In the Service of Excellence: The Role of Corporate Universities in HRD for the Tourism Sector
The Prime Minister of St Lucia, Dr Kenny Anthony gave the main address at the inauguration of Sandals Corporate University which took place at Sandals Grande Riviera Beach & Villa Golf Resort in Ocho Rios on Wednesday. Below is the full text of his address.
A SIGNIFICANT MILESTONE
I am delighted to be here today to participate in this event. It marks a transitioning and repositioning of one of the leading, if not the leading area of economic activity in the Caribbean today. At a time of unprecedented global economic strife and uncertainty, we continue to survive largely because of decisions that our various governments and more importantly our private sector, took many years ago.
It is true that some of these decisions were largely forced upon us as a result of changing international trade patterns and rules for our primary agricultural exports. Some of us resisted the changes. However, we all looked around and assessed what we had inherited. Having examined our options, a number of us decided that the services industry and tourism in particular, was perhaps, the only way forward, in this economic cycle.
The establishment of this Corporate University confirms that the sector has come of age. Only 15 to 20 years ago, tourism was considered a distant second or in some cases, a third place on the ladder of economic importance. By taking such a bold step, Sandals International, not only reaffirms its commitment to the growth of the tourism sector, but also sends a clear message about its confidence in the future of this industry.
ATTRACTING THE BEST
The challenge for the hospitality sector is unique. Hospitality careers are often stereotyped as low-wage with an entry-level of little opportunity for advancement. Consequently, ambitious and academic-minded workers, especially youth, are discouraged from entering the sector.
It is true that some of the best minds in the region are engaged in the tourism industry. I admire them. Their achievements have been remarkable; they shaped this industry virtually on their own. They had to cajole, encourage and persuade sceptical and nervous governments.
However, it is vital that tourism continue to attract the best among us. With professional certification being made more accessible through the establishment of the Sandals Corporate University, young, brilliant employees are now incentivised to enter the tourism industry. The attraction of the best brains in the region is exactly what the industry needs in order to continue to remain one of the major contributors to the region’s economic survival.
A FASCINATION FOR EDUCATION
At the outset, it is worth reminding ourselves of something that Butch Stewart clearly understands. Universities and colleges hold a highly privileged place in our society because of a long-standing consensus about the value of education. West Indians have an extraordinary faith in what formal education can do for them. For many, education is cure unemployment. It is also the certification for social mobility. For others, it offers an escape from grinding poverty, destitution and hopelessness.
Society rightfully expects certain things from its learning institutions. Our people are anxious for the discovery of new knowledge that translates into future jobs, economic growth and prosperity. They also expect the exploration of complex issues in an open and collegial manner and finally, and most importantly, the preparation of the next generation of citizens and leaders in the public and private sectors.
EMERGENCE OF CORPORATE UNIVERSITIES
Modern universities, in this respect, are no longer red brick or ivory towers. They are very much “of the world” — in fact, they shape the world through the students they educate, the knowledge they discover, and the ideas they generate.
Similarly, corporate universities represent a shifting of focus from employee training to employee education. By establishing this corporation, Sandals confirms that it too has recognised its responsibility to provide education that can evolve with changing business needs in order to foster the business’ sustained success.
Jeanne Meister, one of the top twenty most influential training professionals writes in her book ‘Extending’ that “many corporations believe that through continued employee education, they can achieve strategic goals and performance improvement.”
This, I believe, is a philosophy that is embraced by the Sandals Group. Sandals have always believed that the key to making tourism succeed is to invest in the people who manage it. It is not the splendor of buildings that make the product. It is the simple, ordinary worker that meets, greets and interacts with guests. In the tourism industry, human capital is the most valuable asset.
By establishing this corporate university, Sandals understands that the industry cannot survive without innovation and investment in people.
There was a time when, for some of our people, service meant servitude. There is no need to rehearse the history which produced this sociological conditioning. I believe we have moved beyond the psychological threshold. We have, in my view, as Marley would say, emancipated ourselves from the mental slavery that once defined the industry especially in its infancy. Our emancipation has walked hand in hand with indigenous investment. Sandals is a product of Jamaican ingenuity and has made all of us proud and confident in ourselves, as individuals and as nations.
But Sandals understands something else. Universities, corporate or otherwise are essential if we are to meet a broad range of human, social, scientific, environmental, and other needs. To fulfil their missions, universities must engage the world through their scholars, their students, and their alumni.
These fundamental purposes — research, teaching, and the dissemination of knowledge for the benefit of society — form a seamless continuum, so tightly interlocked that it is not possible to tell when one stops and the next begins. The goal is not simply to discover new knowledge.
It is good that our corporate community understands that they too must encourage the application of knowledge to help meet the challenges of our economies, our nations, and to help meet the needs of those with whom we share our small nations.
A HOME-GROWN CORPORATE UNIVERSITY
Once again, Sandals Resorts International has brought pride to this region.
It has issued a challenge for us to rethink, and re-conceptualise, our traditional approaches to learning, teaching and the training our workforce.
