Compensation Packages
Senior executives at Holiday Inn are compensated differently than other employees. An executive compensation package for Holiday Inn consisted of their base salary, benefits, cash bonuses, and long-term incentives. The board is in charge of setting the base pay for the executives and it is quite competitive. Many benefits that executives receive tend to differ from that of lower level employees as well. Consequently, executives tend to have a higher level of health insurance, life insurance and retirement plans. Severance packages are another part of the compensation package that many of the executives receive as well. This includes cash out on stocks to executives when they are no longer a part of the company too. However, …show more content…
First, Holiday Inn needs to offer more benefit packages and higher compensation packages to all of their employees, not just the senior executives. Yes, the senior executives deserve to have a higher salary and bigger bonuses, but not at the expense of other employees. Moreover, the company needs to monitor their employees to ensure that each one is getting quarterly raises when they are supposed to. Also, an evaluation of qualifications, job longevity, and education should be reviewed quarterly to ensure the right employees are getting the right pay. Holiday Inn dropped the ball on this many times while I was working there and many employees left the job due to being unfairly compensated. When employees anticipate injustice, they expect unfairness, including unfair outcomes or decisions (distributive injustice), unfair decision-making procedures (procedural injustice), and/or unfair interpersonal treatment (interactional injustice) (Neeley & Boyd, 2010, p.546). Furthermore, because Holiday works mainly on a hierarchical pay structure, the executives are always satisfied with their compensation packages and the lower level employees are feeling unfairly compensated. However, in order for it to be a proper balance between the two, it is important that Holiday Inn is in compliance with pay regulations and fully compensate all employees with pay and …show more content…
Employees are often seen as dispensable and replaceable (Neeley & Boyd, 2010, p.546). The company did not ensure external competitiveness and internal equity within the company when determining compensation packages for their employees. Furthermore, they did not implement clear guidelines in regards to the bonuses and incentives for employees. Senior executives should not look at their bonuses and incentives as guaranteed payment if they did not do the work. Moreover, employees should be given end of year bonuses as a motivating factor, by rewarding those who have exceeded work expectations and helped the company achieve overall success. Lastly, the company should reevaluate their budget to offer complete benefits to all employees. Although, this can be costly, the company should look at the added benefits as incentives to motivate employees. Therefore, an important concept to remember is that all employees are valuable assets and should be treated as
Senior executives at Holiday Inn are compensated differently than other employees. An executive compensation package for Holiday Inn consisted of their base salary, benefits, cash bonuses, and long-term incentives. The board is in charge of setting the base pay for the executives and it is quite competitive. Many benefits that executives receive tend to differ from that of lower level employees as well. Consequently, executives tend to have a higher level of health insurance, life insurance and retirement plans. Severance packages are another part of the compensation package that many of the executives receive as well. This includes cash out on stocks to executives when they are no longer a part of the company too. However, …show more content…
First, Holiday Inn needs to offer more benefit packages and higher compensation packages to all of their employees, not just the senior executives. Yes, the senior executives deserve to have a higher salary and bigger bonuses, but not at the expense of other employees. Moreover, the company needs to monitor their employees to ensure that each one is getting quarterly raises when they are supposed to. Also, an evaluation of qualifications, job longevity, and education should be reviewed quarterly to ensure the right employees are getting the right pay. Holiday Inn dropped the ball on this many times while I was working there and many employees left the job due to being unfairly compensated. When employees anticipate injustice, they expect unfairness, including unfair outcomes or decisions (distributive injustice), unfair decision-making procedures (procedural injustice), and/or unfair interpersonal treatment (interactional injustice) (Neeley & Boyd, 2010, p.546). Furthermore, because Holiday works mainly on a hierarchical pay structure, the executives are always satisfied with their compensation packages and the lower level employees are feeling unfairly compensated. However, in order for it to be a proper balance between the two, it is important that Holiday Inn is in compliance with pay regulations and fully compensate all employees with pay and …show more content…
Employees are often seen as dispensable and replaceable (Neeley & Boyd, 2010, p.546). The company did not ensure external competitiveness and internal equity within the company when determining compensation packages for their employees. Furthermore, they did not implement clear guidelines in regards to the bonuses and incentives for employees. Senior executives should not look at their bonuses and incentives as guaranteed payment if they did not do the work. Moreover, employees should be given end of year bonuses as a motivating factor, by rewarding those who have exceeded work expectations and helped the company achieve overall success. Lastly, the company should reevaluate their budget to offer complete benefits to all employees. Although, this can be costly, the company should look at the added benefits as incentives to motivate employees. Therefore, an important concept to remember is that all employees are valuable assets and should be treated as