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Employee Engagement Survey Results We would like to extend our appreciation to all those who participated in our employee survey earlier this year. We had a sixty-one percent participation rate across the organization and, as promised, we are pleased to present an overview of our results with all of you. Take a look inside.

A Word From Our Customers “I just wanted to reach out and let you know that one your employees in Las Vegas went above and beyond to help me out. On Saturday, I missed my flight and was in a panic because my phone was dead also. Chaleesa, was kind enough to notice I needed help while I was buying something at the store. She let me borrow her phone and helped me figure out my situation. Her kindness saved me a huge headache. It was amazing and so refreshing to have come across someone like Chaleesa!” Best Regards, Justin M. “Chaleesa’s simple act of kindness exemplifies what it means to be the Traveler’s Best Friend – thank you for going above and beyond to maintain our service mission, Chaleesa!” - Gary McBrayer, VP of Customer Service

“Hudson ‘New’ Product” Challenge! Are customers asking for items that we don’t carry? Is there a new product on the market that has caught your eye that you think we should sell? Also, we have been expanding our Grab & Go line of “The Traveler’s Best” products: sandwiches, salads, health foods, snacks, etc. What are we missing? Where can we improve our new line and food products? We want your feedback! Share your ideas about our “Traveler’s Best” line and other categories of products you think our stores should carry and enter for a chance to win an iPad! *challenge open from Dec. 5, 2016 – Dec. 23, 2016 Submit your idea on our: Idea Bank Community on Facebook: www.facebook.com/groups/hudsonideabank or on our Idea Bank Platform: http://hudson.prod.brainbankinc.com Questions? Contact: ideabanksupport@hudsongroup.com

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Employee Engagement Survey Results We appreciate the honest and thoughtful input provided through the course of these surveys which helped us gauge both our successes and areas of opportunities. We recognize that while we try our best to maintain a positive and nurturing atmosphere for all, there is always some Dufry Management - Overall Division 5 # of Employees 6270 room to progress.

all Engagement Results

Open Date: Feb 24, 2016

Mar 22, Dufry Management - Overall DivisionClose 5 #Date: of Employees Open Date: Feb 24, 2016 # of Responses

The executive Overall Engagement Resultsmanagement

# of Responses

2016

3803

6270Response Rate 3803

61%

team called a meeting dedicated to reviewing and analyzing our results, during which they identified three main Close Date: Mar 22, 2016 Response Rate 61% areas of focus for improvement: increasing transparency, communication, and training opportunities.

EMPLOYEE ENGAGEMENT RESULTS EMPLOYEE ENGAGEMENT RESULTS

Additionally, SVPs were tasked with working with their respective teams and locations to formulate action plans to address their specific areas of improvement. While there is certainly plenty of work to be done, our plans are in motion and we are eager to tackle these opportunities and are excited about the positive changes to follow!

ENGAGED ENGAGED

Engaged employees consistently exceed expectations. Engaged employees consistently They are energized and passionate about their work,

exceed expectations. about their work,

Theydiscretionary are energized passionate leading them to exert effortand to drive organizational performance. leading them

to exert discretionary effort to drive

organizational performance.

83.9%

INDIFFERENT

Indifferent employees are satisfied, comfortable, and generally able to meet minimum expectations. They see

83.9%

INDIFFERENT

their work as “just a job”, prioritizing their needs before Indifferent employees are satisfied, comfortable, and organizational goals. generally

able to meet minimum expectations. They see

their work as “just a job”, prioritizing their needs before DISENGAGED Disengaged employees usually fail to meet minimum organizational goals. expectations, putting in time rather than effort. They have

DISENGAGED

little interest in their job and the organization and often display negative attitudes.

Disengaged employees usually fail to meet minimum expectations, putting in time rather than effort. They have

6.1% 10.0%

6.1% 10.0% Benchmark

Current Year

little interest in their job and the organization and often

ENGAGED

display negative attitudes.

