A certain degree of digitalisation has become indispensable for successful and sustainable hotel businesses, yet many companies are still lagging behind. However, the hotel industry is not an isolated case here; other sectors are also struggling with the transformation. Overall, Germany is struggling to live up to its former reputation and ranks IMD World Digital Competitiveness Ranking 2023 only 23rd place.
But, albeit too slowly, the digital transformation is progressing and affects not only companies, management and technologies, but above all employees.
For most, the advantages clearly outweigh the disadvantages: Relief for staff, increased efficiency, simplification of work processes or compensation for labor shortages, to name just a few.
However, terms such as “digitalisation” or “digital transformation” do not trigger leaps of joy in all employees. Even if the majority consider themselves fit for digitalisation, many employees feel that their employers at least are not sufficiently equipped, as a wlw study shows. In this context, a suboptimal change process often leads to exaggerated expectations and ultimately to disappointment. Disappointment with the employer, with the new technologies used or with digitalisation as an overall concept. However, associations such as “process optimization = job cuts” or “discrimination against older employees” have by no means disappeared.
If this were not enough, it often does not stop at purely negative associations: As some recent studies show that the digitalisation of the world of work is sometimes even associated with serious anxiety and depression among employees. But where do these fears come from and what options do managers have to prevent or counteract them?
Our former working student Annika Schlotter recently dealt with precisely these topics in her bachelor's thesis and served as inspiration for this article. Entitled "The fear of the unknown: An Analysis of Employees' Fears Related to Digital Transformation and Ways to Counteract Them in Organizations", she provided an in-depth look at digital transformation in the hotel industry. She combined expert interviews with an employee survey to identify differences and similarities in the perceptions of both groups and gain valuable insights into the employee perspective. Quotes from her therefore complement our article below.
Where do the fears associated with digitalisation come from?
The results of a recent representative bitkom study show that many people across all age groups feel overwhelmed by increasing digitalisation – 41% even frequently. Even in the 30 to 49 age group, 33% till feel frequently overwhelmed. Almost half (44%) also fear that they will not be able to keep pace with technological developments.
However, the fears and also the reasons for employees’ possible fears of the digital transformation are manifold. On the one hand, evolutionary fears can play a role, which can generally occur in new and unknown situations and changes. In addition, there is the disruptive potential of technologies that can fundamentally change familiar processes and working environments. However, a general feeling of being overwhelmed or the fear of being potentially overwhelmed as well as concerns about loss of value and replaceability through technology are also not uncommon, Przystal (2022).
In addition, according to another bitkom study Fears of data espionage, hacker attacks and political dependencies as well as the fear of job loss and mass unemployment.
A research group led by Katharina Pfaffinger from the Ludwig-Maximilians-Universität in Munich cites the following in of their study from the “Group. Interaction. Organization. Journal of Applied Organizational Psychology” (GIO) included these other anxiety triggers:
- Expectation of a stressful introductory phase with a noticeable additional workload
- Concerns about being able to keep pace with developments
- Possible and excessive dependence on technology and loss of control over one’s own work and its output
- Lack of time/capacity for familiarization, training and handling the solutions
- Increased working speed thanks to the speed and efficiency of the technologies
- Difficult to predict the future with further technological possibilities and their effects
- …
Especially in a people business such as the hotel industry, however, the effects of digital transformation are not only felt by the company itself and its employees.
The end customer, the guest, is also directly affected.
This adds concerns that are detached from the employees themselves and relate to the guest or the interaction with them.
The evaluation of my bachelor's thesis showed that the potential impact of digital transformation on interaction with guests is of particular importance to employees. This is underlined by the fact that 53% of respondents expressed concern that personal contact with guests could be lost as a result of advancing digitalization. However, the experts emphasize that the digital transformation can be aimed precisely at improving customer contact.
What’s more, the digital transformation in the hotel industry is sometimes encountering a situation that is already challenging enough for many.
A shortage of skilled workers, stress, burnout, inflation, stagnating wages, limited growth opportunities and a lack of appreciation are just a few of the challenges. current topics.
Die Angstauslöser, die mit der Digitalisierung verbunden sein können, stehen also nicht allein, sondern werden als zusätzliche Belastung und Angstquellen zu vorhandenen Rahmenbedingungen empfunden und können hier das Fass zum Überlaufen bringen.
Fear of digitalization: recommendations for action for digital transformation in the hotel industry
So we have identified some possible fears and their triggers, but what next?
In the following, we have put together some helpful recommendations for action that can help hotel managers and other executives to successfully implement the digital transformation and counter the associated fears and uncertainties of employees.
Digitalization or digital transformation must not be an end in itself.
Be clear about where you want to go.
What are the actual goals, why are you doing this at all, what are the guidelines?
In the next step, this should then be linked and harmonized with the corporate strategy.
Only if you have a clear picture of the goals of digitalization in the context of the corporate strategy can you communicate this to employees in an understandable and authentic way.
It can be helpful to work out the “why” for individual employees or departments.
Ensure transparency when setting goals, define KPIs and smaller sub-goals according to the SMART principle.
Digitalization does not happen overnight, but is a continuous process.
This should also be reflected in your goals, which can serve as an important guide for employees.
Smaller goals are also less of a deterrent.
