Staff Motivation at Banyan Tree Hotel

Staff Motivation at Banyan Tree Hotel

Staff Motivation at Banyan Tree Hotel

Table of Contents

TOC o “1-3” h z u Executive Summary PAGEREF _Toc88200381 h 21.0 Introduction PAGEREF _Toc88200382 h 22.0 Opportunity Statement PAGEREF _Toc88200383 h 32.1 Employee Motivation PAGEREF _Toc88200384 h 42.2 Employee Motivation and Banyan Tree Hotel PAGEREF _Toc88200385 h 43.0 Presentation of Primary Data PAGEREF _Toc88200386 h 53.1 Preferred Human Resource Motivation Practices. PAGEREF _Toc88200387 h 63.2 Impacts of Extrinsic and Intrinsic Rewards PAGEREF _Toc88200388 h 83.2 Other Factors that motivate Banyan Tree Hotel Employees PAGEREF _Toc88200389 h 94.0 Recommendations PAGEREF _Toc88200390 h 11Conclusions PAGEREF _Toc88200391 h 13References PAGEREF _Toc88200392 h 14

Executive SummaryThis study examines employee motivation at Banyan Tree Hotel. It evaluates various human resource practices and the different corporate social responsibilities contributing to employee motivation at Banyan Tree Hotel. The study also examines the impact of employee motivation on employee job satisfaction, productivity, creativity and well-being. The report identifies extrinsic and extrinsic rewards, environmental preservation, community development, and local purchase as factors contributing to employee motivation through an in-depth analysis of online surveys. The report provides recommendations on human resource practices and activities that Banyan Tree Hotel should eliminate, revamp or maintain to enhance employee motivation.

1.0 IntroductionAn employee plays a crucial role in the success of companies in the hospitality industry. The ability of businesses in the hospitality industry to experience market success, competitive advantage, and financial performance depend entirely on their human resource investment through employee motivation. Banyan Tree Hotel is a global icon in the hospitality industry; the hotel has earned over 1200 awards, notably the Forbes Travel award (Banyan Tree n.d). Banyan Tree Hotel is among the globally recognised luxurious hotels with impeccable services and a low employer turnover rate. This report seeks to investigate employee motivation at Banyan Tree Hotel by evaluating human resource practices that contribute to employee motivation and recommending employee motivation practices that the company should eliminate, revamp, or maintain.

2.0 Opportunity StatementBanyan Tree Hotel is one of the world’s leading players in the luxury resort market. Banyan is a developer of niche hotel chains comprising hotels, spas, and resorts that offer exceptional services to global tourists (Banyan Tree n.d). The hotel, significant investment in its workforce have significantly impacted its space in the worldwide hospitality industry. Unlike most players in the hospitality industry, Banyan Tree Hotel boasts of low employee turnover, high employee engagement and employee loyalty (He et al., 2021). The hotel recognises employees as its most valuable asset and the bedrock of its competitive and differentiating advantage and is committed to devoting resources to maintain the hotel and employee collaboration (Lim, 2009). Employee motivation is a crucial opportunity for Banyan Tree Hotel. Therefore, the company should effectively use it to expand its global market, maintain its leading position in the global hotel industry, and remain competitive. This report seeks to investigate employee motivation at Banyan Tree hotel. Specifically, this report objectives include;

To explore Banyans Tree Hotel employees most preferred human resource motivation practices.

To evaluate the impact of intrinsic and extrinsic rewards on Banyans Tree Hotel employees.

To investigate other activities by Banyan Tree Hotel that motivates employees.

2.1 Employee MotivationEmployee motivation is the most vital aspect of an employee’s work life. It contributes to employees enthusiasm, loyalty, and commitment towards the organisation. It also contributes to employees’ level of creativity and energy level in an organisation. By definition, employee motivation is how dedicated an employee is to their job, how involved the employee is with company goals, and how empowered the employee feels with their daily work (Lee and Raschke, 2016). The employee feels motivated in an organisation through meaningful work, opportunities for growth and development, recognition and appreciation, and autonomy and responsibility for their task. Employee motivation can be in the form of intrinsic and extrinsic rewards (Al-Madi et al., 2017). Intrinsic rewards are the internal feeling of satisfaction that employees derive from completing tasks. On the other hand, extrinsic rewards are tangible benefits that organisations offer to employees, such as bonus, medical covers, and pay rise.

2.2 Employee Motivation and Banyan Tree HotelEmployee motivation remains one of the significant strengths of Bayan Tree Hotel. The company is ranked globally as one of the best hotels in terms of employees working conditions and low employee turnover rate. Over the years, the company has invested in several initiatives and adopted measures to keep employees engaged, involved and empowered in their various roles. In October 2009, the company replaced its traditional Human Resource operations with SAP ERP Human Capital Management (SAP ERP HCM), which embraces progressive Human Resource approaches and processes (Lim, 2009). This new human resource approach enhanced Bayans’ ability to identity, nurture and retain talents within the organisation and attract new talents to the organisation. The new process was also to improve daily business operations and heighten productivity in terms of employees services. Additionally, the new system was to synchronise employee’s data across talent management, e-recruitment and human resource systems in real-time to enhance better talent identification, selection, recruitment and management (Lim, 2009). Companies that adopt SAP ERP HCM globally boast of improvements in performance with an efficient, motivated and committed workforce.

