the month of April 2014 alone, preliminary labor market information from the State of California EDD office reflected an addition of 1,100 leisure and hospitality jobs added to the Riverside-San Bernardino- Ontario Metropolitan Statistical Area (MSA). Overall unemployment in the region reported by the EDD as of April 2014 was 8.3%, down from more than 13% reported in July 2012. This downward trend in the regional unemployment rate is positive and indicates that the economy is absorbing qualified candidates. Presuming that the most qualified candidates are hired first, as 1 Travel & Tourism Council. Travel & Tourism Economic Impact 2013, North America. Online at http://www.wttc.org/site_media/uploads/downloadsnorth_america2013_1.pdf 2 http://www.deanrunyan.com/CATravelImpacts/CATravelImpacts.html CA State Interactive Map, Direct Employment for Food and Accommodations. 3 Source: EMSI Complete Employment – 2014.4 Page |4
the availability of these highly qualified individuals decreases, the need for developing additional qualified candidates increases. Methodology The study data is derived from analysis of secondary data sources and primary research. The primary research components included one-on-one interviews, an online survey instrument and focus groups. In summary, one-on-one interviews were conducted with community leaders, key members of the RHT industry, and educators and administrators from both K-12 and community colleges. Online surveys were conducted with members of the broader RHT business sector. Focus group participants were made up of a combination of RHT leaders and general members of the RHT business sector. Results are examined in the three subsequent sections, presenting the process and findings in the following order: One-on-one Interviews Online Surveys Focus Groups It should also be noted that the survey and accompanying meetings were in and of themselves an outreach to RHT businesses and community leaders. Ideally, this outreach could open up opportunities for future collaboration between community colleges, local communities and businesses within the RHT industry. Next Steps From the feedback received, it is evident that members of the retail, hospitality and tourism (RHT) industry are concerned about the quality of the existing workforce, particularly with regard to entry level staff, and most especially those in frontline positions. Retail, hospitality and tourism share a number of attributes and chief among them is the need for an informed, friendly, helpful and conscientious workforce to assist the customer. This is relevant to both front of the house and back of the house staff. Owners, executive staff and frontline managers have clearly identified the ongoing issues they are experiencing and the skills they need within the workforce. This focus provides an opportunity for educational leaders to connect and collaborate with members of the industry with the united goal of properly and efficiently preparing individuals to participate in the RHT workforce. This report provides a foundation for further action, including the potential to: Leverage Industry Involvement: There is recognition from industry leaders that the job market is getting tighter as economic conditions improve. Pressure exists from corporate ownership to begin driving price increases after the bleak financial times of the last four to five years. On the other side stands the customer, prepared to instantly (via social media) evaluate and report on qualitative issues and value of products, and in between lay the managers and staff to balance the Page |5
two. Creating a high quality RHT workforce is essential to the financial success of these businesses, and industry leaders appear to have a heightened awareness of the need to play a role in improving the broader workforce. The effort will require a leader and will need to be ongoing and well planned. Educational institutions have a unique opportunity to plug into this need, particularly those with contract education infrastructure in place, as there is a need to be able respond quickly and strategically to offer the identified training. Continue and Expand Integration with K-12: School districts throughout the study area are developing partnerships with businesses of all types and introducing students to businesses and pathways at earlier and earlier ages. Wherever possible these efforts should be synchronized with community college efforts. Strengthen Internship Opportunities and Programs: Study participants identified the need for and the desire to participate in hands-on learning opportunities. Participants were also very clear that these programs need to be easy for businesses to access and meaningful for both the student and the business. Create Cross-Discipline Pathways: Today’s businesses rely on services from IT, graphic design, marketing and even mechanics. Community Colleges can work with local businesses and their associated national trade organizations to develop interesting relevant pathways to capture students’ interests. These cross-discipline industry and educational work groups can form and dissolve as projects or initiatives arise and dictate. Increase Awareness of and Access to Existing Programs, Develop Basic Skills Training and Strengthen the Tie between Industry and Colleges. Participants felt that students would benefit if the links between the industry and education were enhanced. Participants suggested that the community college system could benefit from becoming more "user friendly" to help students, employees and industry understand and access courses...offer more “one and done” workshops specifically catering to industry needs and developed by industry in conjunction with colleges. Several mentioned that the Colleges are building new buildings and upgrading infrastructure, but that this infrastructure should be complemented with top notch outreach and marketing initiatives. Comments suggested that the educational system needs to run more like a business. One challenge to outreach is a lack of a unified and wide-reaching industry voice within the Inland Empire. The lack of trade associations and similar structures is an obstacle to efficiently assembling, organizing and maintaining communications with businesses across the Inland Empire. Participants are open to and eager for connection. They understand and value the benefit of education and training. There is a desire for ongoing engagement, rather than one time meetings of advisory boards, and a willingness to actively participate in the classroom as well as the development of relevant education and training to meet their needs. Page |6
