The type of reward strategies exploited by a corporation can significantly influence how inspired the employees are to work. The strategy impacts the organization’s performance in reaching out to more clients and providing quality attention to them. To get results with maximum efficiency and effectiveness from human resources, employee motivation is needed (Niguse & Getachew, 2019). The application of proper prizes results in steady performance at the organizational level. Generally, this paper will analyze the current reward schemes in Blenheim SPA hotels and how the company can modify them to achieve the organization’s goals. In addition, the paper will explore the PEST and SWOT tools as the main challenges that may arise when opening new Blenheim hotels in foreign countries and evaluate how the company can develop a good reward strategy.
The management plan for the Blenheim SPA hotel chain has a section on the remuneration of its employees. Appropriate criteria should be used when rewarding the employees: how they communicate with the customer, how well they conduct themselves, and their level of integrity (Salman & Olawale, 2021). The employees should always be honest when carrying out their duties and report to the management in case of any misinformation. Blenheim is still on the growth, which implies that they are yet to start rewarding their employees appropriately.
With the employees’ current performance at Blenheim, the reward is quite competitive but still limited since the resources are used to expand other branches. For instance, through the management of Blenheim hotel, the company wants to expand to other parts of the African continent. In growing and reaching out to other parts of the African continent, more resources will be used, implying that the employees might be overlooked when rewarding them for the work done. Blenheim offers the employees free meals discounts in the local shops, which barely motivates them. A competitive hotel of any enterprise always motivates the employees with greater rewards.
The existing reward system of the Blenheim SPA hotel chain, offering tangible and intangible way, is shown in Appendix A. Blenheim SPA hotel has not provided well-elaborated criteria highlighting the specific attributes that reward the employees upon exhibiting them. Even though it is clear that they award £100 for an exceptional contribution from the employees, unfortunately, they have not listed down the specific attributes or achievements that an employee has to possess or attain through which they become legible for selection for the available rewards.
Employees used to be able to look to their boss for annual salary escalations with slight or no association to the corporation’s financial health, but that is no longer the case. More businesses are seeking to classify creative compensation techniques directly tied to encouraging employees to increase the company’s success. High-level services to the customers and relating well with the clients will always make the clients come back again, enabling the company to assimilate prizes worth to the employees.
A reward, which motivates the employees to continue giving more good services, includes increasing monthly salary. Extra separate or team-based rewards, counting profit distribution, gain allotment, and stock option agendas, have substituted or added traditional worker enticements founded on position and longevity (Alhmoud & Rjoub, 2019). Client gratification and marketplace portion are two instances of quantitative and qualitative acknowledgment measures that are now extensively used to decide rewards.
While most academics believe that a well-designed reward scheme can help increase performance and that consistently administered rewards are vital, they disagree on which rewards significantly impact firm performance. The same case happens at Blenheim hotel, as only the directors determine the type of reward that their employees should receive. A reward should be lifelong, motivating the employees to relate well with the customers. Connecting well with the customers typically implies that they will return.
In the book “1001 Ways to Compensation Employees,” Bob Nelson stated that awards must positively influence a firm’s performance by rewarding the employees (2018). He discovered that employees’ most sought reward was oral reaction or applause from their instant manager. Nelson concealed that recital must be fixated on overhauling the customer and having external stress (2018). Giving stock choices, credentials of indebtedness, or even handwritten thank-you notes were among his ingenious reward selections.
Special prizes are still vital; even as team-based profits rise in reputation, employees must know how their actions disturb the corporation. Clearly, through the case study of Blenheim hotel, the directors have not designed the criteria through which the employees are rewarded; they have only disclosed that they will reward the employees through their performance. Similarly, performance should be in marketing the hotel in the south of England, relating with the customers well and getting recommendations from the customers, keeping on time, and taking orders at a time. The information has not been provided before, and since the criteria are still questionable, Blenheim hotel should revise its criteria.
Non-monetary recognition awards were the most often used rewards for achievement in a study of Fortune 1000 organizations, shadowed by employee stock ownership plans (ESOPs) and profit-sharing. It is true that starting companies, more so the hotels, want to open more branches to think of employee stock ownership plans and profit-sharing. To improve the quality of services, Blenheim should at least do profit sharing and not only monetary rewards of 100 euros to the employees as a reward.
