CA Community Colleges Collaboration with Retail, Hospitality & Tourism (RHT) Snapshot: Coachella Valley Desert/Inland Empire Region

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CA Community Colleges Collaboration
with Retail, Hospitality & Tourism (RHT)
                Snapshot:
 Coachella Valley Desert/Inland Empire
                 Region
Table of Contents
Executive Summary ........................................................................................................................ 4
   Study Objectives: ........................................................................................................................ 4
   Industry Background ................................................................................................................... 4
   Methodology ............................................................................................................................... 5
   Next Steps ................................................................................................................................... 5
One-on-one Interviews.................................................................................................................... 8
   Overview ..................................................................................................................................... 8
   Methodology ............................................................................................................................... 8
   Findings....................................................................................................................................... 9
       Finding: Current Business Environment ................................................................................. 9
       Finding: Community College Involvement ......................................................................... 11
       Finding: Skills Development/Expectations.......................................................................... 12
Online Surveys .............................................................................................................................. 14
   Overview ................................................................................................................................... 14
   Methodology ............................................................................................................................. 15
   Findings..................................................................................................................................... 16
       Finding: Employer Information ........................................................................................... 16
       Finding: Employee Skills ...................................................................................................... 19
       Finding: Training .................................................................................................................. 21
       Finding: Awareness .............................................................................................................. 22
       Finding: Interns ..................................................................................................................... 24
       Finding: Tuition Assistance .................................................................................................. 24
       Finding: Industry Credential ................................................................................................ 25
       Finding: Hiring Authority .................................................................................................... 27
RHT Focus Groups ....................................................................................................................... 28
   Overview ................................................................................................................................... 28
   Finding: Applicant Preparation to Enter the Workforce ........................................................... 28
       Participant Comments: .......................................................................................................... 28
   Finding: Basic Skills ................................................................................................................ 29
       Participant Comments: .......................................................................................................... 30
   Finding: Education and Training ............................................................................................. 31
       Participant Comments: .......................................................................................................... 32
   Finding: Familiarity with Existing Players and Programs ....................................................... 33
       Participant Comments: .......................................................................................................... 34

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Exhibit 1
   Focus Group Participants .......................................................................................................... 36
Exhibit 2
   RHT Focus Group Discussion Questions: ................................................................................ 37
Exhibit 3
   Open Verbatim Comments from Online Survey Responses (spelling not corrected)
      Please share any additional insights or ideas that you have regarding the gaps that you see in
      workforce readiness/employee skills and educational programming as it might relate to your
      business. ................................................................................................................................ 40
      What skills are most desirable for your newly hired employees to possess? ....................... 44
      What skills do you find most often lacking in job applicants when you are hiring new
      employees? ............................................................................................................................ 45
      What type(s) of training does your organization most often provide to employees? (Dept.
      Specific) ................................................................................................................................ 46
      What type(s) of training does your organization most often provide to employees? (General)
      ............................................................................................................................................... 47
      What methods does your organization typically use for delivering training to employees? 48
      If cost is not an issue, what are two types of training or education you would most like to
      provide to your employees? .................................................................................................. 49
      In what areas of your business are, or could, interns be utilized? ........................................ 52
      Briefly describe the tuition assistance offered by your business. ......................................... 53
Exhibit 4: One on One Interview Participants .............................................................................. 55

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Executive Summary

Service-sector jobs are an increasingly important part of the Inland Empire and Coachella Valley
economy. This report, completed for the California Community College Chancellor’s Office
with the support of the Desert Community College District, examines three industries-retail,
hospitality and tourism – representing more than 148,000 jobs in the region.

Results from this study are intended to be used as a tool to inform community colleges within the
region regarding needs of businesses within the Retail, Hospitality and Tourism (RHT) business
sector. Additionally, the research process will help increase industry awareness of the benefits
that may be derived from growing a locally developed and suitably trained workforce from the
entry level up through the career ladder to supervisory and management levels.

Study Objectives:
     Identification of localized industry workforce needs and gaps in the areas of workforce
      readiness and incumbent employee training and development.
     Assessment of industry awareness and perceived efficacy of existing community college
      programs and services.
     Identification of desirable faculty and industry collaboratives.
     Exploration of opportunities to integrate college programs and services with industry
      needs.
     Improved integration of workforce and incumbent employee training with industry.
     Increased awareness of the benefits derived from employee training.

Industry Background
The RHT industries are an important segment of the nation’s economic and job growth. Direct
spending from travel and tourism activity contributed more than $544 billion to the US GDP in
2013. On the state level, direct travel spending in 2013 was $109.6 billion, up from $106 billion
in 2012.1 No less important are the estimated 568,500 accommodation and food related jobs
supported by the California travel industry and the 86,500 jobs supported by retail.2

Within the study geographic area, the number of hospitality industry jobs is expected to grow
from 146,169 in 2012 to 160,478 in 2015, an increase of 12,309 jobs or 8%.3 For the month of
April 2014 alone, preliminary labor market information from the State of California EDD office
reflected an addition of 1,100 leisure and hospitality jobs added to the Riverside-San Bernardino-
Ontario Metropolitan Statistical Area (MSA). Overall unemployment in the region reported by
the EDD as of April 2014 was 8.3%, down from more than 13% reported in July 2012. This
downward trend in the regional unemployment rate is positive and indicates that the economy is
absorbing qualified candidates. Presuming that the most qualified candidates are hired first, as

1
  Travel & Tourism Council. Travel & Tourism Economic Impact 2013, North America. Online at
http://www.wttc.org/site_media/uploads/downloadsnorth_america2013_1.pdf
2
  http://www.deanrunyan.com/CATravelImpacts/CATravelImpacts.html CA State Interactive Map, Direct
Employment for Food and Accommodations.
3
  Source: EMSI Complete Employment – 2014.4

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the availability of these highly qualified individuals decreases, the need for developing additional
qualified candidates increases.

