virtuosoinnovationteams

TALENT ACQUISITION:How to find, select, pay & train new talent

November 2015

CONFIDENTIAL: This document is proprietary to Virtuoso member agency owners and managers. All rights reserved. ©2015

Virtuoso Innovation Teams are small groups of network members and Virtuoso staff who dedicate a year or more to addressing current challenges facing travel agencies. These teams provide a forum for members to not only share experiences, but to develop effective business solutions and recommendations for the benefit of the entire Virtuoso network of member agencies and advisors.

Past Virtuoso Innovation Team topics have included acquiring new clients, rewarding and retaining top clients, training the next generation of travel advisors, and, most recently, the topic of this white paper, acquiring new advisor talent. Their collaborations have led to innovative new Virtuoso programs and initia-tives like the Virtuoso Certified Travel Advisor, Virtuoso Collaborative Travel Planning, Lead Generation, and Virtuoso Reserve.

The Innovation Team concept thrives due to Virtuoso members’ energy, passion, and commitment to making a difference in the luxury travel industry.

What Is A Virtuoso Innovation Team?

VIRTUOSO TALENT ACQUISITION: HOW TO FIND, SELECT & TRAIN NEW TALENT 2

Coming together is a beginning; keeping together is progress; working together is success. - Henry Ford

VIRTUOSO TALENT ACQUISITION: HOW TO FIND, SELECT & TRAIN NEW TALENT

What is a Virtuoso Innovation Team? Executive Summary Goals The four key talent acquisition challenges

CHALLENGE 1: Low Awareness of the Travel Advisor Career The Solution Steps Toward The Solution Recommendations

CHALLENGE 2: How and Where to Find Great Advisor Talent The Solution Steps Toward The Solution Recommendations

CHALLENGE 3: How to Compensate New Advisor Talent The Solution Steps Toward The Solution Recommendations

CHALLENGE 4: How to Train and Mentor New Advisors for Success The Solution Steps Toward The Solution Recommendations

Virtuoso Talent Acquisition Innovation Team

Appendix A. Critical Questions for Owners & Managers

B. Expectations vs. Reality: A Survey of Advisors First Years

C. Attributes of a Great Travel Advisor

D. Job Descriptions · Support Advisor · Travel Advisor

E. Compensation · Research Findings · Models

F. New Advisor Orientation & Training

G. New Hire Materials · Interview Packet · Intern Packet

Contents

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VIRTUOSO TALENT ACQUISITION: HOW TO FIND, SELECT & TRAIN NEW TALENT

GoalThe goal of the Talent Acquisition Innovation Team was to outline recommendations for owners and managers to successfully recruit new talent, to select and train new travel advisors, and to determine compensa-tion. The team also developed recommendations for Virtuoso related to continuing efforts to raise awareness of the travel advisor as a career.

”We need new advisors in our agencies!” This is among the top voiced concerns from the Virtuoso Membership throughout the last several years. The need to select, train, and develop new talent is clear. How to do it, not so much.

Over the years, fewer people are becoming travel advisors. At the same time, a generation of seasoned advisors is nearing retirement. This has led to a shortfall in talented new travel advisors.

We are not alone. “At a global level, the research shows that the [travel and tourism] industry is facing a short-fall of 14 million jobs,” according to the World Travel and Tourism Council in 2015 after Oxford Economics stud-ied 46 countries (link to Global Talent Trends and Issues for the Travel & Tourism Sector).

Virtuoso formed a Talent Acquisition Innovation Team to identify key challenges about how to find, select, and train new travel advisors. The team included 20 Virtuoso advisors, owners and managers representing 18 agencies of various sizes and business models in five countries. The team evolved into four subcommittees, each focused on the following four key challenges related to acquiring new talent.

