1. Compensation and Benefits
Strategies Recommendations
A PROPOSAL TO:
Kevin Driggs - Bollman Hotels
May 14, 2014
Team A
New York Dubai

2. Overview
Mr. Driggs,
On behalf of the entire Atwood and Allen team, thank you for choosing to work
with us on your company’s expansion to India.
In this report we address three primary areas of employee benefits that best
apply to Bollman Hotels;Pay and Compensation,Health Care and Wellness,and
Competitive Extras. The information provided throughout this report focuses on
your company’s requirements to be comparable to other international hotel
chains and to insure that all proposed actions and strategies work for the
company’s operations in India. This report maintains consideration for the
organizations current workforce and the expected 20% growth associated with
the expansion. Finally, the report includes benefit recommendations based on
current net revenue of $100 million and the projected 15% annual revenue
growth without proposing unnecessaryor costly benefits that do not work to grow
and improve the organization.
India Employment Laws
In India, as in America, there are government imposed employment laws that
mustbe adhered to by the company. For detailed information on these laws visit
the; Ministry of Labour and Employment, Government of India, website:
http://labour.nic.in/content/
Employment Laws Most Applicable:
 The Payment of Wages (AMENDMENT) Act, 2005
 The Payment of Bonus Act, 1965
 The Equal Remuneration Act, 1976
 The Employees' Compensation (Amendments) Act, 2000
 The Trade Unions (Amendments) Act, 2001
In many ways, Bollman Hotels will comply with or exceed the requirements of
India labor laws if the company applies the recomm endations of this report and
the requirements imposed on the company’s United States operations. However,
the companywill still need to create a benefits program thataddresses India law.
THE LAW
REQUIRED BENEFITS
Social Security
As an employer, you mustpay social
security taxes at the same rate paid by
employees
Unemployment Insurance
Unemploymentinsurance is mandated
at the state level
Workers Compensation
Workers compensation provides benefits
to workers disabled byoccupational
illness or injury
Family and Medical Leave
This provides 12 weeks of job-protected,
unpaid leave period to eligible
employees for reasons including birth
and childcare,immediate familycare, or
care for the employee’s own health
condition.
COBRABenefits
COBRA provides continuation of health
coverage at group rates for former
employees, retirees, spouses, former
spouses and dependent children.
Introduction

3. Median Hourly Earnings
Typical Hotel Occupations, May 2014
Job Function Level Starting Wage Annual
General Manager 5 $25.76 $49,473 - $101,533
Assistant Manager/othermanagement 4 $15.07 $28,987 - $59,492
Maintenance and repair workers, general 3 $12.77 $22,188 - $45,539
Cooks, restaurant 2 10.39 $18,567 - $38,105
Janitors and cleaners, except maids and housekeeping cleaners 2 9.04 $18,567 - $38,105
Hotel, motel, and resort deskclerks 1 8.51 $14,212 - $29,168
Bartenders 1 7.42 $14,212 - $29,168
Dishwashers 1 7.35 $14,212 - $29,168
Food servers,non-restaurant 1 7.95 $14,212 - $29,168
Maids and housekeeping cleaners 1 8.13 $14,212 - $29,168
Dining room and cafeteria attendants and bartenderhelpers 1 7.10 $14,212 - $29,168
Waiters and waitresses 1 7.05 $14,212 - $29,168
Pay and Compensation
LEAD, MATCH, FOLLOW
When designing anybenefits program the question should be, does the company want to lead, match or follow the industry with any one
or group of offered benefits?
The value of performance-based incentives is exceedingly important to reduce several factors that plague the travel industry. According
to Freedman and Kosova (2010), “A recent survey of hotels in Grand Strand/Myrtle Beach region of South Carolina revealed that the
average hotel experienced between four and five thefts perpetrated by employees in the previous two years, with losses rangin g from
$40 to tens of thousands of dollars.”
In America, employee attrition rates may likely have a large impact on customer loyalty as well as employment retention, the average
hotel companies lose nearly half of their employees every four years as well as half of their consumer base every five years (Friend,
2000).
In addition to the wage guidelines provided below, the company may want to consider offering additional compensation methods:
 Tuition Assistance  Paid Leave or Time Off  Holiday Pay
 Sabbatical  Achievement Bounces  Spouse Maternity Leave
Quote
The word 'hospitality' in the New Testament comes from two Greek
words. The first word means 'love' and the second word means
'strangers.' It's a word that means love of strangers.
--Nancy Leigh DeMoss--

