Talent Disruption: People Are The Brands

Talent Disruption

Talent Disruption

People Are The Brands

Alexander Mirza

Talent Disruption: People Are The Brands

Copyright © Business Expert Press, LLC, 2024

Cover design by Ana Maria Galindo

Interior design by Exeter Premedia Services Private Ltd., Chennai, India

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means—electronic, mechanical, photocopy, recording, or any other except for brief quotations, not to exceed 400 words, without the prior permission of the publisher.

First published in 2023 by

Business Expert Press, LLC

222 East 46th Street, New York, NY 10017

www.businessexpertpress.com

ISBN-13: 978-1-63742-534-3 (hardcover)

ISBN-13: 978-1-63742-532-9 (paperback)

ISBN-13: 978-1-63742-533-6 (e-book)

Business Expert Press Tourism and Hospitality Management Collection

First edition: 2023

10 9 8 7 6 5 4 3 2 1

For my grandfather, a classic Gandhian, a Commonwealth multiculturalist, and an advocate of teaching for those who can do. And for my wife, an old-stock Canadian, whose talent is only equaled by her work ethic and whose unconditional backing of this endeavor made it imaginable.

Description

This book proposes a solution to the human capital challenges faced  by service industries amidst unprecedented labor shortages and  technological and geopolitical shifts. It offers a framework for diagnosing the root causes of talent disruption.

Talent Disruption provides a detailed roadmap and tools for building a talent engine powered by AI, big data, and analytics. The results are a growing talent pipeline, greater productivity, and higher profit margins.

Keywords

talent disruption; labor shortage; employee ownership; hotel labor crisis; workforce management; internal talent marketplace; hospitality management

About the Cover

The cover page illustrates a disruption in the talent market, where individual talents have become the most valuable brands or hubs in a global marketplace. These elite talents are ranked dynamically by an algorithm that assigns them a value or worth based on their performance. Talents are connected to each other, and their peer reviews and reputations can expand their professional networks.

In this marketplace, talents have more control over their careers and can either choose to work for a single employer or build their own brand as freelancers for multiple employers. Their value is determined by their performance, reputation, and connections in the talent marketplace.

The Artificial intelligence (AI) arms race impacts the talent markets. Talents are connected to each other through either solid lines, indicating open digital platforms between their civilizations, or dotted lines, indicating a digital wall separating their civilizations. In the coming years, the digital war between civilizations may eliminate lines altogether, bifurcating talents even within an organization.

Contents

Testimonials

Talent Is the #1 Issue Facing Hotel CEOs

Preface

Foreword

Acknowledgments

Chapter 1 Introduction: Global Talent Disruption

Chapter 2 The Brutal Facts: Rebuilding the Service Profit Chain

Chapter 3 Asset Right: Building Human Capital in an Era of High Finance

Chapter 4 Talent Valuation: Bringing Moneyball to Hospitality

Chapter 5 People First: Establishing a Culture of Ownership

Chapter 6 A New Talent Engine: Leveraging AI to Scale Human Capital

Chapter 7 Cross-Cultural Advantage: Rescuing Globalization

Chapter 8 Final Thoughts: Hospitality’s Great Reset

Appendix I

Appendix II

Appendix III

Appendix IV

Notes

References

About the Author

Index

Workers are the Treasure of a Factory. They are important to me.

—Sakichi Toyoda, founder of Toyota Industries

Testimonials

"Alex Mirza’s research provides compelling insights for what hospitality stakeholders must do to build human capital and achieve a higher purpose in these extraordinary times. Talent Disruption is not just recommended reading, it is required."—Geoff Ballotti, President and CEO, Wyndham Hotels & Resorts; and recipient of the Arne Sorenson Social Impact Leadership Award

As large language models automate away busy work, building human capital is a monumental issue facing the healthcare industry. Alex Mirza’s book provides a marvelous pragmatic road map to meritocracy, innovation and pay for performance in any service industry. A must read!—Jonathan Bush, CEO, Zus Health; and cofounder CEO, Athena Healthcare

My management colleagues and I understood thoroughly the first order differences in performance associated with variation across talent among property leaders, and the financial consequences of these differences. Likewise, we could measure the often tenfold difference in both productivity and service quality across talent among front line employees. The problem was what to do about it, at scale. In Mirza’s path-breaking examination of how to create a data-driven marketplace for talent in the hospitality industry, he shows how to use emergent computational tools to build individualized profiles of talent at both ends of the hierarchy—from top management to front line—and allow the resultant transparency to lead to (1) better matching of talent to opportunity, and (2) stronger competition for improved performance among all stakeholders in the industry. One of the most encouraging results of this work is the opportunity for high performers, the Moguls, to receive the superior rewards that their talents richly deserve.—Gary Loveman, Chairman and CEO, Well; former Chairman and CEO, Caesars Entertainment; and part owner, Boston Celtics

