Industry spotlight.

Michael C. Sturman and J. Bruce Tracey, Associate Professors

Cornell University School of Hotel Administration 

Ithaca, NY

TO THOSE WHO MAKE THEIR LIVING IN the hospitality industry, it comes as no surprise that for all of the beauty we strive to present to our customers, there can be certain ugly facets of the business. In the day-to-day, employees and proprietors are subject to a variety of stresses on their mental and physical well-being. In an attempt to quantify these stresses and offer some advice to employers, Art Culinaire conducted a Q & A with two faculty members from the Cornell University School of Hotel Administration, in the department of Organizational Management, Communication and Law.

Associate Professor Michael Sturman teaches undergraduate, graduate and executive education courses on human resources management, and is the editor of the Cornell Hotel and Restaurant Administration Quarterly. The scope of his current research includes the impact of human resources management on organizational performance. Associate Professor J. Bruce Tracey also teaches human resources management courses, and focuses his research on training, leadership, employment law and turnover costs. He has consulted for numerous multinational corporations, including Four Seasons Hotels and Marriott International.

AC: In your opinion, what are some of the most common stresses faced by workers in the hospitality industry? What is it about the hospitality industry that lends itself to a stressful workplace environment?

MS: Work conditions can be rough. Employees often have to work long hours, often late at night or very early in the morning. Much of the work requires employees to be constantly on their feet. Customer interactions can be stressful, as employees may be verbally abused for service problems that were none of their doing and completely out of their control. Beyond that, pay in the hospitality industry is lower than in many other industries. The lack of pay can be a source of stress, creates more turnover, and the higher turnover can also cause stress for remaining employees who have to take up the slack. Work arrangements in the industry can also be quite variable, and research shows that working both more than 40 hours a week, and also not getting 40 hours a week when it is desired, can cause job stress. Employees may also have problems maintaining a work and family balance. The working hours make child care difficult to arrange. Many employees are single mothers, and the low pay doesn't make child care arrangements any easier. Plus, very few hotels and restaurants provide day care service benefits.

What makes this all particularly difficult to handle is that the diversity of employees in the hospitality industry means that they will be affected in different ways. Some employees may be particularly sensitive to required overtime. Others will be particularly stressed by confrontations with angry customers, or may be strongly affected by work conditions. Some employees are just taking a temporary job until something better comes along. Others are committed to the industry or the company for the long haul--you just don't know.

AC: To what extent are employers obligated, legally or ethically, to provide support for employees who are showing marked signs of job-related stress? What form can, or does, this support take?

JBT: Of course, employers are obligated to comply with all relevant employment laws and regulations on the federal, state and local levels. But it's important to go beyond compliance and consider the broader implications of maintaining a positive work climate. Efforts taken to promote a positive work climate can pay extraordinary dividends.

MS: Most employers are under no obligation to provide assistance to employees with various sorts of problems. The main exception would be employers covered by the Drug-Free Workplace Act of 1988, which applies to companies holding federal contracts worth at least $25,000 or grants in any amount. It requires covered employers to promote a drug-free workplace, and many comply with this law by providing Employee Assistance Programs, although it may not be always necessary.

AC: Have there been any studies to support the theory that preventative measures like drug and alcohol education, organized recreation or mental health coverage in benefits packages are more cost-effective for businesses than either ignoring the problem or waiting until a crisis develops?

JBT: There does exist some empirical evidence that lends support for some types of employee welfare programs, and I've seen government statistics, for example General Accounting Office reports, that support the effectiveness of some of these programs.

MS: Employee Assistance Programs (EAPs) are not required, but there is some indication that they can be valuable to both employers and employees. The Bureau of National Affairs estimated that, at any given time, 10 to 15% of employees are experiencing difficulties that interfere with their job performance. You consider this point with the finding of another study that showed that users of EAPs found resolutions to their problems 78% of the time, you have the potential for some real mutual benefit here.

Of course, cost matters, but the cost of EAPs is not unreasonable, being roughly $30 to $40 per employee. I'm not aware of any large-scale studies investigating their effectiveness and financial return. However, there is anecdotal evidence that EAPs create savings from reduced employee turnover, lower absenteeism, reduced medical costs, lower unemployment insurance rates, lower workers' compensation rates, lower accident costs and lower disability insurance costs. I really do think that more research is necessary on the effectiveness of EAPs, but the data to date, in my view, suggests that it might be a good investment.

AC: What if any protection does an employee found to be abusing substances have under the law? In other words, is an employer at risk of being sued if he fires an employee who has been found to be abusing substances?

JBT: Some issues are clear. Alcoholics are covered under the Americans with Disabilities Act (ADA), and therefore protected. Current and former drug users are not. No matter the substance in question, it is perfectly acceptable and legal for employers to base firing decisions on an employee's violation of a "zero tolerance" policy.