On the other hand, managers cannot distinguish between different sorts of awards and their influence on performance. The same case is happening with Blenheim since the managers are yet to disclose the criteria for the awards to be relevant so that there is no unfairness among the employees when rewarding them the prizes. More than eleven percent of the polled organizations said their incentive practices were unsuccessful or unsuccessful, and the majority said their employee awards were prosperous.
In general, prizes are influential instigators for both discrete and administrative performance. There is no consensus on which incentive practices are more beneficial. However, it is obvious that having the appropriate strategy is not a guarantee that the organization will be efficient; it can only be praised when members of the organization are motivated to work at a high level (Ngwa et al., 2019). The majority of assertions are based solely on hearsay proof. Directors are presently free to devise their compensation systems. Additional research on this crucial topic is required.
Identifying Organizational Performance Measures
It is difficult to determine the performance measures in the current business organizations, which are not limited to Blenheim SPA hotels. The performance measures always determine how the companies will get good profits from their trusted clients and those referred to them (Parast & Shekarian, 2019). Equally, the company’s performance measure can be determined by the efficiency, effectiveness, and adaptability of the staff members, including the company’s employees. Their efficiency in helping the customers with what they want is critical in ensuring that the Blenheim hotel attracts more customers.
Researchers as the total monetary outcomes of an organization’s actions have defined business performance. Fiscal and non-fiscal triumph agencies are used in studies on administrative enactment. Sales, turnover, cash flow, return on investment, growth return on capital, and inventory turnover are some of the financial metrics employed. Innovation and market position are non-financial indicators (Parast & Shekarian, 2019). Comparisons of results are much more challenging when performance is measured at multiple national, industry, company, and product levels.
Analysis of Potential Challenges and Issues
In a growing organization, there are many challenges that the organizations go through before they stabilize in a manner that they are dependent on. Many factors related to PEST, including political, economic, social, and technological, hurt the growth of PRM (Deguine et al., 2021). The development of the hotel business should also be associated with the development of new technologies, which can be costly (Nam et al., 2021). Concerning political factors, Blenheim hotel’s development can negatively affect the result. In the case of PRM at Blenheim SPA hotel, with a ban of travel imposed on them, they will not make any moves in the expansion of hotels in other countries. It is a potential challenge that the PRM will face in opening more branches, especially in other countries.
Hostile countries can hinder foreigners’ opening a new hotel on political matters. Blenheim hotel, through their PRM, might face this enormous challenge, which will imply that they will make significant losses when opening the hotel in foreign countries. When public members know, political leaders can influence them to boycott these new hotels. In the end, the managing staff of Blenheim will not be left with any choice. Thus, they will call off and close the hotel business and return to their countries.
Economic factors become a challenge when opening branches of hotels in foreign countries. A weak currency in foreign countries will always drag behind the growth of a hotel. While investing in foreign countries, the unfamiliar people always want to ensure that the money they make when converted to their country’s currency is more of value and does not devalue money. Equally, the business entity may decide to export the primary materials or the inputs to the hotels to help minimize costs and make more profit (Broekhuizen et al., 2018). When they cannot ship these inputs, it becomes hard to maintain the graph upwards.
Sensibly, when the currency is weak, and the tax is high, an economic factor will always affect Blenheim hotel. Blenheim hotel will incur more losses than profit, and this challenge will affect the growth of the hotel in the new countries (Alhmoud & Rjoub, 2019). Economic cycling will always affect the hotel industry globally, specifically when starting in a new country. The variance of the taxes imposed on the foreign business will permanently affect their development, dragging them behind and incompetent to other similar entities that provide the same services.
Social-cultural activities determine the success of a business entity, whether it will grow or fall. In foreign countries, people tend to prefer cheap hotels to expensive hotels. People work hard to get money to put food on the table, which implies that when taking meals or a small refreshment such as swimming in the pools, they will only do so in affordable hotels. It will be hard for Blenheim to offer cheap services because they will have to make sure that they can pay their staff, employees, and other external consultants in running the hotel business.
Technological factors affect the advancement of a hotel industry either negatively or positively. Excellent client provision and efficient processes can provide a hospitality-related organization with a different modest benefit, and technological advances permit these trades to make substantial variations in equal areas (Alhmoud & Rjoub, 2019). The hotel is one of the most well-known and oldest hospitality businesses today. Although hotels and other generosity organizations are not renowned for being primary adopters of technology, technology’s grand openings for hotels and other cordiality trades cannot be disregarded.