83.9%

6.1%

10.0%

71.3%

13.2%

15.5%

ENGAGED Current Year Benchmark

DISENGAGED

INDIFFERENT

INDIFFERENT

DISENGAGED

83.9%

6.1%

10.0%

71.3%

13.2%

15.5%

Booksellers Sales Contest: Emotional Intelligence 2.0 1st place: Charles Bowen, San Jose 2nd place: Anna Benton, Gulfport Biloxi 3rd place: Shannon Seymour, Chicago O’Hare 4th place: Jamie Lloyd, Salt Lake City Most Units Sold: Jacob Carlson, Seattle Our Hudson Booksellers national contest ran through the month of September – we sold over 3000 copies of Emotional Intelligence 2.0 during this period. Congratulations to all of our sales winners, and our display contest winner: Seattle!

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Introducing Dufry’s Brand Values

Employee engagement surveys will be ongoing initiatives as we strive to continuously improve and provide an atmosphere that stands true to our core values. We appreciate your participation and, together, hope to continue our efforts in making Hudson a great place to work!

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Dufry recently introduced its newest brand values: Focused, Solid, Delivery, and Global. The values are simple, strong, and designed to reinforce that, even though the organization is widespread across several regions of the world, we’re all connected and these brand values are visible in everything we do.

SOLID

GLOBAL

DELIVERY

FOCUSED

We consistently perform and excel in everything we do.

We execute our mission to achieve solid financial performance through operational excellence.

We are unequaled in international scope and reach.

We place the customer at the heart of everything we do


Global Dufry One Awards Winners! The Dufry One Awards are celebrated annually to recognize the excellence and success of our people. Performance Award: Cleveland Hopkins Our Cleveland Hopkins team is recognized for taking an active role to improve sales, efficiencies, and showing exemplary overall performance. Congratulations, team! Customer Service Award: Chicago O’Hare Nuance Congratulations to the entire Chicago Nuance team for winning the Customer Service Award with their outstanding global mystery shopping scores – keep it up!

Best Initiative Award: Mike Clemens, Seattle DC Manager Mike Clemens demonstrated proactivity, taking initiative to solve a challenge, increase sales, and improve customer service by creating a replenishment system for his location’s DC. Congratulations, Mike! Learn more about it in our employee spotlight...

Meet Mike Clemens:

HAVE A BRIGHT IDEA?

Mike Clemens, Distribution Center Manager for our Seattle/Tacoma Airport location, joined the Hudson Group team in 2007. He describes his day-to-day responsibilities in operating the Distribution Center to include “ensuring product in-stock levels are able to support twenty-two stores, the selection of product assortment based on sales data, and meeting with vendors to discuss and select new product lines.” Mike also emphasizes the responsibility of “providing a clean and safe work environment for his team.” Of course, supporting twenty-two stores is no easy task; but, with an innovative spirit, Mike was able to find a way to lessen the burden by identifying areas to implement efficiencies. Keeping in mind the goals of “quick and accurate store replenishment, efficient order pulling, and creating a neat and well organized warehouse,” Mike worked with IT to develop a replenishment system for the Seattle DC. This replenishment assists stores in maintaining their product level by generating orders based on their sales. As news of the success of this system spread, Mike created instruction guides to help other locations easily set up the system within their facilities as well. Mike’s ideas and processes are now in use across the country in several of our distribution centers and greatly increasing productivity. This replenishment system has saved his location hundreds of hours a week in writing and pulling orders. Mike’s warehouse has become the go-to location for new General Managers and Distribution Center Managers to be trained. It is obvious why he also won the Global Dufry “Best Initiative Award” for 2016! Mike’s General Manager, Jacob Carlson, could not be more impressed with Mike’s continuous contributions, stating, “he is a huge asset to our team.” Mike recently retired as a Master Sergeant after twenty-eight years of duty in the Air Force and Air Force Reserves. During his time of service, he had the opportunity to operate in a variety of capacities and was the distinguished recipient of several awards. Mike says, “I am extremely proud of my years of service to my country and in my years of being a part of the Hudson team!”

Mike, we are absolutely honored to have you – we look forward to more brilliant ideas from you!


