Did you know that the average cost of replacing a minimum wage employee is US$3,500? According to the Bureau of Labor Statistics, customer service and hospitality are two of the top industries where turnover is highest. For a business to thrive in today’s economy, finding and retaining the best employees is imperative to be successful.

There can be several factors that determine why someone decides to leave a company or to stop working for your venue. As venue managers, we want to cut down on these factors and keep our best employees as they continue to grow and develop year after year, season after season. Having to replace staff every season can be extremely costly and an ineffective way to run a venue. Some of the costs to consider when replacing staff members are advertising, interviewing, screening, and hiring costs—as well as you and your co-managers’ time and money, loss of productivity, errors made by new team members, the time associated with the inevitable learning curve, and the cultural impact it has on the rest of the team. So we have to ask ourselves, does your company or venue track the cost of employee turnover? How do you know if you’re losing money, or if you are doing well in terms of retention? What are things we can do to measure this?

Here are a few tips to determine your profit or loss when it comes to retaining your invaluable team:

1. Start by tracking retention rates, costs of advertising, interviewing, training, etc.
2. Research retention strategies and find one that will work for your venue—there is not a one-size-fits-all solution
3. Get feedback from existing team members
4. Implement benefits or rewards and recognition programs
5. Conduct exit interviews

Analyzing these factors can help you determine what you need to change or what you should keep the same in order to create the ultimate fan experience for your guests.

Two of the most important things venue managers should be implementing immediately if they aren’t already are ensuring they are hiring the right people and rewarding current committed employees. So how do we make sure we are hiring the right people and making sure they are loyal to our organizations? Some items to consider are compensation, job fit, and work environment. Believe it or not, compensation tends to be the least important factor of the three when it comes to retaining employees. While paying your team too little can have a negative impact, it’s determined that the job fit and work environment are stronger factors when it comes to retention.

Being completely transparent and honest during the recruiting and hiring process is essential to ensure team members have clear expectations and can find the right job that is fit for their demands as an employee of your company. The job description and interview is not the time to embellish the glory of working in the end zones or upper deck levels—as we all know these can be the toughest locations in a venue to work where guests feel they can get away with a little more.

When it comes to developing a work environment, your team members need to feel their skills are being utilized properly, and if so, they will feel appreciated. Then, they need to be recognized and rewarded when they are carrying out your venues’ missions and creating the guest experience we, as venue managers strive for.

The next step is looking at what types of recognition programs we can execute and figuring out when to reward our team members. Since cost is so commonly an issue when it comes to executing these programs, we as venue managers need to be creative in coming up with different items we can offer our staff while still staying within the means of our budget.

At Ralph Wilson Stadium, we have several different reward and recognition programs in place. The rewards vary depending on the value we have placed on them. For example, some of the reward programs we offer are small, on-the-spot recognitions, while others are more involved and can include tickets to a game. We place the highest value on creating a memorable guest experience and ensure that our rewards and recognition align with our mission. Some of our most popular programs are our Service Coin award, Touchdown Challenge, Guest Recognition Reward, Player of the Game, and Years of Service Reward.

The Service Coin is a specially designed coin the size of a half dollar distributed to all of our game-day supervisors who reward team members for on-the-spot recognition when they are seen going above and beyond with our guests.

The Touchdown Challenge is a year-long contest we designed to raise our average mystery shop scores. Each game, the Overall Experience is calculated and the football marker moves up the “field” in hopes to score a Touchdown. The challenges are designed so that team members need to work together to achieve the goal. At the end of the season, if our team members “score a touchdown” they are rewarded with gift cards.

Anytime a guest writes, calls, or emails into their ticket office representative or to our venue managers directly, complimenting the service they got from one of our game-day team members we reward them with an autographed mini-helmet from our yearly stock of inventory.

Our Player of the Game and Years of Service awards are our two biggest awards. After each game, every game-day supervisor nominates a Player of the Game. The venue managers then select one Player from each of our seven partners, and the winners are rewarded with two game-day tickets to the following game, on-field recognition, video board recognition, a $50 food voucher, an autographed mini helmet, and pay for their days work. Since this is the fourth season we have implemented this reward, our staff gets really excited and continually strives to go above and beyond to get recognized by their supervisors. Finally is our Years of Service award. Each year, we recognize team members who have completed 10, 20, 30 and 40 years of service. Team Members that have completed 10 seasons with the Buffalo Bills receive a player plaque, 20 receive a personalized football, 30 receive a Buffalo Bills watch, and team members that have completed 40 seasons with the team receive a personalized Buffalo Bills authentic jersey, two game tickets, and participation in welcoming the players onto the field in Stampede Row.

