Palm Beach Atlantic University (PBA) celebrated American Free Enterprise Day (AFE), presented by SROA Capital and Storage Rentals of America, on Thursday, November 14, 2024, by honoring Paul N. Leone, the successful CEO of The Breakers Palm Beach, a luxury hotel known globally for its commitment to quality customer service and excellent employee satisfaction.
Leone is a long-time friend of PBA and has employed over 2,000 students and alumni. Leone said he can always recognize a PBA student because they embody core leadership skills and have a strong commitment to community service. He is the 40th lead medalist of PBA’s American Free Enterprise Day and said it was an honor to accept the award because he has had the privilege of knowing and working with all the medalists who came before him.
This award coincides with the 40th anniversary of Leone’s time working at The Breakers. He first came to The Breakers in 1985 as the hotel controller and nine years later at just 36 years old, he became the resort’s president. In 2016, he became the first non-family member appointed to CEO and is credited with transforming the company’s culture during his time of service.
While The Breakers is now the only resort still in the hands of its original owners and is one of Florida’s oldest continuously operating businesses, Leone, in his remarks during the ceremony, told students the resort faced many challenges on its road to success. It was opened in 1896 by Henry Flagler and operated seasonally until 1970. The next 15 years were hard times financially as the independent resort struggled to compete with the boom of franchise hotels and resorts. This led to the third generation of the Flagler family deciding something needed to change, and they needed to focus all their energy on the hotel.
Leone’s Journey to Revitalize The Breakers
Moments after being promoted to president in 1994, the board members asked Leone what he would do to fix the company. One member, in particular, asked him to fix the food quality at the resort as it was a huge part of offering a luxury experience to guests. The next day, Leone returned to the same conference room, having written a 20-page plan overnight on turning around the resorts’ food and beverage department.
Another critical point Leone focused on was creating a work environment that had people excited to show up and excel in their jobs. Leone and his team came up with a plan to provide employees with resources so that at the end of a tough day, they could take pride in themselves, their work and their company. Leone said the key was to view the employees as “investments” rather than costs like many other companies who feel they cannot follow through on their good intentions in generating more employee satisfaction.
“On that day, we moved out of the hotel day and into the people business…We talked about how making a profit wasn’t a goal. It was a requirement. No profit, no business. We wanted to make a difference, doing well and doing good. Likewise, for our employees, it’s not about making a business, it’s about making a life,” Leone said.
According to The Breakers surveys, they have 94 percent survey satisfaction and were rated by Fortune 500 as number 59 of the Fortune 100 Best Companies to Work For. Leone identified the company’s prioritization of employees as being responsible for its thriving success, as it now has an 89 percent customer satisfaction score. The resort has an 82 percent rate of employee retention. Leone says retention of employees is key to making a profit because it ensures resources are allocated wisely.
“Only 51 percent of businesses say employee satisfaction is a top goal,” Leone said. “In most businesses, the CFO professes the most important thing in business is investment…Not in our business.”
Leone believes that the focus on creating a positive environment in which to work or visit has transformed the company. By having a unique mission of putting people first, they have been able to thrive financially and have a beneficial influence on their guests, employees, and community.
“Doing well and doing good, it’s not only the right thing to do– it’s really good business… My call to action to the students, to the next generation of business leaders, is to use the free enterprise system to improve the quality of life for everyone,” Leone said.
Kelly Smallridge, president and CEO of the Business Development Board (BDB) of Palm Beach County and Troy Maschmeyer, CEO of Maschmeyer, Inc., were named companion medalists.
To learn more about AFE, visit www.pba.edu/afe.
