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Linking Income to Revenue and Labor Quality

Saigon Ha Long Hotel and Mithrin Ha Long Hotel have built their own salary scales, clearly defining the basic salary for each level (position), rank (seniority). Specifically as follows:

Table 1.2: Salary scale of Saigon Ha Long Hotel (2008)


STT

Job location

Salary level

1

General Director/ Deputy General Director/ Chief Accountant

Level 1

2

Department Manager/Department Head

Level 2

3

Supervisor

Level 3

4

Staff

Level 4

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Linking Income to Revenue and Labor Quality

(Source: Saigon – Ha Long Hotel HR Department)

Each level includes four ranks with different seniority at each level.

The salary scale of Mithrin Ha Long Hotel includes five levels: Level 1: Investor representative.

Level 2: Director/Deputy Director. Level 3: Department Head.

Level 4: Supervisor. Level 5: Employee.

Looking at the salary scale system of the two hotels above, it is possible to immediately see the salary increase policy according to position and seniority. This can be understood as the recognition of the employee's capacity and value, which can be progressive according to responsibility - authority and scope of work as well as working time at the hotel. Therefore, the salary increase on the one hand acknowledges the increased overall contribution of that employee, on the other hand, it is a sign that the hotel encourages employees to contribute to the long-term goals of the business.

1.3.1.2. Link income to revenue and labor quality

A compensation system is considered effective when it is truly aligned with the hotel's objectives. To do so, compensation must be

is linked to revenue and labor quality. The form that Heritage Ha Long Hotel, Royal Villa, Saigon Ha Long and Mithrin Ha Long all use is revenue-based contract. This form is applied to some departments such as the business department, restaurant department, kitchen department, etc. In addition to the basic salary, employees of those departments also receive an additional income in cash taken from the revenue exceeding the assigned target.

1.3.1.3 . In addition, to motivate and encourage employees, four-star hotels in Ha Long have a very clear reward and discipline mechanism . The results of work performance and monthly violations of employees are linked to a not small income called "business salary".

In addition, all hotels apply many other forms of rewards and disciplines that are closely related to the material and spiritual benefits of employees such as considering increasing/deducting bonuses, praising, rewarding or warning, disciplining, dismissing, giving unexpected bonuses, promoting, etc. The results of rewards or disciplines are made public to all employees of the hotel. Royal Villa also uses the form of posting on the internal bulletin board information about rewards and disciplines every month. In general, through the survey, it can be seen that four-star hotels have made good use of the reward or discipline policy as a lever to encourage employees in their work, the form of reward is applied more than discipline, in which the form of dismissal is only applied to a few violations that seriously affect the reputation and interests of the hotel or cause serious disunity within the organization.

1.3.1.4. Pay full attention to welfare regimes for employees

In addition to strictly complying with relevant provisions of Labor Law, first of all the Labor Code, in order to fully care for employees, all four-star hotels in Ha Long also apply

Many other benefits for employees such as organizing tours, periodic health check-ups, mid-shift meals, organizing visits, giving gifts... The benefits are applied to all employees in the hotel - including the Front Office staff, encouraging employees to be more committed to their work.

1.3.2. At 4 - 5 star hotels in Nha Trang city

1.3.2.1. Rational use of human resources and labor savings as a basis for diversifying remuneration policies

Nha Trang is a bustling tourist city that is less affected by seasonality, so the number of visitors to Nha Trang is stable throughout the year, so stabilizing human resources is very important for four-star hotels. Human resource managers try to allocate and arrange work reasonably by creating many shifts in addition to the traditional morning, afternoon, and administrative shifts, which are: broken shifts (4 hours in the morning, 4 hours in the evening), and mid-shifts (starting at 10 am and ending at 6 pm). The purpose of creating many shifts is to arrange staff to match the flow of guests to the hotel at different times of the day, avoiding excess staff during off-peak times, and having to increase overtime when there are many guests, causing waste for the hotel, increasing costs for human resource management, and making it difficult to increase employee benefits.

1.3.2.2. Most hotels in Nha Trang city implement employee benefits policies such as purchasing occupational accident insurance and combined insurance (24/24).

Implementing this policy helps employees feel secure at work, especially those doing dangerous jobs such as tour guides, drivers, train drivers, fitness trainers, divers, etc. In addition, implementing good employee treatment policies, especially those who are

Direct contact with customers such as front office staff is also a factor that helps hotels improve their competitive position in attracting and maintaining human resources as well as significantly reduce costs of recruiting and training human resources.

1.3.2.3. Build a fair, transparent and clear reward mechanism

clear

One of the most successful compensation policies of some customers

Four and five star hotels in Nha Trang such as Ana Mandara Nha Trang, Evason Hideaway Ninh Van resort, Sheraton Nha Trang hotel and spa, Diamond bay resort... these are the best employee of the month and best employee of the year programs for employees of two blocks: the block of employees directly serving customers including departments: lobby, security, restaurant, business, spa... and the support block including: human resources, accounting, housekeeping, maintenance - engineering... with rewards: medals or certificates and corresponding bonuses, so most of the employees at these hotels are very excited and try to work hard to have the opportunity to receive awards that have both spiritual and material value.