We also raffle off prizes for participation in a weekly “online training” session that contains a short PowerPoint and quiz to keep team members informed of changing policies or remind them of existing policies throughout the season. Additionally, we reward gift cards for receiving a 100 percent on a mystery shop and celebrate a successful season by holding an annual Team Member Appreciation Party.

Regardless of the time and effort we put in each year to improve our hiring process and add more reward and recognition programs, we still find ourselves struggling to staff the whole building come mid-season. Again, the factors of absenteeism can vary: the weather, team performance, and other elements can all influence why the call-offs increase halfway through the season. But, we continue to strive to improve all the things that go into making our staff happy, because making your employees happy will ultimately make your customers happy.

(Image: Idibri/Creative Commons)

“Good governance is everyone’s business,” says Mike Canduff, president and CEO of the Elim Group, in his forward remarks to Boards That Matter, a book about implementing effective governance systems, written by Linda Dawson and Randy Quinn, consultants to the IAVM Board of Directors.

Taken at face value, the statement seems simple enough. Surely we all understand that, right? We know it’s important because we see governance working all around us, whether it be in the realm of politics, our school system, home-owners’ association, or with the many charitable or other volunteer-based organizations in our communities. For most people, governance is merely to be observed and only occasionally experienced when our personal lives happen to intersect with such entities. But as a venue professional, you need to look no further than your membership in IAVM to find a direct and personal connection to governance.

As a member-led and governed organization, IAVM is guided by several key principles that are expressed in the form of its Mission Statement, Vision Statement, Code of Ethics, and a set of Value Statements (www.iavm.org/about-us) that includes the following statement regarding Service:

To serve and assist one another and to encourage all IAVM Members and international partners to be actively involved in their Association.

And that is where the connection begins … in service to your Association.

At the grass roots level, your service to IAVM and your influence on its governance begins to manifest in you as a volunteer. Did you know that at any given time there are between 25 and 30 committees and task forces in operation in support of the Board of Directors and our professional staff? Each year, hundreds of your fellow IAVM Members actively serve in the volunteer committee structure that effectively runs the Association. Such service is a privilege that should not be taken lightly, as it carries with it serious responsibilities … as well as life-changing opportunities.

As a committee or task force member, you have the responsibility to influence and manage change within the organization. In so doing, you are required to consult with and carry the message of your peers, to be respectful of all opinions, and to ultimately consider what is in the best interests of the Association and your fellow IAVM Members. At the same time, you have the opportunity for significant personal and professional development, to learn or hone new skills, expand your network, to gain new experiences and insight, and ultimately to make a difference in the worldwide industry of venue management.

Volunteering at the committee level is not the only avenue of service available to you. Each of the seven regions within IAVM has its own leadership structure and supporting committee network. Service as a Regional Officer can often lead to a role as Regional Director and a seat on the Board of Directors. After serving at least one full term on the Board, voting members of IAVM are then eligible to be nominated to serve as an Officer of the Board, serving a four-year term that includes a year as Chair of the Board.

As the saying goes, “none of us is as smart as all of us,” and the effective governance of IAVM is dependent on a sound governance model to set the course and an equally supportive management system. The management system, in turn, is similarly dependent on a strong volunteer committee structure. As an active volunteer Member, you have the opportunity to extend your influence on governance all the way from the grass roots level to the top volunteer position as Chair of the Board.

Because, good governance is everyone’s business.

“Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has.”—Margaret Mead

These are selected news articles that showed up in our inboxes on Monday morning that we want to pass along to you.

At a Glance: Mercedes-Benz Stadiums Around the World (Atlanta Journal Constitution)
“While Mercedes-Benz vehicles fall into different classes of size, purpose and statement, its global stadiums represent the best of what the luxury company has to offer.”

