MGM Grand hotel
High turnover and so-so customer service characterizes much of the hospitality industry, but
Not at last Vegas’ MGM Grand Hotel. The property has one of the lowest turnover rates in last Vegas and has outperformed nearly all of its competitors. In the course of three years, profits at the hotel doubled and revenues increased from $700 million to 1.2 billion.
It doesn’t hurt that the MGM Grand underwent a massive renovation a few years ago and brought in top acts such as Cirque du Soleil. But if you ask the hotel’s CEO, Gamal Aziz, why MGM is different, he will tell you it is because of the company’s 10,000 employees and how appreciated. Imagine taking 10,000 employees, and each and every one of them wanting to give more. That’s really the difference between [us and ] a company that has its employee just punching the clock and trying to get through the day,” says Aziz.
But this scenario wasn’t always the case. When Aziz took the helm of the MGM Grand in 2001, its customer service numbers were not good. The light was on at strip, but a MGM, employees were in the dark: An employee survey showed that workers received very little communication from their managers. If important guests were staying at the hotel, workers had no clue. Many times, they di not know what conventions were being held at the hotel and how or what to offer these guests. Not surprisingly, it was hard to provide customers a high level of service and earn their loyalty.
Aziz changed that. At the start of every shit, he instituted short meetings to letthe staff know what’s happening in the hotel each day. He also expanded MGM Grand University, the company managerial training program, and involved employees in decisions about its offerings. Another thing that had changed is that company now goes out of its way recognize employees who do a great job. The hotel’s award- winning recognition programs include employees- of-the month luncheons, recognition posters, a”star of the month “ broad, coffee chats with employees, mandatory employee recognition training, appreciation dinners for top performs hosted by Aziz , and plain old pats on the back. Before new recognition “champions” and focus group to ensure that they are aligned with the company's core business goals.
Today, more than 90 percent of MGM Grand employees say satisfied with their jobs, and 89percent say their work has special meaning. “ having happy, motivated employee is one of the great differentiators that make us great in our industry, “ says John Shigley, how was recently named the company’s chief operating officer. Translation: Happy employees=happy Customers.
Of course, the most recent recession followed by high unemployment made everyone on the strip a little less happy as a hotel as hotel bookings in Last Vegas dropped across the board. As a result, Aziz has had to cut spending on some of the hotel's recognition programs. But he did do so commitment to employees. “ employees engagement in times of difficulties and severe economic climate is far more profoundly important” he says.
Jim Harter, the chief scientist for Gallup’s workplace management practice arm agree with Aziz Harter argues that employee engagement is actually important in a bad economy because it makes employees resilient, which helps them get through tough times. Resilient employees have the flexibility to bounce back from bad news and immediately focus on way to improve the business.
Despite the challenge, MGM employees are given their all and then some, say Azziz “we will survive. Once we get through this, the employees will be the ones who have gotten us trough.”
1. Identify the way in which the MGM Grand Hotel engages its employees
2. What HR aspects of the hotel resemble high-performance work systems?
3. What role does information sharing plays in supporting its efforts?