Pay for Performance Strategies: Achieving Success through Communication
By Adam Cobb Regional Manager, Halogen Software | April 17, 2011
Your customers' overall experience with your hotel is dependent on the quality of service they receive from hotel staff and the level of comfort they feel in your hotel environment. From interactions with front desk staff, to the comfort of their room, to service received in on-site restaurants and amenities, the quality of service provided by your staff is critical to your bottom line. This ability to deliver the best service possible to your guests makes the attraction and retention of competent and accountable employees a top priority.
In recent years, talent management strategies have been implemented by a growing number of hotel executives to create an organization-wide commitment to high quality service. Talent management is the process of attracting, developing, managing and retaining workers, and covers a number of key human resources areas such as: compensation, learning, performance and succession planning. As part of an overall talent management strategy, compensation-based strategies such as pay for performance offer a powerful tool for hotel organizations to motivate and reward employees for high levels of performance, such as service delivery to customers.
Making Sense of Compensation Concerns
Compensation can be a contentious subject, and with good reason. The Top Five Total Rewards Priorities Study – from Deloitte Consulting LLP and the International Society of Certified Employee Benefits Specialists – outlined the top five areas of concerns and priorities for employers for addressing compensation, benefits, career development, performance and recognition. The top concerns of respondents pertaining to pay for performance specifically were as follows:
• Will our reward programs attract, motivate, and retain talented employees?
• How do we implement a total rewards strategy that aligns with our business strategy and brand?
• Do our reward programs accommodate the varying needs and interests of different generations with distinctly different needs and priorities?
• Will we achieve a return on our investment for our reward expenditures?
Many of these concerns stem from the fact that while pay for performance can offer a proven strategy for organizations, often these programs fail due to poor program design, or faulty execution and communication.