Methodology
The study data is derived from analysis of secondary data sources and primary research. The
primary research components included one-on-one interviews, an online survey instrument and
focus groups.

In summary, one-on-one interviews were conducted with community leaders, key members of
the RHT industry, and educators and administrators from both K-12 and community colleges.
Online surveys were conducted with members of the broader RHT business sector. Focus group
participants were made up of a combination of RHT leaders and general members of the RHT
business sector.

Results are examined in the three subsequent sections, presenting the process and findings in the
following order:

      One-on-one Interviews
      Online Surveys
      Focus Groups

It should also be noted that the survey and accompanying meetings were in and of themselves an
outreach to RHT businesses and community leaders. Ideally, this outreach could open up
opportunities for future collaboration between community colleges, local communities and
businesses within the RHT industry.

Next Steps
From the feedback received, it is evident that members of the retail, hospitality and tourism
(RHT) industry are concerned about the quality of the existing workforce, particularly with
regard to entry level staff, and most especially those in frontline positions. Retail, hospitality and
tourism share a number of attributes and chief among them is the need for an informed, friendly,
helpful and conscientious workforce to assist the customer. This is relevant to both front of the
house and back of the house staff. Owners, executive staff and frontline managers have clearly
identified the ongoing issues they are experiencing and the skills they need within the workforce.
This focus provides an opportunity for educational leaders to connect and collaborate with
members of the industry with the united goal of properly and efficiently preparing individuals to
participate in the RHT workforce.

This report provides a foundation for further action, including the potential to:

Leverage Industry Involvement: There is recognition from industry leaders that the job market
is getting tighter as economic conditions improve. Pressure exists from corporate ownership to
begin driving price increases after the bleak financial times of the last four to five years. On the
other side stands the customer, prepared to instantly (via social media) evaluate and report on
qualitative issues and value of products, and in between lay the managers and staff to balance the

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two. Creating a high quality RHT workforce is essential to the financial success of these
businesses, and industry leaders appear to have a heightened awareness of the need to play a role
in improving the broader workforce. The effort will require a leader and will need to be ongoing
and well planned. Educational institutions have a unique opportunity to plug into this need,
particularly those with contract education infrastructure in place, as there is a need to be able
respond quickly and strategically to offer the identified training.

Continue and Expand Integration with K-12: School districts throughout the study area are
developing partnerships with businesses of all types and introducing students to businesses and
pathways at earlier and earlier ages. Wherever possible these efforts should be synchronized with
community college efforts.

Strengthen Internship Opportunities and Programs: Study participants identified the need for
and the desire to participate in hands-on learning opportunities. Participants were also very clear
that these programs need to be easy for businesses to access and meaningful for both the student
and the business.

Create Cross-Discipline Pathways: Today’s businesses rely on services from IT, graphic
design, marketing and even mechanics. Community Colleges can work with local businesses and
their associated national trade organizations to develop interesting relevant pathways to capture
students’ interests. These cross-discipline industry and educational work groups can form and
dissolve as projects or initiatives arise and dictate.

Increase Awareness of and Access to Existing Programs, Develop Basic Skills Training and
Strengthen the Tie between Industry and Colleges. Participants felt that students would
benefit if the links between the industry and education were enhanced. Participants suggested
that the community college system could benefit from becoming more "user friendly" to help
students, employees and industry understand and access courses...offer more “one and done”
workshops specifically catering to industry needs and developed by industry in conjunction with
colleges.

Several mentioned that the Colleges are building new buildings and upgrading infrastructure, but
that this infrastructure should be complemented with top notch outreach and marketing
initiatives. Comments suggested that the educational system needs to run more like a business.

One challenge to outreach is a lack of a unified and wide-reaching industry voice within the
Inland Empire. The lack of trade associations and similar structures is an obstacle to efficiently
assembling, organizing and maintaining communications with businesses across the Inland
Empire.

Participants are open to and eager for connection. They understand and value the benefit of
education and training. There is a desire for ongoing engagement, rather than one time meetings
of advisory boards, and a willingness to actively participate in the classroom as well as the
development of relevant education and training to meet their needs.

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In particular, the following suggestions were made:

      Incorporate industry leaders into the classroom in a consistent integrated way
      Give students a good grounding in all aspects of the business operation
      Introduce students to basic skills and expectations of the workplace
      Include training in basic computer skills
      Work with industry to develop a basic hospitality certificate course
      Increase opportunities for work experience
      Need to reach people younger (in high schools, Boys and Girls Clubs, etc.)

Follow Up: Follow up will be critically important, both to address a perception among some
participants that this study is simply an exercise for which there will be no specific follow up or
follow through; and to begin to engage an industry which has very specific, identified needs and
is eager to participate in developing programs to address those needs.

Study participants who have had experience on advisory boards or have a relationship with high
schools or other colleges/universities generally tended to be enthusiastic supporters of the
concept of workforce development and CTE. However, there were multiple study participants
who perceive the community college system as non-responsive based on multiple attempts to
reach out in the past with little or no response.

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One-on-one Interviews

Overview
In-person interviews spanned across each of the study participant groups consisting of
community leaders, educators and industry leaders. Interviews with the community and industry
leaders helped to inform a broader view of the dynamics of the community college and industry
relationship and provided a more complete context in which to view feedback obtained
throughout the study. Likewise, interviews conducted with K-12 administrators and educators
assisted in understanding the linkages between K-12 programming and RHT education offered
by community colleges.

