The institution for Service Management Seasonal Employees as Brand Ambassadors? A Bachelor Thesis about Management Strategies for Seasonal Employee Commitment and Brand Ambassadorship Kristina Magnusson Tutor:A bstract Bachelor Thesis for Service Management Katja Lindqvist KSKK01, Spring 2014 Kristina Magnusson Spring 2014: KSKK01 Abstract Today, the majority of employees in the tourism industry work under contingent and fairly insecure working conditions, among them seasonal employees. In this industry, the business of amusement parks and resort hotels is one with a high quota of seasonally hired front-line employees. Research from Human Resource Management pinpoints the underlying risks of low commitment among employees in an industry afflicted by insecurity and short-term contracts. Committed employees are nevertheless desirable for service organizations because of their loyalty and engagement. Research from Internal Marketing shed light on employees as the ones that define the brand, which shines through in every service encounter. By combining these two research fields, a connection arises between committed employees, service quality and representation of brands by employees. For the amusement park and resort hotel business, the high quota of seasonal employees becomes a challenge due to the risks of lacking commitment and employee turnover. Due to the fact that these brands can be famous and associated to entertainment as well as high service, the contribution from front-line employees becomes crucially important. Their commitment is important because they need to serve as brand ambassadors. From a management perspective, three theoretical key factors for committed brand ambassadorship have been identified: orientation, benefits and socialization between co- workers. In respect of exploring how the challenges and brand ambassadorship are dealt with in reality, a comparative case study has been made between two brands in the business by the support of empirics from interviews, observations and consultation of company material. The analysis has led up to three conclusions. The conclusions highlight that committed brand ambassadorship is taken seriously by management as seasonal employees are considered to be of high value for the brands and the organizations as a whole. However, challenges for achieving committed brand ambassadorship are addressed only to a certain extent, withheld by limitations attached to seasonal employment and real- life circumstances. As it turns out, a gap between theory and practice calls for further research about seasonal employees as assets for brand representation, specifically for this complex business. Key words: seasonal employment, contingent employment, employee commitment, branded service encounters, brand personality, brand ambassadors 1 Kristina Magnusson Spring 2014: KSKK01 Preface After almost three years of studying Service Management, I have learnt of the enthusiasm for employees and how they contribute to service quality and the reputation of service organizations. The tourism industry is especially interesting to explore because of the numerous types of non-standard employee arrangements and the possible flaws or consequences that may entail. The choice of focusing on human resources and brands started from a genuine interest and has taught me valuable lessons for the future. Needless to say, this thesis has been incredibly inspiring and worthwhile to write. For anyone who reads this thesis, my hopes are that you will also find this topic interesting and worthwhile since employees and brands together play an important role for all service organizations. Contributions I would like to thank the companies that agreed upon collaborating with me: Liseberg, Hotell Liseberg Heden, Tivoli Gardens and Tivoli Hotel & Congress Center. The generosity and positive spirit from these have definitely contributed to the possibility of writing this thesis in the first place. Thank you to everyone who stood by for interviews and shared your valuable insights. Also, I would like to thank my tutor Katja Lindqvist for her valuable comments and feedback. Her contribution has been a guiding light during a time of both peaks and falls. As always, I also need to thank my grandmother for always believing in me and sending me unconditional love every day. Last but not least, my thankfulness goes to my boyfriend, my classmates, my friends and my family for their endless support and encouragement. Helsingborg, Sweden, 2014-05-26 Kristina Magnusson 2 Kristina Magnusson Spring 2014: KSKK01 Table of contents 1.0 Introduction to seasonal employment today…………………………………………………………………5 1.1 Seasonal employees and commitment to brands .................................................................. 6 1.2 The amusement park and resort hotel business - Tivoli and Liseberg ................................ 7 1.3 Aim and research questions ....................................................................................................... 8 1.4 Disposition .................................................................................................................................... 9 2.0 Methods and methodology………………………………………………………………………………………...10 2.1 A comparative case study ........................................................................................................ 