In particular, the following suggestions were made: Incorporate industry leaders into the classroom in a consistent integrated way Give students a good grounding in all aspects of the business operation Introduce students to basic skills and expectations of the workplace Include training in basic computer skills Work with industry to develop a basic hospitality certificate course Increase opportunities for work experience Need to reach people younger (in high schools, Boys and Girls Clubs, etc.) Follow Up: Follow up will be critically important, both to address a perception among some participants that this study is simply an exercise for which there will be no specific follow up or follow through; and to begin to engage an industry which has very specific, identified needs and is eager to participate in developing programs to address those needs. Study participants who have had experience on advisory boards or have a relationship with high schools or other colleges/universities generally tended to be enthusiastic supporters of the concept of workforce development and CTE. However, there were multiple study participants who perceive the community college system as non-responsive based on multiple attempts to reach out in the past with little or no response. Page |7
One-on-one Interviews Overview In-person interviews spanned across each of the study participant groups consisting of community leaders, educators and industry leaders. Interviews with the community and industry leaders helped to inform a broader view of the dynamics of the community college and industry relationship and provided a more complete context in which to view feedback obtained throughout the study. Likewise, interviews conducted with K-12 administrators and educators assisted in understanding the linkages between K-12 programming and RHT education offered by community colleges. Interviews with educational and community leaders followed a general outline format, but allowed for a natural discussion of the relationship between local community colleges and the entity represented by the interview participant. There were 28 interviews with members of these two groups. These meetings ranged in length from 35 to 60 minutes. Interviews with key RHT leaders opened with general questions similar to those asked of the community leaders and concluded with more specific questions from the online survey instrument. The purpose of the in-person interviews with key RHT and community leaders rather than simply providing the online document, was to create the opportunity to more fully engage these leaders in the goals driving the research as well as participation in the process, thereby creating “buy-in” and support for future follow-up and participation. Methodology Reflecting the wide diversity of business types that fall under the umbrella of RHT; owners, executive management, HR directors and supervising managers associated with RHT businesses were sought for interviews. Interviews with these participants included representatives from the following groups: Convention/Event Facilities Hotels & Resorts Restaurants (chain and owner operated) Private Transportation Destination Management Companies Attractions/Amusements Retailers Arena/Sports Facilities Temporary Employee Agencies Interviews with key community leaders provided an understanding of the environment in which the RHT businesses are operating and of any external events that might represent threats to, or Page |8
that might trigger greater demand for, RHT sector jobs. Interviews with these participants included representatives from the following groups: Municipal Elected Officials Municipal Executive Management Municipal Redevelopment Workforce Investment Board (Board/Staff) Business Improvement District Merchant Organization Chamber of Commerce Convention & Visitors Bureau Retail Center/Mall Management Tribal Executive Staff Destination Marketing Organizations Members of the education community were also contacted to provide an outline of the various RHT related programs at both the high school and community college levels and included: Community College Administrators Community College Faculty K-12 School District Representatives RHT Program Instructors K-12 Findings Based on interviews and secondary data and information, we identified the following RHT labor market trends, issues and challenges in three major categories: Current Business Environment Community College Involvement Skills/Training Finding: Current Business Environment By all accounts, the regional outlook for the RHT industry is positive. Industry and community leader study participants were consistently positive about the general wellbeing of their particular business or jurisdiction, with industry leaders exhibiting a slightly higher degree of caution. Even though respondents could identify some hurdles yet to clear, they seemed to be taking them in stride describing recent successes and future plans and opportunities as outweighing any potential losses. Most noted that changes to the economy would be the wild card element with potential to derail the present progress. Government representatives were quick to cite projects underway or in planning and hotels boasted renovations, improved occupancy and rising revenues. Essentially, respondents are Page |9