Interviews with educational and community leaders followed a general outline format, but
allowed for a natural discussion of the relationship between local community colleges and the
entity represented by the interview participant. There were 28 interviews with members of these
two groups. These meetings ranged in length from 35 to 60 minutes.

Interviews with key RHT leaders opened with general questions similar to those asked of the
community leaders and concluded with more specific questions from the online survey
instrument. The purpose of the in-person interviews with key RHT and community leaders rather
than simply providing the online document, was to create the opportunity to more fully engage
these leaders in the goals driving the research as well as participation in the process, thereby
creating “buy-in” and support for future follow-up and participation.

Methodology
Reflecting the wide diversity of business types that fall under the umbrella of RHT; owners,
executive management, HR directors and supervising managers associated with RHT businesses
were sought for interviews. Interviews with these participants included representatives from the
following groups:

    Convention/Event Facilities
    Hotels & Resorts
    Restaurants (chain and owner operated)
    Private Transportation
    Destination Management Companies
    Attractions/Amusements
    Retailers
    Arena/Sports Facilities
    Temporary Employee Agencies

Interviews with key community leaders provided an understanding of the environment in which
the RHT businesses are operating and of any external events that might represent threats to, or

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that might trigger greater demand for, RHT sector jobs. Interviews with these participants
included representatives from the following groups:

    Municipal Elected Officials
    Municipal Executive Management
    Municipal Redevelopment
    Workforce Investment Board (Board/Staff)
    Business Improvement District
    Merchant Organization
    Chamber of Commerce
    Convention & Visitors Bureau
    Retail Center/Mall Management
    Tribal Executive Staff
    Destination Marketing Organizations

Members of the education community were also contacted to provide an outline of the various
RHT related programs at both the high school and community college levels and included:

    Community College Administrators
    Community College Faculty
    K-12 School District Representatives
    RHT Program Instructors K-12

Findings
Based on interviews and secondary data and information, we identified the following RHT labor
market trends, issues and challenges in three major categories:

    Current Business Environment
    Community College Involvement
    Skills/Training

Finding: Current Business Environment

By all accounts, the regional outlook for the RHT industry is positive. Industry and community
leader study participants were consistently positive about the general wellbeing of their particular
business or jurisdiction, with industry leaders exhibiting a slightly higher degree of caution. Even
though respondents could identify some hurdles yet to clear, they seemed to be taking them in
stride describing recent successes and future plans and opportunities as outweighing any
potential losses. Most noted that changes to the economy would be the wild card element with
potential to derail the present progress.

Government representatives were quick to cite projects underway or in planning and hotels
boasted renovations, improved occupancy and rising revenues. Essentially, respondents are

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feeling good about the economic direction in which things are headed and can see a path to the
possibility of returning to pre-recession business levels.

Empirical data from key locations within the geographic areas of the study provides some
support for the positive outlook expressed by stakeholders. By examining Transient Occupancy
Tax (TOT) and sales tax revenues one can get a sense of the economic health of the RHT
businesses. A review of these tax revenues for three key cities within the Inland Empire (Ontario,
Palm Springs and Riverside), reflects growth in both sales tax and TOT revenues when
comparing collections at June 30, 2012 with projected collections for the fiscal year ending June
30, 2014, even after adjustments for legislated increases in the underlying tax rate. While final
budgets have not yet been adopted for the 2014-15 fiscal year, each of the cities indicated that
the budgets will reflect continued increases in these tax collections for the coming year.

           City           TOT Revenue Increase from            Sales Tax Revenue Increase
                          6/30/12 to 6/30/14 (est.)            from 6/30/12 to 6/30/14 (est.)

 Riverside                31.7% (Adjusted for 1% increase 13.1%
                          in FY 2012-13 and additional 1%
                          in FY 2013-14)

 Ontario                  2%                                   3%

 Palm Springs             15.5%                                8.1% (Adjusted for 1% increase
                                                               effective 4/1/12)

These growing tax revenues along with the improving unemployment rates noted in the region
reflect an expanding job market and consequently a higher demand for trained employees.

Interview Comments:

“New housing development of 1,200 homes to be under construction by 2015.”

“A new hotel is planned and in design for the north end and they are looking at development of
four new restaurants around it.”

“The airport is an obstacle and it is not under local control right now, but we expect to change
that within 1-2 years.”

“New retail centers are planned for four areas of the city.”

“We have a 16 year agreement with Goldenvoice in which they are committed to add two new
festivals in the City.”

“There is more retail in the planning stages.”

“We are aware of at least two new hotels under consideration.”

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“Retail continues to grow; the Nordstrom is the highest grossing store per square foot in the
chain.”

“We are seeing acceleration in growth. Room nights from meetings for the first six months of the
year surpassed the entire previous year of operation year.”

“Riverside was ranked number one in job growth nationally by Arizona State University study.”

Finding: Community College Involvement

A recurring message, particularly among RHT industry leaders, was a lack of connection or
awareness of local community college RHT programs. Of the 29 members of this interview
group 11 had some relationship or awareness of a local college beyond name awareness. Of these
11, eight were aware that the college had programs in RHT while the remaining three were
unaware of the specific programs available. One member stated that they had hired four
graduates of the local culinary program.

It is important to note that particularly in the chain retail and hotel industry, the top level
management may be somewhat transient, possibly staying in a community for only 2-3 years.
For this reason it is important to maintain consistent outreach efforts to the people in these
positions while also developing partnerships at different levels of the organizations. In any event,
involvement with local trade organizations such as Convention and Visitors Bureaus is a means
of staying connected to these organizations as individuals change.

Some members of the group expressed a very strong desire to connect with the local community
college and were even community college graduates themselves. Support offered during the
interview ranged from possible monetary support to develop a full-scale hospitality academy, to
more immediate offers of classroom participation, adjunct teaching or support of an internship or
training program.

