BEST PEOPLE & TALENT MANAGEMENT PROGRAM · InterContinental Hotels Group (IHG) is the world’s...

BEST

PEOPLE &

TALENT

MANAGEMENT

PROGRAM

BEST PEOPLE & TALENT MANAGEMENT PROGRAM 01

BEST PEOPLE & TALENT

MANAGEMENT PROGRAM

This Award will be attributed to a program that reveals the

deterrent nature of the human resources policy in terms of

recruitment, new employees integration, origins diversity,

career development, performance assessment, motivation

of the personnel, company spirit…The program will be

assessed according to three complementary criteria:

1. The process or project’s deterrent nature for the benefit

of the staff

2. Originality of the actions taken and partnerships

contracted with training organizations or other partners

3. Measurable efficiency regarding the staff’s loyalty,

personnel turnover and advancement to senior positions


WHO WE ARE

InterContinental Hotels Group (IHG) is the world’s largest hotel group with

almost 4,500 hotels and 330,000+ extraordinary people working across more

than 100 countries

• Directly responsible for c.110,000 people (corporate offices, owned and

managed hotels)

• Our franchised hotels are responsible for their own people – c. 220,000


OUR CHALLENGE

• For Global HR to create and deliver the strategy, tools,

processes and mechanisms to move the business towards its

objective of becoming one of the world’s great companies

• To achieve this and become one of the world’s great

companies, all of our 330,000 people have a part to play

• However, only one-third of hotel employees (c.110,000) are

directly influenced by the Global HR Team. IHG’s franchise

model added scale to the challenge

• The owners of thousands of IHG franchised hotels and their

c.220,000 employees traditionally went their own way

• The Global HR Team’s success in reaching the talented

franchise hotel employees over whom they had no direct

control, would depend on showing success in leading IHG’s

strategy to deal with the industry challenges of low retention

rates and the need for talented recruits to make our ambitious

growth strategy work: we open on average one hotel every

day

• Central to this growth is the recruitment, development and

retention of up to 260,000 talented people that live our brands

to staff new hotels over the next three years


OUR SOLUTION

• In a sector with high people turnover and generic skillsets, our

Global HR Team developed a distinctive ‘employee offer’ and

set of corporate values to attract and keep the best talent

It was innovative because…

• It became clear to the CEO and IHG’s Executive Vice

President (EVP) of Global HR that Global HR needed to tackle

deep strategic issues that normally fall outside HR’s remit

• This ranged from creating buy-in to IHG’s strategy and vision,

rolling out a compelling employer brand and embedding a

Balanced Scorecard (The IHG Wheel), to leading business re-

design - ‘the way the work works’ – which effectively re-

designed how the organization works with itself


OBJECTIVE OF THE

INITIATIVE

To create and deliver the strategy, tools, processes and

mechanisms to move the business towards its objective of

becoming one of the world’s great companies

• Introduced by Andy Cosslett, former IHG CEO; Tracy Robbins, Executive Vice President (EVP) of Global Human Resources; IHG Executive Leadership Team

• The strategy targeted every one of our c.330,000 employees and leaders working in our hotels and offices

• Developed and implemented from 2006 to 2011


SCOPE AND ADVANTAGES

• Identifying priorities. The Global HR Team carried out 70 in-

depth interviews with managers across the organization, to

surface issues in how IHG worked that were barriers to high

performance

• The Global HR Team became enmeshed in all aspects of

the business. This helped to lead the design and rollout of the

vision, employer values and brand, new ways of working, new

brand standards, and a new structure for the ‘flow’ of work

through the organization

• HR partnered with IHG’s ‘brand teams’. This helped to

simplify our brand stories and cascade the vision to our people

• The biggest hotel brand ‘refresh’ in the world. Global HR

created and rolled out branded ‘service delivery’ training for

3,000 Holiday Inns as an essential part of a $1 billion ‘refresh’ of

that brand. 96% of participants rated the training as excellent

• Delivered the talent pipeline required to meet the growth

plans. We’re opening one hotel every day with the right talent.

