Lessons From Hyatt: Simple Ways to Damage Your Brand

Looking for a sure-fire way to do a little damage to your brand? Follow these two simple steps:

1. Make the decision to fire a very important yet modestly paid sector of your workforce. Fire the entire lot of them.
2. Outsource their positions to a third-party vendor who will bring in contractors to do their jobs at a lower cost. But — and this is critical — before you fire them, trick your workers into training the people who will replace them. How to pull this neat trick off? Tell them they are training vacation replacements. (Best to leave out the fact that the vacation is permanent).

There you go. Simple as that. And don’t thank me; thank your friends at Hyatt hotels who, according to an article in the Boston Globe, have apparently executed this very strategy at three Boston area properties.

Hyatt managers seemingly came to the conclusion that they could save money by firing the housekeeping staffs at three hotels and replacing them with vendor-managed contractors. These are the workers who ensure that your room is clean and pristine. It’s often said that when travelers check into a fine hotel room, they should be met with the impression that no one has ever stayed there before. As for the reverse: any weary road warrior who has trudged into a room to find an unmade bed, a sink covered in toothpaste spittle, or even missing towels and soap will tell you the feeling is unpleasant — and the impression lasts. For a hotel, housekeeping is not trivial.

Even so, I’m not in a position to judge the business reasons for Hyatt’s decision. The savings may be dramatic. Managers’ confidence in the vendor it selected may be both high and well-justified. But some combination of the outsourcing itself and the way it was carried out has captured public attention.

At last count, more than 584 comments had been posted on the Globe’s website about Hyatt’s actions. The article has been among the site’s most-emailed pieces of content, and was picked up by websites like Executive Nomad and the Consumerist. A rally was held last evening in downtown Boston in support of the fired workers — and it was attended by a variety of of political figures seeking a bit of spotlight at Hyatt’s expense.

In other words, it went viral. And now Hyatt — ultimately compelled to release a statement — has a nice big black eye.

Hyatt is a hospitality company. Hospitality companies rely on the currency of brand maintained by superior customer service — to sustain and grow their businesses. Now, I’m sure our indignation will temper and pass over time. But were I personally planning to spend the night in the Boston area sometime soon, I’d do my best to avoid staying at a Hyatt. I don’t like doing business with companies that do things I find distasteful; moreover, I have questions about their commitment to quality. Now, imagine if my feelings are shared by even a small portion of business travelers.

And perhaps more importantly, imagine what this move — and the way it was carried out — says to remaining workers at the affected hotels (let alone the rest of Hyatt’s employees). Is this the way you’d want your management treating your fellow workers? Would this inspire you to go “above and beyond” for your customers? To do your job at its highest level?

There’s at least a small lesson here: think about the way your actions will be perceived by all your stakeholders before you take them. Will these actions affect the way your customers feel about you? Might they impact worker morale? How will they look on the “most-emailed” list of your local paper? If you’re not asking these questions and imaging the worst-case answers, you’re that much more liable to do something you regret.