MS: If an employee arrives at work drunk or under the influence of drugs, fire that employee. The key is that you need to be consistent and act immediately. You cannot fire an employee because he or she is an alcoholic. The difference here is that the ADA protects employees from discrimination based on a medical condition; it does not protect employees from being fired for unacceptable performance. So, if you see an employee show up for work drunk, you can fire that employee for that specific reason: being drunk at work. Don't find out why the employee is drunk; don't investigate to see if he or she is an alcoholic. You need to have clear performance standards (i.e., that coming to work under the influence of alcohol or drugs will result in immediate termination) and you need to implement those standards immediately and consistently. Once you start trying to find out why an employee is drunk, or if you let some employees go home and sleep it off and other employees you fire, then you really start opening up yourself to liability.

AC: What are some of the most common measures that an employer can take to prevent employee burnout, attrition, and/or substance abuse?

JBT: Hire the best, train them well and pay them 10% more than you think you can. There are several benefits to using rigorous staffing procedures, testing and assessment procedures, and customized training programs. Well-trained employees will take less time to "get up to speed" on a task, will be more motivated and there will be lower levels of both short and long-term attrition. An employer should emphasize the importance of both technical and interpersonal skills in an employee, and should figure out ways to keep an "ear to the ground", to have a sense of their employees' overall satisfaction and commitment to the job. Happy employees can reduce costs, because they make fewer service errors and can increase customer satisfaction, which creates a loyal customer base, which in turn drives revenue growth.

MS: They key to preventing job burnout, in my view, is making the job enjoyable. This doesn't necessarily mean "fun." I'm not a fan of parties, cheering sessions, etcetera. I do think that everyone needs a job with an appropriate amount of challenge, variety and authority. Giving employees discretion about how to do their jobs goes a long way. A team of house-keepers who has worked for a hotel for years may have a much better idea of how to schedule room cleaning than a newly-hired manager. Not only will seeking the housekeepers' input help them be more productive, but the ability to organize their tasks will make the job more interesting and fulfilling. Front desk employees often don't have the authority to resolve a customer's complaint, although they will often bear the brunt of the anger of an unhappy customer. Ritz-Carlton has given its employees the authority to resolve complaints up to a certain budget. Not only has this given the hotel company better customer service, but it enhances the employees' jobs and ultimately helps reduce burnout and attrition.

For preventing substance abuse, that's hard to say. EAPs are designed to help solve problems, not prevent them. The immediate benefit of an EAP is that it can help resolve a situation that is potentially interfering with the employee's performance, much more so than trying to prevent a drug or alcohol problem. My advice would be to provide EAPs to help employees experiencing problems, and the benefit from that alone should outweigh the costs. Also, provide more job enrichment. The benefit to the company can be substantial, and the additional job stress and mental health benefits are a bonus.

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For more information about work-related stress, health issues employment law and substance abuse, contact your local or state employment office, or one of the following organizations:

OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION: Sets and enforces standards for workplace safety; provides training, outreach and education for employers and employees; provides guidelines for filing complaints; enumerates worker rights and responsibilities. The OSHA website, www.osha.gov, has special sections on workplace substance abuse and restaurant safety for teen workers. Occupational Safety and Health Administration, Frances Perkins Bldg., 200 Constitution Ave. NW, Washington DC 20210; [phone].

RESTAURANT OPPORTUNITIES CENTER OF NEW YORK: Provides job training, life skills seminars and political education sessions for workers in the hospitality industry. Authored, in conjunction with the New York City Restaurant Industry Coalition, Behind the Kitchen Door, an analysis of the industry (downloadable from the website) as it affects the lives of employees. ROCNY also plans to open a cooperative, worker-owned restaurant in lower Manhattan. ROCNY was originally formed to aid those who lost family members or jobs because of the terrorist attacks of September 11, 2001, which destroyed several food service outlets within and surrounding the World Trade Center. www.rocny.org 99 Hudson St. New York NY 10013; [phone].

SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES ADMINISTRATION--DIVISION OF WORKPLACE PROGRAMS: Provides information and guidance on drug testing, drug-free workplace initiatives, federal programs and substance abuse prevention. www.workplace.samhsa.gov CSAP/SAMHSA, Room 2-1035, 1 Choke Cherry Road, Rockville, MD 20857; [phone].

US DEPARTMENT OF LABOR--OFFICE OF COMPLIANCE ASSISTANCE: Provides information for employers on adherence to federal labor law. The DOL website, www.dol.gov/compliance, features an interactive section called elaws (employment laws assistance for workers & small businesses) that can simulate an interaction between a user and an employment law expert. US Department of Labor Office of Compliance Assistance, Frances Perkins Bldg., 200 Constitution Ave. NW, Washington DC 20210; [phone], TTY [phone].