Compensation plan for the hotel industry in Malaysia

ABSTRACT

The hotel industry faced difficulties in attracting and retaining employees due to poor compensation. To develop an attractive compensation plan, this study investigates the elements of compensation plans for non-managerial employees in luxury hotels in Malaysia. Data were collected using qualitative semi-structured interviews supplemented by a short survey. The findings indicate that compensation plans differ based on their compensation structure, hotel location, and whether there is a collective agreement between the employer and employee’s union. COVID-19 pandemic posed greater challenge to unionized hotels. The trade-offs between elements of compensation plan are discussed, a model of compensation plan for the hotel industry is developed, and recommendations for design of a compensation plan are provided.

KEYWORDS:

• Benefits
• compensation plans
• job satisfaction
• human resource management
• COVID-19

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

The work was supported by the Ministry of Higher Education of Malaysia (MOHE) [FRGS/1/2017/SS01/UUM/02/10].

Notes on contributors

Rozila Ahmad

Rozila Ahmad is an Associate Professor whose interest is in Human Resources Management in Hospitality Industry. Her highest degree is Ph.D. in Tourism (Hospitality) from University of Queensland Australia. ORCID number: 0000-0001-5260-287X E-mail: [email protected]

Noel Scott

Noel Scott is an Adjunct Professor at University of the Sunshine Coast, Queensland, and Edith Cowan University, Western Australia, Australia. His highest degree is Ph.D. in Tourism from University of Queensland Australia.