Recognition vs. Compensation

The dream of every successfull business is to have loyal employees who drive the business from good to best.

We purchase high quality products, fill the stores with equipments we dream employees will later on use by providing high quality of service.

We hire the most experienced managers to drive the business and lead their teams to gain high revenue.

We allow the Management to run the operation without any question.

We expect high revenue, guest satisfaction as well as high employee satisfaction.

Yet what we experinece in 2021 has not changed since the beginning of time. In his novel "Hotel" by Arthur Hailey, the management's struggle to regain profitability and avoid being assimilated into the O'Keefe chain of hotels.

Even technology has developed, economy has grow, people remained the same. I see many organisations not learning from history and repeating themselves. Written in 1965 the stories taken into hand in the novel are still on with different character names.

How can we today, as mature hoteliers support our organization to succeed? With record unemployment, pay cuts, a turbulent market and an ever-widening gap between the haves and the have nots, money is at the forefront of people’s minds more than ever. But how important is money to happiness?

The answer is complicated. Research has long looked at how money affects happiness, which in psychology is defined as both emotional well-being, and how satisfied you are with the way your life is going. 

Studies have pinpointed the salary that people need for happiness, looked at why money doesn’t make us as happy as we expect and posited the ideal ways to spend your money to be happy.

A well-known 2010 study by Princeton researchers Daniel Kahneman and Angus Deaton found that people tend to feel happier the more money they make, up until a point, which Kahneman and Deaton estimated to be about $75,000 a year per person.

So money is not the key to happiness. Knowing that we are in the "Thank you very much" Business, lets then have a look deep at recognition which is cricial for any organization.

Recognition brings happiness, maximizes productivity, improves employee retention, encourages a growth mindset, and perhaps most importantly boosts morale as per The Balance Careers — which we certainly need now more than ever!

A timely recognition given will change the game! A clear guidelines has to be given to the managers. Sometimes also a small in action yet big in impact "Thank You!" boosts motivation and loyality as employees feel seen, valued and heard. The happiness of team will turn back to your business as repeat guests, high revenue and guest satifaction. So why not go the extra mile and start today?

As Maya Angelou quoted "I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel."

Challenge of the day!

Say "Thank you" to at least 3 of your employees and comment below how did the person take it, how did it made you fell.