The Four Key Talent Acquisition Challenges 1. Low Awareness of the Travel Advisor Career

2. How and Where to Find Great Advisor Talent

3. How to Compensate New Advisor Talent

4. How to Train and Mentor New Advisors for Success

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Executive Summary

Great vision without great people is irrelevant. - Jim Collins

VIRTUOSO TALENT ACQUISITION: HOW TO FIND, SELECT & TRAIN NEW TALENT

Many people still don’t know that travel advisors exist. The Virtuoso Innovation Team’s research found that not many young people and college graduates are joining the travel industry. Most colleges, even those with hotel hospitality programs, do not include travel advising as a career path. (Virtuoso, however, invited hospitality school students to the 2014 and 2015 Virtuoso Travel Week events to expose them to other options within the industry.)

Research revealed a common misperception, both inside and outside the classroom, that travel advisors are nonexistent since the age of the Internet. Those students aware of travel advisors do not see the career as viable, much less lucrative.

THE SOLUTIONIt’s clear that, in order to attract new advisor talent, we must work collaboratively to raise awareness that being a travel advisor is a fulfilling and lucrative career option.

STEPS TOWARD THE SOLUTIONThe Innovation Team researched three primary questions to draw conclusions and to make recommendations about how best to raise awareness:

• How other industries recruit talent? Contacted accounting, financial, and real estate firms; university career centers; hotel industry executives; and other high-end customer service industries for best practices in recruiting talent.

• How to use digital advertising, communications, and social media to find talent? Studied LinkedIn, Facebook, and other professional network sites to analyze job placements via digital and social channels.

• How to use Virtuoso network marketing & public relations to spread the word? Collaborated with Virtuoso marketing and public relations executives to review existing assets as well as future opportunities.

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CHALLENGE 1:

Low Awareness of the Advisor Career

Publicity is absolutely critical. A good PR story is infinitely more effective than a front page ad. – Richard Branson

VIRTUOSO TALENT ACQUISITION: HOW TO FIND, SELECT & TRAIN NEW TALENT 6

RECOMMENDATIONSThe Virtuoso Innovation Team developed the following four primary recommendations to Virtuoso corporate regarding which channels to use to deliver a unified recruiting message.

The Virtuoso Website

Expand and refine the Virtuoso.com and Becomeavirtuoso.com websites to include advisor career pages.

>> Make it easier to find and navigate the Career content.

>> Include a directory section for listing agencies that have open positions.

>> Establish a relevant navigation path for multiple audiences:

• Current travel advisors who are not Virtuoso members • College graduates and career changers who are New to the Industry (N2I) • People new to the workforce (N2W)

>> Create a link from the agency profile in Virtuoso.com to the agency list of open positions.

>> Create a filter to display agencies that are recruiting travel advisors, agency staff, or independent contractors.

>> Consistently use these Key Words and Attributes that the team developed.

The Virtuoso Difference Event

>> Expand the Virtuoso Difference event to other Virtuoso Events throughout the year.

>> Increase agency owner/manager participation through local venues.

>> Grow talent pool at local events by reducing travel expenses for attendees.

>> Customize event agenda for various recruiting audiences.

The Innovation Team recommends a test of presenting the Virtuoso Difference Event in a regional market in 1Q2016 to allow sufficient time to plan, promote, and produce a successful recruiting opportunity.

VIRTUOSO TALENT ACQUISITION: HOW TO FIND, SELECT & TRAIN NEW TALENT 7

Social Media

“Over 77% of job seekers are using social networks to find employment,” per JobCast – Attract, Engage, Convert with Facebook. LinkedIn and Facebook are the primary networking platforms recommended for re-cruiting new travel advisors. LinkedIn is the leading professional platform with 380 million members (LinkedIn About Us). Facebook, while more a social network than a professional one, has the largest audience with 1.49 billion users (Facebook NewsRoom). Facebook is highly recommended for recruiting new talent from outside the travel industry. Both LinkedIn and Facebook allow travel advisors to share career successes, and to create awareness.

