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CASE STUDY 2: Compensation - Coggle Diagram
CASE STUDY 2: Compensation
MAIN CAUSE OF ADRIAN LEAVING
the amount of base pay of banquet manager at Downtown Inn hotel is higher (3 dollars more per hour) than the hotel he is working - Uptown Inn and 20% service charge is included
personal family requirement - higher wage
CONCEPT OF COMPENSATION IN HRM
DIRECT COMPENSATION
money paid to employees as cash, such as hourly wages, salaries, bonuses and commission: base pay, variable pay
INDIRECT COMPENSATION
benefit packages for employees: unemployment compensation insurance, health insurance,...other insurances; retirement; paid time off;...
NON-FINACIAL COMPENSATION
time off, flexible work hours, coaching and training opportunities, recognition and awards, benefits and other perks that may not be measured in dollar amounts as part of a compensation package but are still valuable to employees and make a difference in the workplace culture and overall attraction of the job opportunity.
SITUATION IN UPTOWN INN HOTEL
the hotel is lacking ideal staff for the position of Adrian when he leaves
the HR director will have to hire a new employee for the position which requires a higher payment - 3 dollars range or so per hour to make it worthwhile for the new banquet manager
the new person LeeAnn suggests is a banquet supervisor at another local property and the position needs hiring is banquet manager. Her experience might be lower than Adrian but her salary is the same as his.
the hotel disadvantages: lost of good employee; the hotel may have to train the new banquet manager staff and pay more money for her
SOLUTION SUGGESTED
KEEP ADRIAN CONTINUE TO WORK (negotiable)
offering a higher/or the same amount of fixed salary as Downtown Inn Hotel offers to retain Adrian to work for the hotel as he is a young, talented and great worker
Change compensation policy for Adrain
increase incentives
recognizing Adrian contribution
increase bonuses and benefits
HIRE NEW BANQUET MANAGER(negotiable)
set up the goals for the new employee to perform and guarantee the compensation she is going to get as she has not been a banquet manager yet.
negotiate about the salary and compensation following the experience and conditions form both sides
the salary is based on experience and should be adjusted to reflect the local cost of living as the new staff is from another local property if she has to move