SCREENING MAKES SUNSTONE EMPLOYER OF CHOICE
by
James Callahan

An Interview with:
Nida Palpallatoc
Human Resources Manager
Sunstone Hotels

When you walk into any property managed by Sunstone Hotels you will see a small sign prominently displayed near the front desk which says:

The plaque shows Sunstone’s conviction that their recently expanded background screening program is important news to guests, employees and prospective new hires.

Sunstone Hotels is a privately owned firm whose ownership is divided between Westbrook Partners, LLC and Sunstone Hotel Investors, LLC. The company employs approximately 5,600 associates to operate fifty-seven properties and a portfolio of 11,200 rooms in ten states throughout the western and mid-western U.S. The properties are mid-priced to luxury hotels that would be very familiar names to most business travelers; including, Marriott, Hilton, Sheraton, Holiday Inn, Hampton Inn, Embassy Suites and Hawthorne Suites.

Sunstone’s recent emphasis on background screening is a reflection of several factors. First and foremost is Sunstone’s credo of creating value in their properties by attracting and retaining the best associates possible as well as through strong management and aggressive marketing. A second factor is having the internal management capability to tackle a project involving so many individual properties and locations. Finally, a vendor was needed who could deliver the service as envisioned.

Sunstone initiated its background-screening program in 1997 and expanded it in 1999, but the program was limited to senior positions and was administered by the central MSO, or Management Support Office. The system envisioned was dramatically different because 1) screening would be done for all employees according to their role in the company and 2) the responsibility for administering it and maintaining the system would belong to each property.

Within Sunstone the initiative and responsibility for implementing an expanded screening program fell upon two individuals; Barbara Cook, Senior Vice-President of Human Resources and Nida Palpallatoc, Human Resources Manager.

“It’s no secret that turnover is a challenge to our industry,” states Barbara Cook. “We felt that an expanded program of background screening would reduce turnover by deterring some applicants, while at the same time assisting our efforts to attract and retain ‘A’ players. We also felt that improving our security would provide added benefit to guests and employees. A more secure environment could also be expected to enhance Sunstone’s appeal as a magnet employer.”

Ads Nida, ”Sunstone in my experience has always had a strong orientation towards its associates with many training programs and advancement opportunities. Even though we cannot retain every employee, our goal is to help associates advance in the industry and be known as someone desirable to work for.”

Both Barbara Cook and Nida Palpallatoc had familiarity with background screening from other industries. Barbara had previously worked in the health care industry where security requirements are understandably stringent. Nida had previously managed as well as audited retail clothing stores. There, she recalls the use of “honesty” questionnaires and even polygraph tests administered for management positions. Both Barbara and Nida were also aware that corporate-owned units within franchises such as Marriott typically had strong screening programs.

With concept in mind, Sunstone sought a vendor with whom they could collaborate to achieve their objectives. Barbara had previous satisfactory experience with the vendor eventually selected, but nevertheless evaluated a number of competing firms to confirm the best choice. Among the factors considered were the variety of screening services offered, the availability of online services, the user-friendliness of online services, a report format that was easily understood and an overall orientation towards delivering excellent service in multiple states. InfoLink Screening Services, Inc., a nationwide firm headquartered in Chatsworth, California, met all of Sunstone’s criteria and more.

With a vendor chosen, the hard work began. “Some people say ‘Get your ducks in a row’, meaning ‘Get ready.’” says Nida Palpallatoc. “We say, ‘Get your docs in a row!’”

Part of the implementation was to select a contact person from each property who would be entrusted with password access to the system. InfoLink’s set-up coordinator used an Excel spreadsheet to obtain and record the contact information and passwords for all fifty-seven Sunstone properties as well as for supervisory personnel from the central MSO office, such as Barbara and Nida, who would also have access.

Billings were to be paid out of the HR budget at MSO and therefore had to be centralized. MSO personnel would need access to all property records, but individual properties would not be able to access each other’s records. 

To help those doing the screening at each property, operating policies were written up both to ensure both accuracy and efficiency in using the new system. 

An application booklet was prepared which included Sunstone’s standard four-page application and related forms in a tear-out binding. Included were the needed applicant authorizations for general background screening, credit screening and a summary of the applicant’s rights under the screening program. The booklet even included the voluntary EEO (Equal Employment Opportunity) forms for those who wished to use them.

Sunstone policy was drafted to set guidelines for the types of screening to be done for each position. For instance, all prospective employees received criminal checks. Those who would be driving also got DMV checks. Those who handled money were to get credit checks. Those considered for a general manager position received criminal, credit and DMV checks. In some circumstances a social security trace was advised for employees or prospects.

Equally important was a decision matrix designed to assist property managers to assess and handle in a legally appropriate way those applicants found to have criminal backgrounds.

The program was launched in February, 2001 with a conference call to general managers and HR personnel at all fifty-seven properties. Initially, screening was limited to new hires only, but could apply to existing employees for transfers or promotions. In the first four months of the program over 1,600 searches of various types were performed. That is about 400 per month for all properties, or an average of 28 per property since program inception.

Despite the many concerns of such a massive program, all went smoothly and reaction to the system has been very positive. “The majority of properties appreciate added assistance in making the right decision,” states Barbara Cook. According to Nida Palpallatoc, a common reaction to negative reports is, “‘Gosh! Based on the interview, I would have hired that person!’”

One adjustment was made to speed the process. Procedures were amended to allow a property to hire an applicant contingent upon their screening results. Since the majority of results are satisfactory, this allows most transactions to be completed that much sooner. Of course, a few hired on contingency have also been terminated when screening results came back negative.

The company procedure booklet has also shown its usefulness. A deterrence effect was noted as some applicants, already familiar with screening procedures, chose to withdraw their applications rather than to reveal their backgrounds. Thus, the company was able to reduce the time and expense involved in screening unqualified applicants.

One of the most impressive aspects of the new program has been its results. The company had experienced in 2000 a turnover rate for its properties above the industry average. With the program in place only part of 2001’s first quarter, turnover has already dramatically decreased. The company is now targeting a turnover rate significantly below industry average.

Nida Palpallatoc is optimistic about the benefits of such a program both for hotel enterprises and other industries. “Delivering good guest service starts with your people,” she states, “and that is something that applies to any business, not just hotels!”

FOR MORE INFORMATION:

Contact for InfoLink:
Jim Callahan
Carter-West Public Relations
Phone: 949-369-6980 
Fax: 949-369-6986
E-mail: [email protected]