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CHAPTER 9: REWARD STRATEGIES IN THE TOURISM AND HOSPITALITY INDUSTRY -…
CHAPTER 9: REWARD STRATEGIES IN THE TOURISM AND HOSPITALITY INDUSTRY
Employee and employer views of pay
Employee objectives for the contract for payment
Purchasing power
: The absolute level of weekly or monthly earnings will determine the standard of living of individual employees
Felt to be fair:
In this sense employees tend to have a strong sense of what they feel is an appropriate level of payment which is fair to the job they are doing
Rights:
The fundamental issue of the rights of employees to a particular share of a company’s profit or the nation’s wealth
Relativities:
Notions of felt fair, rights and relativities are particularly important and will often lie at the heart of much of the debate and controversy which is generated about pay and especially whether people are being ‘fairly’ paid
Recognition:
Part of this recognition may well be financial recognition, though in reality there may be other aspects as well as the financial in recognizing and improving performance.
Composition:
Composition refers to the issue of how a pay package is made up and how this may vary between individual employees, depending on things like age or sex.
Employer objectives for the contract of payment
Prestige:
Clearly part of the reason for being a good payer is to attract the best labour which is available to an organization.
Competition:
Unlike prestige the key aspect in considering competition is the need for a good fit to ensure for example that employers are not over paying employees.
Control:
The manner in which organizations have to consider controling pay and particularly the extent to which money may be saved
Motivation and performance:
At one level there is a simple issue facing organizations in terms of their ability to use payment to motivate employees to perform well.
Cost:
In particular, organizations will be concerned of the impact on labour costs on profitability or cost effectiveness.
Change management
Approaches to reward management
Attract and retain suitable employees.
Maintain or improve levels of employee performance
Comply with employment legislation.
Influences on pay determination
Beliefs about the worth of the job
Individual characteristics
Labour market
Strength of bargaining groups
Government intervention and regulatory pressures
Remuneration in tourism and hospitality
Basic or base pay
The skills and experience of employees will
have a bearing on their pay.
Job evaluation
Wage regulation in tourism and hospitality
The practice of tipping
Tipping is a good motivator and that abolishing tips and paying higher wages is not the answer.
Desire for good service in the future.
Desire for social approval.
To compensate servers equitably for their work (i.e. reward their effort)
Desire for status and power.
Fiddles and knock-offs
Fiddles generally involve pilferage from organizations, usually y in a monetary sense.
Knock-offs can also be considered a form of fiddle involving the purloining of (usually) small items such as soap, linen and towels.
Other benefits
Free meals
Staff discounts on rooms, restaurants and shops within the hotel
Free use of leisure facilities
Life assurance, dental, optical and private medical care