Dunkin’ Donuts Did you know we have sixteen Dunkin’ Donuts and four Baskin Robbins locations across the country? Yes, really! While our New York Penn Station location was the beginning of this venture for Hudson and is currently our largest Dunkin’ hub, we have expanded to several airports, including Charleston, Dallas Love Field, Dallas Fort Worth, Houston, New Orleans, and Philadelphia. Port Authority and Greenville just recently opened new stores and we are excited to open a store in Las Vegas Hard Rock Hotel in December 2016! With our quickly growing food and beverage business, our dedicated team has been working hard to find different ways to continuously improve the operation. Joe Aiello, Dallas Multi-Unit Manager, and his team created marketing material for our donut cases in an effort to boost sales by attracting guests to our newest premium product: cold-brew coffee. These signs will now be introduced throughout the rest of our Dunkin’ locations. Max McClelland, District Manager, and Ahmed Mohiuddin, NY Penn Multi-Unit Manager, recently introduced “welcome bags” with everything new team members would need to be successfully on-boarded to start their career with us. These include a variety of items such as their uniforms, training materials and schedule, a pocket operations guide, and, of course, a cup of coffee and munchkins to kick off their first day! A wonderful job by Tom Kornacki, SVP of Food and Beverage, and the entire team – congratulations on a wonderful year! We look forward to continued success from you all.

Hudson Group Partners with the LAX Harvest Donation Program Hudson Group joined the LAX Harvest Donation Program in April 2014 and has since been an actively contributing member. Our stores at the Los Angeles International Airport donated 2,505 pounds of grab-and-go food (5,010 individual items) to the LAX Harvest Donation Program in 2015. “This program allows Hudson Group to keep our unsold, high-quality food products out of the waste stream and help so many people in need,” said Jeff Martin, Regional Vice President who oversees our LAX operation. “Our local LAX team is happy to continue to support such a worthy program.” LAX Harvest has contributed a total of over one hundred and forty thousand items of food in donations to local charities helping those affected by domestic violence, food shortage, and homelessness. Year to date through the end of September 2016, Hudson LAX has donated $57,492 in products to LAX Food Harvest.

Take the Stairs, NSC! We kicked off our wellness program at the end of the summer with a “take the stairs” challenge at the National Support Center. Employees were tasked with the challenge of foregoing taking the elevator and going up flights of stairs while at work from August 3rd to August 30th.

Harry Potter and the Cursed Child

Our top stair climber, and winner of a new Fit-Bit watch, is Mike Yukas from our IT department, with an impressive total of 753 flights of stairs! You go, Mike! Congratulations to Mike, everyone who participated, and especially those who continue to take the stairs on a daily basis! As a team, we climbed a total of 4,212 flights of stairs. Stay tuned for more challenges for all employees to participate in coming soon!

Harry Potter worked his magic on Hudson book sales with over a half million dollars of Harry Potter and the Cursed Child books sold the first week on sale. Our top two displays were Seattle and Nashville!