"There is a huge need to update our traditional HR logic in the face of the dramatic changes that have befallen the hospitality industry. With Talent Disruption, Alex Mirza has taken that step and advanced our understanding of how to use the new technology tools to address the considerable talent issues facing service firms. This is an absolute must read!"—Leonard A. Schlesinger, Baker Foundation Professor, Harvard Business School; and coauthor of landmark bestseller The Service Profit Chain

"With the world in flux and the hospitality industry at a crisis point, we are currently at the precipice of a new era of AI-driven upheaval and post-pandemic paranoia. Alex Mirza gives us a clear and concise road map to navigate these rough waters, with insights on how to harness the technological tools in our marketplace and to filter and analyze the vast amounts of data at our fingertips. Talent Disruption is a must read for anyone who is interested in maximizing and optimizing talent development."—Wilburt Chang, Chairman and CEO, Greater China Hospitality

Provocative! Alex has done a masterful job of assembling data to help drive better decisions around human capital and rightly challenges old ways of thinking about talent. Whether you agree with all his conclusions or not, it is not debatable that employees must always be a top priority. Otherwise, your organization will struggle and never realize its full potential.—Beverly K. Carmichael, independent board member and former Chief People Officer, Southwest Airlines, Ticketmaster, and Cracker Barrel Old Country Store

Our industry faces a foundational challenge in rethinking traditional business models to rebuild our talent pipeline and, once again, become an employer of choice. As one of hospitality’s most innovative thought leaders, Alex’s work comes at a pivotal time, providing much-needed, research-based answers to the most critical questions facing today’s travel and tourism executives. —Adam Burke, CEO, LA Tourism Council & Convention Board

"All of us in the hospitality industry know we are facing a crisis in recruiting and retention. Talent Disruption goes beyond diagnosing the problem and charts a path forward using data- and AI-driven strategies to revolutionize human capital. Alex brings a fresh approach to solving talent discovery and empowerment in the service sector. A highly recommended read." —Harry Gross, real-estate developer and Chairman, G. Holdings LLC

"If you are a CEO feverishly looking for Artificial Intelligence insights to revolutionize your business, look no further. Talent Disruption equally educates and empowers you to embrace the change emerging within talent broadly and hospitality specifically. Decoding the intangible power of the immigrant experience is the byproduct of this fascinating journey led by Alex Mirza." —Alex Dixon, CEO, nonprofit Q Casino; and former President and COO, MGM Circus Circus

Speaks to the alarming labor challenge confronting the hospitality industry and the imperative to change the model and innovate for how labor is engaged and retained within the sector.—Douglas Tutt, CEO, HCareers, leading U.S. hospitality, senior living, and gig economy employment site

Alexander Mirza does what leaders do. He sees what is unseen, and in this book issues a rallying cry to accelerate the value of hospitality’s main driver, the people who power it.—Thomas Magnuson, CEO, Magnuson Hotels Worldwide

"Talent Disruption sheds light on an undeniable truth: hospitality is losing ground in the talent marketplace. Through in-depth research, Alex Mirza provides an applicable and disruptive roadmap for building a talent-centric culture that can drive innovation, growth, and competitive advantage in the industry."—Joe Rice, Managing Partner, JDI (JDI is twice ranked by Forbes as one of the Best Executive Recruiting Firms in America)

"While Talent Disruption focuses on the disconnects between talent management, compensation and value creation in the hotel industry, the insights are equally applicable to the restaurant and retail industries. As Mirza creatively and powerfully illustrates, talent is a highly leverageable and brandable differentiator, and companies should design compensation systems and marketing programs to fully leverage that power and value."—Rick Vanzura, CEO, Freight Farms; and former CEO, Wahlburgers and Panera Bread

Few people could do what Alex Mirza has done—written a book on Talent Management and Disruption that combines both hard data analysis with proven managerial insight. Building on his decades of experience and proven leadership in the hospitality industry, he has produced a rigorous and accessible book that should be required reading for anyone hoping to grapple with the modern talent management challenges this industry faces. —David Detomasi, Associate Professor, Smith School of Business, Queen’s University, Kingston, Ontario, Canada

"Talent Disruption by Alex Mirza is a game-changing exploration of the evolving service industry landscape. With its cutting-edge insights on AI-driven HR solutions and employee empowerment, this book paves the way for a revolutionary approach to talent management. Discover your blueprint for success in this indispensable read."—Anita Gupta, Forbes 50 Over 50 Entrepreneur; Founder, KiwiTech

"In Talent Disruption, Alexander Mirza has dedicated some powerful research into the biggest concerns impacting global hotel operations today, with 85% of hotels currently understaffed in the USA alone, and others grappling to hold onto their employees. He identifies various new ‘disruptors’ such as Big Tech, that have evolved over the past decade which not only impact human resources in the traditional sense but the entire outlook on how you operate your hotel. It provides a very concerning outlook on the future of human capital, a strong focus on the value of cultural diversity and women in leadership roles. Including some very plausible solutions this book could well be a foundation upon which to start Hospitality’s Great Reset. Don’t rush through this, it’s well worth the read, and should be on every hotelier’s desktop."—Benedict Cummins, Publisher, HotelExecutive

