This is an important lesson for the hospitality industry as we recover from the last few challenging years. Resiliency involves building flexibility into our foundations. For our business – the people business – this means developing our ability to serve and connect people from all backgrounds and cultures. We need to sway a bit and understand where our employees and guests are coming from and what they need.
Some might disagree and say that this is a time when our industry needs to focus on "fundamentals." They will tell you we can't afford "nice-to-haves," and "I don't have time for this. I have work to do!"
But I'm here to tell you, now is exactly the time to invest in Diversity, Equity and Inclusion (DEI). Or what I call Cultural Intelligence. I resist the notion that a commitment to Cultural Intelligence is a "nice to have." Our employees and guests have had two years for deep reflection. They are making decisions based on personal values and where they feel welcomed and most comfortable. They are not putting up with employers who have not invested in DEI and improved their cultural intelligence.
According to recent research by PwC Global, a sense of "high belonging" translates into a 50 percent drop in turnover and a 75 percent reduction in sick days. The same report cites 86 percent of millennial females and 74 percent of millennial males closely review a company's DEI policy before agreeing to an interview or accepting a job offer.
Meanwhile, McKinsey researchers found such a shift in customer habits that they titled a report of their findings "The Rise of the Inclusive Consumer. " They found that two out of three Americans say their social values shape their shopping choices.
These potential employees and guests can tell who gets it and who doesn't. If we don't get it, we lose them. Cultural Intelligence is now a core competency.
So How Do We Build Cultural Intelligence?
On an individual level, the first step is to listen with the intent not to respond, but to understand. We must hear what people are telling us about how they want to be treated. Example: When we ask our people how they endured COVID, let's take the time to hear what they say. Did they lose a loved one? Did they nurse a partner back to health? Did they get sick?
Understanding their perspectives can help every interaction going forward, whether it's being sensitive to their grieving process or anticipating how to handle an interaction with a guest who wants to engage them in a vaccination debate. Authentic inclusivity starts at the top. Leaders set the right tone when they demonstrate an honest commitment to listening and learning.
This is only one small example. Every conversation that starts with real listening will elicit dozens more insights and even more opportunities to create an inclusive workplace.
I want to be clear. Having more Cultural Intelligence doesn't mean we have to always agree. It means being mindful of perspectives. The more we can gain an understanding of those around us, the more flexible – and resilient – we can be.
On an organizational level, the first step is to understand that policies and procedures don't mean much in and of themselves. They need some teeth.
My organization, the Multicultural Foodservice & Hospitality Alliance (MFHA), this year partnered with the National Restaurant Association, the National Restaurant Association Education Foundation and Cornell School of Hotel Administration to measure the effectiveness of DEI practices in the restaurant industry. Almost all – 98 percent – of the businesses surveyed had codified diversity policies and procedures. Whether these policies had a positive impact, however, is not so clear.
Of the 2,000 current employees in the restaurant industry surveyed, only 62 percent said the DEI policies in their workplaces had a positive impact. Among the former employees surveyed, that percentage fell to 40 percent.
One takeaway? There is a gap between a company's perceptions about its DEI effectiveness and its employees' actual experiences. Companies need to work harder to make their DEI policies effective and engage their employees in the effort.
This would be true in any context, but in today's tight labor market, it's urgent. The survey also found that job satisfaction improves when employees feel they are respected.
The same coalition that conducted the survey has developed a framework and toolkit for creating more effective DEI policies and programs called "ELEVATE: Menu for Change."
Now, let's talk about the future. Recruitment is a major part of building resilience because it directly affects our employees, managers, and leaders of tomorrow. If we want those future ranks to better reflect the communities where we work and where our employees and guests live, the hard work starts now.
I'm a graduate of Johnson & Wales University, one of the major talent pipelines to our industry. It, and a handful of other big schools, create a streamlined system many of us don't think too much about. It's time to think about how we can cast a wider net.
Here, goals are not enough. If we are committed to creating a broader, more diverse and diversely-talented staff, we need to go out and get it. That means we reach into the communities we want to engage and build relationships with community organizations. We don't just show up and ask for their best and brightest. You don't get too far knocking on someone's door and making demands. We have to knock, be gracious about being invited in, ask questions and listen. And, we need to think about what we can offer these communities to make the relationship worthwhile.
Do they need more internship opportunities? More training? More mentors? We can carve new paths between these communities and our organizations.
This won't be easy, but we have to keep going back. Showing up to one Urban League banquet a year is not good enough. Join boards, speak at events, host gatherings, do the work.
Taking this a step further, diversity in leadership and ownership is a great way to show, not tell the industry's commitment. This is close to my heart because I have been working to encourage minority ownership in the restaurant industry for many years. Currently, only 9 percent of restaurants are owned by Black Americans, even though they comprise a large proportion of the food industry's workforce. (Note: I write Black, not African-Americans, because not all Black Americans are of African descent. A point for Cultural Intelligence.)
MFHA, with an investment from PepsiCo, created a program called Pathways to recruit and prepare aspiring Black entrepreneurs to take on franchise ownership. Denny's, Smoothie King, and Noodles & Company have joined as partners.
The hotel industry could take on similar initiatives to diversify property ownership. Not only does this expand the talent pool and bring fresh perspectives to leadership, but it also helps underserved communities realize opportunities to create generational wealth. What better way to demonstrate the kind of authentic commitment that employees and customers notice?
Remember that McKinsey report I mentioned above, "The Rise of the Inclusive Consumer?" In it, researchers report that 45 percent of Americans want retailers to actively support Black-owned businesses.
This is good evidence for why I like to say, diversity isn't just about Black and white. It's mostly about green.
Rebuilding after the blows we've taken these past two years is not going to be easy. Neither is rebuilding in a more inclusive, flexible, sustainable way. But we are hospitality people. We are used to tough jobs and hard-to-deliver requests. We can do this. Our industry will be better for it, and our people will be better for it.
By Gerald Fernandez, Sr. President & Founder, Multicultural Foodservice & Hospitality Alliance