10 2.2 Qualitative approach ............................................................................................................... 11 2.3. Semi-structured interviews .................................................................................................... 12 2.3.1 The purpose of conducting interviews .......................................................................... 12 2.4 Observations .............................................................................................................................. 13 2.5 Consultation of internal and public company material ..................................................... 14 2.6 Consideration of ethical principles ....................................................................................... 15 3.0 Theory and theoretical framework…………………………………………………………………………….. 16 3.1 Background theory - a definition of seasonal employment .............................................. 16 3.2 Seasonal employee commitment – a challenging task to handle .................................... 17 3.2.1 Fluctuations of demand in the tourism industry .......................................................... 17 3.2.2 Job insecurity – a cross to bear for the industry ........................................................... 18 3.3 Brand ambassadorship – committed representation of brands ....................................... 19 3.3.1 A review of brand ambassadorship and familiar brands ............................................ 19 3.3.2 The key factors for a brand personality – mind, heart and body .............................. 21 3.3.3. Brand ambassadorship at Disneyland ........................................................................... 22 3.4 Employee commitment and brand ambassadorship .......................................................... 23 3.4.1 Orientation – a way of learning the brand .................................................................... 23 3.4.2 Benefits – signs of recognition ........................................................................................ 24 3.4.3 Socialization – collaboration between co-workers ..................................................... 24 4.0 Committed brand ambassadorship in reality............................................................................26 4.1 A presentation of the two cases Liseberg and Tivoli .......................................................... 26 4.2 Commitment challenges for Liseberg and Tivoli ................................................................ 27 4.2.1 Seasonal fluctuations and its implications for management ..................................... 28 4.2.2 Less seasonality for the hotels ......................................................................................... 29 4.2.3. Company cultures and rates of returning seasonal employees ............................... 30 4.2.4. Insecure working conditions .......................................................................................... 31 4.3 Committed brand ambassadorship towards Liseberg and Tivoli ..................................... 33 4.3.1 Liseberg and Tivoli – two recognized and spectacular brands ................................. 34 3 Kristina Magnusson Spring 2014: KSKK01 4.3.2 Orientation for seasonal employees .............................................................................. 35 4.3.3 Benefits for seasonal employees .................................................................................... 37 4.3.4 Socialization and collaboration between co-workers ................................................ 39 4.4 Summary ..................................................................................................................................... 42 5.0 Conclusions and discussion…………………………………………………………………………………………43 5.1 The link between challenges, commitment and brand ambassadorship ........................ 43 5.2 Limitations for brand ambassadorship .................................................................................. 44 5.3 The real-life circumstances ..................................................................................................... 45 5.4 The importance of the topic ................................................................................................... 45 5.5 Limitations of this thesis .......................................................................................................... 46 5.6 Proposals for further research ................................................................................................ 47 Bibliography…………………………………………………………………………………………………………………….48 Appendixes……………………………………………………………………………………………………………………...54 4 Kristina Magnusson Spring 2014: KSKK01 1.0 Introduction to seasonal employment today Summer and other seasonal work is not just for kids anymore /---/ With the slow economy and recent recession, the profile of seasonal workers has continued to evolve (Bronson 2014). For a number of years, the hospitality industry as a whole has been one with the highest share of non-standard employees (Whitehouse et al. 1997, p. 36). Over the past decades, one of the trends surrounding the European workforce is the rise of different types of non- permanent employment agreements (Smithson & Lewis 2000, p. 681). Seasonal employ- ment is one such agreement. In the tourism industry especially, one of the divisions