Social media marketing for a hotel industry, which in this case is Blenheim hotel, will contribute a lot to its growth. One of the most outstanding growing ideas that have made investors richer is online marketing. Through online, such as reaching out to people through the internet, the hotel industry will gain a vast influence from the people, significantly boosting the business. However, in the online business, so many challenges might occur, thus affecting the growth of the Blenheim hotel.
Hackers can inject the database into Blenheim hotel, which contains essential data, and steal vital data secretly to the Blenheim hotel. In addition, the hackers can change the logins credentials that the employees of the Blenheim use and take control of the system. The Blenheim hotel industry will suffer a significant loss since the customers purchasing accommodation services will pay directly to the hackers’ accounts. If there is no backup data backup in case the data is lost, it becomes a challenge for the business entity to continue running smoothly. They will still face the technology factor even in other countries since people are not aware whether they can still access services online.
The use of technology to accelerate operations and obtain extensive consumer information is not optional in the predominantly customer-driven hospitality industry. This is true in the hospitality business for substantial chain hotels, restaurants, transportation firms, and smaller, mom-and-pop hotels, restaurants, and transportation companies (Alhmoud & Rjoub, 2019). If a business tends to do their marketing online by not putting more emphasis on what they offer, it will be a great challenge to encounter for Blenheim hotel.
The SWOT factors are those conditions within the business environment that the organization can change or modify to achieve its goals. Apart from the more thorough data that would generally be fed into the company planning process for each of the SWOT aspects, the SWOT analysis in this format serves as a quick decision-making tool. The following table highlights some of the SWOT factors.
Table 1. The SWOT factors.
|Strengths ||Weaknesses |
|Opportunities (External) |
Information and research
|Threats (External) |
Total Rewards Strategy and Performance, Tools and Procedures
Reimbursement and paybacks identifying teams and persons are part of an all-inclusive inducements plan. According to Table 1, to remain competitive, the company needs to rely on employees’ capabilities. With proper motivation, these opportunities will increase, bringing the company greater efficiency. Rewards will always determine a company’s performance by prioritizing the excellent conduction of the employees and other principal staff members. A suitable price plan will mix financial recompense and additional compensations with professional growth and progress opportunities to keep individuals affianced and creative at work.
A project team comprising prominent top staff members will assess the benefits and the compensation through which an employee conducts themselves. To determine their reward system, the project team will evaluate the character of an employee, the purchasing power, or the bargaining power of an employee (Alhmoud & Rjoub, 2019). If the surface is wrong in that the employee does not relate well with other employees and that the employee is rude will typically mean that the employee does not qualify for rewards by Blenheim.
The senior administration crew investigates and gauges several prize approaches to see which one would be the most significant actual in their group. It controls what will be rewarded and how workers will be satisfied with their activities. Paying prizes for goal accomplishment will not be the central issue in a complete prizes tactic (Alhmoud & Rjoub, 2019). Courtesy of the management of Blenheim hotel, it should design a clear structure through which it should reward an employee upon conducting themselves so well.
Performance and reward management at Blenheim and SPA hotel will implement the new reward system. Similarly, they circulate the information to the employees to be well informed on what they should do to ensure that they compete for the rewards (Alhmoud & Rjoub, 2019). Training commences so that directors and decision-makers can accurately assess accomplishment and workers can comprehend what they must achieve to obtain the prizes.
The new plan’s efficiency must be gauged, and the results must be presented to company decision-makers. Alterations to the approach for future enactment can be proposed based on this. Reasonably, the strategies will help ensure total fairness in employee rewards (Alhmoud & Rjoub, 2019). The assessment should help ensure that the company is not running out of resources when giving rewards to the employees and other staff members.
Employees at Blenheim hotel should know how to maintain their customers by making sure they treat them well to return. Equally, employees view the reward strategy as purchasing power, rights, composition, and how they are recognized. Reasonably, this is true because the way the employee has a purchasing power to make sure that the client is not offended will enable Blenheim to earn a living.
Competition should be a reward strategy in rewarding the employees for the work well done. When the employees compete in the Blenheim hotel through their sales of the day, those who have high sales will be considered for reward since they are putting more effort into making sure that good profits are generated (Alhmoud & Rjoub, 2019). The competition in Blenheim hotel will be healthy among the employees, thus creating more profits.