GROW FROM WITHIN We always look to promote internally. Congratulations to the employees below on their promotions! Aaron, Antonio - Atlanta: Assistant Warehouse Manager Ally, Rodrigue - Nuance Chicago: Brand Specialist Alvarez, Eugene - San Francisco: Warehouse Manager Alvena, Marline - Atlanta: Operations Manager Anderson, Martha - JFK Terminal 4: Operations Manager Atangan, Marie Fritzie - LAX: Operations Manager Batimana-Ganchero, Mersan - Oakland: Assistant General Manager Berg, Carly - JFK Terminal 4: Assistant Manager Bethel, Brian - Atlanta: Warehouse Manager Bhagat, Meetkumar - Edmonton: Warehouse Manager Bhangu, Harpinder - Vancouver: Operations Manager Blakely, Michael - NSC: Senior Vice President, Business Development Booth, Monika - Sanford: Operations Manager Byrd, Sarah - Nashville: Office Administrator Canti, Paula - Miami International: Operations Manager Capati, Lizelle - Vancouver: Cash Office Personnel Capule, Elvira - Chicago O’Hare: Office Administrator Choudhry, Sadaf - NSC: Manager, Employee Engagement and Relations Cooper, Tamika - Philadelphia: Operations Manager Cruz, Jultonia - Orlando: Operations Manager Cruz, Waleska - NSC: Risk and Compliance Manager Csasznik, Eliana - Burlington: General Manager De La Cruz Nunez, Yina - JFK Terminal 1: Operations Manager De La Garza, Reagan - Dufry Houston: Customs Coordinator Delcastillo, Austin - Las Vegas: Assistant Warehouse Manager Dixon, Monique - Dufry Houston: Warehouse Manager Felany Bender, Antoni - NSC: Vice President, Business Development Flaim, John - NSC: Director of Human Resources Garrett, Michael - Raleigh: Operations Manager Gebremeskel, Wubshet - Denver: Cash Office Personnel Gomez, Osvaldo - Greenville: Multi-Unit Manager Gonzalez Gonzalez, Maribel - Miami International: Office Administrator Goodwin, Aileen - Pittsburg: Book Operations Manager Graham, Michelle - Halifax: Merchandiser Graves, Matthew - Portland: Office Administrator Grazziani, George - LAX: Office Administrator Grooms, Ashley - Denver: Assistant Manager He, Zi - Nuance Toronto: Assistant Store Manager Hernandez, Tania - Houston Bush: Food and Beverage Manager Hogan, Maureen - Empire State Building: Inventory Management Specialist Holley, Jessica - BWI: Customer Service Manager Kirby, Carl - Detroit: Operations Manager Lguaouzi, Hniya - JFK Terminal 1: Specialty Retail Manager Li, Zixuan - LAX Magic Concourse: Specialty Retail Manager Lin, Yan - Nuance Corporate: Accountant Lizano, Ivette - NSC: Assistant Buyer Magner, Melissa - NSC: Buyer Maloon, Ruth - Dufry Newark: Assistant Store Manager Martinez, Delia - Houston Space Center: Inventory Management Specialist

Mayoral, Charolett - NSC: Training and Development Manager McCray, Alicia - Atlanta: Office Administrator Meas Ho, Lisa - Philadelphia: Operations Manager Messore, Selamawit - Seattle: Office Administrator Molina, Karolyn - Sanford: Assistant General Manager Morales, Beatriz - Miami: General Manager Morales, Grettel - Miami: Operations Manager Murray, Donna - NSC: Buyer Murray, Michael - Minneapolis: Assistant Warehouse Manager Noland, Kenneth - Pittsburgh: Assistant General Manager Padilla, Magdiel - Miami International: Operations Manager Palermo, Anthony - NSC: Director, Merchandise Planning Palomino, Rosario - Dallas Lovefield: Book Operations Manager Pena, Henry - San Antonio: Warehouse Manager Prince, Maria - Tampa: Assistant General Manager Pullman, Mark - NSC: Senior Vice President, Hudson International Quesada, Paula - Miami: Operations Manager Ramdwar, Roger - NSC: Sales Audit Manager Reyes, Laura - NY Penn Station: Food and Beverage Manager Riddick, Verma - Philadelphia: Operations Manager Rodriguez, Maria - Fort Lauderdale: Operations Manager Rodriguez, Perla - Houston Bush: Assistant General Manager Rodriguez, Ronald - NSC: Senior Network Administrator Ross, Sarah - NSC: Regional Training Manager Ruscigno, Nick - Nuance Toronto: Store Manager Scanlan, Ryan - NSC: Senior Vice President Scott, Mashena - Sanford: General Manager Scott, Roxanne - Atlanta: Office Administrator Searcy, Anita - Atlanta: Human Resources Manager Selph, Yakima - Myrtle Beach: Assistant General Manager Simpson, Jeff - Houston Hobby: Assistant Store Manager Singh, Navendra - JFK DC: Office Administrator Sivaraman, Thayananthan - Newark: Product Coordinating Manager Soogrim, Nandanie - JFK Terminal 1: Operations Manager Stephenson, Scott - NSC: Director, Sales Audit and Inventory Control Su, Kathy - NSC: Director, Application Systems Tharumalingam, Shutharshanan - Newark: Customs Import Specialist Trujillo, Luis - Miami International: General Manager Valdes, Roberto - Miami: Warehouse Manager Vann, Sokha - Fresno Yosemite: Assistant General Manager Vargas, Marling - Dufry Newark: Product Coordinating Manager Venukopan, Sasikala - Dufry Newark: Candy Specialist Vigilante-Nomikos, Rosemarie - NSC: Buyer Wageman, Tammy - Omaha: Operations Manager Walker, Levon - Nuance Chicago: Warehouse Manager White, Derris - Chicago Midway: Assistant Warehouse Manager Wu, Dominic - San Francisco: Office Administrator Zamora, Tiffany - San Francisco: Operations Manager Zorrilla Gonzalez, Kenny - NY Penn Station: Book Keeper

