MARRIOTT’S FOCUS ON HUMAN CAPITAL – KEY TO SUCCESS J.W. MARRIOTT, Jr. Addresses Detroit Economic Club

Marriott International, Inc. (NYSE:MAR) outlined the company’s five-point strategy to attract and retain employees. As one of the largest lodging hospitality companies in the world, Marriott maintains a workforce of approximately 150,000 associates in 59 countries. The company expects to open at least 400 additional hotels over the next two to three years, creating more than 20,000 new jobs.

In a speech delivered to several hundred executives at the Detroit Economic Club, J.W. Marriott, Jr., chairman and chief executive officer of Marriott International, said, “With employment rates holding at record-high levels, recruiting and retaining employees is the greatest challenge facing American business today.”

Mr. Marriott added that while the company has one of the lowest turnover rates in the hospitality industry, the company’s competitive strength depends upon recruiting, developing and retaining high-quality associates. “We invest US$100 million per year on training alone. It is a key part of our employment package, which is designed to attract and retain the best people. How we invest in and manage our human capital today will dictate our success tomorrow,” Mr. Marriott said.

“An employee searching for a job has just as many choices as a consumer shopping for a product or service. Just as our customers know that value transcends price, we must offer our employees value beyond just compensation.”

Mr. Marriott said the company’s “human capital strategy” focuses on five principles to generate even greater value for employees and the company. They include:

1) Get it right the first time. Hire the right person for the right job. “Good managers identify, hire and wisely place top talent,” Mr. Marriott said.

2) Money isn’t the only thing. “Money is just one component of value, and managers must offer the whole package: competitive compensation and a great workplace. Our research shows that while pay is a top concern in decisions to stay or leave, other factors combine to outweigh money –such as work-life balance, leadership quality, career development opportunities and work environment. The longer an employee is with us, the more important the non-monetary issues become,” Mr. Marriott said.

3) Create a caring workplace. “Pay may keep people on the job, but it won’t motivate them to produce more value for the company or go the extra mile. In our industry, a genuinely warm, caring, empathetic workplace is a clear drive of the quality of our product.”

4) Promote from within: “We give every associate the opportunity to advance as far as their abilities will take them. Not only does this help us build long-term leadership, it also enables us to perpetuate our culture, which provides our company with a sustainable competitive advantage.” Mr. Marriott noted that more than 50 percent of the company’s current managers have been promoted from within, adding, “Employees specifically cite the opportunity for advancement as a key factor in their decisions to stay with Marriott.”

5) Build Your Brand: “Consumer branding enables us to make a sale to customers who have unlimited choices. Employment branding enables us to attract potential employees, who also have a wide range of choices,” said Mr. Marriott. “Today more than ever, employees seek out brands with strong reputations and high standards.”