>> Create social media templates to spread a unified message that is easy to adapt for various audiences and channels.

>> Develop a well-branded and integrated promotional blitz across the network.

Create an Owner/Manager Talent Acquisition Toolbox on Virtuoso.com

>>Templates for various communication channels and audiences.

>>Templates that can be co-branded.

>>Include multiple language versions.

>> Suggested Virtuoso Talent Acquisition Toolbox content:

• New advisor testimonials • Print ads for local publications, newspapers, or magazines • A co-branded brochure with customizable agency sections for career fairs and other

recruiting events • Videos visually portraying the key words and attributes • Year-in-the-life of a Virtuoso Advisor content (for digital or print platforms) that shows the

various places an advisor goes across 12 months (ex: familiarization trips, Virtuoso Travel Week, local supplier partner dinners and events, escorting a trip, hosted client events, tradeshows, client meetings, the office, etc.)

• Information graphic that illustrates how advisors spend their time

Flaming enthusiasm, backed by horse sense and persistence, is the quality that most frequently makes for success.– Dale Carnegie

VIRTUOSO TALENT ACQUISITION: HOW TO FIND, SELECT & TRAIN NEW TALENT

The team identified that acquiring new talent brings both benefits and challenges:

Benefits • Fresh ideas • Drive to grow personal business • Sales and business skills from previous career • Established network of professional peers • Stable financial situation

Critical Questions for Owners & Managers

SOLUTIONOnce you’ve determined your agency is prepared for the challenges associated with bringing on new advisors, you can then identify where to recruit within your local market(s), what methods are most effective, and how to select new hires for a long-term fit.

STEPS TOWARD THE SOLUTIONFocus GroupThe Innovation Team asked recent Virtuoso Certified Travel Advisor (VCTA) participants about the recruiting process, industry expectations, and training experience.

Key Findings: • Nearly 50% of the attendees found this career through a friend or family member • None were told about the career during college or at a job fair • 25% noted that better promotion of the travel advisor profession is needed • 39% did not have a good idea of what the travel advisor career entailed • 54% were not told about growth or income potential • Many had no expectations regarding income potential • Among those who did, the average salary expectation of an independent contractor was $46,800,

which is significantly higher than their first year salary/income ranging between $1,500 and $25,000 • 1/3 of those hired received no structured training • Those who did said it was a factor in choosing their agency • 50% have a designated mentor

Expectations vs. Reality: A Survey of Advisors’ First Years

The Innovation Team identified three major talent categories for new travel advisors:

• New to the Workforce (N2W) Defined as recent college graduates

• New to the Industry (N2I) Defined as individuals who have been working outside of the travel industry - those looking for a new career, encore career, or who are returning to the workforce

• Current travel advisors who are not Virtuoso

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CHALLENGE 2:

How and Where To Find Advisor Talent

Challenges• Training• Technology• Company expectations• Remote work expectations• Mentoring• Salary expectations

VIRTUOSO TALENT ACQUISITION: HOW TO FIND, SELECT & TRAIN NEW TALENT 9

RECOMMENDATIONS The team developed several pulse points to help agencies determine their needs and readiness for recruiting and training.

>> Review and assess Critical Questions for Owners and Managers.

Once an agency is ready to move to recruit and select new travel advisors, the team assembled the following tools and tips:

>> Create job descriptions using Travel Advisor Job Description and Support Staff Job Description. Agencies can customize with company goals and values as well as specific job details, skill requirements, and expectations.

>> Build relationships with hospitality and tourism schools, local colleges, and local universities to connect with professors and offer to introduce the travel advisor profession.

>> Participate in career center events such as career fairs, speaker panels, and online job databases.

>> Connect with the Study Abroad staff as an international study experience often piques a student’s interest for a career in the travel industry.

>> Leverage groups within the industry such as the Young Travel Professionals or Millennials in Travel organizations.

>> Use local advertising opportunities to post open travel advisor positions or agency staff job opportunities.

