Local Operator turns Vision into Profits!
by Art Marshall - President, Marshall & Associates 

Vancouver, WA  USA  - Tom Mears, President and CEO of The Holland Inc. credits both his personal and the company’s passion to “Serve with love” and their focus on employee welfare, for its most recent achievement in a string of remarkable successes.  That is a one hundred-eight percent return on their investment of an additional one million four hundred thousand dollar in an all new; ninety-five percent employee/ninety percent family company paid health insurance program.

Wanting to improve the quality of life and the sustainability of their employee’s families the Holland conducted a study into the most critical needs and desires of the “best of the best” of their company team.  They also looked at why employees join one company over another and why the stay with that employer longer.  Near the top of the list was employer paid, family health insurance followed by time off, educational assistance, security and opportunity for advancement. 

A decision was made.  In order to achieve its goal of improving the quality of their employee’s lives, retain existing employees longer and attracting new, highly qualified, motivated employees that believe in the company’s mission, “Serve with Love” the Holland would take a leap of faith. They introduced a totally new health insurance program.  The company invested more than one million, additional dollars, in health coverage for their hourly employees.

We talked with one employee who had just left her employer to join the Holland; she put it this way, “Why wouldn’t I want to work for someone who cares enough about me and my family to give me somewhat higher wages, educational assistance, a better vacation schedule, family health insurance and a career development program”?   “Not only that, but they encourage me to take good care of my guests instead of mindlessly following standard company policy whether it fits a particular situation or not”.  “Here they seem to really care about me as a person”.

The company’s investment is paying off.  While the industry, in general, is struggling with more than one-hundred thirty percent annual turnover in their hourly positions and thirty-two percent, or more, in management the Holland is experiencing less than one half those turnover numbers. 

Jack Graves, Chief Cultural Officer, is charged with, as you would guess, corporate culture. Included in Graves’ responsibilities is tracking the success of the many Holland employee programs.

Prior to initiating the one million four hundred thousand dollar investment, for an all new employee health insurance program, Jack did an extensive study of various areas of accountability.  He established bench marks for comparing productivity before the investment and after.  His plan was to recover most of the increased costs through reduced turnover expense.  Graves’ goal was to demonstrate the program was self sustaining in twelve to fourteen months.  He felt it was possible to eventually realize and sustain a small return.  One million four hundred-sixty thousand dollars was recover in the first twelve months of the program.

The Holland’s turnover rate was already quite low.  It went even lower.  The actual return from this even lower turnover represents a whopping forty percent of the total measurable return.  In addition to savings from turnover Holland employee’s generated approximately a two point five percent real sales growth related to guest satisfaction.   More than nine hundred thousand dollars of that fell through to the bottom line.  This came from improved guest service with fewer labor hours, lower waste, improved cost controls in all categories, improved guest return frequencies along with a host of other measurable efficiencies.  Encouraged by this success, the company is in the process of establishing employee services as a profit center. 

Graves states that remaining true to their mission the Holland continues to offer their employees greater benefits.  They are currently looking into additional, creative employee incentive programs that, if implemented, could be expected to improve the company’s financial performance and enhance its mission “Serve with Love”.  This year already, the company has added an additional education benefit.  It has developed an entirely new Scholarship fund to be awarded exclusively to hourly employees and their families.  This is in addition to the three thousand-five hundred dollar tuition assistance program already offered to every company salaried employee.  In addition to these already extensive education benefits, the company budgets a very significant amount of its profits, each year, to be used for personal development and business coaching. 

The Holland is firmly committed to the personal and professional growth of their employees.  It is a hospitality industry trend setter.  The National Restaurant Association is warning of the extremely severe, current labor shortage.  They warn that it will continue to escalate and only the most astute, progressive employers will be able to attract and keep a highly skilled and motivated work force.  The Holland is exactly that type of employer.