Interview Comments:

“I placed a job posting with the college job site but received no response. I did get good response
on Craig’s list and the Cal State job site.”

“We would seriously consider supporting development of a Center for Hospitality Management.
There are funds available for support, but there are other schools (including high schools and
four year universities) that may approach us for similar funding.”

“We’ve had great experiences with Cal State providing us with interns. They come to us in their
last semester and work 15-20 hours per week. When they leave they have a portfolio of work that
they can use when interviewing for jobs.”

“We developed a Tourism Associate program that was ready to go and the faculty was
supportive but the final contract required too much in the way of liability for us to proceed.”

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“We need some sort of hospitality training that addresses customer service, particularly for retail
and restaurants.”

“RCC is involved with our downtown board, the Interim President is a member.”

“We developed a social media internship between downtown businesses and Cal Baptist
University. The students are matched up with businesses based on skills and provide social
media/PR efforts to downtown businesses. The programs last 8-16 weeks and students get class
credit or donate their time.” (Note: The program started as a result of two university professors
holding a free social media seminar for members of the downtown Business Improvement
District)

“The RCC culinary program seems to be a good quality program.”

“We find that participation in the Crafton Hills job fair is very beneficial.”

Finding: Skills Development/Expectations

Comments from this group of participants were consistent with those from the online and focus
group participants with regard to skills lacking by many job applicants and the expectations they
are presenting to prospective employers. There is nearly unanimous consensus that job applicants
need to learn the basics of professional behavior. Beginning with proper attire, how to properly
and successfully complete a job application, how to dress, speak and write. These are all skills
found consistently lacking among job applicants. Many in this response group also mentioned
that new graduates often have unrealistic expectations about compensation, scheduling and
punctuality.

The general consensus is that students, and the organizations for which they eventually work,
will benefit from the students gaining more hands on, industry related experience while they are
completing their coursework. They need to understand how individual components of the
operation fit together and impact each other. Business is eager to partner with community
colleges on such programs, but the colleges have to make it easy to participate. Some of the
industry leaders in this group cited successful partnerships programs at the high school level.

Interview Comments:

“It would be great if the vocabulary of the industry were taught as part of the curriculum.”

“Sometimes people just need one single focused skill to move up, is there a way to produce one
day seminar subjects?”

“Compress the learning timeframe where possible...keep up with industry which changes so
fast.”

“Definitely require on the job experience.”

“We need people to have job ready skills now that we seem to be in the upturn.”

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“Adult learning seems to be a gap. Is there a mechanism for employees who want to grow in the
industry?”

“Develop greater professionalism in both the front and back of house.”

“Identify growth pathways even if it is for a waiter to show them how they can move up the
ladder by enhancing skills and moving to more and more upscale restaurants.”

“We would like to develop a stronger partnership with College of the Desert.”

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Online Surveys

Overview
The online instrument was used to reach a broader and more widespread population given the
vast geographic area to be covered. The online survey served as the primary resource for
gathering information and feedback from businesses within the RHT sector.

The survey was designed to capture data in three primary areas:

      Basic information about the respondent’s business
      Employee and workforce skills
      Employee training and certification

The requested business information included business location (Inland Empire or Coachella
Valley), size of the organization by number of employees and the percentage of full-time
employees versus those that are part-time or seasonal.

The employee and workforce skills survey elements explored the skills that were most desirable
to the respondent’s business as well as those that were most often found lacking in applicants or
new hires.

Training questions in the survey sought to explore the types of training presently being offered
by respondents, the methods used to deliver the training and the types of training that might be
desirable if cost were not an issue. In conjunction with these questions, respondents were asked
about their use of area community colleges as a training resource, awareness of RHT related
community college programs and their awareness of employees who completed RHT type
programs at any level (high school, community college or four year university).

Employer utilization and openness to internships was also explored. Respondents were asked if
they currently participate or were open to participating in an internship program and if so, in
what areas internships might be developed.

Tuition reimbursement programs were also investigated. Respondents were asked whether or not
their organization offered a tuition reimbursement program. If a program existed, whether
formally or informally, follow-up questions regarding the program were triggered to determine
any qualifications that existed and to get an idea of the typical amount the business would spend
annually to support an individual’s continuing education.

As the final component of the training related questions, respondents were asked if it would be
useful for new hire employees to have a certification relevant to their industry, and if so what the
elements of that certification might include.

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Methodology
RHT Industry survey participants were pursued via industry advisory councils, industry trade
group organizations, destination marketing organizations, business improvement districts (BID)
and through referrals by local community and business leaders. Survey links were sent out via
the following organizations to 2,217 individuals. 1,100 were specifically sent to retail, hospitality
and tourism businesses located within the Inland Empire and Coachella Valley. The remaining
1,117 were sent out to the membership of the Ontario Chamber of Commerce (OCC). Some of
the OCC members who received the survey link as part of the Chamber’s newsletter would not
fall into RHT categories. Responses from this outreach were reviewed to ensure the respondent
businesses fell within the RHT sector. The survey links were sent on our behalf by the individual
organizations due to proprietary information and email subscriber concerns, therefore statistics
pertaining to the mailing deliverability are unavailable.

