Dale J. Venturini
President/CEO, RI Hospitality Association
As I sit down to write this, Rhode Island’s seasonally-adjusted unemployment rate stands at 10.6 percent, down just slightly from 10.8 percent the previous two months. Rhode Island’s economic struggles are well documented, with our unemployment rate topping out at 11.8 percent in December 2009 and January 2010. At points, it was the second highest in the nation.
The stability of the economy still seems slightly uncertain, but the good news is businesses are beginning to rebound from the recession. Many experienced an encouraging uptick in business this year, and in turn were able to begin hiring additional workers for the first time since the economic downturn forced companies across Rhode Island to begin a troubling series of layoffs back in 2007.
Rhode Island’s hospitality industry was hit especially hard by the recession. Our guests began to rethink their travel plans and reconsider how to spend what little expendable income they possessed. The money budgeted to take the family out for dinner was suddenly needed to fix the car, and the money set aside for a weekend getaway was now needed to make sure the mortgage could be paid on time. Difficult decisions were made, and for many of us, the size of our staffs had to be reduced.
Although the recovery has been slow, and it may be several more years before business is back to ‘normal,’ many businesses are once again posting help wanted signs in the window. And, there seems to be no shortage of qualified workers to help replenish our ranks.
This allows managers to be very particular about whom they hire, selecting only the best and brightest applicants. However, one consequence of the economic downturn is not clearly visible on a resume or during an interview. At this time, there are many qualified applicants who are saddled with debt and bad credit. Often times, this information if not readily offered by the candidate, and it only becomes available if we conduct a credit check.
In the hospitality industry, we deal with sensitive information on a daily basis. Over the course of a week, a server may handle thousands of dollars in cash, and process dozens of credit card transactions. Hotel workers have access to guest rooms where valuable items are stored.
Restaurants and hotels stake their reputations on reliability. We work very hard to prove to our guests that we can not only meet but exceed their expectations. There is a level of trust that we will not only serve them, but also keep them safe. This includes protecting their financial information.
From time to time, there have been instances where an employee may be responsible for the theft of money or personal information from an establishment. Often times, this is damaging to the guest or guests who were targeted. It is also damaging to the business, and in extreme cases it can hurt the reputation of the hospitality community.
One of the traits which I have always admired about Rhode Island’s hospitality industry is the sense of closeness. Businesses aren’t rivals. They are neighbors. Our employees are not our workers. They are our family.
I am not here to advocate against hiring a person who has a stack of unpaid bills, or bad credit. Each case is different. The hiring process includes applications, interviews, references and occasional credit checks to help us make the best judgment possible of a person’s character and trustworthiness.
But, as the economy improves and new positions continue to be created, I do urge restaurant owners and managers to be cautious, and carefully consider all of the information available before extending an offer of employment. After all, you are not just adding a new employee. You are adding a new member to our community.