WANT TO APPEAR ON THIS LIST? Take a look at and apply for our open positions: www.hudsongroup.com/hg/work-with-us/

REFER A FRIEND AND EARN A BONUS! Refer someone that might be a great fit for an open position and in six months you could receive $200-$500! It’s that easy. Ask your manager about our Employee Referral Program!


Paperless Paystubs! Join the thousands of employees who have helped the environment by going paperless: opt out of receiving paper copies of your pay statements. Instead, access your statements online! *Enroll to “go green” with e-paystubs on the ADP Self Service Portal: https://portal.adp.com Registration Code: hudsongrup -1234 *U.S. employees only – must be enrolled in direct deposit For assistance with accessing the ADP Portal, email: hris@hudsongroup.com

Get the ADP Mobile App!

MILESTONE ANNIVERSARIES 20 YEARS: Anzalone, Kathleen Logan: Operations Manager - 7/14 Daniels, Shauna Newark Duty Free: Beauty Advisor - 7/19 Diaz, Luis Chicago O’Hare: Warehouse Associate - 5/30 Elarton, Barbara Nashville: Service Associate - 8/21 Hinckley, Sara National Support Center: Vice President - 7/1 Horton, William Chicago O’Hare: Operations Manager - 6/12 Khan, Md Abdul NY Penn Station: Warehouse Associate - 5/21 Lanthier, Hector Nuance Toronto: Warehouse Associate - 8/9 Murillo, Faye Los Angeles: Sales Associate - 8/28 Pannozzo, Aldo Nuance Corporate: Learning & Development Director - 7/30 Riel, Christopher Los Angeles: Office Administration - 5/1

Access your pay statements, W2s, retirement account info, and more! * You can also use the app to enroll in paperless e-paystubs! Download from the App Store (iOS users) or Google Play (Android users). You may also access the app by going to https://mobile.adp.com *uses the same login information as the ADP Self Service Portal For assistance with accessing the ADP Mobile App, email: payroll@hudsongroup.com

Joe Recommends: The Ideal Team Player by Patrick Lencioni The Ideal Team Player tells the story of a leader looking to restore a company’s cultural commitment to teamwork. He embarks on a mission to crack the code on the virtues that real team players possess, and then build a culture of hiring and development around those virtues. Email newsletter@hudsongroup.com for a free copy!

Ross III, James Omaha: Book Operations Manager - 5/4 Salazar, Eddie Logan: Warehouse Manager - 5/10 Sarwar, Sultan Port Authority: Senior Sales Associate - 5/14 Scott, Bertilla Newark: Bagger Runner/Cashier - 8/9 Tanabe, Randal Los Angeles: Key Carrier - 8/6

25 YEARS: Cates, Teresita San Francisco: Lead Associate - 5/21 Ghai, Sukhdev Newark Penn: General Manager - 5/2 Jehan, Nikhet LaGuardia: Operations Manager - 5/8 Johnson, Oretha Dallas Fort Worth: Supervisor - 8/20 Martino, Douglas National Support Center: Senior Vice President - 8/5 Quinn, Brian National Support Center: Executive Vice President - 7/8 Singh, Suman San Francisco: Sales Associate - 6/3

30 YEARS: Benton, Anna Gulfport: General Manager - 6/30


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