Hoteliers from across the Middle East have spoken out following the Hotelier Middle East Salary Survey 2012, which reported that 81.4% of hoteliers didn’t believe wages for line staff were high enough.
Almost half of the respondents(46%) said that wages should be increased, with 76.3% of that number being in managerial or directorial roles.
At the time, Lynne Bellinger, managing director UAE of learnpurple, said she agreed that “the majority of line staff are underpaid in the hospitality industry”.
She warned of the “negative ripple effect” on staff retention and subsequently, guest service.
“All of this affects the bottom line also,” said Bellinger. “The individual branded restaurants are getting this right and you can tell with the quality of staff there.”
HR experts at Kempinski Hotels and at Le Meridien Al Aqah hotel in Fujairah acknowledged that staff members had been lost to standalone hospitality outlets offering a higher wage.
However, both found that the same people re-applied for their jobs at the hotels after “quickly realising that their cost of living is significantly higher and their potential for career development is much lower,” said Kempinski’s regional director of people services for Middle East and Africa, Andrew Hanel.
Le Meridien Al Aqah complex director of HR Anura Kannangara said that pay increases in 2012 “are likely to be modest”.
“Obviously, employees want to earn fair wages and salaries, and employers want their workers to feel that is what they are getting. To that end, it is logical that employees and employers alike view money as the fundamental incentive for satisfactory job performance,” she said.
“With unemployment on the rise across the world, and the demand for talent shrinking, the balance of power has shifted from candidates to employers in our region,” said Kannangara.“There are no significant factors putting upwards pressure on salaries.”
The Salary Survey results also highlighted the importance of offering line staff a good overall package.
Marriott International, MEA, COO Mark Satterfield, observed: “There are many more elements [than salary] which contribute to a well motivated work force.”
Grand Millennium Al Wahda HR director Renate Buchholz said: “Employees will compare packages offered and choose what appears to be the best option for them, taking into account salary and related benefits, but also the personal growth which can be provided”.
Anantara Hotel, Resorts & Spas regional director HR for the Middle East Philip White said that “staff wages in the hospitality industry worldwide have never been great”, but that comparisons should only be made based on the entire package including housing, medical insurance, transport to and from work, uniforms, recreational facilities and service charge.
“The lower level staff have other priorities than demanding better pay,” said White.
He suggested that aspects like providing free wifi at housing facilities for them to stay in touch with family are steps that need to be taken into consideration.
IHG vice president of HR, India, Middle East and Africa, Jenny Atkinson said that being offered a career path was a high priority for lower level hoteliers.
“Salary and total package is of course very important to front line staff but we know that it’s not the only element they're focused on. Career development and access to skills development and career opportunities is also top of mind for our team members,” asserted Atkinson.
“You need to remain competitive by reviewing not only salaries, but all elements of the total package, regularly. If you don't do this, you risk losing people for a slightly higher hourly rate,” warned Atkinson.
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Aug 2, 2012 , United Arab Emirates
With regards to the evaluation of Mr. Kannangara, I am not convinced that his view on the current labor market is a realistic assessment of the situation. I do not share his opinion that the demand for talent is shrinking and that the balance of power has shifted from candidates to employers for ...