Reward Strategy In The Hospitality Industry – Hotel HR Planning & Development

Employee payments and reward strategy in an organization are denoted by many terms such as ‘compensation’, ‘remuneration’, ‘rewards’, ‘payments’, ‘salaries’, ‘wages’, etc.

Employee View of Pay as Reward Strategy

  • Purchasing Power
  • Felt to be fair
  • Rights
  • Relativities
  • Recognition
  • Composition

Reward Strategy and Employer View of Pay

  • Prestige
  • Competition
  • Control
  • Motivation and performance
  • Cost

Objectives of Reward Strategy Management

  • Attract and retain suitable employees.
  • Maintain or improve levels of employee performance.
  • Comply with employment legislation.

what is reward strategy in hotel

Other Influences on Pay Determination and Reward Strategy

  • Beliefs about the worth of the job – for example, the size, responsibility, skill requirements and ‘objectionableness’ of duties.
  • Individual characteristics – for example, age, experience, seniority, general qualifications, special skills, contribution, performance and potential.
  • Labour market – the level and composition of any given reward package will be influenced by labour supply and demand at either national or local labour market level, and whether an organization is seeking to create a strong internal labour market.
  • Strength of bargaining groups – for example, the potential for trade unions to influence pay determination. At any given time the relative strength of trade unions will be influenced by other external economic factors, such as the level of unemployment and feelings of job security.
  • Government intervention and regulatory pressures – for example public sector policy and other policy initiatives.

Reward Strategy : The Practice of Tipping

Tips are the extra amount given by guests to the employees after a good service. Tipping may allow some hospitality employees to significantly increase their income, though the potential impact with regards to issues such as job satisfaction and emotional well-being equally need to be considered. However it is considered as a motivation for certain levels of employees.

Reward Strategy : Ways to Increase Tips

  • Server introduction in a genuine and professional manner.
  • Smiling at customers.
  • Writing ‘Thank You’ on checks / drawing a ‘happy face’ on checks.
  • Wearing a flower in hair and other means of personalizing the server’s appearance.
  • Entertaining customers, for example telling a joke.
  • Calling customer by name.
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