of the hospitality industry, seasonal employment is a frequently found hiring arrangement and has been for a long time (Ainsworth & Purss 2009). The term contingent work is probably more frequently discussed and recurs as typical for organizations in need of workers for fixed periods of time. Employees might benefit from a more flexible working arrangement, for instance in combination with studies or other work arrangements going on simultaneously. Other reasons for accepting a contingent occupation might be to try out a specific job or to increase one´s income (Polivka & Nardone 1989, p. 10-13). Contingent work arrangements are featured by contingency as an element, which takes a step away from traditional characteristics of an employment relationship (Connelly & Gallagher 2004, p. 977). Regardless of the length of the contract, contingent employees are aware that their relationship with the organization will end one day and they are usually aware of when that day will come (de Gilder 2003, p. 588). This aspect can be applied to seasonal employees as they function as an engine for organizations and the brands of these during peak seasons, whilst being completely or partially absent during the rest of the year: /…/ most of them naturally work two to three seasons. Three seasons is pretty average. Well, of course the reason for this is a higher education or something similar they are doing, often in Gothenburg but not only /---/ So when they finish their studies they naturally find another job and that´s when they stop working for us (my translation – C1, 2014-02-13). The cyclical construction of such arrangements might open up for restrictions for employee commitment due to the hiring situation itself. In a global economy of intense competition, quick changes and indefinite hiring arrangements, the focus on keeping employees satis- fied and committed is often overlooked by organizations (Thomson & Hecker 2000). To refer to a study about seasonal employees in the snow sport industry, the commitment of seasonal employees is specifically complex and might diminish in case of deficient attention and stimulation from management (Ainsworth & Purss 2009). Consequently, 5 Kristina Magnusson Spring 2014: KSKK01 although seasonal employees are important assets for the operation during peak seasons, the relationship between them and management might be restrained by a lack of full attachment. 1.1 Seasonal employees and commitment to brands The reason for highlighting the dilemma of committed seasonal employees comes down to the importance of commitment. Committed front-line employees are desirable for most service organizations today. When management treat their employees as internal customers and build up commitment to accomplish company goals, the employees answer back with engagement. In turn, their engagement is reflected in service encounters with customers, which altogether brings a sustainable competitive advantage for the company (Thomson & Hecker 2000). As Keller & Richey (2006) emphasize, the employees are the ones representing the identity of the organization and personifying who the organization is. At the end of the day, the values, words and actions of them will affect the personality of the brand they are working for. The importance of front-line employees is specifically crucial since their behavior shines through in service encounters with customers. Their behavior can be utilized by management as a brand-building advantage, based on a reflection of the brand during every service encounter with customers (Sirianni et al. 2013). Management of service organizations should prioritize their efforts specifically towards front-line employees, according to Jerome & Kleiner (1995, p. 22). These employees need to be trained and motivated in order to be able to perform monotonous tasks yet still maintain a positive attitude (ibid., p. 22). For all the above mentioned reasons, committed front-line employees who represent their brands fairly are likely desirable for most service organizations. Thomson & Hecker (2000, p. 168-169) pinpoint the expression brand ambassadors for employees who nurture their brands by showing a genuine interest and enthusiasm during service encounters with customers. Brand ambassadors are important since they affect customer loyalty and customers´ willingness to recommend the company more than any traditional marketing function would (ibid., p. 168-169). Therefore, this thesis will focus on seasonal front-line employees and their contribution to the upholding of brands. As research has stressed, their representation of brands might be critical since it affects the organization, the customers and probably also themselves. 6 Kristina Magnusson Spring 2014: KSKK01 In spite of the above mentioned benefits of investing in front-line employees, research does not cover a great deal of practical examples of how such investments should be addressed specifically towards seasonal front-line employees. Even literature written about seasonal work typically overlooks the potentially cyclical nature of this specific kind of employment (Ainsworth & Purss 2009, p. 221). Due to indistinct and disputed defini- tions of seasonal employment, it is difficult to find relevant theoretical guidelines for management on the matter. The research gap of how to address commitment for seasonal employees in the sense of invoking brand ambassadorship makes this topic relevant to research. Based on the nature of seasonal employment, is it possible for management to unlock the full potential of seasonal employees? In respect to contributing with empirical research on the matter, this thesis is going to explore two brands in a people business with numerous seasonal front-line employees – the amusement park and resort hotel business. 