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Reward strategies in the tourism and hospitality industry - Coggle Diagram
Reward strategies in the tourism and hospitality industry
Employee and employer views of pay
Employee objectives for the contract for payment
Purchasing power
Felt to be fair
Rights
Relativities
Recognition
Composition
Employer objectives for the contract of payment
Competition
Control
Prestige
Motivation and performance
Cost
Change management
Pay may be used as part of a broader change management process
Attract and retain suitable employees.
Improve levels of employee performance.
Comply with employment legislation
Factors effects on pay determination
Individual characteristics
Labour market
Beliefs about the worth of the job
Strength of bargaining groups
Government intervention and regulatory pressures
Remuneration in tourism and hospitality
Basic or base pay
skills and experience of employees
job evaluation
collective negotiations with trade unions or other employee representatives
Wage regulation in tourism and hospitality
The wages councils provided a minimum safety net with regard to wages for nearly 50 years
minimum wage was accepted as a key policy plank
In addition to basic pay
a premium
bonus and incentive schemes
performance appraisals
completion of training
commission
The majority of jobs and occupations within the sector are poorly remunerated (Lucas, 2004; Baum, 2006).
The practice of tipping
used as a managerial mechanism to encourage
But
tipping is very much culturally bound
significantly augment employee's income
Motives underlying tipping
● Desire for good service in the future.
● Desire for social approval.
● Reward their effort
● Desire for status and power.
a number of ways in which servers’ are likely to increase their tips
● Server introduction in a genuine and professional manner.
● Squatting next to table
● Smiling at customers.
● Touching customers.
● Credit card insignia on tip trays.
● Writing ‘Thank You’ on checks.
● Drawing a ‘happy face’ on checks
● Forecasting good weather.
● Wearing a flower in hair and other means of personalizing the server’s appearance.
● Entertaining customers by for example telling a joke.
● Calling customer by name.
Fiddles and knock-offs
Knock-offs can also be considered a form of fiddle involving the purloining
Fiddles generally involve pilferage from organizations, usually in a monetary sense
dependent on a degree of management and supervisory collusion
these aspects of informal rewards militate against the development of a collective workplace or occupational ethic, fostering individualism and competitiveness
Other benefits
staff discounts on rooms, restaurants and shops within the hotel
offered free use of leisure facilities
free meals
a pension scheme
sick pay above the statutory minimum
life assurance, dental, optical and private medical care
maternity pay above the statutory minimum
private health insurance
BUT
in reality research suggests that most tourism and hospitality workers are less likely to enjoy such benefits