1.3.2.4. Organize a comfortable and relaxing workplace, creating a second home for employees

Eight hours of continuous work at the hotel makes employees very tired and stressed, so they easily fall into a state of crisis, especially during the main season; understanding the psychology of employees, managers at some four and five-star hotels in Nha Trang such as Evason Hideaway Ninh Van Bay or Ana Mandara Villas Nha Trang always try to create a comfortable working environment to help employees feel like coming to work at the hotel is their second home. Managers call employees "host" instead of "staff". Within the premises of the hotel or resort, there is always an area for employees with a library, entertainment room, etc.

pool table, computer or gym for employees and allow employees to use these services in their free time (off-season), or after work to relax and relieve fatigue and stress. 8

1.3.3. At 4 - 5 star hotels in Ho Chi Minh City

1.3.3.1. Develop criteria and scales to evaluate work performance as the basis for rewards, salary increases and promotions as well as career development orientation for employees.

Determining that non-financial compensation policies have functions and roles that are equally important to financial compensation, some hotels such as Eastin Grand Hotel and Winsor Plaza Hotel have established a very clear, detailed, specific and transparent employee evaluation system (Eastin Grand Hotel has 12 groups of employee evaluation criteria, with 35 to 45 criteria, Winsor Plaza Hotel has 7 groups of criteria with 35 employee evaluation criteria), the evaluation scale is very detailed up to 10 levels. The evaluation process is clear with four evaluation steps:

Diagram 1.3 Employee evaluation process at Eastin Grand Hotel


Self-esteem employees



Head of Employee Evaluation


The department head and employee discuss, negotiate and agree on the evaluation from both sides.



Board of Directors review and approval

(Source: Eastin Grand Hotel HR Department)



8 Vu Thi Hang - Master's thesis - Research on the current status of human resource management at four-star hotels in Ha Long, 2009, p.108

1.3.3.2. Focus on policies for each employee position by analyzing specific detailed jobs

With a specific analysis of the work for each job position in the front office of 4-5 star hotels in Ho Chi Minh City, typically Windsor Plaza and Eastin Grand Hotel, there are policies with specific allowances for each employee position such as a makeup allowance for all female employees in the hotel's front office, and for men working in front office positions, there is an allowance for facial cleansing products such as razors, shaving cream, and facial cleanser used for cleaning before entering the shift.

1.3.4. Lessons learned for the treatment of front desk staff at 4-star hotels in Da Lat

From the reality of human resource treatment at 4-5 star hotels in Ha Long, Nha Trang and Ho Chi Minh City, the lessons learned for the treatment of front office staff at four-star hotels in Da Lat city are as follows:

1.3.4.1. Develop and apply a salary scale according to the position, job title, experience and working capacity of employees. Focus on salary policies for each specific job position based on detailed job descriptions of each position and title. Salary mechanisms and salary increase policies must encourage employees to develop themselves to meet job requirements. Link employee income to the quality and common goals of the front office and hotel.

1.3.4.2. The reward policy must be transparent, specific, clear and must link the reward with both material and spiritual benefits for employees. That is, in addition to rewarding gifts or money when employees complete their work excellently or make unexpected contributions to the hotel during their work, they must be rewarded immediately in material terms, but still need to

Be set an example and receive certificates of merit, awards, and medals (depending on the employee's level of contribution) in front of all hotel staff so that employees can see the value of their contributions as well as receive appropriate spiritual treatment.

1.3.4.3. Pay full attention to the welfare regime for employees. This is the experience that most 4-5 star hotels in the 3 cities: Ha Long, Nha Trang and Ho Chi Minh City thoroughly implement, especially for the front desk department. It is necessary to purchase all types of insurance related to the work of employees to help them feel secure in their work. In addition, educational benefits for career development for front desk staff are an issue that needs to be given top priority to help maintain staff for the front desk department at four-star hotels in Da Lat.

1.3.4.4. Rational use of human resources to save labor is the basis for diversifying front office staff remuneration policies. This work is done very well by 4-5 star hotels in Nha Trang. In reality, room occupancy rates at 4-star hotels in Da Lat are still at an average level (about 50%), so rational use of front office staff to save labor by many methods of arranging and assigning personnel is a suitable lesson for 4-star hotels in Da Lat. Doing this will save the budget for personnel, this is the foundation for 4-star hotels in Da Lat to adjust their remuneration policies, especially the remuneration policies for front office staff.

1.3.4.5. Focusing on building corporate culture and a friendly working environment, turning the workplace into a second home for employees is a practical lesson that four-star hotels in Da Lat need to inherit and promote to treat front office staff. The pressure due to the nature of the work of front office staff is very large, so to relieve the psychology and work pressure for employees, hotels need to create a comfortable working space.

Comfortable and friendly, helping employees work and relax, avoiding unfortunate mistakes as well as taking good care of hotel customers.

Chapter 1 Summary

To create a foundation for studying the current situation and analyzing the current situation, in chapter one, the theoretical basis of issues related to the topic such as: hotels, hotel business operations, front office department, human resource management activities and employee compensation policies in hotels have been systematized as follows:

Firstly, the theoretical basis of hotels and hotel business is included in the article because the research scope of the topic is four-star hotels in Da Lat, followed by the theoretical basis of the front office department with the concept, characteristics and theoretical organizational chart of the front office department according to international standards for hotels with less than 250 rooms. Next, the policy of treating employees in the hotel has also been mentioned in this chapter.

Second, to create a basis for analysis, comparison and contrast in chapter two as well as solutions in chapter three, experiences on front office staff remuneration policies at four to five star hotels in cities with developed tourism activities such as Ha Long, Nha Trang and Ho Chi Minh City have been summarized and included in chapter one.

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