                        Organization                                 Members Contacted

 Riverside Downtown Partnership (BID)                                          50

 Discover IE (Inland Empire Tourism Marketing)                                100

 Greater Palm Springs Convention & Visitors Bureau                            696

 Palm Springs Hospitality Association                                         206

 Individual Invitations from Referrals                                         48

 Ontario Chamber of Commerce                                                 1,117

 Total                                                                       2,217

Contacts on these lists reflect the wide diversity of business types encompassed under the
umbrella of RHT; and include owners, executive management, HR directors and supervising
managers. Responses from the following business types are represented in the online survey
findings:

        Convention/Event Facilities
        Hotels & Resorts
        Vacation Rental Companies
        Restaurants (chain and owner operated)
        Private Transportation
        Destination Management Companies
        Attractions/Amusements
        Retailers (chain and owner operated)
        Golf Courses
        Arena/Sports Facilities
        Caterers
        Temporary Employee Agencies

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    Winery
       Spas/Salons
       Museums
       Special Event Housing Agencies

Responses were gathered in April, May and June, 2014. There were 109 total responses from the
industry survey population.

Findings
       Employer Information
       Employee Skills
       Training

Finding: Employer Information

                                            Location
                                                             76.1%

                                  23.9%

                                    Inland Empire   Coachella Valley

76.1% of survey respondents were from the Coachella Valley Region and 23.9% were from the
Inland Empire. Approximately 370 more survey invitations were sent within the Inland Empire
than in the Coachella Valley; however, more respondents were located within the Coachella
Valley. This difference in response is likely due to the fact that the Coachella Valley region is
home to more long established RHT membership organizations with very active and engaged
members. The Inland Empire, while larger and home to more RHT related businesses, lacks a
single longstanding business organization specific to retail, hospitality and tourism.

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Type of Business
                             Other (Please Specify)
                                      12%                           Retail
                                                                     20%
                                 Tourism
                                    4%
                       Transportation
                             3%
                      Special Events
                           4%

                      Event Venue
                          6%                                                 Restaurant
                                                                                17%
                         Activities/
                        Amusements
                             4%
                                                                       Catering
                                                                         1%
                                               Hotel/ Resort
                                                   29%

Survey responses came from businesses of many types; however, 70% came from RHT sector
businesses in retail, lodging, restaurants and tourism, with the remaining 30% of respondents
representing a of a wide range of business types including, spas/salons, transportation, catering,
etc.

                                              Total Employees

   More than 100                                                                             24.8%

          51-100                                           11.9%

           26-50                                                                     22.9%

           11-25                                                   16.5%

               1-10                                                                       23.9%

Among survey respondents, more than a third reported more than 50 employees, with 24.8%
reporting greater than 100 employees. 23.9% of those responding reported ten or fewer
employees.

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% Year Round Employees (32 hours or more)
 91% to 100%                                                                          21.1%

  81% to 90%                                     10.1%

  71% to 80%                                     10.1%

  61% to 70%                                     10.1%

  51% to 60%                                  9.2%

  41% to 50%                                  9.2%

  31% to 40%                 4.6%

  21% to 30%                    5.5%

  11% to 20%                                         11.0%

   6% to 10%        1.8%

    1% to 5%                           7.3%

Nearly 60% of respondents reported more than half of their employees are considered full-time
(32 hours or more) and are employed year round.

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Finding: Employee Skills

                                     Most Desirable Skills for New Hires

                                         Other (Please Specify)               33.0%

                                           Hands on Experience                      40.4%

                  Ability to Communicate Effectively w/Client                                           73.4%

                                               Problem Solving                                      63.3%

              Advanced Computer (ex. proficient with word
                                                                    14.7%
             processing/spreadsheet/presentation programs)
           Intermediate Computer (ex. able to use basic word
                                                                            28.4%
                  processing/spreadsheet programs)

                       Basic Computer (ex. navigate windows)                        41.3%

                                                   Basic Writing                     43.1%

                                                     Basic Math                             51.4%

                                                       Language                        47.7%

                                             Cash Management                    38.5%

                  Alcohol Handling (ex. ServSafe certification)         23.9%

                       Food Handling (ex. Food Handling Card)                 33.0%

 Soft Skills (ex. business etiquette, eye contact, assertiveness,
                                                                                                      67.9%
                                etc.)

                                              Customer Service                                                  92.7%

Among survey participants, the top five workforce skills desired by businesses are Customer
Service, Ability to Communicate Effectively, Problem Solving, Soft Skills and Basic Math.

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Skills Lacking in Job Applicants

                                              Other (Please Specify)                 23.9%

                                                           Grooming                    25.7%

                                                    Problem Solving                                    42.2%

                                                        Interviewing                22.0%

                                               Work Place Etiquette                              37.6%

   Advanced Computer (Intermediate Skills plus Presentation and
                                                                          11.9%
                     other programs etc.)
      Intermediate Computer (ex. Word Processing/ Spreadsheet
                                                                             15.6%
                            capability)

                            Basic Computer (Windows/Navigation)             14.7%

                                                          Basic Math              20.2%

                                                        Basic Writing                23.9%

                                                 Time Management                             32.1%

                                                         Punctuality                           34.9%

                      Job Specific or Technical Skill (Please Specify)   10.1%

Soft Skills (ex. business etiquette, eye contact, assertiveness, etc.)                                         51.4%

                                                    Local Knowledge                  22.9%

                                           Language (Multi-lingual)          16.5%

                                     Effective Communication Skills                                                    62.4%

                Customer Service (Ensuring customer satisfaction)                                        45.0%

    Respondents found Effective Communication, Customer Service, Soft Skills, Problem Solving
    and Workplace Etiquette most often lacking, followed closely by Punctuality.

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Finding: Training

                               Training Most Often Provided by Employers

                        Other (Please Specify)             15.6%

                                        Brand                                           46.8%

                             Problem Solving                                  35.8%

                           Conflict Resolution                      23.9%

 Department Specific Training (Please Specify)                                        44.0%

                         Harassment Training                                              49.5%

               Company Policies & Procedures                                                              70.6%

                              Alcohol Service                       24.8%

                               Food Handling                                32.1%

                               Cash Handling                                32.1%

                                    Computer                                33.0%

                                       Safety                                                   55.1%

                            Customer Service                                                                    77.1%

Businesses reported that they most often train employees on Customer Service, Company
Policies/Procedures, Safety, the Brand and Harassment.

