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Hotel salaries 'need review' to boost retention rates

Average annual staff turnover in the Middle East hospitality sector is running at 16 percent, with most hotels’ salary grading systems in need of a review, according to leading HR practitioners.

The second annual Hotelier Middle East Human Capital Report found that 94 percent of local hospitality organisations followed a strict salary structure, defined by grade and spanning departments, and 61 percent operated a minimum wage system.

However, nearly three-quarters (72 percent) of respondents to the Hotelier Middle East HR Leaders Survey said their salary grade system needed a review in order to bring remuneration in line with market trends and ensure greater fairness.

They key success factor in employee retention – more than any amount of training or mentoring – is “recruiting the right person in the first place”. Indeed training was not mentioned as one of the most important tools in retaining talent by a single respondent.

A ‘personalised approach’ to staff management was a preferred method selected by 45 percent of respondents, followed by salary increases and mentoring schemes.

In terms of maximising employee motivation, key factors included ‘trust and transparency’ and ‘a good relationship with your immediate supervisor’.

But employee happiness comes down to money for the largest proportion of survey respondents. Some 40 percent said ‘compensation/pay’ had the single biggest impact, followed by ‘respectful treatment’.

The second annual Hotelier Middle East Human Capital Report is designed to explore the issues, challenges and opportunities facing hospitality professionals responsible for the hotel industry’s most important asset – its people.

For more insight into the opportunities and challenges identified by senior HR leaders in the region’s hospitality industry, follow this link to preview and purchase the Hotelier Middle East Human Capital Report.

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