Compensation and Benefits Strategy for Motel 5 - HOTL-702 Winter 2019

This report presents a comprehensive compensation and benefits strategy tailored for Motel 5, a new economy hotel in Canada. The strategy emphasizes best practices to ensure brand standards are met while maximizing franchisee profits. The plan includes a bonus structure for employees and franchisees who meet performance standards, along with overtime benefits such as double pay, meals, and cab services. The report details the five components of total rewards: compensation (allowances, improved pay), benefits (achievement rewards, paid vacation, overtime), work-life programs (work from home, family dinner coupons), performance and recognition (coupons, improved appraisals), and development and career opportunities (training, promotions). The decisions align with the strategic vision of becoming an innovative economic brand, offering consistent and cost-effective services by retaining employees and reducing costs associated with recruitment and training. The report references key sources such as Cascio (2015) and Bratton & Gold (2017).

Compensation and Benefits
3/25/2019

Compensation and Benefits 1
Compensation and Benefits
Compensation and benefits strategy
The property that has been selected is Motel 5 is a new economy hotel in Canada. This is most of
the properties of the motel are franchised due to which they struggle who want to ensure that
brand standards are enforced and franchisees want to ensure that they maximize their profit. To
tackle the problem, the company will implement the compensation and benefits strategy. The
strategy that will be used by the company is the best practice instead of a best-fit approach
(Cascio, 2015). The company will review the employees and franchises performance that ensure
that brand standards are adhering will be compensated with a bonus amount of 15% of salary
additional. This will motivate the employees to adhere to the standards. In addition, the overtime
option will be provided with the opportunity of double pay (according to a number of hours) as
well as the benefit of meals and cabs will be provided. This overtime benefits will contribute in
increasing profit.
Five components of total rewards
In the components of total rewards, the below given are rewards that they will offer to your
employees: -
Compensation
 Allowances/Reimbursement
 Improved pay

Compensation and Benefits 2
Benefits
 Achievement rewards
 Paid vacation
 Overtime benefits
Work-Life Programs
 Work from home facility
 Family dinner coupons
 Get together
Performance and Recognition
 Coupons and vouchers
 Improvement in performance appraisal (Bratton & Gold, 2017)
Development and Career Opportunities
 Proper training for development
 Promotion to employees
Decisions fit with the strategic vision
The decisions fit with the strategic vision of the company are to become an innovative economic
brand that is to provide consistent and cost-effective service. The decision of the company is to
implement the best practice within the organisation, which includes the compensation and
benefits that help the company to retain employees. The adherence of guidance will make the
company innovative in offering consistent services to customers. In addition, the retention of the

Compensation and Benefits 3
employees within the company will be cost effective for the company, as they do not have to
spend for recruiting and training to employees. Thus, this will effectively lead to cost-effective
service for the customers, as expenses of the company will reduce.

Compensation and Benefits 4
References
Cascio, W. F. (2015). Managing human resources. United States: McGraw-Hill.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. United
Kingdom: Palgrave.

Compensation and Benefits 5