                                          Typical Training Methods

           Other (Please Specify)                11.9%

       Vendor Provided Training                          29.4%

               In-House Training                                                         70.6%

             Contracted Training                 12.8%

                 Online Training                                 38.5%

             On the Job Training                                                                        90.8%

On the job training (OJT) was cited by 90.8% of respondents as a primary method of delivering
training to new employees. The next most popular training method was in-house as reported by
70.6% of the businesses, followed by online training and vendor supplied training at 38.5% and
29.4% respectively. Those specifying “other” as one of their training methods provided insight

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into some other less conventional avenues for providing training. These included, educational
sessions at trade conferences, insurance company provided safety training and You Tube videos.

Respondents were also asked what kind of training they would like to provide employees if cost
were not an obstacle. The responses covered a very wide range including career pathway,
problem solving, safety, management/leadership and more. Two specific types of training were
identified at a higher rate. Customer service training was identified by 25% of respondents as an
area in which they would like to provide more employee training and 10% identified computer
training.
                       Only 5.5% Have Used a Community College for
                                   Their Training Needs
                                                5.5%

When asked if they had utilized community colleges for employee training, only 5.5% responded
affirmatively. Those respondents utilized the college for training in Customer Service, Retail,
English Communication and Landscaping.

Finding: Awareness

                            Awareness of RHT Programs Offered
                                                         66.1%

                                    33.9%

                                              Yes   No

Awareness of RHT programs was somewhat better, with 34% of respondents stating that they
had some awareness of the programs available at nearby community colleges.

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Employees Completing RHT Programs

                             37.6%                  38.5%

                                                                    23.9%

                              Yes                    No           Do not know

37.6% of respondents were aware of employees who had completed RHT type programs either at
the community college, high school, or four year college level.

                              Familiarity with Programs Completed by
                                             Employees

                    Other            9.8%

                    Retail                  17.1%

               Hospitality                                                      63.4%

                 Business                                                        65.9%

                 Culinary                                                        65.9%

Respondents generally had high awareness of programs completed by employees in culinary,
business and hospitality but were less aware of programs in retail and other areas. 65.9%
reported familiarity with culinary programs, 63.4% with hospitality, 65.9% with general business
and 17.1% stated that they were aware of employees who received training in retail.

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Finding: Interns

          Past Utlization of Interns                        Would You Use Interns in
                                                                 the Future?

                                                                38.2%
                                 49.5%
               50.5%
                                                                                 61.8%

                       Yes      No                                        Yes    No

49.5% of the responding businesses have in the past or currently work with interns and 61.8%
indicated that they would be willing to use interns in the future.

                                     Areas Interns Could Be Utilized

      Other (Please Specify)                                           34.1%

                    Graphics                        20.5%

               Event Planning                                  29.6%

                     Catering                      19.3%

                        Sales                                            36.4%

          Customer Service                                                                    53.4%

                     Culinary                                            36.4%

                   Marketing                                                          47.7%

                  Accounting                                  28.4%

Job areas with positions most often available for interns include Marketing, Customer Service,
Culinary, Sales and Event Planning

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Finding: Tuition Assistance

                               23.9% Offer Tuition Assistance

                                                    23.9%

Only 23.9% of businesses surveyed offer some sort of tuition assistance, but those who did, did
so at a relatively high level. 65% provide assistance of $750 or more per employee annually.

Finding: Industry Credential

                      92.7% See Value in Industry Credential

                                        92.7%

An overwhelming 92.7% of respondents saw value in a credential related to their industry.

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Potential Elements of Indusry Credential
        Marketing, Business Professionalism, Computer Skill
                                                                   1.0%
         (Powerpoint/Excel), Basic Math, Customer Service
Marketing, Public Relations, Digital Marketing & Asset Usage/
                                                                   1.0%
Customer Service/ Marketing Analysis/Writing/Photography…

     for the credential to include work experience in the field    1.0%

                                        Other (Please Specify)                            30.7%

                  Business Communication (ex. Email, Phone)                                            51.5%

                                               Business Ethics                                          52.5%

                                            Business Etiquette                                                   63.4%

      General Business (how aspects of business inter-relate)                                            54.5%

                                                   Basic Math                                 37.6%

                                                 Basic Writing                             33.7%

                 Resume Writing/Job Application Completion                11.9%

                                                     Life Skills                             36.6%

                                                  Interviewing                    21.8%

                                               POS Operation                                  37.6%

Advanced Computer (Intermediate Skills plus Presentation or
                                                                              18.8%
             other Program Capabilities)

Intermediate Computer (Word Processing, Spreadsheets, etc.)                         26.7%

                                              Basic Computer                                          48.5%

                                             Customer Service                                                            81.2%

 When asked what elements should be a part of the credential, responses varied widely. 81.2% of
 respondents stated that Customer Service should be included, followed by 63.4% for Business
 Etiquette, 54.5% for General Business, 52.5% for Business Ethics and 51.5% for Business
 Communication.

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Finding: Hiring Authority

                                    Hiring Manager/Authority

                              Other (Please Explain)   7.4%

    Departmental Managers or HR recommend, but the
                                                                 18.5%
            GM/Owner makes final decision

                         Human Resources personnel       10.2%

                            Departmental Managers                19.4%

                            General Manager/Owner                                    44.4%

When it comes to hiring, the General Manager/Owner is the person identified most often (44.4%)
as the person with final hiring authority. Departmental Managers and Departmental Managers or
Human Resources making a recommendation to the General Manager/Owner is mentioned
nearly a third of the time. Human Resources personnel make the sole hiring decision 10.2% of
the time.

