HR50022E Report: Global Perspective on Rewarding People at IHG

This report provides a comprehensive analysis of employee rewards and retention strategies within Intercontinental Hotels (IHG), a prominent multinational hospitality company. It begins by examining the environmental forces impacting the hospitality sector, utilizing the PESTLE framework to assess political, economic, social, technological, environmental, and legal factors. The report then identifies specific challenges IHG faces in rewarding and retaining employees, including issues related to training and development investments and performance-based reward systems. Furthermore, the report offers actionable recommendations to address these challenges, such as implementing on-the-job training programs and fostering a collaborative work environment. The report concludes by emphasizing the importance of adapting reward strategies to align with both environmental factors and employee needs, ultimately enhancing employee satisfaction and reducing turnover within the organization.

Global Perspective on
Rewarding People

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
The environmental forces that impact on the hospitality sector.............................................3
Challenges faced by intercontinental Hotels regarding rewards and retention......................6
Possible recommendations that would address both the environmental and reward challenges
along with Implementation plan.............................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Employee retention is a word and a process by which an organisation ensures that the
employees don't quit their jobs. Every different organisation has different policies for retaining
their employees also take various measures to do so. Employee Retention is a very important
phenomenon plays huge role in service sector organisations where human resource is the
foremost and the most important asset of the company. It is a phenomenon of the employee
chooses to stay in the company and don’t actively seek other job prospects. This essay is about
Intercontinental hotels the British multinational hospitality company also known as IHG. The
organisation Intercontinental hotels was founded in 2003 and headquartered in England UK. The
company search across 100 countries around the globe with their numerous hotels and best
quality services. The essay covers the environmental factors impacting the whole hospitality
sector. And in the next section the challenges which are faced by Intercontinental hotel regarding
rewards and retention are highlighted along with appropriate recommendation and
implementation plan.
MAIN BODY
The environmental forces that impact on the hospitality sector
Environmental factor
Environmental factors are also known as ecological factors Eco factor that influences the
life of organisms and nature. In case of organisations and business environmental factors are of
two types internal and external internal factors of business are its measure in its objectives and its
value system. The external environmental factor of business is its competitor’s economic factors
and technological factors. Basically environmental factor refers to the business surroundings in
which an organisation is operating (Aguilar, Wohlgemuth and Twardowski, 2018). The
environmental factor affects many different important aspects of business such as consumer
willingness to buy a product, the competitiveness of the organisation in a particular environment,
number of computers existing and new covers and many other. The impact of environmental
factors and their results on the organisation can be negative and positive. Hospitality industry is a
core industry to be discussed in the issues of environmental factor. The Environmental forces

that impact on the hospitality industry can be evaluated with the help of PESTLE analysis
framework.
External factors
As it is discussed that environmental forces are of two types internal and external, the
PESTLE analysis framework allows thoroughly evaluate the external factors and impacts on the
hospitality sector. All these factors of PESTLE analysis are elaborated below:
 Political environment is that business organisations need to monitor as politics can be
very unpredictable and influential for the business operations. The UK government is
relative leave very free and provides suitable environment for the hospitality
organisations to work. Although government still keeps a close check on the private
sector organisation in order to keep them functioning an appropriate manners and with
the best interest of the country. Recently new immigration policies are implemented by
the government which is a concern for UK hospitality sector as it can raise issues of skill
shortage affecting the business (Klein and et. al., 2019).
 Economic environment basically resource to the economic conditions of the particular
marketplace and the scenario of UK. Economy of UK is very crowded the marketplace is
full a lot of competition exist in the market and new competitors are also coming in.
Along with it in UK tourism is increasing, means visitors from different places national
and international are coming in which is a positive factor for hospitality sector.
 Social environment refers to the buying behaviour of the customers and people of a
particular economy. In UK tourism is increasing which is a positive factor for hospitality
industry along with it the local public of UK market are also so that is supportive prefers
luxury services. but in the recent years the market conditions are very frequently
fluctuating along with the rapid ship taking place in consumer preferences. The people
choices are evolving according to which hospitality sector have to update their offerings
and working style. For instance, in past times that is traditionally hospitality service
providers only operating physically but now with increasing digitisation and globalisation
companies moved online with the help of technology. Now we will make the bookings
and preferable buying decision according to the research and comparison of different
hospitality sectors which will enable them is ease and comfort (Young, Cohen and Bens,
2018).

