HR 2 Session 2 case study
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Session 2: Case Study
By: Halle Ross
Colorado Christian University
HRM-311A
8/6/2023
Session 2: Case Study
Lisa knew little about setting up a new compensation plan. Based on what you learned here in Dessler, G. (2017) what would you tell her if she asked, “How do I set up a new compensation plan for the Hotel Paris?”
Lisa should follow the six necessary steps to set up a compensation plan. These steps include analyzing a pay philosophy, examining competitor pay, setting an hourly rate or salary, creating the pay details, making pay raises, and choosing payroll software. Step 1, analysis a pay philosophy, Lisa should consider the compensation package the hotel will offer its employees. Other details include employee bonuses, incentives, and benefits should be included during this step during compensation planning. Step 2, examining competitor pay, Lisa can look into what competing hotels are paying their employees. This ensures that Hotel Paris employees will be adequately compensated compared to other companies. During Step 3, setting hourly pay/salary, Lisa will be able to specify payment to be either hourly or salary pay. Step 4, creating the pay details, Lisa will be able to define various aspects of the compensation plan during this stage. She should do this in a way that improves employee satisfaction and assists the hotel in meeting its target goals. Step 5, pay raises, Lisa can create guidelines for bonuses and pay increases so they are consistent through the hotel’s various departments. Step 6, choosing a payroll software, Lisa will examine the cost and efficiency of multiple payroll software and choose the most efficient one. This is the final step in creating an effective compensation plan. Would you suggest that Hotel Paris implement a competency-based pay plan for its non-
managerial staff? Why or why not? Outline what they need to do for one.
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