feeling good about the economic direction in which things are headed and can see a path to the possibility of returning to pre-recession business levels. Empirical data from key locations within the geographic areas of the study provides some support for the positive outlook expressed by stakeholders. By examining Transient Occupancy Tax (TOT) and sales tax revenues one can get a sense of the economic health of the RHT businesses. A review of these tax revenues for three key cities within the Inland Empire (Ontario, Palm Springs and Riverside), reflects growth in both sales tax and TOT revenues when comparing collections at June 30, 2012 with projected collections for the fiscal year ending June 30, 2014, even after adjustments for legislated increases in the underlying tax rate. While final budgets have not yet been adopted for the 2014-15 fiscal year, each of the cities indicated that the budgets will reflect continued increases in these tax collections for the coming year. City TOT Revenue Increase from Sales Tax Revenue Increase 6/30/12 to 6/30/14 (est.) from 6/30/12 to 6/30/14 (est.) Riverside 31.7% (Adjusted for 1% increase 13.1% in FY 2012-13 and additional 1% in FY 2013-14) Ontario 2% 3% Palm Springs 15.5% 8.1% (Adjusted for 1% increase effective 4/1/12) These growing tax revenues along with the improving unemployment rates noted in the region reflect an expanding job market and consequently a higher demand for trained employees. Interview Comments: “New housing development of 1,200 homes to be under construction by 2015.” “A new hotel is planned and in design for the north end and they are looking at development of four new restaurants around it.” “The airport is an obstacle and it is not under local control right now, but we expect to change that within 1-2 years.” “New retail centers are planned for four areas of the city.” “We have a 16 year agreement with Goldenvoice in which they are committed to add two new festivals in the City.” “There is more retail in the planning stages.” “We are aware of at least two new hotels under consideration.” P a g e | 10
“Retail continues to grow; the Nordstrom is the highest grossing store per square foot in the chain.” “We are seeing acceleration in growth. Room nights from meetings for the first six months of the year surpassed the entire previous year of operation year.” “Riverside was ranked number one in job growth nationally by Arizona State University study.” Finding: Community College Involvement A recurring message, particularly among RHT industry leaders, was a lack of connection or awareness of local community college RHT programs. Of the 29 members of this interview group 11 had some relationship or awareness of a local college beyond name awareness. Of these 11, eight were aware that the college had programs in RHT while the remaining three were unaware of the specific programs available. One member stated that they had hired four graduates of the local culinary program. It is important to note that particularly in the chain retail and hotel industry, the top level management may be somewhat transient, possibly staying in a community for only 2-3 years. For this reason it is important to maintain consistent outreach efforts to the people in these positions while also developing partnerships at different levels of the organizations. In any event, involvement with local trade organizations such as Convention and Visitors Bureaus is a means of staying connected to these organizations as individuals change. Some members of the group expressed a very strong desire to connect with the local community college and were even community college graduates themselves. Support offered during the interview ranged from possible monetary support to develop a full-scale hospitality academy, to more immediate offers of classroom participation, adjunct teaching or support of an internship or training program. Interview Comments: “I placed a job posting with the college job site but received no response. I did get good response on Craig’s list and the Cal State job site.” “We would seriously consider supporting development of a Center for Hospitality Management. There are funds available for support, but there are other schools (including high schools and four year universities) that may approach us for similar funding.” “We’ve had great experiences with Cal State providing us with interns. They come to us in their last semester and work 15-20 hours per week. When they leave they have a portfolio of work that they can use when interviewing for jobs.” “We developed a Tourism Associate program that was ready to go and the faculty was supportive but the final contract required too much in the way of liability for us to proceed.” P a g e | 11
“We need some sort of hospitality training that addresses customer service, particularly for retail and restaurants.” “RCC is involved with our downtown board, the Interim President is a member.” “We developed a social media internship between downtown businesses and Cal Baptist University. The students are matched up with businesses based on skills and provide social media/PR efforts to downtown businesses. The programs last 8-16 weeks and students get class credit or donate their time.” (Note: The program started as a result of two university professors holding a free social media seminar for members of the downtown Business Improvement District) “The RCC culinary program seems to be a good quality program.” “We find that participation in the Crafton Hills job fair is very beneficial.” Finding: Skills Development/Expectations Comments from this group of participants were consistent with those from the online and focus group participants with regard to skills lacking by many job applicants and the expectations they are presenting to prospective employers. There is nearly unanimous consensus that job applicants need to learn the basics of professional behavior. Beginning with proper attire, how to properly and successfully complete a job application, how to dress, speak and write. These are all skills found consistently lacking among job applicants. Many in this response group also mentioned that new graduates often have unrealistic