1. Wage and salary administration in Hotel
industry
:- Anubhuti Anup
Gaurav Talwar
Ghanshyam Burnwal
Ranabir Pal

2. Agenda
• Overview
• Objectives
• Factors influencing wage and salary structure
and administration
• Wage and salary administration in
– TAJ hotels

3. Overview
• A salary administration program provides the means
for management to:
– Properly analyze and evaluate positions
– Provide equitable and competitive remuneration
– Appraise individual performance in the position
• Salary administration committee
Chairperson
Secretary
Members

4. Objectives
• Wage and salary ranges
Flexible
• Wage and salary adjustments
• Job evaluation
– Must be scientifically done
– Consistent with organization's policy

5. Factors influencing wage and salary
administration
• The organizations ability to pay
• Supply and demand of labour
• The prevailing market rate
• Living wage
• Trade unions bargaining power
• Job requirements
• Psychological and sociological factors
• Levels of skills available in the market

6. TAJ hotels
• The Indian Hotels Company Limited (IHCL) and its
subsidiaries are collectively known as Taj Hotels Resorts
and Palaces
• Founded on 16 December, 1903 by
Mr. Jamsetji N. Tata
• Asia’s largest and finest hotel company
• Includes-
– Taj
– Taj Exotica
– Taj Safaris
– Vivanta by Taj Hotels & Resorts
– The Gateway Hotel
– Ginger

7. God’s own secret in God’s own country

8. Wage & Salary Administration
• Low (30- 40% lesser than industry’s average)
• But perquisites, incentives, bonuses, and employee
oriented activities are higher
• Salary break up General manager- at least 2 lakhs
HOD- 50k to 1 lakh
Deputy HOD- 30k to 50 k
Manger- 22k to 30k
Assistant manager- 15k
to 20k
Supervisor- 5k to
15k
Front line worker-
5k to 8k

9. Basis of evaluation
• Performance based increments
– Three-day off-site assessment
• No of years spent- 15% increase
• Job security
• Quarterly KPI’s (Key Performance Indicators)
• Target (scale of 5)
• Guest feed back, supervisor’s recommendation

10. Salary of typical assistant manager
• Basic 9000
• HRA 1800
• LTA 10000(leave/travel allowance)
• Medical 15000
• Provident fund 1200
• Gratuity –given for 5 yrs of continuous service

12. Overview
• ITC’s Hotel division was launched on October
18th,1975
• Its first Hotel – Chola Sheraton in Chennai
• It is one of India’s finest chain of hotels
• Its objectives

13. Wage and Salary administration
• ITC has segregated all their employees and put them
in their respective heads like accounts,
administrative, purchase, sales, etc
• ITC uses salary heads like – Basic, HRA(50% of Basic),
Conveyance allowance, Education allowance(staff’s
kids), PF

14. Cont…
• ITC offers relatively high packages
• Incentives and perks offered are very high
• ITC provides for varied compensation packages

15. Average Salary offered to Top Management Employees in ITC

16. Cont…
• Work Hours: 6 days/week, 9 hours/day
• Employee is entitled for overtime if he/she is of a rank
of supervisor or below
• Employee is given
• 7 CL & 7 SL
• 22 days compulsory PL in a year with a 3 year
roll back
• Employee provided with
• PF, Family Hospitalization Assistance Scheme,
Accident Relief, Emergency Relief

18. Overview Of the
• The Oberoi group founded by Late Rai Bahadur Mohan Singh Oberoi in
1934
• Currently Mr.P.R.S.Oberoi is the Chairman of The Oberoi Group and his
son; Mr.Vikram Oberoi and his nephew, Mr.Arjun Oberoi serve as Joint
Managing Directors
• Broadly they have two principal brands - THE DELUXE OBEROI BRAND and
THE FIRST CLASS INTERNATIONAL TRIDENT BRAND
• Distinctly operating 28 hotels and three cruisers in five countries under
the luxury ‘Oberoi’ and five-star ‘Trident’ brands
• Internationally recognized for all-round excellence and unparalleled levels
of service

20. Wage & Salary Administration
• Wage survey, wage plans and job evaluation are the three important
methods used for this purpose
• The aim of a wage and salary policy is to recognize the value of each job,
provide stability in earning, allow individuals to reach full earning
potential and to ensure that all staff share in the organization's prosperity
• Fixing the compensations levels taking into consideration various factors
like experience, identical industry knowledge, qualifications and proven
skills.

