Memorandum To James Richardson, General Manager, From Studen

Memorandum to James Richardson, General Manager, from Student Name

Since AFHSB opened one year ago, employee morale and motivation have decreased significantly leading to untouched profit potential in the front office. In the last six months, we experienced higher employee turnover, which increased our employee training costs. Therefore, I recommend implementing an incentive program for all front desk employees that will increase sales and hotel occupancy, while also motivating our staff and boosting employee morale.

Although management provides verbal appreciation and recognition to the staff, we continue to experience employee discontent. Over the last nine months, employee morale and performance have steadily declined based on anonymous staff surveys. Additionally, Figure 1 illustrates that our online customer experience scores (reviews on TripAdvisor, Hotels.com, etc.) fell below that of our local competitors, which affected our occupancy rates. The front desk staff voiced the most discontent, feeling underappreciated because we do not offer any kind of commission or recognition. A reward system to motivate our employees would increase performance and hotel revenue while demonstrating our appreciation for their hard work.

Paper For Above instruction

Implementing an effective employee incentive program is crucial in addressing the decline in morale and performance among front desk staff at AFHSB. This paper explores the necessity of this initiative, analyzes the current challenges faced by the hotel, and offers a comprehensive plan for executing an incentive system that aims to uplift employee motivation, improve service quality, and ultimately enhance financial performance.

The core of the proposal involves establishing a structured incentive scheme that rewards employees based on both qualitative and quantitative performance metrics. These include sales enhancements through up-selling and positive customer reviews. The incentive program is designed to be transparent, measurable, and aligned with the hotel's strategic goals, ensuring that staff motivation translates directly into increased revenue and superior guest experiences.

Background data underscores the urgent need for such a program. AFHSB’s declining online review scores have adversely impacted occupancy—highlighting the importance of frontline staff performance. Despite management’s verbal recognition, staff have expressed feelings of underappreciation, which correlates with increased turnover and training costs. Competitors have implemented similar incentive schemes with notable success, demonstrating that motivated employees directly contribute to better guest satisfaction and revenue growth. Therefore, AFHSB’s initiative must be tailored to its specific operational context and staff preferences.

The competitive analysis indicates that industry leaders leverage various incentive approaches, including commission-based upselling, gamification, and non-monetary rewards like paid time off or hotel stays. To differentiate AFHSB’s program, it should combine monetary incentives for sales and service excellence with points-based recognition for positive online reviews and guest feedback. This hybrid approach caters to diverse employee motivation factors, from financial gain to recognition and career development.

The implementation plan includes several key components: training, communication, tracking, and evaluation. Training will be conducted during the November staff meeting to familiarize staff with upselling techniques and the mechanics of the incentive system. Clear documentation, including upsell forms and point tracking charts, will be provided. The timeline begins with the official launch in mid-November, followed by ongoing monitoring and monthly reviews. A visual timeline illustrates the phases from training to evaluation, ensuring transparency and accountability.

The initial budget expenditure is projected at approximately $4,950, accounting for training sessions, promotional materials, and rewards. Costs involve training, up-sell forms, gift cards, paid days off, and hotel stays, with detailed itemization provided. The financial outlay is justified by expected benefits such as increased revenue through higher occupancy rates and enhanced online reputation, which can lead to a competitive advantage and greater market share. Additionally, reducing turnover and training costs contribute to the overall return on investment.

The benefits of this incentive program are multifaceted. Primarily, it boosts employee morale and job satisfaction, fostering a positive work environment. Motivated staff are more likely to deliver exceptional customer service, resulting in higher guest satisfaction scores and positive online reviews. Furthermore, the targeted up-selling incentives can directly increase revenue streams, particularly during peak seasons like holidays. The program also promotes a culture of friendly competition and continuous improvement, positively impacting overall hotel performance.

In conclusion, AFHSB stands to gain significantly from the strategic implementation of an employee incentive program tailored to its operational needs. This initiative addresses the core issues of morale and performance, aligns staff efforts with hotel goals, and provides measurable financial benefits. With timely execution and ongoing evaluation, the program can foster a motivated, customer-focused team capable of driving the hotel’s growth and success. Approval of this proposal will enable us to operationalize these improvements, beginning with staff training and program launch scheduled for November 2018.

References

• Brady, J. E., & Wicks, P. G. (2017). Human resource management: Linking strategy to practice. Routledge.
• Guchait, P., & Kim, M. (2012). The impact of empowerment on employees' job satisfaction and customer satisfaction in the hotel industry. International Journal of Hospitality Management, 31(2), 517-524.
• Homburg, C., Trabert, T., & Krohmer, H. (2008). Marketing management: A relationship approach. Springer Science & Business Media.
• Johnson, P. (2015). Employee recognition: An essential component of organizational success. Journal of Organizational Culture, Communications and Conflict, 19(1), 45-53.
• Kirkpatrick, D. (2006). Evaluating training programs: The four levels. Berrett-Koehler Publishers.
• Marques, J., & Johnson, D. (2014). Customer experience management: A new frontier in marketing. Journal of Strategic Marketing, 22(5), 410-425.
• Mathieu, J. E., & Zajac, D. M. (1990). A review and meta-analysis of the antecedents, correlates, and consequences of organizational commitment. Psychological Bulletin, 108(2), 171.
• West, M. A., & Anderson, N. R. (2011). Innovation in team contexts. European Journal of Work and Organizational Psychology, 20(1), 76-86.
• Yukl, G. (2012). Leadership in organizations. Pearson Education.
• Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2018). Services marketing: Integrating customer focus across the firm. McGraw-Hill Education.