>> Use social media – go viral! Encourage current travel advisors to share, post, and re-post to advocate the travel advisor career as well as specific opportunities.

>> Use LinkedIn for Recruiting - Both New to the Workforce and New to the Industry audiences are active on LinkedIn. According to the Pew Research Center’s findings (Social Media Update 2013). LinkedIn is espe-cially popular with college graduates and Internet users in higher income households.

• The Innovation Team’s research found that the cost to post one job opening via LinkedIn is currently $399 for one month of visibility. Discounts apply for 5 or 10 posts purchased at one time.

• A case study conducted by the team found that one LinkedIn job posting resulted in over 40 applicants.

>> Consider other online job databases such as Monster.com and Indeed.com.

How to Interview & Select TalentThe term “selecting” was chosen by the Innovation Team instead of “hiring” to emphasize this is not a transactional event. Instead, selecting a new hire is defined by the team as a thoughtful process.

>> The team created an Interview Packet. The packet describes various ways to conduct an interview, suggested interview questions, and how to evaluate the applicant after the interview.

>> Consider using a personality assessment as part of the selection progress. Attributes of a Great Travel Advisor

Internship ProgramInterns can be a way to test-run future full-time employees or tackle a specific project that an agency’s current staff lacks the time to manage.

>> The team has built guidelines for structuring an internship program in Internship Guidelines.

>> Create opportunities for the intern that are beneficial to both the intern’s career and the company’s goals.

Okay, you’ve found some great new talent. How do you pay them? What’s the going rate in the luxury travel industry? What’s fair for your agency, but competitive enough to enable you to attract great advisors? The competition for new talent is intense across all industries. Some agencies struggle with communicating a clear and viable financial pathway for travel advisors, and creating a compensation model to benefit new talent and the agency’s financial goals.

SOLUTIONCreate a competitive compensation model that meets the financial goals of both the agency and new advisors.

STEPS TOWARD THE SOLUTIONThe Team began with a review of ASTA’s most recent Benchmarking report that focuses on travel agents’ salary. The team then engaged Dr. Robert Joselyn, CEO of Joselyn Consulting Group and TAMS, to conduct two training sessions on compensation models for agencies. This research, while industry wide, provided a starting point to assess advisor compensation.

Flexibility is key • Livable wage based on specific needs of advisor (i.e. straight salary, salary plus commission,

straight commission) • Unique compensation specific to the advisor (flexible hours, dress, FAM time, office location, etc.) • Balance flexibility while maintaining agency productivity and client satisfaction

One size does not fit all • Design a compensation model to support your business objectives. • Provide clear communication of a career path and future career opportunities. • Think outside the box benefits: kennel costs, mobile car wash, car lease, cell phones/tablets,

laptops, manicure/pedicure, massage, wellness program, gym membership, sponsored supplier days, travel credits, or clothing allowance.

VIRTUOSO TALENT ACQUISITION: HOW TO FIND, SELECT & TRAIN NEW TALENT 10

As a business owner or manager, you know that hiring the wrong person is the most costly mistake you can make. – Brian Tracy

CHALLENGE 3:

How To Compensate New Advisor Talent$

VIRTUOSO TALENT ACQUISITION: HOW TO FIND, SELECT & TRAIN NEW TALENT

Virtuoso Member Agency Survey

The Team surveyed 70 Virtuoso agencies to determine current compensation models, average salaries, and commission levels. Additionally, they collected anecdotes from seven agencies, allowing more in-depth knowledge behind the trends, and collected several compensation plans from different agencies.