1.2 The amusement park and resort hotel business - Tivoli and Liseberg Most people probably associate the brands of amusement parks with entertainment, expectations and service quality. For amusement parks, satisfied front-line employees are essential since the number of them rise during peak seasons (Mayer 2002). Here, seasonal employees might have numerous service encounters with tourists who stay at a resort hotel and/or visit an amusement park. A holiday package for tourists typically includes every- thing from accommodation to dining, culture, scenery and activities (Laws 2002c, p. 67- 70). A daytrip to an amusement park is another option. In any case, a visit to an amusement park and/or a resort hotel is a total experience for the customer, which might create expec- tations on the service delivery. Referring back to the dilemma of employee commitment, amusement parks as well as their seasonal employees might face certain challenges with regards to commitment and employees acting as brand ambassadors. Two brands, Liseberg and Tivoli, will serve as the empirical cases for this thesis. To gather data on these brands, the following organizations will be investigated: Liseberg, Hotell Liseberg Heden (hereafter referred to as Hotell Heden), Tivoli Gardens and Tivoli Hotel & Congress Center (hereafter referred to as Tivoli Hotel). These organizations utilize seasonal employment as a tool for operating the organizations over peak seasons. Liseberg is ranked to be the third most recognized brand in Sweden (Veckans Affärer 2014) while Tivoli correspondingly holds the position as the third most recognized brand in Denmark 7 Kristina Magnusson Spring 2014: KSKK01 (Tivoli Årsrapport 2013, p. 15). Hence, Liseberg and Tivoli are two fairly familiar brands, likely recognized by the general public in their respective cities. This makes it relevant to investigate how the respective managements address commitment for their seasonal front- line employees in the form of enabling them to be brand ambassadors. 1.3 Aim and research questions The aim of this thesis is to investigate how amusement parks and resort hotels address seasonal employee commitment and their ability to act as brand ambassadors. A comparative case study will be made between management strategies for employee commitment directed towards seasonally hired front-line employees and the challenges associated with seasonal employment. The comparison between two brands, Tivoli and Liseberg, is made in order to create a richer and more dynamic empirical basis. Research questions:  What are the challenges for amusement parks and resort hotels with regards to commitment and seasonal front-line employees functioning as brand ambassadors?  How are the challenges addressed by management? The features of seasonal employment and brand ambassadorship brought up in this thesis define a specific business and organizational context. The comparison is thus made in order to highlight nuances and contrasts rather than to make generalizations for the industry as a whole. 8 Kristina Magnusson Spring 2014: KSKK01 1.4 Disposition This thesis is built upon the following disposition: Chapter 2: The second chapter takes the reader through the methodology behind this qualitative comparative case study. The methodology chapter will explain how the comparative case study about Liseberg and Tivoli was conducted and from which approach. Furthermore, the chapter will review the choice of methods; interviews, observa- tions and consultation of documents. Lastly, the chapter will round off with a review of the ethical principles that have been taken in to consideration. Chapter 3: In correlation with the qualitative methodology and methods, the chosen research derives from Human Resource Management and Internal Marketing. This chapter is divided into four parts, beginning with background theory before moving over to employee commitment for seasonal employees and the challenges related to such. Thirdly, brand ambassadorship will be explained and lastly, the similarities between employee commitment and brand ambassadorship will be highlighted. Chapter 4: Continuing from the research in chapter three, the theoretical key factors for employee commitment and brand ambassadorship will be applied to the empirical cases Liseberg and Tivoli. The fourth chapter commences with a presentation of the organiza- tions and is thereafter divided into two parts, in accordance to the research questions in chapter one. The empirics from interviews, observations and documents will be analyzed and rounds up to two findings. Chapter 5: The fifth chapter summarizes the thesis by presenting three conclusions and a final discussion. Three conclusions will be presented, referring back to the aim and research questions in chapter one and the findings in chapter four. The discussion will highlight implications of the conclusions. Lastly, the discussion will bring up the possible limitations of this study as well as proposals for further research. 9