Individual characteristics will determine the reward strategy for Blenheim hotel employees. A good character portrayed by an individual will imply that even the customers are encouraged even to come back again to Blenheim hotel. Equally, the characteristics of the employees will see those getting favorite customers who will then recommend them even for promotions. Reasonably, a person’s character is essential in determining how it can positively reward employees.
Covering the commuting costs by an employee is a reward strategy. When an employee decides to sacrifice for their fare to get to the place of work so early, these employees are saving time. Sensibly, it means that they will be able to serve customers as early as possible. The strategy will motivate Blenheim hotel management to reward the employees back. To the display mentioned above from the customers, the strategy tools will strengthen the criteria of rewarding the employees and other staff members.
Suitable Reward Package
The proposed reward system, which includes previous methods and innovations: verbal praise, travel reimbursement, discounts on services, is shown in Appendix B. The amount of remuneration remains the same; however, it is proposed to introduce changes to the system for selecting rewarded employees. It is proposed to compensate employees for travel expenses, especially for residents of remote regions, which will increase the motivation to return to work on time. A comprehensive reward system should include both material and verbal rewards. There should be tangible rewards such as medals (Alhmoud & Rjoub, 2019). Remuneration should not only make work attractive and satisfying, but also play an important role in securing social status and position of power in the organization (Anku et al., 2018). In addition, to motivate employees, the system of choosing the best employee can be carried out not monthly but weekly or the company can choose the top two to reduce competition.
A suitable remuneration package should include cash awards, in £100, which Blenheim has allocated through its management. Such financial rewards can become too burdensome for the management of the company. In that case, it is necessary to provide the opportunity for the best employee to use the hotel services at a discount. The main goal of all types of remuneration should be that the work is approved and appreciated, which will allow the employees to work effectively further.
The main criterion for creating an incentive system should be labor productivity. The effectiveness of employees is measured by the quality of work, productivity, ability to work independently (Abebe & Haile, 2020). The effectiveness will measure a person’s performance in serving and providing immediate feedback to management. Equally, it can be measured by how the employees behave and communicate with customers (Salman and Olawale, 2021). To evaluate employees, the feedback from hotel guests on the compliance of employee behavior with their expectations will be used. Once a company has developed and implemented a systematic appraisal system and provided adequate employee feedback, the next step is to consider linking available corporate rewards to appraisal results.
Performance Management System
The system of rewards should competently appeal to aspects of remuneration in organizations: understand their functions, criteria for the distribution of rewards, the difference between types of rewards, and understand the impact of rewards on motivation. To meet these requirements, it is necessary to create an effective managerial plan. It is necessary to analyze what incentives are most available for both the company and the staff. Then it is necessary to develop criteria for evaluating performance, based on which remuneration will be assessed. This will be followed by forming a sustainable monthly budget for these purposes. The last step will be to convey the meaning of the motivational program, its goals, and objectives for employees. Interviewing employees and monitoring their performance should show how well the system works.
Thus, the study proves the need to introduce a clear system of employee incentives to increase the overall level of motivation and labor productivity. The reward system is used as an important tool to stimulate business growth and boost employee morale (Tshukudu, 2020). In opening branches in foreign countries, they should take the precaution of PEST, which includes political, economic, social, and technological factors, thus ensuring they are within their budget. Blenheim and the spa hotel must implement the reward strategy by evaluating employee benefits and reward schemes, developing the rewarding process, designing and evaluating the strategy. The employee incentive system should include tangible and intangible types of rewards and be based on performance indicators. For the implementation and successful operation of the strategy, there must be a clear managerial plan that develops criteria and methods for evaluating performance before and after the implementation of the system. This will enable Blenheim, through its directors, to provide a fair and transparent overall compensation program that strikes a balance between equal opportunity and fair compensation for contributions. An effective rewards strategy will increase employee satisfaction and improve business reputation.
Existing Reward System
|Monetary Reward||Non-material Reward|
|Employee of the Month: £100||Free meals per shift in the canteen for staff|
|Discounts at local shops and attractions|
|Membership in the social club of employees|
Proposed Reward System
|Monetary Reward||Non-material Reward|
|Best employee of the week/two best employees of the month: £100||Free meals per shift in the canteen for staff|
|Travel expenses reimbursement||Discounts at local shops and attractions|
|Membership in the social club of employees|
|Discounts on hotel services|
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