Employee Rewards System At Marriot Hotels - Assignment Example

Employee Rewards System at Marriott Hotels Table of Contents Introduction 3 Employee Rewards system at Marriott Hotels 3 Jobs in the hotels 3 Jobs supporting Marriott’s Business 4 Hierarchy of the Reward System in Marriott Hotels 5 Primary focus for determining the pay of employees 5 Approach adopted towards the Reward System in Marriott hotels 7 Position adopted by Marriott for determining the pay levels with respect to market 7 Reward and Compensation structure in Marriott Hotels 8 Nature of Award Mix in Marriott Hotels 9 Conclusion 10 Suggestions 10 Reference list 12 Introduction Marriott International Inc. is a foremost diversified American hospitality company, which manages 18 brands, more than 3900 properties and franchises along with a range of hotels and related lodging services (Marriott International, Inc, 2015a). The company is headquartered in Bethesda, Maryland, USA. Marriott International Inc. has created goodwill for innovation, integrity, immeasurable quality and service excellence (Marriott International, Inc, 2015a). The purpose of the project is to evaluate the employee reward system at Marriot Hotels, which is a part of Marriott International. Employee Rewards system at Marriott Hotels The driving force behind the reputation of Marriott Hotels is embedded in its core principles “putting people first” (Marriott International, Inc, 2015b). The workforce of Marriott has crossed thousands and the jobs are diverse in nature, where teamwork and collaboration are the two pillars of Marriott’s spirit of hospitality. The workforce in Marriott consists of: Jobs in the hotels The different roles offered within the hotels are discussed henceforth. Front of the House: The main responsibility is to welcome, assist and interact with the guests at hotels and resorts employing hospitality skills. The positions offered to the employees under this structure are valet, front office, restaurant, front desk, spa/recreation and concierge (Marriott International, Inc, 2015c). Heart of the house: The positions offered to the employees under this role are housekeeping, kitchen service, security, maintenance and engineering services and information technology where teamwork is essential (Marriott International, Inc, 2015c) Hotel management: The positions offered under this role are Director of finance, Operations Manager, General Manager, Director of banquets, Restaurant manager and Manager of Security where leadership qualities and guidance is essential to achieve the desired results (Marriott International, Inc, 2015c). Jobs supporting Marriott’s Business The different roles offered for supporting the business: Jobs at Headquarters: The associates have to manage the portfolio of brands that belong to Marriott; they also have to perform in different specialized fields like accounting and finance, operations management, different business disciplines and human resources portraying leadership and supportive skills (Marriott International, Inc, 2015d). Regional and national jobs: The associates of Marriott working in offices provide support to the business in different countries, continents and regional markets by serving in different areas like marketing and sales, human resources, accounting and finance, risk management, tax planning and working across the globe employing the supporting and leadership skills (Marriott International, Inc, 2015d). Call center jobs: The associates of Marriott working in the call centers across the globe are part of the virtual teams and they provide significant support and assistance to the business. They have to manage the customer care activities, provide support to queries regarding Marriott rewards and reservations, events, group business reservations and individual reservations (Marriott International, Inc, 2015d). For Students and Recent Graduates: Marriott gives a good platform to the students and fresh graduates to start their career on the global platform through programs like the “Voyage Global Leadership Development Program” and training sessions, apprenticeships and internships (Marriott International, Inc, 2015e). Jobs for US veterans: Marriott absorbs veterans to employ their experience in their business. Marriott has shown various commitments toward the veterans through “Marriott Joins Wounded Warriors High Five Tour to Thank Military Families” and “Bill Marriott blogs on Why You Should Hire a Vet” (Marriott International, Inc, 2015f). Hierarchy of the Reward System in Marriott Hotels The reward system in Marriott hotels is divided into two segments. First, rewards are given to the senior employees who have served the company for twenty five years or more. Secondly, other programs are directed towards general employees (Marriott International, Inc, 2015b). Primary focus for determining the pay of employees In Marriott, they have adopted the policy of “Putting People First” (Marriott International, Inc, 2015b) instead of adopting industry benchmarks in determining the pay structure of the general employees and create a better place to live and work. Mariott maintains a correlation between performance of the company and Executive pay structure. For determining the Executive compensation program, the industry benchmarks are considered in order to preserve the key talent and capture new talent both from within and outside the hospitality industry at costs consistent with market practice. The compensation reflects individual performance, equity considerations regarding internal pay and market data (Marriott International, Inc, 2015j). Figure 1: Percentage Breakdown of Target Total Direct Compensation (Source: Marriott International, Inc, 2015j) The above chart reflects element wise segregation of the target total direct compensation among annual incentive, equity, base salary and others. Figure 2: Percentage Breakdown of Target Total Direct Compensation based on Performance and other areas (Source: Marriott International, Inc, 2015j) The above chart reflects the compensation structure determined for the President and other named executive officer in Mariott depending on the performance. Approach adopted towards the Reward System in Marriott hotels Marriott adopts a combination of centralized and decentralized approach of the reward system. The awards and incentive programs are decided by the top level management, whereas, the immediate recognition is given by the managers to the employees of the respective departments. Even though pay is a very important element of job satisfaction, being recognized for performing a job successfully is equally encouraging and rewarding and it motivates the employees. An individual performing a high value job in a small profile also deserves timely encouraging feedbacks (Marriott International, Inc, 