Tag: Golf Course Industry magazine

Labor, Capital Spending Top 2022 Budgets

Date:

Budgeting for 2022 is complicated by rapidly changing circumstances and market conditions. GGA Partner Henry DeLozier offers insight into areas where budgetary impact will be greatest. 

Budgeting for 2022 is complicated by rapidly changing circumstances and market conditions. For most experienced hands, anticipating changes within their industry and business is far easier than predicting the breadth and depth of the impact the changes will have on their budgets. Here are two significant categories where budgetary impact will be greatest:

1. Labor costs

Historically, the cost of labor and employee benefits represent the largest line item in a golf course’s operational budget. A trend toward a $15-plus per hour minimum wage and desperately low labor supply conditions will only increase the budgetary impact of labor and benefits. In the wake of the COVID-19 pandemic, and the resulting impacts on labor, two truths are becoming evident:

  • Those clubs and courses that kept staff on the payroll and continued long-term relationships with their employees are being rewarded in two ways. First, those courses are not having to search a tight labor market for replacements. Second, course care and upkeep have been sustained by committed and knowledgeable employees who have a running head start on those clubs that have been forced practically to start over.
  • Working knowledge of your specific course and conditioning expectations promotes a more cost-effective recovery process.

But what if circumstances and decisions beyond your control have forced you into a game of agronomic catch-up? Here are some remedial actions to consider:

  • Update your agronomic plan to state your expectations for course conditioning. New employees need (and want) to understand what is expected of them. Be thorough. Be enthusiastic. Show how much you care.
  • Plan for robust new hire training. Pair experienced hands with newcomers. See that the veterans describe the values and standards of the work to be done with the same clarity and as enthusiastically as teaching the job’s “how to” components. Train the trainers to ensure across-the-board engagement and understanding. Plan daily technical training for your round-up sessions to bring new hires up to speed and promote consistency.
  • Hire veterans. There are approximately 19 million veterans in the United States, according to the U.S. Department of Veterans Affairs. As the increasing number of veterans mustering out of service expands, many trained and mature workers are searching for jobs. Some three-quarters of these veterans saw wartime service. Take the steps to learn more about those who have given so much and see how much they can give to your operation.

2. Capital maintenance

Capital spending for most golf facilities has expanded decidedly as an improving economy loosened purse strings and made more money available for deferred capital maintenance spending. Financial analysts at our firm note that capital spending is up by more than 55 percent at U.S. golf facilities, with most projects focusing on course renovations and restorations of historic designs, greens reconstruction and new bunker projects.

With the upsurge in golf’s popularity in the wake of the pandemic, many facilities have experienced growth in rounds played and membership enrollments. According to Golf Datatech, rounds played in 2020 increased by 13.9 percent over 2019 and through the first quarter of 2021 are up another 24 percent. The increased demand for tee times has given owners and managers new confidence to expand facility spending.

What are the smart moves being made by superintendents? They’re updating capital project rosters and renewing long-awaited requests for capital to upgrade facilities. And they’re not waiting. They’re describing the features and benefits of the intended projects and supporting financial projections with trustworthy third-party analysis.

In these uncommon times, it is important for turf pros to remember the sun does not shine on the same dog’s back every day. Market demand will shift. Access to labor will change. But the self-imposed high standards for most superintendents will remain and the expectations of enthusiastic golfers will expand. Prepare your 2022 budget carefully and with a broader understanding of social, economic and market conditions.

This article was authored by Henry DeLozier for Golf Course Industry magazine.

You’re Now the Leader

Date:

In today’s world, where technology, media, and consumer demand intersect in a constant state of disruption, leadership starts with understanding and dealing with change. Henry DeLozier provides perspective on how superintendents can rise to the challenge.

Times have sure changed. Now you’re the one whom young men and women — the ones who aspire to your position one day — look to for guidance and assurance. And it’s in those hopeful faces, full of equal amounts potential and self-doubt, that your biggest challenge and the most important aspect of your job lies.

It’s called leadership. And in today’s world, where technology and media and consumer demand are intersecting in a constant state of disruption, leadership starts with effectively understanding and dealing with change. Among the biggest changes for golf course superintendents in the last decade:

 

  • Agronomic knowledge has become “table stakes.” Knowing the science of growing grass efficiently and effectively has gotten most superintendents into the game. The superintendent is often the best-educated member of the management staff in many facilities. There is no way to overstate the importance and reach of agronomic knowledge, and yet the job is so much more now.
  • Techniques have advanced. Generations of superintendents schooled in the college of hard knocks have found new and innovative solutions to age-old problems. These solutions have resulted in more efficient usage of water, advanced and less damaging pesticide management, and improved playing conditions arising from healthier and denser turf.
  • Environmentalism is of top-tier importance. If everyone was as diligent an environmental steward as golf course superintendents are, we would live in a better, safer world. Trained in the chemical sciences and well informed through professional resources like GCSAA, new generations of superintendents have introduced planet-friendly solutions to fertility and water scarcity challenges.
  • Golfers’ expectations have become more robust and detailed. In their insistence on improved playing conditions, golfers — God love ’em — have continued to push for tournament-quality conditions daily. Their demands, not unlike the quality demands of consumers for any other product or service for which they pay a premium, add stress and push budgets across the country.

