Accommodation Industry Results from the 2008 Canadian Tourism Sector Compensation Study

In 2009, the Canadian Tourism Human Resource Council, and the Saskatchewan Tourism Education Council, partnered with Hay Group Limited to conduct the 2008 Canadian Tourism Sector Compensation Study. This was a national project that encompassed 2,016 organizations and 76,195 incumbents across Canada. Four primary industries in the tourism sector were covered by this study, including:

Food and Beverage Services

Accommodation

Recreation and Entertainment

Travel Services

As many as 166 organizations from across Saskatchewan participated in the study, 32 of which were identified as properties in the accommodation industry. More specifically, 6% were luxury hotels/resorts, 62% were mid-market hotels/resorts, 9% were economy hotels/resorts, 12% were inns/bed and breakfasts, 9% were cabins/campground/RV parks, and 3% identified as other. This wide range of respondents provided results that were representative of the accommodation industry as a whole.

Those occupations that were benchmarked in this study include: Accommodations Service Manager, Catering Manager, Director of Sales and Marketing, Executive Housekeeper, Banquet Server, Front Desk Agent, Guest Services Attendant, and Housekeeping Room Attendant. Not surprisingly, Saskatchewan’s base wages for most positions ranked lower than our provincial neighbours, Alberta and Manitoba, as well as nationally.

If Saskatchewan workers are earning less in base wages in the accommodation industry, are they making up for it elsewhere?

Yes and no. Using the same benchmark jobs in comparison with Alberta, Manitoba and national averages, the total cash (base wage plus bonuses and incentives), brought Saskatchewan into a more competitive pay range. In fact, Catering Managers made it to the top of total cash averages.

This study also provided information on challenges related to compensation that are specific to employers in the accommodation industry. The top three challenges listed were:

1. Shortage of labour and a competitive labour market.

2. Difficulty in attracting and retaining employees, as the industry is perceived as low paying and temporary.

3. Rise of fixed cost and salaries.

Many people think turnover is related to wages, but that’s not necessarily the case. According to the study, two reasons staff is leaving workplaces in the accommodation industry are because of:

• Return to school – This reason was highest for full-time employees in small companies, and part-time employees in large companies when reward investment was low.
• A better opportunity from a business outside the tourism sector – This reason was highest for employees in larger companies when work/life balance was low.

This study provides employers with compensation information they need to both hire and retain employees. As our province moves from a motto of “good enough” to “great” accommodation organizations should be mindful of what’s going on in the rest of the country.

Research for the 2010 Canadian Tourism Sector Compensation Study will begin this summer. Every participating organization will receive a detailed report of the findings. If your organization is interested in participating in the upcoming compensation study, please contact Darcy Acton, Manager of Industry Human Resource Development, at darcy.acton@saskatourism.com.