The HSMAI Foundation and ZS Associates have partnered to create the first data-validated compensation design survey for the hotel industry, focusing on sales. Several insights around plan structure, administration, and satisfaction have been uncovered along with the implications for improvement.
Among the findings related to plan structure:
* Goal-based incentive plans dominate the hotel industry, and are typically determined by 3 or fewer metrics
* Revenue (either Rooms or Total Hotel Revenue) is the most common performance metric across all sales roles, although:
– Sales leaders’ (DOSMs, DOSs) plans often contain a hotel profit component
– Catering and Conference Services salespeople’s plans often contain F&B component
* Incentive plans almost always include minimum performance thresholds
* More than half of sales managers and team members report an absolute cap on their incentive payout
* Sales team high performers only earn ~1.5x higher incentive pay than average performers, whereas other industries typically pay a difference of 3x or more
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