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RHT Focus Groups

Overview
Two focus groups were conducted as a part of the study, one in the Coachella Valley and one in
Riverside. This section summarizes the main findings of the focus groups in the following
categories:

          Applicant Preparation
          Most Desirable Skills
          Basic Skills
          Familiarity with Education and Training

Finding: Applicant Preparation to Enter the Workforce
Overall, participants felt that the current applicant pool is not acceptable and is significantly
weaker than those found in larger market areas (L.A./S.F.).

There is a shortage of qualified labor looming as the economy gets stronger (return to churn and
burn of employees as in last boom).

The display of indifference by applicants when applying and beginning jobs is an issue.
Participants cited attire, professionalism, grooming, attitude and overall presentation as an
ongoing challenge when searching for good, qualified employees.

Online applications are being required more frequently for all levels of employees, meaning that
applicants will need to have some basic level of computer proficiency to even be considered for
an open position. Along with the technical proficiency sufficient to complete an online
application, applicants must be able to convey experience, professionalism and congeniality
within the framework of the online application.

A number of participants mentioned a decline in employees’ problem solving abilities in recent
years. The instant accessibility of supervisors via mobile devices was mentioned as a tool that
enables people to seek help without trying to think through issues independently.

It is very mixed, but there is generally a sense that the more educated applicants present better.

Participant Comments:

          Applicants do not show up for an interview displaying presentable appearance and
           manner.
          Spelling and completing a proper application are screening vehicles. As a result,
           many people are screened out before ever getting an interview. In addition, we
           request a resume prior to an interview, even for wait staff which gives an idea of
           person's ability to communicate, their professionalism, etc.

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   Computer skills are needed to even adequately complete an application, which knocks
           a bunch of people out at the start.
          Hiring process involves computer literacy more and more. Certainly needed if an
           employee is to advance within organization.
          Our restaurant utilizes an online application. If you cannot master the application you
           never get the opportunity to be considered.
          We do at times find ourselves over compensating for shortcomings in some
           employees’ computer skills. (Cited example of older individual who is completely
           unable/averse to any computer usage, even POS terminal so other employees assist
           with things like to go orders.)
          My children in their early teens are more computer proficient than people I have
           interviewed in their 20's (and up), indicating that there is a gap where people already
           in the workforce are behind on computer skills.
          We work with applicants, particularly existing employees to assist them with online
           applications. There are terminals in the HR office and other staff members (front
           desk staff) will assist the team members in navigating the processes using these
           terminals.
          Gen X, Y and Millennial applicants find the online applications more attractive than
           using the traditional application methods (inferring that you are attracting more
           computer literate people at the beginning).
          Our experience has been different than the others. We have had good experiences
           with candidates. Applicants have arrived well groomed and with a good attitude.
           Perhaps because of size and perception of corporate brand expectations.

Focus groups’ list of most desirable skills for new hires:

                         Coachella Valley Focus Group                Riverside Focus Group

                          *Customer service/personality                 *Customer Service
                            *Presentability (soft skills)                    *Etiquette
                                    *Basic math                     *Hospitality (Friendliness)

                                  Professionalism                          Basic English

                                  Computer skills                         Communication

                                     Flexibility                             Flexibility
               *Indicates most desired attributes for candidates identified from online survey.

Finding: Basic Skills
Focus group participants were also asked their views on applicant preparation in terms of non-
technical or soft skills. These include skills such as oral and written communications,
interpersonal skills and teamwork.

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Focus group participants generally agreed that the majority of current applicants are not
presenting with the basic soft skills employers desire.

In restaurants and retail, employees need to be adept at initiating and having a casual
conversation with the customer. Further, employees need to demonstrate empathy and an
understanding of the customers' needs and expectations, which should manifest into assistance
for the customer.

Friendliness, personality and positive attitude were universally stated as being desirable qualities
for employees to possess. There is some question as to whether these qualities are innate to an
individual's personality (they either have it or they don't), or if this is an expectation to which
people can be taught.

There is a desire for employees to understand "the bigger picture" so that they recognize the
importance of their position, whatever the level. With the advent of social media and instant
first-hand reviews, it is important for an employee to understand their impact on a business. By
way of example, a server cannot have the mindset that they are "just a server", they must
understand their impact on the business externally and internally.

Participant Comments:

      We just recently had to go through a hiring process and saw 750 applicants to hire for 75
       positions. 50% of the applicants did not even get an interview based on the lack of a
       professional appearance and their poor demeanor upon arrival. Specific areas lacking:
            o Professional attire
            o Overall presentability
            o Manners
            o No shows to interview
            o Late to interview
            o Courtesy or rudeness
      First impressions are important, with a direct effect on upselling and return visits.
      Business communication skills are missing...people often write the way they text using
       text abbreviations in business emails (ex. LOL).
      Soft skills are generally lacking in the applicant pool.
      Public speaking skills are weak; applicants are not able to speak to a group.
      It is important for businesses to provide good service and be unique to attract customers
       to downtown. If employees are not helpful and attentive to customers they will simply
       not return.

      Basic Skills Certificate:
          o Extremely interested. Saves us time; if people who apply have to have that, it
              would save us time [in screening new hires]
          o The more you have on your resume the better. It indicates initiative. Seeing more
              and more resumes with little or nothing on them.
          o As long as businesses are involved in creating a certificate program that is
              relevant and addressed the basics we think are a priority, such a program could
              have great value for us in the real world.
          o A great time saver for us.

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o That could help address the lack of basics we see in our current applicant pool.

Finding: Education and Training
Focus groups were asked about their current education and training programs and resources.
There was limited perception of community colleges as a resource.

