Courtney Martinez
Chief People Officer
Lou Malnati's Pizzeria
Episode 200
Why Your Employee Perks Fail: Building Trust is the Real Retention Strategy
Current chapter: Built by People podcast features insights from world's top HR leaders
Built By PeopleMay 7, 2025 · 11:36
Thesis
“High employee retention and performance are fundamentally driven by fostering genuine, trusting relationships and actively valuing employees, rather than relying on conventional perks or superficial incentives.”
Show notes
Courtney Martinez will tell you that almost every retention problem she's ever seen traces back to the same root cause: employees didn't feel genuinely valued. Not the perks, not the comp package — the relationships. The sense that someone cared whether they showed up.
Now Chief People Officer at Lou Malnati's Pizzeria, Courtney has built her career on what she calls a "relational business model" — the conviction that trust and connection are the primary retention drivers, particularly in the restaurant industry where turnover is endemic and the personal relationships between managers and team members are the actual fabric of the culture. Her path from retail to food service taught her something most industry-hoppers miss: walk in with humility. Assuming your previous expertise transfers completely is the fastest way to lose credibility in a room full of people who know their business deeply and can tell when you don't.
Her perspectives on feedback and influence are two of the sharper points in this conversation. On feedback: "Feedback is a gift. You can choose to take it or not, but ultimately it's my responsibility to be honest with you." That posture — viewing honest feedback as an act of care rather than a confrontation — is what separates HR leaders who build high-performing teams from ones who keep the peace at the cost of growth. On influence: it's a muscle, and most HR professionals dramatically under-develop it. The professionals who move from order-takers to strategic partners are the ones who have deliberately built the ability to guide employees and leaders toward decisions they wouldn't have made on their own.
- The relational business model for retention — why genuine human connection outlasts every perk and compensation lever in the restaurant industry
- Industry humility as a leadership practice — how Courtney approaches new sectors without assuming her prior expertise fully transfers
- Feedback as an act of care — the mindset shift that separates growth-oriented HR leaders from conflict-avoidant ones
- Building high-performing, inclusive teams — honest feedback, emotional awareness, and creating space for people to hear things they don't want to hear
- Mentorship as a two-way investment — being both mentor and mentee, and how each role develops different capabilities
- Influence as a muscle — why HR professionals who under-develop this skill stay tactical forever, and how to build it deliberately
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What you'll take away
- 1Prioritize building strong, trusting relationships and a 'relational business model' as the most effective strategy for employee retention, going beyond typical perks.
- 2Cultivate a culture of honest and direct feedback, delivered with sensitivity, to drive individual growth and build high-performing, inclusive teams.
- 3Actively engage in mentorship, both as a mentor and mentee, to facilitate career growth, navigate industry nuances, and leverage professional networks.
- 4Develop emotional awareness and self-awareness in leaders and team members by providing candid feedback and creating forums for personal development.
- 5Recognize and develop 'influence' as a critical muscle for HR professionals to become strategic business partners who guide employees and leaders toward their best selves.
What most organizations get wrong
- •Courtney argues that perks like ping-pong tables or coffee bars do not make people stay, emphasizing that genuine relationships and being valued are the true drivers of retention.
In Courtney's words
“My entire career has been built off this belief that's not what makes people stay. But more importantly, here at Lumen Alnatis, that is something that has been actively pursued by this organization for over 30 years. And we really do believe that the power of relationship, the power of honest feedback with each other, the power of having a relational business model, which is the foundation of Hulu, is the fact that creates that stickiness that you want for people to continue.”
This quote clearly articulates her core philosophy on employee retention, emphasizing relationships over superficial perks, and links it to long-standing organizational practice.
“If you think that you have all the answers to all the questions, you would be mistaken. And walking into an industry such as ours, such as the restaurant industry, is a very dynamic, fast-moving, industry. And if you don't understand that you need to have resources, you need to have connections, you need to have relationships with people to help guide you through that, then you're going to be in for a tough road.”
This highlights the importance of continuous learning and networking for success, especially in a challenging sector like hospitality HR.
“Feedback is a gift. You can choose to take it or not, but ultimately it's my responsibility to be honest with you. And I think that is really where we continue to drive and be so successful.”
This succinctly captures her approach to feedback as a crucial element of high-performing teams, emphasizing honesty and choice.
“I believe that some people, especially in our world, in the HR world, forget that influence is a muscle that you continue to have to develop. And if you want to continue to be considered as a very strong business partner that is strategic, not only in how you think, but also in how you support people, I think it's important that you remember that the influence muscle needs to be exercised, it needs to be used.”
This quote offers valuable parting advice, stressing the often-overlooked importance of influence as a strategic HR competency.
The problems this episode addresses
- •Employee retention challenges in dynamic, high-turnover industries like hospitality, often exacerbated by a reliance on superficial perks.
- •HR professionals misinterpreting the true drivers of employee loyalty and engagement, focusing on transactional benefits rather than foundational relationships.
- •Lack of trust and clear communication within teams, hindering the ability to provide and receive honest feedback essential for performance and growth.
- •Leaders and team members lacking self-awareness or emotional intelligence, leading to communication breakdowns and suboptimal team dynamics.
- •New HR professionals, particularly those entering specialized industries, struggling to understand unique nuances without sufficient mentorship and an established network.
In this episode
Built by People podcast features insights from world's top HR leaders
Built by People
Courtney says networking has been crucial in her career path
Courteney's Networking Strategy
Courtney Alnatis says Hulu has achieved impressive employee retention and tenure
What Makes Hulu So Attractive to Employees?
You're passionate about mentorship and currently mentoring someone transitioning into restaurant HR
Teaching in the Hospitality Industry: The Importance of Ment
When it comes to building an inclusive and high-performing team in a restaurant setting
Building an Inclusive Team at Lu's
Emotional awareness and self-awareness are key components of workplace relationships
Employment Relationships: Emotional Awareness and Self-awareness
What parting advice would you like to share with our audience about influence in HR
What parting advice would you have for HR professionals?
Topics covered
Organizations and entities mentioned
Full transcript
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