Staffing and Supervision in the Hotel & Tourism Industry/Financial Benefits

Nowadays, the companies need to compete fiercely with other competitors. The employees are the vital resources of the success of the companies so the companies need to provide more benefits for retaining the good performance of employees. Besides, in order to reduce the turnover rate of the companies and save the amount of cost of the recruitment, the employers offer the various compensations for the employees.

The benefits have two types, the financial benefits and non-financial benefits. The financial benefits divide into direct and indirect benefits. The direct benefits are wages, salaries, commissions and bonuses. The indirect benefits include social security, family and medical leave and so on. The non-financial benefits comprise working conditions, flexible working time and the appropriate status symbols.

If the employees receive the financial benefits from the employers, they will have a sense of belonging of companies and have a well cooperation with the employers. Moreover, providing the benefits for the employees can increase the productivity of the firm because the employees can work more efficiency and efficient.

However, the human have different expectations in the life so the financial benefits can not satisfy their whole expectations. The company needs to provide non-financial benefits to satisfy the employees’ needs. For examples, if the companies cater the comfortable and harmonious environment for the employees, the employees will have well morale and concentrate on the work.

The companies adopt the different benefits to satisfy the need of the employees. The financial benefits have the merits and demerit. The non-financial benefits also have the advantages and disadvantages.

The factor included in financial benefits

Financial benefits The financial benefits can divide into two major categories: direct financial compensation and indirect financial compensation.  Direct financial compensation The financial rewards are paid directly to the employees, such as wages, salaries, commissions and bonuses.  Indirect financial compensation The indirect financial compensation can divide into two parts: legally required benefits and voluntary benefits. These benefits are not paid directly to the employees.

The Legally Required Benefits includes social security, unemployment compensation and worker’s compensation. Social Security generally includes retirement benefit, disability insurance, Medicare etc. Unemployment Compensation is paid when the employee is laid off by the company. Worker’s Compensation is paid when the job-related accidents or illness was happened.

The Voluntary Benefits are paid indirectly to the employees and not tied to an employee’s performance. The following are some voluntary benefits the companies always provide: Payment for Time Not Worked is provided payment to the employees for time not worked. For example, the companies can provide vacations to employees when the employees don’t need to work. Also the companies can provide payment for jury duty, voting time and bereavement time. Health Benefits includes health care, dental and vision care. Employee Services includes relocation benefits, child care service, educational assistance, food service, financial services, discount on company products etc. These benefits are specially offered to some companies’ employees only. Premium Pay is paid to the employees when they work under extremely dangerous conditions or undesirable hours. Benefits for part-time employees are paid to the part-time employees in order to remain their working desire. Moreover, the Voluntary Benefits also include life insurance, retirement plans, employee stock option plans, supplemental unemployment benefits etc.

Non-financial benefits  The Job Sometimes, the job may give the employees more intangible benefits. When the employees work in companies, they will feel their job is worthwhile. For example, employees can learn more useful knowledge and skills. They can improve themselves when they are working. The job can satisfy the employees’ desire. The job seems give them more intangible benefits than wages.  Job Environment If employees work in satisfied job environments, they will feel valued and work hard. Sometimes, the job environments are more important than direct financial benefits such as wages and salaries. If employees work in comfortable environments, they can work more happily. For example, employees always prefer working in a safe environment to work in a dangerous environment because the safety is more important than the number of money.

The determinants of those benefits

Not matter financial benefits or non-financial benefits, all the employees would feel appreciate if the employers provide more and more. However, every employee has their own decision, if they can choose the benefits they want. It doesn’t matter how good the proposed benefit is. The main purpose of a benefit program is to make the employee feel better about the company, which they will do only if they value whatever it is employers are giving to them. So, the employee’s need is the main determinants of the benefits.

Financial benefits For most of employees, financial may be the major condition when they apply the job. Actually, this kind of benefits can be used for supporting their daily expenditure and saving. Realists are concerning this benefit very much. The financial benefits are tangible. For example, Company A gives Ben a 301(k) and 5 holidays per month. And Company B gives Ben a 325(K0 and 5 holidays per month. It is easier to compare the financial benefits they are providing. Based on this characteristic, it becomes the major condition when they decide to accept the job.

Non-financial benefits

This is a kind of intangible benefits. Sometimes, it is easy to be ignored. But, for some people who are seeking for the psychological satisfactions may emphasize the non-financial benefits. Based on the Maslow Theory, the diagramed shows the Maslow Pyramid. The top one is self-actualization. That means they are finding the self-fulfillment and realize one’s potential. And the job can satisfy the employees’ desire. May be the number of people who stay in “self-actualization” is very limited. But, they are exalted by the society. For example, the Medical Sans Frontieres provide emergency medical assistance to populations in danger. Although they are given the allowance for the base need, but they are still willing to join this prgamme. It is because their self actualization needs is large than the physiological needs. They are enjoying the intargible benefits more than salary.

Therefore, all the employees have their own needs. In order to maximize the utility of benefits, the employers should ask the employees what they want. Or the employers can found a compensation consultant to do a survey for them.

Example

When you decide to do a job, you will think more about the financial benefit or the non financial benefit? In Hong Kong, most of the political persons are by all means in high qualification and they are well educated. What factors will affect them to determine what they choose to do?

Working for a government means that they will have a political right to affect Hong Kong. However, the salary of working for a government is not really high. They can choose to work in a bank in order to get more salary.