expectations about compensation, scheduling and punctuality. The general consensus is that students, and the organizations for which they eventually work, will benefit from the students gaining more hands on, industry related experience while they are completing their coursework. They need to understand how individual components of the operation fit together and impact each other. Business is eager to partner with community colleges on such programs, but the colleges have to make it easy to participate. Some of the industry leaders in this group cited successful partnerships programs at the high school level. Interview Comments: “It would be great if the vocabulary of the industry were taught as part of the curriculum.” “Sometimes people just need one single focused skill to move up, is there a way to produce one day seminar subjects?” “Compress the learning timeframe where possible...keep up with industry which changes so fast.” “Definitely require on the job experience.” “We need people to have job ready skills now that we seem to be in the upturn.” P a g e | 12
“Adult learning seems to be a gap. Is there a mechanism for employees who want to grow in the industry?” “Develop greater professionalism in both the front and back of house.” “Identify growth pathways even if it is for a waiter to show them how they can move up the ladder by enhancing skills and moving to more and more upscale restaurants.” “We would like to develop a stronger partnership with College of the Desert.” P a g e | 13
Online Surveys Overview The online instrument was used to reach a broader and more widespread population given the vast geographic area to be covered. The online survey served as the primary resource for gathering information and feedback from businesses within the RHT sector. The survey was designed to capture data in three primary areas: Basic information about the respondent’s business Employee and workforce skills Employee training and certification The requested business information included business location (Inland Empire or Coachella Valley), size of the organization by number of employees and the percentage of full-time employees versus those that are part-time or seasonal. The employee and workforce skills survey elements explored the skills that were most desirable to the respondent’s business as well as those that were most often found lacking in applicants or new hires. Training questions in the survey sought to explore the types of training presently being offered by respondents, the methods used to deliver the training and the types of training that might be desirable if cost were not an issue. In conjunction with these questions, respondents were asked about their use of area community colleges as a training resource, awareness of RHT related community college programs and their awareness of employees who completed RHT type programs at any level (high school, community college or four year university). Employer utilization and openness to internships was also explored. Respondents were asked if they currently participate or were open to participating in an internship program and if so, in what areas internships might be developed. Tuition reimbursement programs were also investigated. Respondents were asked whether or not their organization offered a tuition reimbursement program. If a program existed, whether formally or informally, follow-up questions regarding the program were triggered to determine any qualifications that existed and to get an idea of the typical amount the business would spend annually to support an individual’s continuing education. As the final component of the training related questions, respondents were asked if it would be useful for new hire employees to have a certification relevant to their industry, and if so what the elements of that certification might include. P a g e | 14
Methodology RHT Industry survey participants were pursued via industry advisory councils, industry trade group organizations, destination marketing organizations, business improvement districts (BID) and through referrals by local community and business leaders. Survey links were sent out via the following organizations to 2,217 individuals. 1,100 were specifically sent to retail, hospitality and tourism businesses located within the Inland Empire and Coachella Valley. The remaining 1,117 were sent out to the membership of the Ontario Chamber of Commerce (OCC). Some of the OCC members who received the survey link as part of the Chamber’s newsletter would not fall into RHT categories. Responses from this outreach were reviewed to ensure the respondent businesses fell within the RHT sector. The survey links were sent on our behalf by the individual organizations due to proprietary information and email subscriber concerns, therefore statistics pertaining to the mailing deliverability are unavailable. Organization Members Contacted Riverside Downtown Partnership (BID) 50 Discover IE (Inland Empire Tourism Marketing) 100 Greater Palm Springs Convention & Visitors Bureau 696 Palm Springs Hospitality Association 206 Individual Invitations from Referrals 48 Ontario Chamber of Commerce 1,117 Total 2,217 Contacts on these lists reflect the wide diversity of business types encompassed under the umbrella of RHT; and include owners, executive management, HR directors and supervising managers. Responses from the following business types are represented in the online survey findings: Convention/Event Facilities Hotels & Resorts Vacation Rental Companies Restaurants (chain and owner operated) Private Transportation Destination Management Companies Attractions/Amusements Retailers (chain and owner operated) Golf Courses Arena/Sports Facilities Caterers Temporary Employee Agencies P a g e | 15