2015h). Position adopted by Marriott for determining the pay levels with respect to market The policies and the incentives programs in Marriott are planned in order to enhance performance through a blend of operational objectives, short-term financial and long-term performance of the stock prices. Though Marriott is one of the companies in Fortune 100 Best companies list, but it is not listed in the Fortune 100 Best Companies highest pay list which shows that it adopts the median pay level and not upper or lower quartile range of pay structure. (Fortune 100 Best Companies to Work For). The pay structure and the annual incentives are dependent on the realization of recognized EPS target and a blend of operational and financial performance of the associates and the executives in their respective responsibility areas (Marriott International, Inc, 2015j). Reward and Compensation structure in Marriott Hotels Marriott provides a supportive and learning environment for the workforce where an individual can grow in his/her existing job and construct a lasting career. Depending on the performance and the role performed by an individual within the workforce, the rewards, recognition and the benefits are designed (Marriott International, Inc, 2015b). Following are the compensation and benefits offered by Marriott for all associates: Pay and benefits The employees of Marriott receive compensation and benefits depending on the job profile and location. Competitive benefit packages are a blend of benefits that are offered to an employee by an employer, but it varies according to employment laws and practices of the different countries. Discount Packages on Hotel rooms across and food and beverages across the globe in Marriott hotels, retail discount in gift shops at Marriott and opportunities for advancement and Competitive Pay are provided to the employees as rewards for their dedicated service to the business (Marriott International, Inc, 2015b). Recognition Employees in Marriott are recognized for their commitment towards providing extraordinary services to the guests and their zeal for the business. The associates who have the ability to exhibit exceptional commitment towards the guests and success of the organization, associates who express dedication towards the local communities, associates who furnish employee referrals and managers who exhibit outstanding leadership are acknowledged (Marriott International, Inc, 2015b). Recognition on the basis of seniority The company recognizes the associates on the basis of years of service at an interval of five years. It also recognizes the associates with a reward of staying completely free of cost during the weekends at Marriott hotels across the globe who have served the company for a period of twenty five years or more (Marriott International, Inc, 2015b). Opportunities of Growth The level of responsibility, leadership and accountability increases with time and the associates are encouraged to perform accordingly. Marriott promotes internal growth opportunities and high level of training and development which enables the employees to expand their career graph in the hospitality business (Marriott International, Inc, 2015b). Nature of Award Mix in Marriott Hotels Stay Awards: These awards are provided to reward and inspire the employees with a stay wherever and whenever they want across the globe. (Marriott International, Inc, 2015g) The different types of stay awards are Worldwide awards, Americas awards, European awards, Asia Pacific awards and Weekend access awards (Marriott International, Inc, 2015i). Experience Awards: These awards are provided to treat the employees with an experience. The Marriott Individual Incentives Experience TravelCard enables the employees to enjoy world class experience globally (Marriott International, Inc, 2015g). Currency Awards: These awards are given in the form of incentives to the employees. The different types of Currency awards are Marriott Cheques and Marriott TravelCard (Marriott International, Inc, 2015g). The employees of Mariott who have successfully achieved their targets and sustained the business are rewarded with stirring incentive programs. In the same industry, Taj Hotel has adopted the Star Programme which permits the employees to acquire points at the suggestion and recommendation of a guest or a colleague. Along with this, the employees are encouraged to give their suggestions and recommendations of any new innovations that may be implemented in the reward structure (Tata Sons Ltd, 2015). Conclusion The reward system in Marriott Hotels is very attractive and it contains a number of awards. The incentives and the reward system perform an effective role in the success and failure of the hospitality company. The senior management performs leadership and supportive roles and combined form of the reward structure ensures that the senior management decides on the company incentive programs, whereas, the frontline managers recognize and motivate the employees on regular basis. Suggestions 1. The reward system should be linked with the performance level of the employees in order to enhance their performance and also forms a source of motivation. 2. The incentives should be given without any delay. Reference list Fortune 100 Best Companies to Work For. Highest pay. [online] Available at: [Accessed 8 June 2015]. Marriott International, Inc 2015j. Compensation Philosophy and Objectives. [online] Available at: < http://files.shareholder.com/downloads/MAR/0x0x153731/46BE3F10-3BB0-4CF6-AF7D-5ABBAEF0D3B4/EXECUTIVE_COMPENSATION.pdf> [Accessed 8 June 2015]. Marriott International, Inc, 2015a. About Marriott International. [online] Available at: [Accessed 8 June 2015]. Marriott International, Inc, 2015b. Rewarding Career. [online] Available at: [Accessed 8 June 2015]. Marriott International, Inc, 2015c. Our Associates Are The Heart Of Our Business. [online] Available at: [Accessed 8 June 2015]. Marriott International, Inc, 2015d. Be A Part Of Something Big. [online] Available at: [Accessed 8 June 2015]. Marriott International, Inc, 2015e. Your Success Begins Here. [online] Available at: [Accessed 8 June 2015]. Marriott International, Inc, 2015f. Values. Respect. Determination. [online] Available at: [Accessed 8 June 2015]. Marriott International, Inc, 2015g. Introduction to Awards, [online] Available at: [Accessed 8 June 2015]. Marriott International, Inc, 2015h. Concern For Employees. [online] Available at: [Accessed 8 June 2015]. Marriott International, Inc, 2015i. Don’t They Deserve to Be Awarded for all They’ve Done? [online] Available at: < http://www.marriott.com/incentives/stay-awards.mi> [Accessed 8 June 2015]. Tata Sons Ltd, 2015. The Tajs Stars Shine Bright. How Does The Stars Programme Work? [online] Available at: [Accessed 8 June 2015]. Read More