 Technological environment Jaipur to the increasing digitalization and emerging new
technological tools and systems. Technological environment and factors is resulting to be
a positive element for hospitality sector and impacting it in a favourable manner.
Increasing use of internet and social media among the people made marketing and
promotional activities easier and cheaper for the hospitality sector. Along with it
increasing technology enabled hospitality businesses to make use of it enhances the
revenues by bye taking bookings online and making sales online with the help of
different it application such as TripAdvisor and many more (Lepeley and et. al., 2019).
 Environmental element has recently been recognised and is concerned with the natural
environment and ecological factors. Sustainability is a key concern in hospitality sector
and focus of hospitality service providers has shifted to eco friendly operations and
processes. The environmental factors are very important for hospitality sector as the
changing weather condition can impact the business and stop visitors and travellers from
different places. The environmental factor also highlights over the processes used by
hospitality sector for managing and contributing a small part towards the environment
and society in return of making use of natural resources.
 Legal environmental factor is concerned about the legal policies and laws issued by the
government and political party ruling in the UK. This factor is relevant for hospitality
business as organisation has to make sure that they make their internal business laws and
policies for operating in the marketplace according to the laws issued by the ruling party
for particular. Enable the business organisation dealing in hospitality sector to be safe
from any legal charges and penalties.
Internal factors
 Management of faculty is the most important and essential task which is performed by
different hospitality business. Adjectives discuss that human resource is one of the most
essential an important asset of hospitality business sector and different hospitality service
providers (Drescher, 2018). In service industry human resource and employees of the
company the people behind the organisation working as the pillar for it. Employees are
the one who are most close to the guest and customers as they are the one providing all
sort of unique services to the people according to their needs on behalf of the

organisation. Human resource is the people fulfil the needs of customers and sand on the
expectations on behalf of their business owners.
 Location and accessibility is another very important internal environmental factor which
affect business of hospitality provider. The location and established and operating is very
important because it is essential for hospitality provided to be accessible to people. Most
hospitality service hotels and other businesses are established on the high streets and
popular locations enabling people do no more about them and attracting them for
changing them into potential customers.
 Types of services provided is one of the most influential elements for hospitality
business practitioner as the services which we provide are basically the offerings and
products of the organisation in which they deal. The services of hospitality sector depend
upon the size and resources (Gordon, 2018). Hospitality service providers are of different
sizes due to the resources few business deals in luxury sector rendering all leisure and
expensive services to the consumer. Some hospitality providers renders average services,
but hospitality industry's main motive is to fulfil the needs of all different types of
segment of the society for which big and small organisations are available in the
marketplace.
Challenges faced by intercontinental Hotels regarding rewards and retention
Employee reward and retention are interlinked with one another, rewarding and appraising
employees on the basis of their performances and other different sectors a technique used for
retaining individuals in the organisation. Employee retention is basically a process of making the
employees stick to the company and do not actively search for new jobs. Different employee
retention techniques and processes are undertaken by hospitality industry organisations to retain
their staff and render them job satisfaction. Intercontinental hotel also make use of different
rewards and retention techniques to keep their skills staff with them (Cheval and et. al., 2018).
Employee retention also brings competitive advantage towards the organisation and reduces the
employee turnover ratio is a positive factor. Different challenges which of face by
Intercontinental hotels while retaining and rewarding workforce are as explained and elaborated
underneath.
Retention technique