Winery Spas/Salons Museums Special Event Housing Agencies Responses were gathered in April, May and June, 2014. There were 109 total responses from the industry survey population. Findings Employer Information Employee Skills Training Finding: Employer Information Location 76.1% 23.9% Inland Empire Coachella Valley 76.1% of survey respondents were from the Coachella Valley Region and 23.9% were from the Inland Empire. Approximately 370 more survey invitations were sent within the Inland Empire than in the Coachella Valley; however, more respondents were located within the Coachella Valley. This difference in response is likely due to the fact that the Coachella Valley region is home to more long established RHT membership organizations with very active and engaged members. The Inland Empire, while larger and home to more RHT related businesses, lacks a single longstanding business organization specific to retail, hospitality and tourism. P a g e | 16
Type of Business Other (Please Specify) 12% Retail 20% Tourism 4% Transportation 3% Special Events 4% Event Venue 6% Restaurant 17% Activities/ Amusements 4% Catering 1% Hotel/ Resort 29% Survey responses came from businesses of many types; however, 70% came from RHT sector businesses in retail, lodging, restaurants and tourism, with the remaining 30% of respondents representing a of a wide range of business types including, spas/salons, transportation, catering, etc. Total Employees More than 100 24.8% 51-100 11.9% 26-50 22.9% 11-25 16.5% 1-10 23.9% Among survey respondents, more than a third reported more than 50 employees, with 24.8% reporting greater than 100 employees. 23.9% of those responding reported ten or fewer employees. P a g e | 17
% Year Round Employees (32 hours or more) 91% to 100% 21.1% 81% to 90% 10.1% 71% to 80% 10.1% 61% to 70% 10.1% 51% to 60% 9.2% 41% to 50% 9.2% 31% to 40% 4.6% 21% to 30% 5.5% 11% to 20% 11.0% 6% to 10% 1.8% 1% to 5% 7.3% Nearly 60% of respondents reported more than half of their employees are considered full-time (32 hours or more) and are employed year round. P a g e | 18
Finding: Employee Skills Most Desirable Skills for New Hires Other (Please Specify) 33.0% Hands on Experience 40.4% Ability to Communicate Effectively w/Client 73.4% Problem Solving 63.3% Advanced Computer (ex. proficient with word 14.7% processing/spreadsheet/presentation programs) Intermediate Computer (ex. able to use basic word 28.4% processing/spreadsheet programs) Basic Computer (ex. navigate windows) 41.3% Basic Writing 43.1% Basic Math 51.4% Language 47.7% Cash Management 38.5% Alcohol Handling (ex. ServSafe certification) 23.9% Food Handling (ex. Food Handling Card) 33.0% Soft Skills (ex. business etiquette, eye contact, assertiveness, 67.9% etc.) Customer Service 92.7% Among survey participants, the top five workforce skills desired by businesses are Customer Service, Ability to Communicate Effectively, Problem Solving, Soft Skills and Basic Math. P a g e | 19
Skills Lacking in Job Applicants Other (Please Specify) 23.9% Grooming 25.7% Problem Solving 42.2% Interviewing 22.0% Work Place Etiquette 37.6% Advanced Computer (Intermediate Skills plus Presentation and 11.9% other programs etc.) Intermediate Computer (ex. Word Processing/ Spreadsheet 15.6% capability) Basic Computer (Windows/Navigation) 14.7% Basic Math 20.2% Basic Writing 23.9% Time Management 32.1% Punctuality 34.9% Job Specific or Technical Skill (Please Specify) 10.1% Soft Skills (ex. business etiquette, eye contact, assertiveness, etc.) 51.4% Local Knowledge 22.9% Language (Multi-lingual) 16.5% Effective Communication Skills 62.4% Customer Service (Ensuring customer satisfaction) 45.0% Respondents found Effective Communication, Customer Service, Soft Skills, Problem Solving and Workplace Etiquette most often lacking, followed closely by Punctuality. P a g e | 20
Finding: Training Training Most Often Provided by Employers Other (Please Specify) 15.6% Brand 46.8% Problem Solving 35.8% Conflict Resolution 23.9% Department Specific Training (Please Specify) 44.0% Harassment Training 49.5% Company Policies & Procedures 70.6% Alcohol Service 24.8% Food Handling 32.1% Cash Handling 32.1% Computer 33.0% Safety 55.1% Customer Service 77.1% Businesses reported that they most often train employees on Customer Service, Company Policies/Procedures, Safety, the Brand and Harassment. Typical Training Methods Other (Please Specify) 11.9% Vendor Provided Training 29.4% In-House Training 70.6% Contracted Training 12.8% Online Training 38.5% On the Job Training 90.8% On the job training (OJT) was cited by 90.8% of respondents as a primary method of delivering training to new employees. The next most popular training method was in-house as reported by 70.6% of the businesses, followed by online training and vendor supplied training at 38.5% and 29.4% respectively. Those specifying “other” as one of their training methods provided insight P a g e | 21
into some other less conventional avenues for providing training. These included, educational sessions at trade conferences, insurance company provided safety training and You Tube videos. Respondents were also asked what kind of training they would like to provide employees if cost were not an obstacle. The responses covered a very wide range including career pathway, problem solving, safety, management/leadership and more. Two specific types of training were identified at a higher rate. Customer service training was identified by 25% of respondents as an area in which they would like to provide more employee training and 10% identified computer training. Only 5.5% Have Used a Community College for Their Training Needs 5.5% When asked if they had utilized community colleges for employee training, only 5.5% responded affirmatively. Those respondents utilized the college for training in Customer Service, Retail, English Communication and Landscaping. Finding: Awareness Awareness of RHT Programs Offered 66.1% 33.9% Yes No Awareness of RHT programs was somewhat better, with 34% of respondents stating that they had some awareness of the programs available at nearby community colleges. P a g e | 22