"It is not every day one comes across a book that manages to marry innovative and profound insights into the current state and future prospects of the global hospitality industry with a stimulating and creative discussion of recent debates in international relations theory. Yet this is exactly what author Alex Mirza has accomplished in his fascinating new study into the challenges facing the industry in an era increasingly being labeled by some scholars as one of ‘de-globalization.’ Mirza wisely cautions that while it would be premature to write off globalization, recent changes in the international arena brought on by pandemics and the return of great-power rivalry do require new thinking if executives are to adapt successfully in harvesting the full potential of their greatest productive asset, their talent pool."—David G. Haglund, Professor of Political Studies, Queen’s University, Canada

Talent Is the #1 Issue Facing Hotel CEOs

People do not view this as the easiest place to work, the best place to work necessarily. It was an issue before we came into this pandemic. We had a million unemployed coming into this pandemic. We fell to 4 million unemployed. It’s been improving, but it’s still our biggest issue.—Geoff Ballotti, CEO, Wyndham Hotels & Resorts

The labor crisis is the number one issue facing the industry.—Chris Nassetta, CEO, Hilton Worldwide

People always feel like you’re going to abandon them in a crisis and there’s no safety net.—David Kong, Founder and Principal, DEI Advisor

To encourage people to return to the industry, we’ve got some heavy lifting to do.—Anthony Capuano, CEO, Mariott International

Hyatt is committed to doubling Hyatt’s Black representation in the next five years, period, end of story.—Mark Hoplamazian, CEO, Hyatt Hotels Corp

We’re all seeing our customer satisfaction scores in this industry, across the board, go down fundamentally, we just don’t have enough people in the workforce.—Keith Barr, CEO, InterContinental Hotels Group

We did what we shouldn’t have done and went right back or are trying to go right back to how we did business before the pandemic when the customer has changed.—Ted Darnall, CEO, HEI Hotels & Resorts

Preface

Lifelong Benefits of Working on the Front Line

As a double immigrant who worked his way through high school and university, I am a big believer in the lifelong benefits of working on the front line. My first job was in frontline customer service at age 16 for Canada’s largest sports store chain, Collegiate Sports (now Sport Chek), in a flagship mall in Toronto. I started as a salesclerk selling shoes, retail apparel, ski equipment, and stringing tennis racquets.

As a student athlete, I was fortunate to work in a large sports department store situated in a multicultural city and to serve all kinds of people across various ages and income groups. Our customers ranged from consummate old-stock Canadian athletes, who were fanatical about every detail when ordering custom equipment, to wide-eyed gullible immigrants whose children were seeking to learn a new sport like ice hockey or snowboarding. It was a fast-paced atmosphere with dense traffic in the evenings and buzzing with energy on the weekends like a casino hotel on the Las Vegas strip.

It was also a very demanding job because it required being on your feet for eight hours per shift and being constantly switched on to anticipate customer needs. Employees engaged in their first frontline customer service role developed emotional intelligence through hundreds of daily interactions with customers. Over time, I learned how to read customers’ nonverbal facial expressions and body language, which varied widely by their ethnicities, stage of life, and other factors.

The job required meticulous knowledge of every major sporting activity, current and incoming inventory, and prices for disparate product lines and brands while also including labor-intensive tasks such as tagging the products, stocking the shelves, and cleaning the store after hours. Determining the best allocation of shelf space was a key decision. There were no smart technologies such as sensors, cameras, big data, and analytics used by retailers today to manage inventories and shelf space. Hence arranging the optimal product assortment on the floor to generate traffic was an essential part of the job that required teamwork and an entrepreneurial mindset of experimentation through trial and error.

The store manager was a flamboyant French-Canadian named Guy who was a die-hard Montreal Canadiens fan with a profound sense of humor. Typical of 1980s’ Toronto, the staff was composed of up-and-comers, including many Asian, European, and Caribbean immigrants. Guy was great at motivating staff, casting people in the right departments, creating internal sales contests, and holding us accountable. He  had a keen eye for talent and was adept at identifying and investing in adaptive learners who could conquer a multifaceted department such as ski equipment or hockey skates by efficiently conveying product knowledge to outsell others.

Guy’s greatest skill was building an informal talent marketplace to grow the business in one of the world’s most diverse cities. He understood that a high-performing diverse team of employees who felt like the store was their own business would not just generate loyal customers but grow the sports retail business by engaging new communities. Under his leadership, the store became an incredibly diverse meritocracy of over 500 full-time and part-time employees: Caribbean kids rose from selling track shoes to managing winter sports and Asian women ascended from selling apparel to assistant manager roles overseeing budgets and purchasing. I remember training a Jamaican immigrant, who happened to be the best sprinter in Toronto, how to string tennis racquets at optimal tensions depending on the player’s style,