Payment in the Hotel Industry: The Role of Fringe Benefits

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Abstract
Is has long been recognised that the monetary wages paid to many hotel workers do not constitute their total earnings. Additional monetary and non-monetary rewards are a feature of hotel employment. Surprisingly, little is known about these additional rewards or fringe benefits, which are growing in significance in wage and salary administration. Until now the state of knowledge has remained partial and fragmented, and debates conducted in an arena of almost total ignorance. Central to this debate is the comparison of hotel worker earnings with those in other industries. The author describes the research methodology and discusses his empirical data useful to clarify the role played by fringe benefits in the ‘earnings gap’ debate. The results constitute a distinct contribution to our knowledge. The author argues that further development of the techniques for comparing elements of reward, other than basic pay, is of particular importance. However, much remains to be done particularly in removing the constraints on comparability before the total payment system can be fully understood.

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