Employees Completing RHT Programs 37.6% 38.5% 23.9% Yes No Do not know 37.6% of respondents were aware of employees who had completed RHT type programs either at the community college, high school, or four year college level. Familiarity with Programs Completed by Employees Other 9.8% Retail 17.1% Hospitality 63.4% Business 65.9% Culinary 65.9% Respondents generally had high awareness of programs completed by employees in culinary, business and hospitality but were less aware of programs in retail and other areas. 65.9% reported familiarity with culinary programs, 63.4% with hospitality, 65.9% with general business and 17.1% stated that they were aware of employees who received training in retail. P a g e | 23
Finding: Interns Past Utlization of Interns Would You Use Interns in the Future? 38.2% 49.5% 50.5% 61.8% Yes No Yes No 49.5% of the responding businesses have in the past or currently work with interns and 61.8% indicated that they would be willing to use interns in the future. Areas Interns Could Be Utilized Other (Please Specify) 34.1% Graphics 20.5% Event Planning 29.6% Catering 19.3% Sales 36.4% Customer Service 53.4% Culinary 36.4% Marketing 47.7% Accounting 28.4% Job areas with positions most often available for interns include Marketing, Customer Service, Culinary, Sales and Event Planning P a g e | 24
Finding: Tuition Assistance 23.9% Offer Tuition Assistance 23.9% Only 23.9% of businesses surveyed offer some sort of tuition assistance, but those who did, did so at a relatively high level. 65% provide assistance of $750 or more per employee annually. Finding: Industry Credential 92.7% See Value in Industry Credential 92.7% An overwhelming 92.7% of respondents saw value in a credential related to their industry. P a g e | 25
Potential Elements of Indusry Credential Marketing, Business Professionalism, Computer Skill 1.0% (Powerpoint/Excel), Basic Math, Customer Service Marketing, Public Relations, Digital Marketing & Asset Usage/ 1.0% Customer Service/ Marketing Analysis/Writing/Photography… for the credential to include work experience in the field 1.0% Other (Please Specify) 30.7% Business Communication (ex. Email, Phone) 51.5% Business Ethics 52.5% Business Etiquette 63.4% General Business (how aspects of business inter-relate) 54.5% Basic Math 37.6% Basic Writing 33.7% Resume Writing/Job Application Completion 11.9% Life Skills 36.6% Interviewing 21.8% POS Operation 37.6% Advanced Computer (Intermediate Skills plus Presentation or 18.8% other Program Capabilities) Intermediate Computer (Word Processing, Spreadsheets, etc.) 26.7% Basic Computer 48.5% Customer Service 81.2% When asked what elements should be a part of the credential, responses varied widely. 81.2% of respondents stated that Customer Service should be included, followed by 63.4% for Business Etiquette, 54.5% for General Business, 52.5% for Business Ethics and 51.5% for Business Communication. P a g e | 26
Finding: Hiring Authority Hiring Manager/Authority Other (Please Explain) 7.4% Departmental Managers or HR recommend, but the 18.5% GM/Owner makes final decision Human Resources personnel 10.2% Departmental Managers 19.4% General Manager/Owner 44.4% When it comes to hiring, the General Manager/Owner is the person identified most often (44.4%) as the person with final hiring authority. Departmental Managers and Departmental Managers or Human Resources making a recommendation to the General Manager/Owner is mentioned nearly a third of the time. Human Resources personnel make the sole hiring decision 10.2% of the time. P a g e | 27
RHT Focus Groups Overview Two focus groups were conducted as a part of the study, one in the Coachella Valley and one in Riverside. This section summarizes the main findings of the focus groups in the following categories: Applicant Preparation Most Desirable Skills Basic Skills Familiarity with Education and Training Finding: Applicant Preparation to Enter the Workforce Overall, participants felt that the current applicant pool is not acceptable and is significantly weaker than those found in larger market areas (L.A./S.F.). There is a shortage of qualified labor looming as the economy gets stronger (return to churn and burn of employees as in last boom). The display of indifference by applicants when applying and beginning jobs is an issue. Participants cited attire, professionalism, grooming, attitude and overall presentation as an ongoing challenge when searching for good, qualified employees. Online applications are being required more frequently for all levels of employees, meaning that applicants will need to have some basic level of computer proficiency to even be considered for an open position. Along with the technical proficiency sufficient to complete an online application, applicants must be able to convey experience, professionalism and congeniality within the framework of the online application. A number of participants mentioned a decline in employees’ problem solving abilities in recent years. The instant accessibility of supervisors via mobile devices was mentioned as a tool that enables people to seek help without trying to think through issues independently. It is very mixed, but there is generally a sense that the more educated applicants present better. Participant Comments: Applicants do not show up for an interview displaying presentable appearance and manner. Spelling and completing a proper application are screening vehicles. As a result, many people are screened out before ever getting an interview. In addition, we request a resume prior to an interview, even for wait staff which gives an idea of person's ability to communicate, their professionalism, etc. P a g e | 28
