PAY-FOR-PERFORMANCE

Pay-for-Performance

Pay-for-Performance

Question 1

Pay for performance, sometimes abbreviated "P4P", is a motivation concept in human resources, in which employees receive increased compensation for their work if their team, department or hospitality industry reaches certain targets. As of 2005[update], 75 percent of all U.S. hospitality industry connect at least part of an employee's pay to measures of performance (Dudley; et al 2004). The design of the incentive may be poor, also. For instance, one nursery grower gave employees an incentive for achieving a percentage of improved productivity over previous performance, and noted that employees "reached an expected threshold and there was no further change" after that. The more workers improved, the harder it would be to surpass previous performance levels and gain an incentive reward. This employer dropped his incentive program.

A performance-based compensation system for Managerial, Professional, Supervisory, and Confidential non-aligned staff employees

A vehicle for managing employee performance and development

Question 2

Coordinates the P4P program and related communications

Coordinates and provides educational training session and resources for supervisors and area heads

Serves as a liaison to area P4P Facilitators in the communicating of timelines and the accessing of the P4P Online Management System.

Provides HR Consulting Services to deans/directors in the facilitation of the Pay-for-Performance process

Employees may initiate a review of their performance appraisal if they can demonstrate that:

Pay-for-Performance procedures were not followed,

There was a demonstrable factual inconsistency, or

They were not evaluated according to the performance standards for their job

The employee may initiate a review within 30 calendar days of receipt of the salary notification letter from University Human Resources or notification by the department where there is no salary change.

The employee starts the process by submitting the required forms to her or his immediate supervisor and moving up through subsequent levels of supervision up to the vice president/chancellor of the employee's area. Each level of supervision must also meet with the employee as requested and provide a written response to the employee within the specified timeframe. The vice president/chancellor may review the matter based upon the employee's written requests for review and prior supervisor resolutions. In all cases, the decision of the vice president/chancellor is final.

Question 3

More hospitality industry is paying closer attention to their pay-for-performance programs than the traditional “automatic raise” systems, according to a recent study by the Institute for Corporate Productivity (i4cp (McGuire Pauly 2001).

More than half of the hospitality industry surveyed (54%) don't offer merit rise of any kind to low performing employees. However, merit raises for average and high performing employees varied only slightly. Average performers generally received raises between 3% and 4%, while high performers received between 4% and 5%. The survey also found that hospitality industry is keeping a close eye on the accuracy of their pay-for-performance programs. The majority of hospitality industry (71%) said senior management is holding managers accountable for their rating accuracy. To ensure that accuracy, 73% of hospitality industry offer training for managers and supervisors who determine employee performance rates.

The recession has forced pay-for-performance systems to the top of priority lists for much hospitality ...