Total Reward

Topics: Hotel, Management, Human resource management Pages: 4 (1119 words) Published: May 1, 2013
1 Introduction:
A total rewards strategy is a focused game plan that allocates resources and tailors activities to achieve a target performance level within a prescribed time-table. It always combines Tangible elements (Basic pay, Commission, PRP, bonuses, and Non-pay benefits) and Non-tangible elements (Provision of a positive work experience, Opportunities for individual growth, Recognition of the importance of work-life balance). The salary scheme object for managers would better be set as measureable factors. General HR policy is the core principle impact international reward on retaining and motivating key personnel. As the ‘Reardon’s Hotels’ is a family-run business but fair ‘father figure’, the HR policies are equitable.

2 Pay
2.1Base Pay
Base pay is the foundation of manager’s salary (Dessler and Zeng, 2006). Through the Balance-sheet approach, we can find that it is not fair for manager in these two countries. In Britain, a hotel manager earns £45,000 per annum, while he or she can only earn £30,000 in Spain. The market-rate is the same between Spain and Britain (£30,000). To keep the equity between the managers in Britain and in Spain, the £15,000 balance should be made up in other reward allowance. 2.2 Variable Pay

PRP can be offered in amount of £10,000 to the manager in Spain, if he or she can help the hotel in Spain gain the same amount of benefit as Reardon’s Hotel in the UK. Bonus can be offered about £2,5000, if the manager in Spain achieve above the acquired benefit. It can stimulate the manager do not only satisfied with the target, but try to do his or her best to develop Reardon’s Hotels in Spain. Some non-financial bonus, such as souvenirs, film tickets, team T-shirts, is not need to apply, because it is not suitable for managers. PRP can let the manager know he or she has been approved.

3 Allowance/Discounts/Subsidies
The pay for managers emphasise more on welfares, bonus, subsidies and privileges rather than base pay. The...
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