Computer skills are needed to even adequately complete an application, which knocks a bunch of people out at the start. Hiring process involves computer literacy more and more. Certainly needed if an employee is to advance within organization. Our restaurant utilizes an online application. If you cannot master the application you never get the opportunity to be considered. We do at times find ourselves over compensating for shortcomings in some employees’ computer skills. (Cited example of older individual who is completely unable/averse to any computer usage, even POS terminal so other employees assist with things like to go orders.) My children in their early teens are more computer proficient than people I have interviewed in their 20's (and up), indicating that there is a gap where people already in the workforce are behind on computer skills. We work with applicants, particularly existing employees to assist them with online applications. There are terminals in the HR office and other staff members (front desk staff) will assist the team members in navigating the processes using these terminals. Gen X, Y and Millennial applicants find the online applications more attractive than using the traditional application methods (inferring that you are attracting more computer literate people at the beginning). Our experience has been different than the others. We have had good experiences with candidates. Applicants have arrived well groomed and with a good attitude. Perhaps because of size and perception of corporate brand expectations. Focus groups’ list of most desirable skills for new hires: Coachella Valley Focus Group Riverside Focus Group *Customer service/personality *Customer Service *Presentability (soft skills) *Etiquette *Basic math *Hospitality (Friendliness) Professionalism Basic English Computer skills Communication Flexibility Flexibility *Indicates most desired attributes for candidates identified from online survey. Finding: Basic Skills Focus group participants were also asked their views on applicant preparation in terms of non- technical or soft skills. These include skills such as oral and written communications, interpersonal skills and teamwork. P a g e | 29
Focus group participants generally agreed that the majority of current applicants are not presenting with the basic soft skills employers desire. In restaurants and retail, employees need to be adept at initiating and having a casual conversation with the customer. Further, employees need to demonstrate empathy and an understanding of the customers' needs and expectations, which should manifest into assistance for the customer. Friendliness, personality and positive attitude were universally stated as being desirable qualities for employees to possess. There is some question as to whether these qualities are innate to an individual's personality (they either have it or they don't), or if this is an expectation to which people can be taught. There is a desire for employees to understand "the bigger picture" so that they recognize the importance of their position, whatever the level. With the advent of social media and instant first-hand reviews, it is important for an employee to understand their impact on a business. By way of example, a server cannot have the mindset that they are "just a server", they must understand their impact on the business externally and internally. Participant Comments: We just recently had to go through a hiring process and saw 750 applicants to hire for 75 positions. 50% of the applicants did not even get an interview based on the lack of a professional appearance and their poor demeanor upon arrival. Specific areas lacking: o Professional attire o Overall presentability o Manners o No shows to interview o Late to interview o Courtesy or rudeness First impressions are important, with a direct effect on upselling and return visits. Business communication skills are missing...people often write the way they text using text abbreviations in business emails (ex. LOL). Soft skills are generally lacking in the applicant pool. Public speaking skills are weak; applicants are not able to speak to a group. It is important for businesses to provide good service and be unique to attract customers to downtown. If employees are not helpful and attentive to customers they will simply not return. Basic Skills Certificate: o Extremely interested. Saves us time; if people who apply have to have that, it would save us time [in screening new hires] o The more you have on your resume the better. It indicates initiative. Seeing more and more resumes with little or nothing on them. o As long as businesses are involved in creating a certificate program that is relevant and addressed the basics we think are a priority, such a program could have great value for us in the real world. o A great time saver for us. P a g e | 30
o That could help address the lack of basics we see in our current applicant pool. Finding: Education and Training Focus groups were asked about their current education and training programs and resources. There was limited perception of community colleges as a resource. Larger businesses/properties talked about access to internal resources or corporate packaged training programs that they believe meet their current needs for the majority of job classifications. Examples: Skill Certification - four times the first month, then monthly thereafter Moment of Service Training - designed to create consistency of responses to guests requests/issues across the organization Engagement - Reading cues...being able to identify who may need or desire assistance Finance 101 for supervisors conducted by finance department How to have difficult conversations with employees Rosetta Stone reimbursement Cross training Smaller businesses/locally managed properties shared specific examples of successful locally produced/grounded training successes, but expressed frustration with a lack of uniform, consistent, affordable quality training programs to meet their needs for basic skills training. Examples: Show me Palm Springs trade show produced by Palm Springs Hospitality Association. Last year 480 hourly employees went through this trade show which featured attractions from across the valley. The show was formed eight years ago following a comment overheard by the Mayor where a restaurant server was asked by a visitor what there was to do in Palm Springs and the server replied that there was nothing to do here and the customer should have gone to Las Vegas. Field trips taking staff to local farms to improve their product knowledge regarding the source, production, value proposition of locally produced food they are serving. Time and cost will continue to be an issue for a business attempting to get employees trained. For this reason, one or two day sessions focused on specific skills are preferable to longer term training such as traditional classroom work taking weeks or months to complete. Participants were interested in “one and done” workshops for basic skills training/certificates. P a g e | 31