4. Health Care and Wellness
PREPARE, PROTECT
As the fastest growing industry, a new job is added every 2.5 seconds (Eastern Michigan University, 2014). To attract the mos t
productive staff, Bollman Hotels needs to provide the most attractive health benefits. However, practicality dictates that the hotel
chain will have to make some concession to benefit plans to maintain operating costs. Health benefits comprise medical, den tal,
vision,life, shortand long term disabilityinsurance,and retirement.Lobbyservices staff, housekeeping and maintenance, and hotel
operations and managementare the three basic groups ofemployees. Health benefits are only provided to fulltime employees. Most
of the major hotel chains provide paid time off that is available after 6 months. The company provides the following benefits. A high
coverage and low coverage plan is provided.
Benefit High Plan Low Plan
Medical Monthly Cost (family) $471 $333
In netw ork/ Out of netw ork out of pocket 10%/30% 20%/40%
Dental (PPO) $150 $150
Dental Annualmaximum $1,500 $1,500
Vision $5.00 $3.50
Glasses/Contacts Annualmaximum $120 $100
Basic Life (employer paid) Employer paid Employer paid
Coverage 1 x employee salary 1 x employee salary
Short Term Disability 60% of salary up to $1,000/w eek
(employer paid)
Employer paid Employer paid
Duration maximum 13 w eeks 13 w eeks
Long Term Disability 60% of monthly earnings up to $6,000
(employer paid)
Employer paid Employer paid
Duration After 90 days up to age 65 After 90 days up to age 65
401K
Offered, but no matching. IRS limits to $17,500 annually
- -
Paid Time off 2 w eeks annually 2 w eeks annually
Employee Assistance and Wellness Employer paid Employer paid
The company currently provides very competitive benefits. It is recommended that the company modify the
401K contribution plan. However, to minimize the 401K administrative costs it is recommended that a graduated scale
of matching to be implemented that rewards employee longevity. The following table shows a proposed 401K matching
scale based on employee longevity. 401K matching provides an incentive for good employees to stay with the
company.
Though there have been requests for part time employees to receive benefits, it is recommended that they not
be given at this time. The cost is too great to provide at a part time salary.
Quote
Coming together is a beginning; keeping
together is progress; working together is
success.
-- Henry Ford --
Proposed401KEmployee Matching
Scale
Less than 2 years 0%
2 years 20%
3 years 40%
4 years 60%
5 years 80%
6 years 100%

5. Competitive Extras
INDUSTRY LEADERS
After analyzing five of top rated hotel and resort operations companies; Ritz-Carlton by Marriott, Hyatt, Four Seasons,
Dolce Hotels and Resorts, and Benchmark Hospitality, several industry standard employee offerings became clear.
Common Extra Benefits:
 Complimentary or Discounted Hotel Stay
 Complimentary or Low-Cost Meals
 Growth and Travel Opportunities
 Job and Advancement Training
Unique Extra Benefits:
 Adoption Assistance – Dolce
 Family Discount Stay and Meals – Hyatt
 Corporate Vendor Discounts – Ritz-Carlton
Each of the companies researched have operations in India and around the world and offer the same or similar benefits
to most of their employees. Keep in mind, however, that these benefits are offered by Bollman Hotels greatest
competitors and may not necessarily be the best fit for the organization. Consider each of the benefits carefully as they
may be crucial to attracting prime talent during the expansion.
STAND OUT FROM THE CROUD
It is one thing to copy the competition, it is another to stand out. It is recommended that Bollman Hotels consider
offering benefits that attract quality talent while also enhancing the name of the organization. In order for Bollman to
stand out, consideration must be given to the people that will find value in the benefit, rather than the market ability of
the benefit.
Stand Out Benefits:
 Job Shadowing – Send employees to other locations to train and travel. Consider allowing family to join.
 VIP Invitation – Send employees to special events held in company hotels to gain guest perspective.
Quote
”Every single employee is someone’s son or someone’s
daughter. Like a parent, a leader of a company is
responsible for their precious lives.”
--Simon Sinek--

6. 5555 N. Main Street, Salt Lake City, UT 84053 | ph 801.555.5555 | fx 801.555.5556
www.AtwoodandAllen.com | email@address.com
Conclusion
INVEST IN PEOPLE
Successful employee benefit programs contain three primary categories, Pay and
Compensation, Health Care and Wellness, and Competitive Extras. It is not necessary that the
program use these names but it is important that the program works to achieve their goals. As
you work through our recommendations to find the right benefits to offer Bollman Hotels
employees’, remember to select benefits that; one, work within each category, two, compliment
selections from other categories, and three, work to serve the unique employees of your
organization. Regardless of the benefits that Bollman Hotels ultimately incorporates into its
program, we at Atwood and Allen hope that the information provided in this report addresses the
most relevant information and simplifies the complex task of designing a competitive and
strategic employee benefits program.
Sincerely,
Team A
Atwood and Allen Consulting, LLC.

7. References
Benefits (2013). Four Seasons Hotels and Resorts. Retrieved from
http://jobs.fourseasons.com/workingatfourseasons/benefits/Pages/fsbenefits.aspx
Benefits (n.d). Benchmark Hospitality. Retrieved from http://www.benchmarkinwestlake.com/benefits
Cascio 9ed [VitalSource Bookshelf version] (2013). Retrieved from
http://online.vitalsource.com/books/9781121903814
Eastern Michigan University. (2014, May). Hospitality Industry Statistics. Retrieved from
http://www.emich.edu/sts/hrm/hospitality.htm
Employee Benefits (2014). Ritz-Carlton by Marriott. Retrieved from http://www.marriott.com/ritz-carlton-
careers/company-information/benefits.mi
Employee Rewards (n.d). Hyatt Hotels. Retrieved from http://www.hyatt.jobs/#pg=3&section=20
Freedman, M., & Kosova, R. (2010). Agency and Compensation: Evidence from the Hotel Industry. Retrieved
from http://elr.sagepub.com.ezproxy.apollolibrary.com/content/25/1/81
Friend, K. (2000). Incentive Programs. Retrieved from
http://www.customerservicegroup.com/pdf/IncentiveProgram.pdf
Work/Life Benefits (n.d). Dolce Hotels and Resorts. Retrieved from http://www.dolce.com/careers/what-we-offer/