Marketing essay on: 7nights hotel operations

1. Introduction:

7nights is a hotel which presently has 40 hotels operating in New Zealand & Australia. The 7night hotel has been started by two friends i.e. James Ross & Claudia Myers. After looking into the amount of profits earned, the owners have decided to grab the opportunity to establish the hotel all across the globe.In the recent years, 7nights have converted into a million dollar business. In order to establish 7nights six new general managers are to be appointed. They would help in order to focus upon the newly selected target market i.e. South East Asian countries (Keel, 2006). This report takes into consideration a compensation package to be provided to the newly recruited general managers. The compensation package would take into consideration the financial & non financial benefits (Payroll Naukrihub.com, 2011).

A well defined structure would help the organization in order to have a track record of all the employees working in the organization. The amount of bonus allocated to each individual or the newly appointed general managers. As we know, in order to start a business & retain it for long run 4M’s are required (Keel, 2006). The 4P’s would be Money, Material, Machine, Men. Men refer to one of the most crucial & a key element which helps in flourishment of any organization. Unless & until the labor would be satisfied the organization would not be able to carry on with its business in a long run.

No organization could be ever imagined without men, personnel or sales force, therefore 7nights should apply the above mentioned compensation plan. This would help them in order to attract as well as give them an assurity that, 7night would provide them with best of the benefits (Payroll Naukrihub.com, 2011).Body:

7nights wishes to recruit six new general managers in order to expand its operations in South East Asian countries. A structured compensation plan should be opted by 7nights which would help them in order to attract quality employees.

In order to attract more number of quality employees towards them, 7nights would offer a lucrative package as compared to its competitors. This compensation package would include various types of benefits apart from the basic salary or pay (Payroll Naukrihub.com, 2011). 7nights should frame a detailed compensation package including various benefits such as special discounts to the employees, insurance, flexible timings, number of leaves, etc.

In case of a hospitality sector, the compensation plan would vary from hotel to hotel. A consistent compensation plan should be formulated at 7nighst for the six newly recruited general managers. The salary or the compensation would subject to change depending upon the performance of the manager (Miller, 2007).

The compensation packages to be given to the new managers would totally depend upon the brand as well as the post for which the individual has been appointed. It must be noted that, the pay package of a 5 star hotel & an ordinary hotel would be quite varied. The package would also vary on the basis of the educational qualification of the candidate.

The compensation package mentioned would be an apt package for the newly recruited employees at 7nights. The above mentioned package states that apart from the basic salary there would be many other benefits allotted to the newly appointed managers.

The total compensation management would be divided into two parts i.e. Financial & Non Financial Compensation. The financial compensation would be further divided into two parts such as Direct & Indirect Compensation. Under the non financial compensation other benefits such as extended leaves, paid leaves, special discounts to the employees, Sick leaves, etc would be covered (Miller, 2007).The direct compensation would include the fixed as well as the variable pay. The fixed pay would include the basic pay & the differential pay. The differential pay would include on call pay, overtime, longevity pay hazardous duty pay, shift differential pay, etc. On the other hand, the variable pay would include the award, bonus figure, bonus at the time of retention & awards paid by the company.

The indirect compensation could be broken under two heads such as pay for time & income protection program.  The pay for time in case of hospitality industry would help the employees in order earn some part of their compensation while they are on breaks, events to be conducted out of the country as well as during the training hours (Miller, 2007). Some of the other benefits under this head would include the sick leaves, national holidays, vacations or outings with family & friends, emergency leaves, Jury Services, etc. Under the income protection program the managers would be provided with certain benefits such as Medical Insurance, Life Insurance, Retirement plan &b deferred company plans (Berger & Berger, 2008). The benefits mentioned above are voluntary in nature i.e. if demanded these benefits would be offered to the managers appointed at 7nights. Some of the mandate benefits which would be included under the compensation plan would be the worker compensation, unemployment insurance & Federal Insurance Contribution Act (FICA).

On appointment of the six newly recruited managers at 7nights, the following compensation should be taken into consideration. These components should compulsorily be made into the compensation package. They are as under:

1. Compensation:

• Basic salary
• Stock options
• Bonuses
• Commissions

2. Insurance:

• Medical insurance
• Life insurance
• Accidental death insurance, especially for dangerous jobs.
• Disability insurance.
• Dental insurance
• Eye care insurance
• Business travel insurance, especially for those who travel a lot for the job.

3. Time benefits:

• Paid Holidays
• Vocation days
• Flex time
• Sick days

4. Other benefits:

• Health club/fitness classes
• Relocation fee and sign-in bonus
• Food reimbursement
• Parking/commuting expense reimbursement
• Tuition reimbursement
• Overtime/travel compensation
• Dependant care and child care
• Employee assistance/counseling program

1. Conclusion

Hence, it could be concluded that the compensation plan or package should be made in a well defined manner. A well structured compensation package or a plan would help the organization i.e. 7nights to attract & employ best of the employees. The compensation package would play an important role at 7nights.A well defined structure would help the organization in order to have a track record of all the employees working in the organization. The amount of bonus allocated to each individual or the newly appointed general managers. As we know, in order to start a business & retain it for long run 4M’s are required. The 4P’s would be Money, Material, Machine, Men. Men refer to one of the most crucial & a key element which helps in flourishment of any organization. Unless & until the labor would be satisfied the organization would not be able to carry on with its business in a long run (Berger & Berger, 2008).

No organization could be ever imagined without men, personnel or sales force, therefore 7nights should apply the above mentioned compensation plan. This would help them in order to attract as well as give them an assurity that, 7night would provide them with best of the benefits (Miller, 2007).