There is also interest and desire (in CV) to engage with education to insure a local pipeline of employees prepared to enter the workforce. One possible strategy is to make students more aware of career pathways earlier so that they don't feel that they must leave the area to be successful. Participants pointed to the potential for creation of a basic certificate in which the industry had a role in development and which would signify some uniform basic knowledge and preparation on which the employer could rely. Participants also consistently stated that trained sales people are difficult to find. Participant Comments: General Smaller employers generally provide none or very little training, particularly in the area of customer service. Restaurants often don't know how to train people. Because of their size smaller employers tend to do less training and have fewer resources for training. We cannot wait for someone to complete month(s) long certificates or degrees. It would be helpful if community colleges could offer one or two day (one and done) workshops that could get employees "up to speed”. There is no place to go for this right now...no "Customer Service 101". If someone is working in a kitchen, they have a chef or other people to help get them trained on specific job skills, but generally this does not exist for front of house customer service employees (retail sales, restaurant host/hostess, etc.). Fred Pryor and other such "for profit" courses exist, but that is not what we are looking for. (It was noted that there is an affiliation with a local culinary academy.) We do our own training, brand related. Our hotel/property is larger, smaller places don't seem to do the consistent training (ex. hostess ignoring guests when they arrive at a restaurant). We can train on specific job skills (e.g. how to clean a room), but attitude comes naturally. We have observed problems when promoting people, particularly into admin positions. We find that they have no ability to write a professional email and end up terminating. We have someone who could come in and do training. Hawaii experienced a problem with finding qualified people and developed a very broad training program to develop employees' soft skills. People need to understand the expectations of customers and guests. It is very likely that the people we are hiring as employees in a hotel have never actually stayed in a hotel so they don't have a sense of what a guest expects. Yes, I have spoken with RCC offline about some sort of liaison between the convention center and RCC, so I support some connection. Our big trade organizations (ex. International Assoc. of Venue Managers) offer industry specific training, but it is more oriented to advancing managers and executives already in the business; it is not really looking at the pipeline to bring in entry level employees. P a g e | 32
Traditional education doesn't always work. It is harder to teach the soft skills than a mechanical skill. You have to possess the quality or desire for hospitality in these businesses. Friendliness is not really something you teach. You can train toward expectations. Education needs to morph to match needs of the culture and the industry. Training needs to include real world demands of the job. Came here from SF where there was a much better pipeline. It is smaller here and the seasonality has an impact. We've been in a down cycle and now have to figure out how to deal going forward. Sales o Soft skills training would be transferrable across many different industries, not just hospitality. o We just hired a sales person and it was one of the hardest positions to fill. We could not find anyone locally with the desired skills and ended up hiring from LA. o Sales is changing. People are making connections through Linkedin, Facebook, Instagram, etc. Sales people will need to understand and be adept at using these avenues to make connections to potential customers. Internships o Internships need to be a structured program with a quantifiable result. The colleges have to put together the program for businesses to plug in to. o Social media class. Interns were screened by professors and matched up to businesses for eight or 16 weeks. o Would love to have interns in the right kind of program, I completed internships myself; they were a part of the coursework. o The programs need to absorb the legal liabilities and protect business from risk. Finding: Familiarity with Existing Players and Programs There was a distinct lack of awareness regarding community college RHT programs and training options, with a small number of notable exceptions i.e. culinary graduates. Only 33.9% of study participants had any familiarity with RHT programs offered by local community colleges and only 5.5% had used community colleges as a training resource for employees. While there were varying levels of awareness of the career pathway framework for RHT, focus group participants uniformly had little awareness of, and no connection to, the community college system. Only one or two could name a faculty member or contact for a local community college academic, advisory or training program. However, several participants did mention Cal Poly as a resource with which they were familiar. Clearly, stronger outreach to business from community colleges is needed and desired by business. This represents an enormous opportunity to develop working relationships with which to address the education and training needs of a critically important local industry sector. P a g e | 33
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