21. System to achieve the objectives
• Job Evaluation
• Wage, Benefits and Salary Range
• Wage and Salary Adjustments

22. System to achieve the objectives
• Job Evaluation
– It includes selecting suitable job evaluation techniques, classifying jobs
into various categories and determining relative value of jobs in
various categories
• Wage and Salary Range
• Wage and Salary Adjustments

23. System to achieve the objectives
• Job Evaluation
– It includes selecting suitable job evaluation techniques, classifying jobs
into various categories and determining relative value of jobs in
various categories
• Wage, Benefits and Salary Range
– Each job grade will be assigned a salary range
• As Manager
• As a STEP Trainee
• Wage and Salary Adjustments

24. System to achieve the objectives
• Job Evaluation
– It includes selecting suitable job evaluation techniques, classifying jobs
into various categories and determining relative value of jobs in
various categories
• Wage, Benefits and Salary Range
– Each job grade will be assigned a salary range
• As Manager
– The median expected salary for a typical Hotel Manager in the Oberoi
Hotels is $95,156
• As a STEP Trainee
• Wage and Salary Adjustments

25. System to achieve the objectives
• Job Evaluation
– It includes selecting suitable job evaluation techniques, classifying jobs
into various categories and determining relative value of jobs in various
categories
• Wage, Benefits and Salary Range
– Each job grade will be assigned a salary range
• As Manager
• As a STEP Trainee
– A starting stipend of Rs 3,500 in Year 1, which increases in subsequent years
– 3 weeks of study leave and 3 weeks of home leave
– coverage under the hotel medical scheme
– a monthly telephone allowance
– shared hostel accommodation with security
– pick-up and drop when safe local transport is not available and
– meals as required
• Wage and Salary Adjustments

26. System to achieve the objectives
• Job Evaluation
– It includes selecting suitable job evaluation techniques, classifying jobs
into various categories and determining relative value of jobs in
various categories
• Wage and Salary Range
– Each job grade will be assigned a salary range
• As Manager
• As a STEP Trainee
• Wage and Salary Adjustments
– Overall salary grades of the organization may be adjusted based on the data and information
collected about the salary levels of similar organizations
– Wages Policy

27. Principles of Wage and Salary Administration
• Wage and salary plans and policies should be sufficiently flexible
• Wage and salary administration plans must always be consistent with
overall organizational plans and program
• Wage and salary administration plans and programs should be in
conformity with the social and economic objectives of the country like
attainment of equality in income distribution and controlling inflationary
trends

28. Principles of Wage and Salary Administration
• Wage and salary plans and policies should be sufficiently flexible
• Wage and salary administration plans must always be consistent with
overall organizational plans and program
• Wage and salary administration plans and programs should be in
conformity with the social and economic objectives of the country like
attainment of equality in income distribution and controlling inflationary
trends

29. Principles of Wage and Salary Administration
• Wage and salary plans and policies should be sufficiently flexible
– Mar 18, 2008: HC asks Oberoi Hotel to pay Rs 60,000 to former employee
(Source: The Economics Times)
• Wage and salary administration plans must always be consistent with
overall organizational plans and program
• Wage and salary administration plans and programs should be in
conformity with the social and economic objectives of the country like
attainment of equality in income distribution and controlling inflationary
trends

30. Principles of Wage and Salary Administration
• Wage and salary plans and policies should be sufficiently flexible
• Wage and salary administration plans must always be consistent with
overall organizational plans and program
– The Oberoi group of hotels as operated in 5 Countries, the salary structure is almost
similar
• Wage and salary administration plans and programs should be in
conformity with the social and economic objectives of the country like
attainment of equality in income distribution and controlling inflationary
trends

31. Principles of Wage and Salary Administration
• Wage and salary plans and policies should be sufficiently flexible
• Wage and salary administration plans must always be consistent with
overall organizational plans and program
• Wage and salary administration plans and programs should be in
conformity with the social and economic objectives of the country like
attainment of equality in income distribution and controlling inflationary
trends

32. Challenges faced in Wage and Salary administration
Employee
Participation
Skill Based Comparable
Pay Worth
Wage
and
Salary
Salary
Pay Secrecy
review

34. Overview
• Founded in 1994
• MD and Founder : Anil Madhok
• Headquarter : Mumbai, India
• 4th largest hotel chain in India
• The Company manages and franchises 56 hotels
across 39 destinations in India and overseas
• Brands: Sarovar Premiere, Sarovar Portico, Hometel,
Park Plaza and Park Inn
• The brands cover the 3, 4 and 5 star spectrum

35. Salary & Wage Administration
• Basic (25% of Total Salary) +
House Rent Allowance (25% of Total Salary) +
Special Allowance (30% of Total Salary) +
City Allowance (20% of Total Salary)
• Fooding and Lodging is provided by the
company
• Leaves

36. Cont…
• Pay Scale Increment
– Parallel Growth
– Vertical Growth
– Re-evaluating the Pay Scale

37. Cont…
• Parallel Growth
– Normal increment in Gross Salary each year :
• A – 15%
• B – 13%
• C – 10%
• D – Nil (Beware!!!)
– Factors influencing this growth:
• Guest Comments
• Performance

38. Cont…
• Vertical Growth
– After 2-3 years
– Factors influencing this growth:
• Experience
• Qualification
• Re-evaluating the Pay Scale
– Normally done after every 3 years

39. Cont…
• Leaves
– National Holiday
– Weekly 1 leave
• Extra Work Compensation
– National Holidays
• Compensatory Off afterwards
• Extra Payment
– Weekly Holidays
• Compensatory Off afterwards

40. Cont…
• Lodging & Fooding
– As per Minimum Wage Act
– Follows the Minimum Wage Act of the State or
Country, whichever is applicable
• Others
– Lower management and Middle management people
cannot visit the hotel as a customer
– This rule is applicable even after leaving the job

41. Welcome Again