Work concepts and processes need to be rethought as part of the transformation.
Digitalization must not simply be put over existing structures like a shell.
These new processes need to be clear and understandable for everyone and, of course, create as much relief as possible instead of more complexity and work.
Dare to make a small new start that directly incorporates digital solutions, realigns processes accordingly and creates a new routine instead of presenting an additional hurdle to existing processes.
And the same applies here: don’t overwhelm your team with too much change at once, but rather proceed step by step.
Especially when introducing new solutions, it is important to make the process as clear, structured and transparent as possible.
If possible, try to get everyone on board and address any potential anxiety triggers or dispel them from the outset.
Employees should be involved in the transformation process at an early stage.
For example, project groups can be formed to use the input and ideas of employees and ensure that the restructuring offers real added value and meets an existing need.
Care should be taken to ensure that older colleagues are also involved so that they do not feel excluded.
Change can be particularly challenging for them.
Regularly ask your employees what else they need to do their work better or more easily.
Try to respond to these requests as much as possible and offer additional support.
In this way, fertilize the roots of transformation from below instead of drowning them from above with a watering can.
Communication is key, also in the digital transformation.
Open, transparent and constant communication is one of the most important factors for a successful digital transformation and dealing with fears and uncertainties.
It should be continuous and accompany the ongoing transformation process.
The following points can be helpful here:
- Back up statements and personal opinions with trustworthy and meaningful data, facts and studies.
This will also make it easier to refute specific fears, e.g. digitalization will not lead to mass unemployment, but will create more jobs in the long term than it eliminates ( Future of Jobs Report, 2023) - Demonstrate the concrete benefits of how digital solutions can improve or simplify the day-to-day work of your employees.
- Highlight success stories from comparable companies and partners.
These are closer and more comprehensible for your employees than a theoretical list of benefits. - Communicate clearly and transparently what exactly will change for whom, when it will change and what further consequences will result.
- Show understanding, trust and appreciation in your communication.
- Create realistic perspectives and expectations, not fairy tales or overly distant visions of the future.
- Don’t sweep doubts, fears or uncertainties under the carpet, but be transparent and proactive in providing honest answers.
The interviews in my bachelor's thesis show that communication between managers and employees plays a central role in the implementation of digital transformation projects. All of the managers interviewed emphasized the importance of communicating the added value of such projects clearly and at an early stage in order to increase employee acceptance. It is crucial that employees understand when and why a project is being implemented and what benefits it will bring them.
Offer your employees regular training courses on digital topics and specific technologies and applications.
In this way, you can maintain a high level of knowledge, optimize the use of solutions and thus the results and avoid excessive demands.
The courses and training sessions should take into account the different levels of knowledge, needs, challenges and fears in your team.
Rarely does a format manage to pick up all team members equally.
Don’t forget your management team, who should also undergo continuous training in employee management, as they are also constantly changing and facing new challenges in the course of the digital transformation.
A well-trained management team can avoid or successfully overcome many hurdles, especially when it comes to communication and dealing with conflicts, fears and uncertainties, which can have a major impact on the success of the transformation process.
When selecting systems, pay attention to simplicity and user-friendliness in order to avoid excessive demands and increase acceptance.
Also clarify how much time is required for training and familiarization with the system.
Good support and a personal contact person at the provider also give your employees confidence and security.
This also reduces anxiety.
Within hotel chains, standardized system landscapes simplify the work and training of employees.
Listen to your employees.
If possible, create a working environment from the outset that is characterized by respect, understanding, trust and appreciation and in which nobody has to be afraid to express fears, insecurities and concerns.
Provide ample opportunity for personal discussions about these topics.
Take them seriously, even if they seem unimportant to you personally.
This alone can help to reassure them and build trust.
If you know your employees’ fears well, it will also be easier for you to address them in a targeted manner.
This also makes it easier to get individual skeptics on board and to get other team members on board in the long term.
As described above, some fears in connection with digitalization relate to the loss of work and previous tasks and the associated routine as well as the resulting security and self-confidence.
This is also associated with the loss of opportunities for advancement and development as well as the potential loss of value and meaning in work.
It is therefore important to work on recognizing and appreciating the individual potential of employees and to continuously promote and develop them.
This is not just about potential in relation to digital topics, but also about a holistic picture and the strengths that they can bring to their work at the hotel in the future.
Take your employees by the hand, point out their strengths and opportunities.
Together, discover ways to counteract risks and use their skills in a changing work environment and develop new competencies and abilities.
Give them prospects for advancement and development.
Give them security and show them where they can still be in your company in a few years’ time.
Even if the digital transformation should have a major impact on the work of individual employees, this offers them the opportunity to recalibrate the meaning of their work and recharge it with new value
There is no universal guideline for digital transformation, as needs and structures can vary greatly from hotel to hotel.
These recommendations for action therefore do not claim to be exhaustive and should primarily serve as a guide for hotels to better prepare their employees for the digital transformation and reduce fears.
Good transformation processes always go hand in hand with customized change management and, as shown, above all with good communication.
Further sources on this topic, which also served as inspiration for these recommendations for action: Archdesk, Bryan Robinson for Forbes, Thomas Juntersen, Study by Katharina Pfaffinger et al., Study by the Randstad Foundation, Future Institute
