Question

Section D: Pay for Performance and Financial Incentives
Assume that you are applying for a job as Front-Office Manager in the
InterContinental Hotels Group and are at the point of negotiating salary and
incentives.
D-1. List five specific behaviors that you think hotels should use to incentivize for
hotel managers vs housekeepers?
D-2. Describe the incentives package you would try to negotiate for yourself. Make
sure to include long-term and short-term incentives and describe the advantages and
disadvantages of both. (15marks)

Answer 1

For Hotel manager -
1. Attractive Retirement Plans- Like pensions, provident fund, gratuity or job security .

2.- Offer Career And Personal Development -This helps the manager to advance in his career by offering some international programs or some personality development training in order to boost his confidence and even income.

3. Offer Health and Wellness Programs like life insurance , mediclaim facility for manager and his family, free health checkups and so on.

4.Gain-Sharing Incentive Plans/Stock Option- Incentives as per the performance in terms of monetary benefits as to number of customers served with positive feedback.

5. Recognizing Employee Achievements- this can be either by trophies, non financial benefit maybe car or an other gift in kind.

For Housekeepers

1. Mentoring Programs- Where they are assigned to a mentor who helps them guide through the work where he gains knowledge and is motivated enough to trains others later

2. Allow Flexible Schedules- Giving the chance to choose the shift as per their convenience.

3.Good working conditions- Healthy working environment is a basic necessity of work culture which motivates the staff to work for a longer period of time.

4. Room Rewards/ Guest room- Where they are giving the facility of having the room facility for themselves or their guest based on the points they have earned by serving the customers right. hey can also be given the benefit of dining and room facilities at a subsidized rates based on their performance.

5. Bonus - base on their performance rewarding them with financial or non financial perks.

For myself as front office manager I would like to negotiate with following incentives

- Pay-for-Performance or Perks - Pay based on the performance where some part is fixed and some is variable. Along with that additional perks like giving travelling and food allowance.

-Offering Stock Options- Shares of the hotel at some pre-fixed price

-Promotion Opportunities- Promotion after working for a certain period say 1-2 years

-Retirement Plans- Pension and provident fund benefits

-Career opportunities and development - Growth and training for enhancing the skills

Pay for performance and perks are short term incentives which are directly related to my performance and will help me to put in more effort with the instant reward. in this way i know I am paid what I work for and so I take initiative in serving customers.
Short term incentives are only able to meet my present needs and not focus on future growth or status needs. It is only merely financial benefit whose satisfaction may fade with team and i would need something else to motivate myself.

However, Career Development programs, Stock option, promotion and retirement plans are long term incentives which give me sense of security and fulfill my other needs of safety. Also stock option give me the sense of ownership of the hotel which instills a feeling of working better for the growth of the hotel as well as mine in financial terms.

These long term benefits will not provide me any financial benefit now. Also the company will think twice before offering this to a new employee as it amounts to huge cost for the company. Also may be these incentives will be offered once the hotel is sure of my performace.