Reference no: EM133178903
Course Team Project
The learning objective of the project is to give your team the practical experience of designing a compensation structure for an organization, beginning with the actual set up of a business.
Compensation Team Project Group 2
Company Type: Hospitality
Company Name: Hotel MidWest
Goals: Provide superior customer service and hospitality to customers in a manner in which we build our community and establish repeat customers.
Strategy:
- Minimize cost and increase profit
- Group bookings
- Evaluate and negotiate supplier partnerships
- Offer packages and promotions
- Market hotel for tourists, locals and business travel
Culture:
- Establishing a family culture
- Working together as a family to provide a comfortable experience for guests
Values:
- Put people first
- Act with integrity
- Embrace change
Location: Downtown Chicago
Environment:
- Sustainability
- Reducing Consumption
- Use of Modern Technology
Product or Service: Hospitality
Compensation Needs: Hourly Plan, Annual Plan, Bonuses, Benefits (Medical, Dental, Vision, 401k, Life insurance), PTO, Over-Time
HR Mission statement and objectives:
The Human Resources Department at Hotel MidWest is responsible for providing effective human resource management by developing policies, programs and services that contribute to the company's success and the satisfaction of employees. Our goals include:
- Balancing the needs of the employees and the needs of the company.
- Provide management and employee training and develop policies and procedures to help ensure a diverse workforce in a safe, harassment- and discrimination-free environment.
- Training in effective leadership and career development for employees, employment law and government regulation, and litigation avoidance.
- Establishing a plan for staffing needs, ensuring an effective interview process within the company, increasing company exposure in the market, identifying the most effective and cost-effective recruitment channels, as well as conducting thorough reference checks, will assist the company in hiring qualified employees.
- Maintaining employee loyalty by ensuring our managers possess effective leadership skills; providing competitive wages and benefits; providing technical, interpersonal, and career development training and coaching; and conducting exit interviews and providing relevant feedback; and increasing employee-management communication.
Hotel MidWest's Compensation Budget
Hotel MidWest will be able to maintain sales and increase its annual proposed pay in wages, from year one to year three. The salary scale is within employment standards for the organization's global region in the state of Illinois.
The MidWest Hotel has a profit-eligible population of 120 employees (salary, full-time, part-time) with a gross annual payroll of $45 million. The business is being planned in a profitable manner; balancing market demands with maintaining the hotel's current occupancy levels.
The hotel's target benefit cost for all discretionary benefits is 22% of gross payroll. Hotel MidWest will be able to maintain sales and increase its annual proposed pay in wages, throughout year one to year three. The salary scale is within employment standards for the organization global region in the state of Illinois.
In addition, the pay increase will encourage a competent workforce and build employee retention. By balancing market demands with maintaining the hotel's current occupancy levels. The annual revenue at Hotel MidWest will be $45 million in years one and year three, which is in line with making profit and covering the expenses.
The proposed total compensation plan has been developed to attract, retain, and reward employees that meet the organization's strategic business needs. The current compensation strategy is based on the revenue projections at Hotel MidWest by maintaining the sales per labor hour at each location. This will be accomplished for year one and through the implementation of quality products that are provided by Midwest regional third-party vendors. The third-party vendors will provide a consistent product to guests and employees alike with food, beverage and amenities at all locations.
Hotel MidWest will utilize a pay for performance system. Each employee's yearly evaluation and performance will determine their pay increases. Through this system, top performers will receive the highest rewards while the poor performers will receive little to no increases. At Hotel Midwest we will strive to attract top talent across each department. We will implement a plan to unify all departments to achieve our organizational goals.
At Hotel MidWest we will utilize the self-assessment performance evaluation. Employees will reflect on their own performance, identifying their strengths and weaknesses. This will be followed by the managers discussing their performance and setting goals for the upcoming year. We believe that through self-assessment, employees will analyze their own behaviors, results and set realistic performance and development goals for themselves.