Larger businesses/properties talked about access to internal resources or corporate packaged
training programs that they believe meet their current needs for the majority of job
classifications.

       Examples:

                  Skill Certification - four times the first month, then monthly thereafter
                  Moment of Service Training - designed to create consistency of responses to
                   guests requests/issues across the organization
                  Engagement - Reading cues...being able to identify who may need or desire
                   assistance
                  Finance 101 for supervisors conducted by finance department
                  How to have difficult conversations with employees
                  Rosetta Stone reimbursement
                  Cross training

Smaller businesses/locally managed properties shared specific examples of successful locally
produced/grounded training successes, but expressed frustration with a lack of uniform,
consistent, affordable quality training programs to meet their needs for basic skills training.

       Examples:

              Show me Palm Springs trade show produced by Palm Springs Hospitality
               Association. Last year 480 hourly employees went through this trade show which
               featured attractions from across the valley. The show was formed eight years ago
               following a comment overheard by the Mayor where a restaurant server was
               asked by a visitor what there was to do in Palm Springs and the server replied that
               there was nothing to do here and the customer should have gone to Las Vegas.

              Field trips taking staff to local farms to improve their product knowledge
               regarding the source, production, value proposition of locally produced food they
               are serving.

Time and cost will continue to be an issue for a business attempting to get employees trained.
For this reason, one or two day sessions focused on specific skills are preferable to longer term
training such as traditional classroom work taking weeks or months to complete.

Participants were interested in “one and done” workshops for basic skills training/certificates.

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There is also interest and desire (in CV) to engage with education to insure a local pipeline of
employees prepared to enter the workforce. One possible strategy is to make students more
aware of career pathways earlier so that they don't feel that they must leave the area to be
successful.

Participants pointed to the potential for creation of a basic certificate in which the industry had a
role in development and which would signify some uniform basic knowledge and preparation on
which the employer could rely.

Participants also consistently stated that trained sales people are difficult to find.

Participant Comments:
General

           Smaller employers generally provide none or very little training, particularly in the
            area of customer service. Restaurants often don't know how to train people.
           Because of their size smaller employers tend to do less training and have fewer
            resources for training. We cannot wait for someone to complete month(s) long
            certificates or degrees. It would be helpful if community colleges could offer one or
            two day (one and done) workshops that could get employees "up to speed”.
           There is no place to go for this right now...no "Customer Service 101". If someone is
            working in a kitchen, they have a chef or other people to help get them trained on
            specific job skills, but generally this does not exist for front of house customer service
            employees (retail sales, restaurant host/hostess, etc.).
           Fred Pryor and other such "for profit" courses exist, but that is not what we are
            looking for. (It was noted that there is an affiliation with a local culinary academy.)
           We do our own training, brand related.
           Our hotel/property is larger, smaller places don't seem to do the consistent training
            (ex. hostess ignoring guests when they arrive at a restaurant).
           We can train on specific job skills (e.g. how to clean a room), but attitude comes
            naturally.
           We have observed problems when promoting people, particularly into admin
            positions. We find that they have no ability to write a professional email and end up
            terminating.
           We have someone who could come in and do training.
           Hawaii experienced a problem with finding qualified people and developed a very
            broad training program to develop employees' soft skills. People need to understand
            the expectations of customers and guests. It is very likely that the people we are
            hiring as employees in a hotel have never actually stayed in a hotel so they don't have
            a sense of what a guest expects.
           Yes, I have spoken with RCC offline about some sort of liaison between the
            convention center and RCC, so I support some connection.
           Our big trade organizations (ex. International Assoc. of Venue Managers) offer
            industry specific training, but it is more oriented to advancing managers and
            executives already in the business; it is not really looking at the pipeline to bring in
            entry level employees.

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     Traditional education doesn't always work. It is harder to teach the soft skills than a
              mechanical skill.
             You have to possess the quality or desire for hospitality in these businesses.
              Friendliness is not really something you teach.
             You can train toward expectations.
             Education needs to morph to match needs of the culture and the industry.
             Training needs to include real world demands of the job.
             Came here from SF where there was a much better pipeline. It is smaller here and the
              seasonality has an impact.
             We've been in a down cycle and now have to figure out how to deal going forward.
Sales
              o Soft skills training would be transferrable across many different industries, not
                just hospitality.
              o We just hired a sales person and it was one of the hardest positions to fill. We
                could not find anyone locally with the desired skills and ended up hiring from LA.
              o Sales is changing. People are making connections through Linkedin, Facebook,
                Instagram, etc. Sales people will need to understand and be adept at using these
                avenues to make connections to potential customers.
Internships
              o Internships need to be a structured program with a quantifiable result. The
                colleges have to put together the program for businesses to plug in to.
              o Social media class. Interns were screened by professors and matched up to
                businesses for eight or 16 weeks.
              o Would love to have interns in the right kind of program, I completed internships
                myself; they were a part of the coursework.
              o The programs need to absorb the legal liabilities and protect business from risk.

Finding: Familiarity with Existing Players and Programs
There was a distinct lack of awareness regarding community college RHT programs and training
options, with a small number of notable exceptions i.e. culinary graduates. Only 33.9% of study
participants had any familiarity with RHT programs offered by local community colleges and
only 5.5% had used community colleges as a training resource for employees.

While there were varying levels of awareness of the career pathway framework for RHT, focus
group participants uniformly had little awareness of, and no connection to, the community
college system. Only one or two could name a faculty member or contact for a local community
college academic, advisory or training program. However, several participants did mention Cal
Poly as a resource with which they were familiar.

Clearly, stronger outreach to business from community colleges is needed and desired by
business. This represents an enormous opportunity to develop working relationships with which
to address the education and training needs of a critically important local industry sector.

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