We may look at the case of Antony Leung, Mr Leung Kam Chung, who was was the former Financial Secretary of the HKSAR.Before he taking up the post of Financial Secretary, he worked in a bank, starting his banking career as a currency trader. He spent 23 years with Citicorp where he took up regional management positions in investment, corporate and private banking in Hong Kong and overseas. He served in senior management positions at big international banks in Hong Kong.In addition he rose to the rank of Asia-Pacific chairman when he joined Chase Manhatan Corporationin 1996.

What are the reasons for him to give up the job from bank but working as a political person? We will talk about the advantages and the disadvantages of working as a bank and working in the government.

First of all, we can see that working as a bank can earn a high salary. The salary can be over $10,000,000a year. It is far more about $2400000 a year than the salary of working as a Financial Secretary.

However,with comparison to work as a political person,working as a bank has its drawsback.It cannot be familarized to the citizen.It cannot be so famous.

As a Financial Secretary of the HKSAR,you may get more non financial benefit to determine you to choose this job.The person represents Hong Kong,the citizen will know more about you.You will have the reputation and maybe you will have the sense of satisfaction due to the fact that you have the right to affect the political of Hong Kong.Moreover,being a staff of the government,you may get the subsidize of housing and medicical care.

However,there are disadvantages to be a Financial Secretary of the HKSAR,you may work under pressure because you take the responsibility of the whole society of Hong Kong.It is serious if you make a wrong decision. You may affect the whole society, but not only concerning to you or a part of the economy.

Therefore, we find that the financial benefit is attractive. However, sometimes people will mainly think of the non financial benefit to find a job.

Questionnaire:

Are you an employer or employee?

For employee: 1. Does your company offer the worker’s compensation? (E.g.: Labor Insurance, medical care etc.)

2. Do you satisfy with your working environment?

3. Do you satisfy with your salary?

4. Will you join another company if she offers you a better salary but not good working environment?

5. Do you think the financial or Non-financial benefits are more important to you?

For employer:

1. Do you think the moral of the employee is import?

2. Will you improve the working environment or increase the salary of the staff with good performance if you have the ability to pay?

We had interviewed 20 people for the survey, there are 17 employees and 3 employers. And they are from the small-scale companies, none of them are civil servant. For the rough and small-scale survey we had done, we got the data below.

For Employee:

1. What kinds of benefits are you receiving? (E.g.: Labor Insurance, medical care etc.)

From the above chart, it showed all the employees received the labour insurance, annual leave and MPF benefits, as it is a must for the employer to offer according to the Labour Legislation. However, the health care benefit is not included in this regulation, so there is only a small portion of employees received this kind of benefits. It showed the employers would not offer special benefits to their employee rather than the one under the regulation.

2. Do you satisfy with your working environment? 3.Do you satisfy with your salary?

According to the data, most of the employees are not satisfied with their salary and the working environment. And, more interviewees satisfied with their salary than the working environment comparatively.

It showed the employers tend to offer a better salary than provide a better working environment, as they conduct some survey to understand the desire of the employees’ preference or the employer did not care about the working environment.

4. Will you join another company if she offers a better salary but not good working environment?

If a company offer a better salary but not good working environment, most employee are not sure whether to join the company or not; it showed the employees are not only considering the salary when they join a company, the working environment will be considered also.

5. Do you think the financial or Non-financial benefits are more important to you?

A large percentage of the employees think the financial benefits are more import, only 2 interviewees have different opinion, they are the ones who satisfied with their salary. For those who are not satisfied with their salary, they think the salary are more important that the working environment. So, it is difficult to argue whether the financial or the non-financial benefits are more important to the employees, it depends on the real situation the employees are facing at the moment. For this point, in the case study sector will be explained further.

For Employer:

1. Do you think the moral of the employee is import?

All of the employers interviewed agreed the moral of the staff are important to the business, and it directly affects the staff’s performance. So the employers will pay attention to enhance the moral by different methods, like giving bonus, appreciate the staff orally, etc., And it depends on each different situation what to do to enhance the moral of the employees.

2. Will you improve the working environment or increase the salary of the staff with good performance if you have the ability to pay?

If the employers have the ability to pay, most of them prefer to increase the salary rather than improve the working environment. But they say it is difficult to make the decision, it will depend on the existing situation. If the salary of their staff is not lower than the other companies, then most probably they may invest to improve the working environment. On the other hand, if they found the salary of their staff is lower than other companies, they will sure to increase the salary instead.

Conclusion

To conclude, in most of the countries, the company or the organization will provide the non financial benefit to the employees apart from the financial benefit. Financial can be classified as direct aspect and indirect aspect. In terms of direct aspect, it can be the real money, which means wages, salaries, commissions and bonuses. In terms of the indirect aspect, it means the benefit or welfare that is provided by the company but not in the money aspect. For example, the company will provide health care, life insurance and retirement plans to the employees. It will attract the employees to join the company.

However, when the employees to decide to stay or leave the company, they will not only think of the financial benefit. They will also consider the non financial benefit such as their sense of satisfaction from the work environment. Their sense of satisfaction can be aroused by the lots of reasons. For example, we may learn how to face the challenge and work under pressure from the work. It may let us gain more experience. It is the advantage of doing the job apart from looking at the salaries.

From the perspective of our group, we think that besides the financial benefit, non financial benefit is very important for the employees. It can to raise the morale and increase the motivation of the employees to perform well in the job. Both employers and the employees can be beneficial from it.