The hotel’s competitive approach is to differentiate Hotel Paris properties through exceptional guest services, boosting guest stay duration and return rates and ultimately driving revenues and profitability. A seriously underfunded strategy program and complacent staff members were the roots of the difficulties in achieving this aim. Now Lisa, the HR manager, needs to devise a new plan to revive the company’s strategy. She must create a clear and well-thought-out plan to pay all employees equally.
Issues
The remuneration structure, which does not show external equality, is one of the things Lisa has to look at immediately. Salary competition with the market is what we mean by external equity. Fair pay cannot be guaranteed without establishing suitable compensation ranges for each position based on industry and geographically relevant market data. The current staff members are paid at the standard rate or even less than other staff members of the company who are reimbursed more for the same position. The other problem was the lack of individual equality, which entails recognizing and paying people for their efforts. As a result of the pervasive “, I don’t care” attitude, this immediately led to the staff becoming complacent. Additionally, it conveys to the staff that their regular contributions are unappreciated and unimportant. This tendency may be changed by convening a team or individual meeting to discuss each person’s performance and what it implies for the business.
Current Compensation Plan
The hotel’s current plan has to be updated because it is outdated. It prevents workers from considering their new competitive approach. They now use a typical pay structure, which pays employees an annual salary or a fixed hourly rate. In contrast to the Payment Strategy, which supports the specific business objectives of the employer by coordinating incentives with business strategy, pay increases under this system occur on a predetermined basis and are based on status and performance. As a result, the programs could contain base pay, indirect compensation, permitted values, and life quality components, which are intimately tied to attaining business goals. It encourages workers to review the organization’s goals while concentrating on their assignments.
Lack of Employee Involvement
The employees’ and the company’s objectives do not currently align. They lack a sense of where they belong within the company’s structure and the significance of their responsibilities and roles in the operation. The business must be properly aligned as a result. Leaders need to convey a behavioral vision to achieve this alignment. Certain habits and behaviors must be in place for an organization to carry out its strategic vision. These actions are how the idea is brought into being, and the objectives of the business are achieved. No matter how creative the strategy is, if the employees do not implement it daily, it will only be considered wishful thinking (Valentine et al., 2020). Keeping the staff informed about the company’s development, the present aim and vision, and how each team member contributes to achieving the overall goal would be advantageous for the hotel.
Changes
As the modifications directly affect employees’ income, it is essential to include them in the process. As a result, the business must use efficient communication. As a two-way process, communication must reach every member to be effective. It will then give input on how effectively the new compensation approach serves their needs. Before performance measures, Lisa will also employ observational methods. She may assess how effectively the strategy is or is not achieving the desired aim by comparing prior performance to present performance.
Conclusion
Lisa could start by looking at the current pay plan, which does not show external equity. Since standard pay is outdated, she should switch to strategic compensation, which supports the employer’s unique business objectives by aligning incentives with company strategy. Secondly, she should determine what has led to a lack of Employee Involvement. Through efficient communication techniques and resources like surveys, Lisa can learn what made people lose interest. She should also keep her attention on the staff, which will help them grow and meet the hotel’s standards for good guest service.
Reference
Valentine, S., Mathis, R. L., Jackson, J. H., & Meglich, P. A. (2020). Human resource management (16th ed., p. 736). Cengage Learning.