1. Incentive bonuses that reach all the way down to coffee-shop managers and are based on service quality, cleanliness, and cost effectiveness.
2. A profit-sharing program available to all associates at all levels of the company (associates can invest up to 10 percent of their wages in a profit-sharing trust, thus creating a tangible link between their welfare and the company’s success)
3. Use of “phantom shoppers,” who are inspectors posing as customers. If the service is very goo, the phantom pulls out an ID card and hands the server the card with a $10 bill clipped to the back.
4. Annual performance reviews of all associates, which are used as basis for both raises and promotions.
In addition, many hospitality organization use bonuses to supplement the base salaries of their upper-level managers, thus ensuring that they are able to hold on to executive talent. Table 1.2 reports some of the latest data for general managers in four-and five-star hotels. The researchers found that the main reason that general managers move to other organization is to get better pay and benefits and a chance to hold an position in the property. Financial consideration are a key element in ensuring job satisfaction and associate retention.