 Training and development- One of the most important techniques and activity which is
conducted by all different forms of businesses separate industries is rendering training
and development sessions for employees. Intercontinental hotel also make use of this
technique firstly to enhance and update the skill sets of their workforce and secondly to
motivate them and provide them more better career opportunities. With the help of
training and development passions Intercontinental hotel improve the productivity of the
staff and also opens new doors for them to move forward in their careers. The challenge
associated with this retention technique is the company had to invest a lot of money for
conducting training and development sessions as the fee charged by professionals for
conducting employee training are large (Stilwell and Nyaka, 2020). On the other hand
another challenge is changed from employees, with is the development of most skills and
abilities now the staff games confidence in themselves and most of the time switch jobs
in order to grab better opportunity. This makes investment of Intercontinental hotel in
training and development sessions useless as they help the workforce to enhance their
skills but those skills are not useful for it which is the individual’s shifts to work with the
competitor.
Rewarding technique
 Performance based rewards- The Intercontinental hotel are very huge brand operating
internationally into around hundred countries and serving millions of people on a regular
basis. The performance of employees is the foremost factor which affects and influences
the productivity, popularity and profitability of business. Therefore company make use of
performance based reward systems where employees working at different departments
and on different levels are rewarded and benefited according to the contribution they
make towards the organisation and their performance level. The challenge which the
leaders and managers do the supporting technique in the organisation is development of
internal negative competition (Thomas, 2019). That means the employees within the
organisation themselves became a competitive. Rather than working in a team and
collaboratively performing the employees started competing with themselves and its
effect are properly visible on their performances and ultimate Leon Intercontinental hotel
performances and productivity.

Possible recommendations that would address both the environmental and reward challenges
along with Implementation plan
Training and development
Training and development sessions can be of two types on the job training and off the job
training.
1. Off the job training programs are very expensive as the experts employees out of the
business environment and take their sessions with the help of situation tools. It is
suggested to Intercontinental hotels that managers and exports within the hotel should
take the training sessions by making use of on-the-job training methods and develop
better skills in individuals while making use of on the job training method. This method
of training staff will enable the organisation and leaders to develop better relations with
employees, the cost related to it will be low and at the time of training individuals the
work also not get hindered. The employees while getting trained and developing new
skills they will practice skills in the organisation which will enhance their performance
level and the organisations performance level.
2. Another suggestion to the top management level of Intercontinental Hotels is the Off-
The-Job training sessions are useful when entity is introducing any new machinery or
process or methods and in order to render appropriate knowledge to employees about the
change taking palace and how to work in new environment and with new tools the
company needs experts from outside for training workforce about how to use such tools
and techniques. The off-the-job training session will be beneficial in such situation and
render value of the investment made by entity in training and development. This will
bring better changes in environment as employees will be updated and skilled enough
along with it they will be enthusiastic and highly motivated to use their knowledge and
move forward in their career as new opportunities door will be opened for workforce.
3. For better training and development of human resource of Intercontinental Hotels it is
suggested to the managers that they should enhance the employee engagement in the
entity and decision-making. By engagement the employees in the company’s decision
making relevant to process will first its productivity, secondly the working environment
of entity will change in positive manner and lastly it will imporves productivity of
operations and ultimately the profitability of Intercontinental Hotels.

Performance based rewards
1. For rewarding employees and workforce Intercontinental hotel make use of performance
based reward system it became a challenge for the organisation due to the unhealthy
environment and competition developed amongst employees. In order to resolve this
problem leaders of Intercontinental hotel can make use of achievement leadership style
given by path goal theory various motivational techniques (Altbach, Reisberg and
Rumbley, 2019). By making use of achievement leadership style the leaders can develop
effective and challenging tasks for their team members. That leader also have to make
use of appropriate motivational channel and technique to encourage staff working
collaboratively by corporation which one another for achieving the ultimate target or goal
of the given task. The use of achievement leadership style and different motivational
techniques will enable the leaders of Intercontinental hotel to develop an effective team
which is competitive by nature but do not compete with one another rather than compete
with oneself for enhancing their performances and other competitors of the organisation
present in the marketplace.
2. Also for performance appraisal and rewarding employees Intercontinental Hotels human
resource managers is suggested to develop appropriate plans and regular intervals to
reward workforce. By regularly rewarding and appreciating employees will create a
higher level of motivation in them that will enhance their performance and productivity
along with it, the employee retention ratio of Intercontinental Hotels will also improve.
Personnel’s will be encouraged for grabbing and enjoying higher rewards by sticking into
the organisation rather than switching job and moving to other company.
CONCLUSION
The above report is basically an essay which concludes that employee retention is an
essential task which is conducted by all different organisations especially in hospitality sector as
it is a service industry. The rewarding methods and techniques used by leaders of the
organisation is a part of employee retention process and a very and potential method.

REFERENCES
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