This included setting up over 10 hospitality training academies

in Greater China


IMPLEMENTATION AND

CONTROL

• There are HR people in all of our hotels that work closely with

our hotel General Managers to ensure implementation of

initiatives

• Regional HR Business Partners are established to connect

hotels to corporate offices and the work we do in HR

• The Programme Office was also established to help join things

up across all business activities. It is sponsored by Tracy

Robbins, EVP Global Human Resources

• The Programme Office is responsible for planning,

coordinating, reviewing and, where there is no natural owner,

leading, a wide range of projects designed to help the whole

business bring our brands to life for our guests and people


INFORMATION

How are employees informed about this initiative?

• The internal communications function is managed by Global

Human Resources and campaigns are integrated

• IHG’s communication strategy is to deliver simple and

consistent two-way communications

• Employee engagement and talent retention are a fundamental

part of the communications strategy

• We work together to ensure communications for all HR

business initiatives, such as the People Tools and the

Celebrate Service Week communication, are timely, engaging

and effective (see supporting materials)


STAFF RESPONSE

• Impressive impact: Our franchise hotel leaders were so

impressed with what IHG’s Global HR team was doing to

improve performance in its own hotels, they asked for the HR

tools to be rolled out to them, too – which they had never done

before

• Engagement: Up 22% since 2007. Award-winning Employer

Brand engages and involves talent at all levels. Key measures

out-perform the sector average by double digits – 18% to 19%

above the sector average, typically

• Changed behaviour: Over 3,000 hotels took part in Celebrate

Service week in 2010 and again in 2011, a joint initiative with

franchise owners that recognises and thanks our talent and led

to the widespread adoption by franchisees of IHG’s core

service values, and the ‘branded people tools’ that deliver

them. 98% of pilot hotels said they would use and recommend

the new People Tools, a set of practical guides and templates

to help us hire, train, involve and recognise new talent in a way

that is right for each of our brands


RESULTS • IHG’s new ‘Ways of Working’, led by the Global HR Team,

replaced the uncoordinated way that new initiatives – from

marketing to IT – were released to hotels

• Right skills for leaders: Re-defined leadership competencies

for our highest talent that more closely match business need

• Strategy delivery: Every employee now knows IHG’s core

purpose is to create Great Hotels Guests Love – a unifying

common purpose - and how to use IHG’s Balanced Scorecard

• Recruitment & retention: We met our challenging recruitment

targets, including setting up our own hospitality training

academies in Greater China, our largest growth market, to

create a pipeline of 87,000 new talented recruits per year for

that country

• New online ihg.jobs career profile tool: We saw 62,000

people register their profile in 2010 when it launched, we now

have 94,000 profiles in our global talent pool, helping us to

target the right opportunity to the right talent

• Business results: Guest satisfaction and revenue growth

increased in line with employee engagement scores. Research

shows the latter drives the former two figures. Both guest

satisfaction and revenue growth measured 4% higher in

rebranded Holiday Inns than non-rebranded ones


IMPACT

HR now drives the business

• What IHG people and hotel owners in the franchise community

say about HR has changed

• It is now seen as a valued business partner supporting the

business in developing talent that will deliver on its strategy

• This is a direct result of the Global HR Team’s success in

bringing corporate and operational leaders and the front line

together around IHG’s people agenda and using that agenda to

drive improvements in how IHG works and in its business

results

• In recognition of the critical role this people strategy had in

developing talent to support our ambitious growth plans, Tracy

Robbins, EVP Global Human Resources, was given additional

accountability for Group Operations Support, and this year was

promoted to the IHG Board

“The approach that IHG has taken to creating brand champions is something

that we want in our franchise hotels”

Bill DeForrest, Chairman of IHG’s association of hotel owners.

“HR initiatives around

employee engagement

are giving IHG a very

distinctive culture and

profile. Engagement

scores are well up and

our owners are

remarking on the

quality of the

programmes we have

put in place.”

Andy Cosslett, 2010 CEO IHG


PROGRAM PERSISTENCE

• In this industry, we are as much a people business, as we are

a hotel business

• IHG continues to sign more deals into our pipeline than any of

our competitors

• In order to satisfy this growth we need to recruit another

260,000 talented people in the next three years, so our people

strategy will continue to lie at the heart of our plans

• The success of our people journey so far has helped to ensure

that buy-in is secured with the executive leadership team, IHG

Board and franchised hotel leaders for our 2012-2014 people

strategy

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