Why Compensation Is Critical
Human capital is the core for organizations in hospitality and is most important asset used to engage guests. Most of the time it also is the largest operating expense, and thus can have a major impact on profitability and overall success, including that of the experiences and loyalty of guests. To keep employees engaged and productive, hospitality must of course compensate them appropriately—while not overpaying them and running the risk of eroding the bottom line.
Maintaining this balance is not easy, and our benchmark research finds that most organizations’ confidence in their compensation processes is shaky. More said they are only just confident (47%) compared to very confident (30%) in those processes.