Compensation Research Findings

Employee Conclusions • Hourly, weekly & annual models • Salary range: $10/hour to $35,000/year • Salary average: $30,000/year • Incentives/Commissions can be tiered based on a goal or paid once the revenue has covered

base salary

Independent Contractors Conclusions • Salary range: 50/50 to 80/20 split between IC and the Agency • Some have sliding scales or marginal splits • Average: 65-70% to the IC • 41% said IC’s are responsible for all their expenses

Overrides • 17% pay overrides to ICs and or Employees • 14% pay higher commissions for booking preferred suppliers

Support Staff • 45% of those with ICs have support staff • On average, approximately 15% of workers (both employees and ICs)

at an agency are non-sales support staff

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PAY STRUCTURE

PERCENTAGE OF AGENCIES IN WHICH IC’S PAY FOR EXPENSES

VIRTUOSO TALENT ACQUISITION: HOW TO FIND, SELECT & TRAIN NEW TALENT 12

$RECOMMENDATIONSThe Innovation Team created a formula for calculating compensation that’s based on the research.

>> Use Compensation Calculator Model.

>> To use this compensation tool, agency owners fill in operating costs, overhead, and desired profit margin percentages. As an example, percentages from various agencies studied are included.

>> The remaining percentage represents the total compensation for the travel advisor, which can be further segmented into salary, commission, and benefits.

Do not hire a man who does your work for money, but him who does it for the love of it.– Henry David Thoreau, Life without Principle

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Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. – Steve Jobs

When new talent is finally identified, many agencies face the challenge of not having the time or the resources to train for optimal success as a travel advisor.

SOLUTIONDevelop an effective training program for new travel advisors.

STEPS TOWARD THE SOLUTIONOnce a travel agency has selected the ideal candidate(s) to join the team, the next step is the onboarding pro-cess. According to Bob Kelleher, author of Employee Engagement for Dummies, “33% of employees decide to stay onboard with a firm or jump ship within their first 30 days of employment.”

RECOMMENDATIONSAfter reviewing the onboarding process of different agencies and studying Kelleher’s onboarding recommen-dations, the Team created an overview of key points to address during the onboarding process.

>> Offer Letter • Compensation and benefits • Where to park, time to meet, and where to report • Company dress code • Company policy regarding expected work hours, overtime, and time off

>> A Welcome Presentation or Brochure • Company history, core values, and mission statement • Agency affiliations and preferred suppliers • Organization Chart including new hire’s manager, team, and other departments • New travel advisor expectations, goals, and how work will be evaluated • Channels for sharing ideas or concerns • Office policies and procedures

>> Use Sample New Advisor Orientation & Training • Clear training program in place for procedures, resources, destination and product information,

active listening skills, and conflict resolution • Set goals for first month, 3 months, 6 months, 9 months, and year • Shadow veteran advisors and allow time to practice new skills • Managers and new hire to evaluate training goals and job satisfaction in the new travel advisor role

CHALLENGE 4:

How To Train & Mentor For Success

VIRTUOSO TALENT ACQUISITION: HOW TO FIND, SELECT & TRAIN NEW TALENT

>> Expand Existing Training Tools The team interviewed Jay Lindstrom, Virtuoso’s Senior Trainer and Learning Management System specialist, and found that the Virtuoso Travel Academy site has a lot of potential, but to maximize its capabilities, addi-tional resources are required.

• The team recommends that Virtuoso redesign the Virtuoso Travel Academy curriculum to create a core training program that can be customized for agencies

• Refine and incorporate the New Advisor Orientation & Training • Adjust the sample training based on the new employee’s prior experience: – New to Industry – no previous travel experience – New to Virtuoso – experienced advisor who is not a Virtuoso member – New to Agency – experienced Virtuoso advisor • Consider future enhancement to VTA that would include access to Preferred Partner/

Product training modules with the ability for owners/managers to track progress • Create a fully functional mobile version of Virtuoso Travel Academy • Add content with case studies and best practices specific to the Collaborative Travel

Planning Process

>> Mentoring/Coaching Program • Determine roles and responsibilities for the mentor/coach • Introduce the new hire to his/her mentor, coach, and manager • Set clear guidelines and schedule for mentor/coach and new hire • Utilize YouTube video training for best practices: Well Coaches “How Coaching Works”

and Smith Leadership “What is Coaching?”

