Perks Of The Job
Author: Chris Mumford
BREAKING DOWN THE BENEFIT PLAN
While the provision of benefits is in itself a positive step, their effectiveness is dependent on how they are communicated to the employee. Many employees know that they receive a retirement plan or health insurance, but very few know the actual value of that benefit.
"Most hotel companies would be better off providing a lower value but better communicated benefits plan than a higher value, poorly communicated one."
According to James Berkeley, director of international employee benefits consulting company Ellice Consulting & Co: "Benefit plan communication is the most overlooked, and underused element in the human resources arsenal of benefit plan management tools. As a result of this common trend, the impact of how employees perceive and use their benefit plans is often overlooked. People do not value what they do not pay for or understand."
Employers should therefore give careful consideration to how they educate employees about their benefits plans - both at the start of their employment and when queries arise.
They should also recognise that a well thought out communication strategy can deliver the appropriate cultural message and create a sense of value in the mind of the employee.
"Most hotel companies would be better off providing a lower value but better communicated benefits plan than a higher value, poorly communicated one," adds Berkeley.
It is clear, therefore, that the provision of benefits is a key component of an effective remuneration package geared towards the attraction and retention of executives in the hotel sector.
As is the case with salary and bonuses, employers should strive to keep their benefit plans competitive within the marketplace and adjust them as employees rise up the ranks.
Hotel companies should also ensure that their plans are easily understood by employees and communicated effectively so that those employees know exactly what they are getting.
This article first appeared in HotelManagement-Networks.com Dec 1, 2005