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Hotel Paris - Essay Example

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Summary
The case brings forth the challenges faced by the HR department in Hotel Paris in terms of their compensation and benefit structure for employees. There exists a gap between the actual strategic objectives of Hotel Paris and the alignment of compensation and benefit structures in accomplishing those objectives…
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The various problems in this context are studied and analysed in the study and suitable recommendations are provided for eliminating the gaps and attaining a greater association between compensation plans in the organization and strategic objectives of the company. It is also aimed at attaining greater satisfaction and contentment of employees such they are adequately motivated to perform up to the desired standards in the organization.

Challenge 1
The present compensation structure in the company is highly unstructured, unplanned and unsophisticated. In this, the pay range for workers is too narrow and does not differentiate much between them at different positions, such as front desk clerks, security guards etc. “Like several other HR systems at the Hotel Paris, the compensation programs were unplanned and unsophisticated........................each job category”.
Challenge 2
Maintaining a salary standard which is competitive in the market seems to be inadequate to attain the best contributions and performance of employees. Also the compensation structures are not enough to motivate them to perform to their best abilities. They remain frustrated and discontented and this leads to high employee turnovers and attritions. “For example, the firm’s policy is simply to pay its employees a competitive salary...............extraordinarily service oriented workforce”. ...
“The company has given little thought to tying general pay levels or individual employees' pay to the company's strategic goals”. Solutions Solution 1 Firstly a well defined job roles and responsibilities must be created for all positions in the organizations which include front line employees, securities, staffs, back-end workers, management executives etc. Compensation structures must be developed according to this structure and must be generated as per educational qualifications of employees, numbers of years of experience and position and designation in the organization. It is to be ensured that there is no overlap between the salary slabs for the different positions. This is important in order to differentiate between the positional roles of employees. The same salary from two different levels would necessarily de-motivate employees at the higher level of the hierarchy (Mathis & Jackson, 2011, p.153). Solution 2 Finally, setting a compensation standard at par with the industry standard would not be effective in retaining or attracting talents in the organization. There can be multiple organizations paying similar compensation and employees would be easily tempted towards them. Thus it is recommended that the compensation level must be a step higher than the industry standards in order to attract and retain talents from the industry. However, a fair proportion of the gross salary must be performance based. This would not only help to get potential candidates but also help to motivate them to perform to the best of their ability in the organization. Besides this, it would also serve the purpose of controlling employee attritions to a ...Download file to see next pagesRead More
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