Project File

Compensation & Performanc..



Start: Feb 02, 2015 - Ongoing

Human Resource

The project consisted of analyzing the hotel industry at large and identifying the HR challenged ....




The project consisted of analyzing the hotel industry at large and identifying the HR challenged being faced. As a team, we conducted surveys, interviews and research to gauge the internal and external equity for our client. Our study was focused on three benchmarked hotels to formulate recommendations which would enable the client to standardize compensation and performance management policies.
Scope of Work
1. Our team benchmarked 3 top-tier hotels for a salary survey which was based on certain criteria including systemic pay policies, comparable job profiles, positions which have been established for more than 5 years and hotels that have a minimum workforce of 60 employees.
2. 45 critical positions were evaluated based on their Job Descriptions as well as valuable input from the HR personnel. Each job was scored using the Hay’s Evaluation Chart and categorized into job families to help compare Avari’s wage structure with the market.
3. Analyzed the compensation systems in the overall market and generated an internal report that is qualified for comparison with Avari Towers. Developed a new salary structure and criteria based on the salary survey report that aligns with Avari’s structure and reflects the remuneration that is commensurate with role capability requirements and hotel industry job market.
4. A key insight was the role of culture and non-monetary benefits in affecting employee satisfaction and morale. As such, there was a special focus on pay-for-performance, training and development and employee engagement activities in the report.
5. Reviewed the existing performance management system within the company which included Job Description/Job Specification and Performance Appraisal Forms. Proposed recommendations and prepared a PM Policy to ensure that compensation is linked with performance. The final product was a holistic system: goal-setting, appraisal and a feedback mechanism. Employee development and actions following appraisal were also given special focus. This was also proposed in accordance to the practices prevailing in the market.
Our project was received positively by the client and it gave us a good opportunity to apply theoretical knowledge in a practical setting. Our project was based on analyzing and reviewing the current structure at the company and recommending a new one. One of our proudest moments was the acceptance of some recommendations by the management. Their HR team is working to improve their current Compensation and Performance Management systems.
One of the many recommendations on which they are working is to restructure the format of the JD as it is quite crucial in selecting, assessing performance, and compensating the employees. Avari also opened arenas for future ELP and is offering internship opportunities to work on this task. The management has realized that many of the JDs are written as working manual and contain insufficient information on which the PM system could be build. Moreover, they are not even reviewed by the corresponding employee at the time of joining. They will now be systemizing it and incorporating these changes during the orientation.
Moreover, Avari also acknowledged the idea of pay for performance system to link performance with compensation. Currently, Avari gives out standardized bonuses which kill the purpose of performing better. According to the recommendation, percentage increase is allocated to the score so that compensation is linked to performance and it becomes the driving force to work better.
The hotel industry was a new project for us. The HR challenges which we covered during our course of study were strikingly different from what we encountered. In a nutshell, we experienced all major functions within HR. In an unknown realm, we learned about how to tackle multiple HR challenges within time and budget constraints.
We dealt with a sector which is largely unorganized and unstructured in Pakistan. Therefore, we received hands on experience in devising policies and giving structure to the hotel. It not only equipped us with an understanding of the problems of a disordered industry but also helped us to brush up on our management concepts and inculcated us with team management skills, conflict resolution, resourcefulness, and the art of communication.

Alifya N

Alifya Noman

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