If those are some of the major changes currently affecting the superintendent’s world, what might be over the horizon in terms of effective leadership qualities? From our perspective, it’s retaining your best talent. Although job-hopping in many industries has slowed this year as economic uncertainties weigh on employees, the situation could change as the economy and job market continue to improve, especially if employees aren’t feeling supported by their employer. It’s a challenge shared by your peers in organizations across the board.

“Employees crave a rewarding and purposeful workplace atmosphere. Now is the time for organizations to evaluate what is working well for their people, and what’s not resonating,” says Laine Thomas Conway of Alight Solutions, a global consulting firm. “When employees feel their employers are continually improving their offerings and working to enhance the employee experience, they are likely to remain positive and committed to their organizations, and in turn, employers can better retain top talent.”

In other words, says Tom Wilson, the CEO of Allstate Insurance: treat employees like customers. “They don’t pay you in dollars, but in hard work. That has led us to an employee choice model in the new world,” he says. Here are several tactical suggestions to help your team members:

 

  • Education grants for the children of your crew. When the club or golf course funds educational support for the children of its workers, your crew will see you as the employer of choice.
  • Field days for employees’ children. Help families share in the workplace culture and pride with your team. Most children want to see where their parents work, and what cooler place is there than a golf course?
  • Regular feedback sessions. Give employees the same feedback opportunities customers have with retailers and service providers.
  • All-team meetings. Help crew members understand their place in the overall team effort, including other departments and functions at the club and course.

It’s no longer enough to react to changes affecting our careers. To be an effective leader and to encourage your best players to remain part of the team, we must anticipate the next wave of change heading in our direction.

This article was authored by Henry DeLozier for Golf Course Industry magazine.

Say These Two Words to Boost Employee Performance

Date:

Game Plan – Henry DeLozier‘s monthly column in Golf Course Industry Magazine – continues its series on staffing for success with a review of the business bestseller “Leading with Gratitude: Eight Leadership Practices for Extraordinary Business Results.”

“Thank you.”

How does it make you feel when someone expresses their appreciation for a job well done? Pretty great, right? We can all remember the emotional high when a boss we respected told us how grateful he or she was for our contribution to a particularly meaningful project. As it turns out, beyond the personal boost gratitude provides, it’s also great for business. The multi-faceted benefits of gratitude is the subject of Adrian Gostick’s and Chester Elton’s business bestseller “Leading with Gratitude: Eight Leadership Practices for Extraordinary Business Results.”

After surveying more than 1 million employees, Gostick and Elton found that expressing gratitude is the easiest, fastest and least expensive way for managers to improve employee performance and engagement. In that sense, showing gratitude is not only about being nice — it’s about being smart because it could also uncover untapped employee potential and identify obstacles standing in the way of even better performance.

Maybe the best thing about practicing gratitude is that it’s easy. But that’s not to say that it comes naturally to all leaders or that it’s well understood as a business strategy. In many organizations, there exists a sizeable “gratitude gap” between the appreciation employees feel they deserve and what they receive.

This gap points to the consequences of an ungrateful work culture. The authors found that 81 percent of workers said they would work harder if their boss was more grateful for their work. And if you want to reduce turnover, start with gratitude. The No. 1 reason people leave a job, according to the U.S. Department of Labor: They don’t feel appreciated by their managers, even more of an issue with today’s younger workers.

Expressing gratitude effectively is an easily learned behavior, but it does require more, in the authors’ view, than “showering more thank-yous” on employees: “Developing genuine gratitude involves carefully observing what employees are doing, developing greater empathy and sincerely trying to understand the challenges they face.”

Some leaders will insist they are “not wired” for gratitude, excusing their command-and-control style with increased performance, production and results. But the authors insist just the opposite: “Leaders who infuse fear into their work cultures undermine their objectives to increase performance and instead produce stress that can lead to burnout and other productivity-crushing effects.”

Former Ford CEO Alan Mulally is among the many executives who back up the authors’ claims. “Skills are one thing,” he says, “but to create a smart and healthy organization, void of politics, whose people don’t go after each other, that’s about respecting them, showing them the data and thanking them for what they’ve done.”

In his first meeting with Ford’s 4,000 dealers, Mulally began practicing what he preached. He asked Ford employees in the audience to stand, turn and face the dealers. “Now say ‘We love you,’” Mulally instructed. It took the employees three tries before Mulally was satisfied with their sincerity and enthusiasm, but the dealers were quickly convinced this was going to be a new Ford under Mulally’s leadership, one where their roles were valued.

“We aren’t saying every manager needs to offer praise to every employee every day,” Gostick and Elton conclude. “We are saying that most managers should be offering more of it, quite a bit more often.”

This article was authored by Henry DeLozier for Golf Course Industry magazine.

 

Learn more about staffing for success:
Read Staffing for Success: Part 1
Read Staffing for Success: Part 2
Read Staffing for Success: Part 3
Menu