Spectra Takes Charge in Nampa (Venues Today)
“The new agreement is a management fee deal. The city will pay a fixed fee of $11,250 per month, to be increased annually in accordance with the percentage increase in the CPI over the previous 12 months.”

Football Stadiums, Speedway to Play for State Cash (News4Jax.com)
“Florida’s three professional football stadiums and Daytona International Speedway are seeking millions of dollars from the state to help pay for upgrades that in most cases are already underway.”

Dr. Phillips Center for Performing Arts Celebrates 1 Year (ClickOrlando.com)
“As for the next year, 320 performances are planned. Groundbreaking for the next phase in the project is set to begin in spring of 2016. It includes Steinmetz Hall, a 1,700-square-foot acoustical theater. The project still needs $35 million before it can be completed.”

VMS Live Partners with Ticket ABC for University of East Anglia, Trinity St David and Aberystwyth Student Unions (Business Wire)
“We can sell tickets on our Facebook pages, can scan both our own and external tickets and have exclusive ownership of all our customer data.”

(Image: Kenneth Lu/Creative Commons)

The first soccer-specific stadiums in the U.S. were built in 1999 on low budgets, but a new wave of stadiums are in the works as Major League Soccer (MLS) continues to grow. As mentioned in previous blog posts, it seems like plans for a new soccer-specific stadium are announced every month, such as Orlando, Florida; Washington, D.C.; Minnesota; and Los Angeles. Additionally, David Beckham’s plan in Miami could be announced shortly, and San Antonio is considering major renovations to their 8,000-seat stadium to pursue MLS expansion.

“Soccer is on the tipping point and the facilities are starting to reflect that,” Bruce Miller, Populous architect and designer of the new venues in Orlando, D.C., and Minnesota, told Sports Illustrated. “The experience doesn’t start at game time, it starts when people leave work, meet their friends at a pub or restaurant, kick a soccer ball, play music, and then march to the match to their seats.”

Orlando City’s stadium is currently under construction and will include multiple European stadium features such as a canopy, as well as a safe-standing section with a capacity of 4,000 for their Supporter’s Section, also known as The Wall. Safe-standing sections were the topic of last week’s soccer post.

Sporting Park, home of Sporting Kansas City, set the benchmark for the new wave of soccer-specific stadiums when it opened in 2011 after a US$200+ million construction project. With a focus on a canopy that shelters fan from weather and reflects the fan noise back onto the pitch where Sporting KC is approaching 70 straight sellouts, it’s obvious the stadium has been quite the hit.

“The canopy creates a sense of enclosure to the building, it intensifies the fan experience,” Miller said. “Soccer is different where the fans create the experience and the megaphone that is the supporters section drives the energy in the building.”

It’s pretty clear what the next wave of soccer-specific stadiums will include. What do you think the next wave of convention centers, arenas, and performing arts centers should include?

(Top image: Populous. Sounders march: Joe Szilagyi/Creative Commons. Sporting Park image: Brent Flanders/Creative Commons)

The Sacramento Kings are partnering with Appetize, a cloud-based point of sale (POS) platform, in order to enhance the guest experience at Sleep Train Arena and the Kings’ future home at Golden 1 Center.

Appetize replaces two separate systems and includes advanced payment options, such as Apple Pay, Google Wallet, RFID, Bluetooth, and mobile ordering. It will also align with the Kings’ loyalty platform, which allows fans to earn points via scanned ticket barcodes. The mobile ordering portion will work inside the Kings’ iOS and Android apps.

“Our fans don’t want to miss a second of Kings basketball or world-class entertainment. Now that our concession stands have the latest technology and fans can order from their seat, they’ll spend more time enjoying the action on the floor,” said Kings President Chris Granger in a statement. “We’re excited to upgrade Sleep Train Arena for our final season and then incorporate Appetize’s innovative solutions at Golden 1 Center next year.”

The Appetize platform features analytics, reporting, and live inventory management. It’s used in more than 300 U.S venues.

“Working with forward-thinking partners like the Kings is absolutely our sweet spot” said Kevin Anderson, vice president of business development at Appetize, in a statement. “We’re putting faster, easier-to-use interfaces in front of operators and giving managers more controls and insights, all while increasing fan experience. This is a huge win for Appetize to work with one of the true leaders of innovation in all of sports.”

(Image: Sacramento Kings/NBA)