This concept of learning, which Sandals advocates, has proven to be the backbone of major successful brands within the business sector. Solid brands such as Mac Donald’s, with the well known Hamburger University, Walt Disney, Boeing, Motorola, all owe their successes to the establishment of corporate universities. By constantly evolving to meet the demands of a changing business environment, I have no doubt that the Sandals brand, like the others I have mentioned, is here to stay.
Having survived a first generation which has been marked by unprecedented turmoil beyond the control of the sector, I am convinced, that the investment that Sandals continue to make in our people, will cause the “Sandals brand” to live on for generations and generations to come. Though never complete, the Sandals brand will now be taken to a higher level.
IMPACT OF SANDALS
Ladies and gentlemen, a lot has been said about the Sandals model and its impact on the diversity of the tourism industry within the region, particularly for small islands such as Saint Lucia. But what we’re witnessing here is the establishment of an “Organised Learning System” that fully integrates personal and professional development into the workplace. It is a powerful testimony to the commitment of Sandals to the sustainability of the livelihood of our people in our region.
I can say personally, that whenever I have interacted with a Sandals’ employees, I discover passion, commitment, sensitivity and loyalty. With the establishment of this Corporate University, I expect that this philosophy will be transmitted to almost every employee. My only plea is that measures are put in place to provide the necessary financial support for training; a factor that has always been a barrier to accessing traditional universities.
A PREMIUM QUALITY SERVICE
Unquestionably, the Service Industry is highly competitive; and unlike other industries that may have developed amidst extensive protectionist measures, survival of the industry depends on one thing: a premium quality of service or “Service Excellence”.
It is useful to note that the World Bank in their publication ‘Towards a New Agenda for Growth’ writes, “service industries are generally more labour intensive and skills-intensive… requiring far more professional and skilled labour than their manufacturing counterparts”. Interestingly, the shortage of skilled labour is cited by firms in the OECS as the number one constraint to improving competitiveness. What Sandals has done is truly exemplary. By establishing a Corporate University to provide targeted training specific to the premium Sandals brand — which has always been to exceed customers’ expectations in every sphere –Sandals demonstrates an absolute commitment to “Service Excellence”.
EMPLOYEE TRAINING AND RETENTION
It is wise for the industry to target previously untapped labor pools. As high turnover remains a key challenge in the hospitality industry, it is vital that skilled workers, who drift for all kinds of reasons, are persuaded to invest their human capital in the industry. That is why focus has to include “employee retention”.
The correlation of employee training to employee retention cannot be discarded; some studies have attributed a retention increase by as much as 70 per cent to employee training. That can have a huge impact on your bottom line, especially when one considers the resources that go into the recruitment and training of new employees. However, retention isn’t the only benefit of employee training. Training increases employee efficiency and productivity (some say up to 230 per cent). It also keeps employees up-to-date with new technology and current best practices, resulting in superior job performance.
PARTNERSHIP WITH TRADITIONAL UNIVERSITIES
While I recognise that you have already partnered with Ryerson University in Canada — and I hasten to add that that is a good thing — I urge you, to also explore partnerships with existing universities within the region. No university in our region should turn askance at such an invitation. The benefits to be gained from partnering with our regional institutions of higher learning are immeasurable, particularly as it relates to innovation intrinsic to the culture of our people. This type of innovation can only be led by research which takes place at institutions such as these. As we know, the bedrock of business survival in a constantly changing environment is not just to maintain employee training, but to continuously inject new knowledge into the company through employee education that culturally specific, relevant and beneficial.
I believe a strong partnership between a corporate university such as yours, and our traditional universities and institutions, would catalyse the metamorphosis that we want to see in our tertiary-level education.
There is a common saying which goes like this: “the seat of learning is where you’re at”. It reminds us that no longer, is structured learning confined to the traditional classroom setting. Effective learning organisations shape the world through the students they educate, the knowledge they discover, and the ideas they generate. A strong partnership between this corporate university, and traditional institutions, is sure to benefit both parties. For one thing, our traditional institutions, if they are to remain useful and relevant, need to understand that dramatic changes have occurred in the workplace. They have not understood on adjusted to these changes. As Sandals seek to demonstrate, a shift has to be made from employee training to employee education. These partnerships are therefore essential if we are to meet a broad range of human, social, scientific, environmental, and other requirements.
The burden has shifted to our traditional institutions to adjust to this new and exciting environment.
A SALUTE TO BUTCH STEWART
In closing, I wish to reiterate that I believe that the decision taken by Sandals International to provide its employees with training at the highest level will undoubtedly pay dividends in both the medium and long term. Not only will this improve product quality, but staff loyalty and moral will be positively affected. These are all ingredients that make the difference between a good product and a truly great experience. Again, this decision is consistent with the recommendations on the tourism sector in the World Bank Report referred to earlier. There the authors state that “efforts should be taken to encourage private provision of training by larger operators”.
You have noted that recommendation and have acted decisively on it.
I salute Sandals International and its chairman, Butch Stewart, for his vision for the industry and his commitment to the Caribbean Community. I wish him and his team all the best in the operations of this institution and in the continued delivery of a tourism product that is second to none in the world.