HAMA Conference April 10, 2008

1. Human ResourcesIssues in Lodging Industry2008 HAMA Conference April 10, 2008

2. Discussion points • Talent Availability • Total Rewards: Compensation & Benefits • Organized Labor • Employment Law Trends • HR Technology

3. Talent Availability • The number of workers in the 55-and-older group is projected to grow by 49% between 2004 and 2014 – resort communities need this group to fill job requirements. • By 2010, 10 million U.S. jobs will go unfilled according to the Bureau of Labor Statistics. • Over the next decade, only 30% of 20-year-olds will obtain a college degree while two-thirds of new jobs will require one. • Competition for graduating hospitality talent is more competitive with candidates getting multiple offers prior to graduation • Availability in resort communities is even more difficult

4. Talent - In business news • Winning the Talent Wars Business Week, Feb. 2007 “The fight to hire and retain top talent is among the chief concerns of businesses today.” • The Battle for Brain Power The Economist, Oct. 2006 “Competition for talent is a major driver for corporate success. Talent has become the most sought-after commodity.” • Building Talent Pipelines The Corporate Executive Board, 2006 “As CEOs cite recruiting challenges as the central cause of organizational underperformance, investment analysts continue to press executive teams on recruiting effectiveness.” • CEO Challenge 2007 The Conference Board, 2007 “The most notable difference is the international rise of finding qualified managerial talent from 11th place to fourth place. Clearly, CEOs from around the world are paying more attention to this challenge

5. Do you understand the generations that you employ?

6. Talent Management • Talent is the largest single recurring expense in an operation • Recruiting, rewarding, motivating and developing that talent takes expertise and on-going focus • Systems and processes need to be implemented to ensure talent acquisition and retention • Review of current trends and benchmarking competition • Creation of long term goals and short term incentives

7. Total Rewards Strategy • The Total Rewards Strategy is a formal statement of what the employer will provide to the employee, and conversely, what the employee is expected to provide to the employer in exchange. • It provides a basis from which an organization can design, administer and communicate rewards programs to maximize motivational impact. • When effective, it results in employees who are satisfied, engaged and productive.

8. Total Rewards and Compensation • Every organization has a Total Rewards Strategy whether intentional or by default • Several models exist, but they all contain some reference to: 􀂄 Pay. 􀂄 Benefits. 􀂄 Work-Life. 􀂄 Recognition. 􀂄 Affiliation. 􀂄 Career & Development.

9. Total Rewards: Compensation & Benefits • Organizations need to leverage and assess their competitive total compensation • Implement on-line benefits management including enrollment and administration functionality • Conduct benefit cost analysis in support of new/changing business needs

10. What makes a good incentive plan? • Addresses business objectives. • Has measurable performance criteria. • Provides clear line of sight to participants. • Rewards more for better performance. • Is understood by the participants. • Has a “sunset,” so plan changes with needs.

11. Incentive Pay – Pay for Performance • Cash compensation. • Short term (one year or less). • Pay at risk. • Based on Organization/Company, Group/Team • or Individual performance. • Has to be re-earned. * Management Incentives * Gratuities/Pools * Individual Incentives * Commissions * Tips/Pools * Profit Sharing

12. Compensation Strategy • What is the role of pay? • How is the labor market(s) defined? • Where will the organization position employee pay against its competition for labor? • How much risk or leverage will be part of pay? • What will be communicated about pay? • What are the roles for governance, and who is responsible?

13. Organized Labor • Card Check Neutrality on the rise • Positive Employee Relations Training (for your management teams) • It’s not just the Hotel & Restaurant Union • Wages • Benefits • Remaining union-free requires constant re-assessment of the Total Rewards strategy (at least annually) www. Unionfacts.com

14. Employee Free Choice Act • Not law – yet! • To amend the National Labor Relations Act to establish an efficient system to enable employees to form, join, or assist labor organizations, to provide for mandatory injunctions for unfair labor practices during organizing efforts, and for other purposes.

15. What is EFCA? • Certification on the basis of majority sign-up: Would provide for certification of a union as the bargaining representative of a unit of employees if the National Labor Relations Board (NLRB) finds that a majority of those employees have signed authorization cards designating the union as its bargaining representative. In addition, it would require the board to develop authorization language and procedures for establishing the validity of signed authorizations.At the time the bill was introduced, a group of workers hoping to unionize were required to sign authorization cards indicating that fact. Once 30% of potential members signed the cards, the National Labor Relations Board (NLRB) would then schedule a supervised election in which members would vote on whether or not to unionize. Even in cases where large majorities of potential members expressed a desire to unionize, the election process could still be ordered.A company had the legal ability to allow its workers to have union representation (without going through the NLRB) if a majority of potential members supported unionization. The Employee Free Choice Act would make this recognition mandatory, taking away a company's ability to force a majority of potential members to go through the NLRB election process.

16. EFCA continued • First-contract mediation and arbitration: Would declare that if an employer and a union are engaged in bargaining for their first contract and are unable to reach an agreement within 90 days, either party may refer the dispute to the Federal Mediation and Conciliation Service (FMCS) for mediation. If the FMCS was then unable to bring the parties to agreement after 30 days of mediation, the dispute would be referred to arbitration, and the results of the arbitration would be binding on the parties for two years. These time limits could be extended, however, if both parties agreed to do so. • Stronger penalties for violations while employees are attempting to form a union or attain a first contract: Violations of the National Labor Relations Act would now face the following punishments. • Civil fines of up to $20,000 per violation against employers found to have willfully or repeatedly violated employees’ rights during an organizing campaign or first-contract drive. • An increase in the amount an employer is required to pay when an employee is discharged or discriminated against during an organizing campaign or first-contract drive to “three times back pay."

17. Employment Law Trends and Compliance • On-going education and communication is a necessity as laws are ever changing • Create systems and processes for reviewing local based HR practices • Provide guidance and support for employee relations issues at a variety of levels to manage escalation of grievances/complaints

18. Immigration/Foreign Workers • Many U.S. based employers forced to look overseas • U.S. teens less apt to take summer jobs, and college students moving towards career-building internships • U.S. unemployment relatively low, so seasonal workers tough to find • Temporary work visa vs. green card • H-1B visa used for professionals • Where degrees are required • No requirement to prove lack of U.S. employee availability • TN “Treaty NAFTA” Professional • Canadian or Mexican • Must prove job offer and eductional/experience requirements • L-1 Intracompany Transfers

19. H-2B VISA Program • H-2B VISA program established in 1990 • Capped at 66,000 per year – some relief later • For seasonal/peak load needs • Inability to fill with U.S. based personnel • Law expired in September 2007 • H-2B VISA demand is increasing • Caps are being reached earlier each year • In Fiscal 2008 all 66,000 granted during first 3 months • H-2B workers are certified as non-immigrants, go home after 4 or 5 months • Limited burden impacts (healthcare, e.g.) • Four gov’t agencies must approve/certify

20. H-2B VISA Program • H-2B workers generally MORE expensive than U.S. (application, transportation, housing) to be competitive • Legislative status – House and Senate moves to make cap exempt permanent or extend are currently blocked at urging of Hispanic Caucus • Program is under assault to due “abusers” • Legislation introduced would make program unusable for most employers

21. HR Technology • Technology to assist with compliance data • Recruiting technology – key to recruiting Gen X and Y (On-Line applications; Marketing - MySpace, Facebook, LinkedIN, and SecondLife, e.g.) • Employee Portals – allowing them to manage their own information and data

22. Questions for the panel?