Are Compensation and Benefit Schemes in the Hospitality Industry Attractive for the New Talent?

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2013 Are Compensation and Benefit schemes in the hospitality industry attractive for the new talent? Domingos Oliveira 4/30/2013 Compensation Administration According to the chapter 8 in: Managing Hospitality Human Resources by Robert H. Woods, Compensations are mainly seen by the general population as being related to bonus wages/salaries that people acquire in exchange for working. However Compensations involve much more than this, in order for a compensation program to be effective it must entail intrinsic and extrinsic rewards. This is fundamental to support the company’s compensation philosophy; motivate and reward those employees that make the company reach its objectives. Although this chapter recognizes that both compensation methods are essential to the company’s performance, it mainly emphasizes compensation as being monetary. Furthermore it states that monetary compensation is composed by direct compensation (those compensations given to employees for extra productive work) and indirect compensation (those compensations given to employees for their protection: i.e. Sick leave/Holidays). On the other side, the section Group and performance-based compensation systems” in the book Handbook of Hospitality Human Resources Management points out perspectives from various hospitality researchers and educators regarding this topic. Gomez-Mejia and Balkin (1994) state that in our days that a lot of the traditional compensation methods cannot be adopted to the new generation. Instead they express the idea that compensation systems should be flexible systems designed according to employee’s needs in order to excel their performance towards the company’s objectives. Further in this book, there is a section which refers to “Other factors associated with compensation practices”. This section’s argues that Human Resources departments in service-related companies

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