Most full-time positions come with a compensation package that extends beyond an hourly wage or salary. In some cases, hourly employees are also eligible for these plans. Employers offer these packages so that employees receive a comprehensive offering outside of wages to ensure they can live comfortably and prepare for the future. Packages vary greatly depending on the role and its responsibilities, the organization, and the industry. Choosing a job that best supports you and your family starts by developing a clear understanding of different offerings in a traditional compensation package. The terms used in a traditional compensation plan can be confusing, so we’ve outlined a few of the most common offerings below.

Salary vs. Hourly Wages

In searching for a role, job seekers encounter both salaried and hourly positions. When on a salary, roles typically require around 40 hours of work each week – with some variation depending on the company and position. For that 40 hours, employees receive a set amount of money. In cases where required hours extend beyond 40 hours (or in weeks that require less), that salary does not fluctuate.  

In hourly positions, employees are paid for the time they actually work within a pay period, calculated by taking hours worked and multiplying it by their hourly rate. In these positions, the Fair Labor Standards Act (FLSA) requires that any time contributed beyond 40 hours is compensated at a higher hourly rate – 1.5x the worker’s regular rate. Any earned income – including salary and hourly compensation – is taxable, generally at the same rate.

Paid time off (PTO) is another offering by many hotel employers. As its name suggests, PTO refers to payment for hours of work the employee isn’t required to perform in order to be compensated. Employers offering PTO either do so in the form of a set number of days per year or via an accrual system where employees earn PTO as they continue to work for the organization. 

Retirement Benefits

In addition to salaried or hourly wages, full-time employees often receive retirement benefits. Most of the time, this comes in the form of a 401K. While not all, many employers will match at least a portion of an employee’s 401K contribution annually. Some companies offer matching at a percentage of what an employee puts in, and others cap their contributions at a particular dollar amount each year.

Retirement benefits help employees plan for their future, setting money aside to cover expenses if and when they choose to stop working. While employer matches of contributions aren’t immediate compensation for an employee that they can spend right away, they add long-term value to working for the employer.

Insurance Coverage

Outside of housing costs (rent, mortgage), one of the biggest expenses most working adults encounter monthly is health insurance, both for them and any dependents. Purchasing health insurance via the marketplace can be very expensive. As part of a compensation package, many employers offer insurance plans through their company package. In some cases, the employer also pays a portion (or all) of that insurance premium monthly. Employer-provided health insurance is highly valued among workers, especially those with several family members requiring insurance coverage.

Beyond health insurance, some hotels and extended stay organizations offer dental and vision benefits as well. Like with health insurance, those benefits vary greatly when offered. In some cases, it might mean employees gain access to a competitively priced option for those supplemental insurance plans. In other cases, employers may pay a portion (or all) of that coverage as well.

Opportunities for Growth

Unlike the previous types discussed, the opportunity to grow isn’t commonly thought of as a part of a compensation package. However, job seekers should always look for organizations offering clear pathways to move up within the company. Growing into higher roles over time comes with compensation increases. Organizations that actively offer those opportunities and encourage employees to take advantage of them ultimately are investing more in that employee’s growth long-term. The hospitality and hotel industry is known for promoting from within. Organizations value hard work and reward dedicated employees with a chance to grow professionally and financially.

Looking for Opportunities with Competitive Compensation Packages?

Knowing what you want in a future position is key for initiating a job search. Ideals in a position include compensation packages but also other factors potential employees look for – like flexible scheduling or a location close to home. Each job seeker differs on what is ideal for them. In any case, outlining both your preferences and necessities in a next role is a great place to start. From there, seek out a job board that is updated frequently, easy to navigate, and offers comprehensive job descriptions that clearly outline compensation packages and what they include.
It’s fair to assume that positions offering the most competitive compensation plans are often the most highly sought after. So, it’s important to stand out during the application and interview process. Highlight key strengths and experience, arrive professionally and on time, and express the desire to contribute to the success of a team. For most hiring managers, that alone makes you highly competitive for well-compensated positions. Once in the hospitality industry, it is easy to grow. Take a look at our current job opportunities to see if now is a good time to make a positive career shift and change the trajectory of your future!