Mentoring vs. Coaching The Team recognizes the importance for a new hire to have support as his/her career grows. With so many new skills being introduced to the new hire, the agency managers can decide which is best for their new hire at different stages of the training program.

Because the terms “mentor” and “coach” are often used interchangeably, the key differences are helpful in deciding the best match for a new hire.

A mentor: Someone in the same industry with more experience than the mentee who will listen and guide the mentee in his/her career.

A coach: Someone within or outside the same industry, possibly even the manager. This relationship is focused on improving a specific skill or competency, so it is short term and structured.

THE KEY DIFFERENCES

MentoringRelationship orientedLong termDevelopment drivenFocus on long term personal developmentMentee is in charge of learningMentor acts as a role model and sounding boardBiased in favor of menteeMentor is not the managerMore informal

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CoachingTask orientedShort termPerformance drivenFocus on an immediate problem or learning opportunityCoach directs learningCoach asks provoking questions and gives appropriate feedbackImpartialCoach could be the managerMore formal

VIRTUOSO TALENT ACQUISITION: HOW TO FIND, SELECT & TRAIN NEW TALENT

CHALLENGE 1: Low Awareness of the Travel Advisor Career

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Virtuoso Talent Acquisition Innovation Team

Alfred Volden All World Travel

Kate Corey Nomadic Souls

Alex Ramsey All Aboard Travel

Melissa Russo Largay Travel

CHALLENGE 2: How and Where to Find Great Advisor Talent

Carissa Cummings Coastline Travel Advisors

Jonathan Sutter Landings Travel

Melanie Waddell The Travel Club

Craig Bush Avenue Two Travel

Kaitlyn Connelly Avenue Two Travel

Sarah Zamzow* Sanders Travel Centre

*Special thanks to Sarah Zamzow for her assistance in drafting this document.

VIRTUOSO TALENT ACQUISITION: HOW TO FIND, SELECT & TRAIN NEW TALENT 16

CHALLENGE 3: How to Compensate New Advisor Talent

Kevin Loveless Global Travel

Sharon Fake Travel Experts

Robin Sanchez Montecito Village Travel

Sheila Mondragon YYZ Travel Group

CHALLENGE 4: How to Train and Mentor New Advisors for Success

Ana Rosete Tourismo Exmar

Lucy Vieira TTI Travel

Maria Gracia Gomez TTS Viajes

Kirsten Little Andavo Travel

Lynda Sinclair Vision Travel

Jere Carroll Casto Travel

VIRTUOSO TALENT ACQUISITION: HOW TO FIND, SELECT & TRAIN NEW TALENT 17

VIRTUOSO STAFF

Cheryl Bunker Cheney Managing Director, US & Canada, Global Member Partnerships

Jennifer Campbell Director, Professional Development & Agency Services, Global Member Partnerships

Susan Spain Director, Strategic Growth, Global Member Partnerships

Helen Nodland Director, Professional Development, Global Member Partnerships

Joelle Goldman Regional Director, North Central and Canada – Global Member Partnerships

People often say motivation doesn’t last. Neither does bathing—that’s why we recommend it daily. - Zig Ziglar

VIRTUOSO TALENT ACQUISITION: HOW TO FIND, SELECT & TRAIN NEW TALENT 18

People, purpose and personal growth – when you have all three, you’ve got the conditions for great work. – Alan Webber, Co-Founder and Co-Editor of Fast Company

A. Critical Questions for Owners & Managers

B. Expectations vs. Reality: A Survey of Advisors First Years

C. Attributes of a Great Travel Advisor

D. Job Descriptions · Support Advisor · Travel Advisor

E. Compensation · Research Findings · Models

F. New Advisor Orientation & Training

G. New Hire Materials · Interview Packet · Intern Packet

Appendix