Additionally, Banyan Tree Hotel invest in intrinsic and extrinsic employee rewards. The company employees undergo basic standards of five-star hotel training. The hotel also allows employees to manifest their creativity and sensitivity (He et al., 2021). Also, the Bayan Tree Hotel invest in employees’ welfare. The hotel provides employees with medical services, childcare facilities and a conducive working environment (He et al., 2021). Additionally, the company provides incentives and recognition to customers. Employees receive bonuses in March at the end of every fiscal year. Banyan recognises long-serving staff through Associate Recognition Event (ARE) and offers several awards such as Best Chef (Banyan Tree n.d). These practices have seen Banyan Tree Hotel maintain a competitive edge in the hospitality industry.

3.0 Presentation of Primary DataThis research administered online surveys to investigate employee motivation in Banyan Tree Hotel. The online survey targeted all level employees of Banyan Tree Hotel in Bangkok, Thailand and Hangzhou, China. A total of 112 employees filled the surveys correctly, answering all the questions. These surveys were then analysed, and findings are presented in the pie charts below.

3.1 Preferred Human Resource Motivation Practices. Figure 1: Period with Banyans Tree Hotel Figure 2: Physiological satisfaction

Figure 3: Tangible satisfaction Figure 4: Most Preferred Extrinsic Rewards

Figure 1 shows that a large percentage of Banyan Tree Hotel employees who participated in the survey have been working with the hotel for more than five years, indicating that Banyan Tree hotel has a low employee turnover rate. Figure 2 shows that a large percentage of those who participated in the survey find satisfaction in completing their tasks, indicating the presence of a conducive working environment at Banyan Tree Hotel. Figure 3 shows that a large percentage of the employees are not satisfied with the tangible rewards at the hotel, implying that the various financial rewards that Banyan Tree hotel offers are not satisfactory. Figure four shows that many of those who participated in the survey prefer pay rise and bonuses to other financial rewards offered by Banyan Hotel Tree.

3.2 Impacts of Extrinsic and Intrinsic Rewards

Figure 5: Impact of Rewards on Productivity Figure 6: Impacts of Rewards on Creativity

Figure 5 shows that many Banyan employees who participated in the survey feel that employee motivation enhances productivity. This implies that extrinsic and intrinsic rewards at Banyan Tree Hotel impact employees’ ability to perform. Figure 6 shows that a large percentage of those who participated in the survey neither agree nor disagree that employee motivation influences creativity. This implies that with or without rewards, Banyan Tree Hotel employees are willing to contribute new ideas to the organisation operations.

Figure 7: Impact of Rewards on Job Satisfaction Figure 8: Impact of Rewards on Welfare

Figure 7 shows that many employees who participated in the surveys do not agree or disagree that rewards impact job satisfaction, implying that Banyan Tree Hotel employees do not depend on rewards entirely for job satisfaction. Figure 8 shows that many employees who participated in the survey strongly agree that rewards impact well-being, indicating that Banyan Tree Hotel rewards affect the overall employee well-being.

3.2 Other Factors that motivate Banyan Tree Hotel Employees

Figure 9: Impact of Environment Preservation on Employees motivation

Figure 9 shows that many employees who participated in the survey consider Banyan’s contribution to human and animal environment preservation as a reason to work with the organisation. These employees draw satisfaction from the act and are willing to engage and involve with Banyan Tree Hotel.

Figure 10 Impact of community Development on Employees motivation.

Figure 10 shows that a large percentage of Banyan Tree Hotel employees who participated in the survey enjoy working with the hotel due to its involvement in various community development activities. These employees consider this generosity from the hotel a motivation to work with the hotel.

Figure 11: Impact of local product purchases on employee motivation

Figure 11 shows that Many employees who participated in the survey do not agree or disagree that the hotel purchasing raw material from the local community impacts their enthusiasm, engagement and energy level towards the hotel.

4.0 RecommendationsBanyan Tree Hotel engages in different activities and human resource practices that impact employees’ motivation; however, not all these practices and actions have proven effective in building an engaged, involved, and loyal workforce. Therefore, this report recommends various human resource practices and activities that the hotel should eliminate, revamp or maintain to enhance its employee motivation.

Banyan Tree Hotel should maintain the different activities it engages in its Corporate Social Responsibility. The Hotels generosity towards the community plays an essential role in impacting employees’ motivation. The hotels’ active involvement in natural and human environment protection and engaging the local community to create employment opportunities and community development gained the respect and satisfaction from staff, acting as a form of motivation to continue working for the company (He et al., 2021). Corporate Social Responsibility is an integral part of the tourism industry; being part of the broader society satisfy stakeholder needs and help organisations gain societal legitimacy (Asrar-Ul-Haq et al., 2017). Although CSR might seem expensive initially, its impact on business operations and employee motivation contributes significantly to business performance and productivity. For instance, Banyan Tree Hotel boasts of a low employee turnover rate, which is majorly a factor of the company Corporate Social Responsibility. Employees want to be associated with a company that takes an interest in the community and the environment (Asrar-Ul-Haq et al., 2017). This reduces the cost associated with hiring and recruiting new employees, training new employees, and the impact of an employment gap in employees’ activities and customer satisfaction. Thus, this report recommends that Banyan Hotel Industry maintain its community services to enhance its employee motivation.

Secondly, Banyans Tree hotel should revamp its extrinsic rewards. The company offers its employees medical services, bonuses, training and other benefits such as child facilities provisions. However, these activities do not meet the threshold of what employees consider sufficient motivation. Therefore, the hotel should implement the below measures to revamp its extrinsic rewards and improve their impacts on enhancing employee attitude, loyalty, and commitment to the hotel.

The hotel should adopt a broader and quality career development platform. The hotel offers its employees basic standards of five-star hotel training, which is not adequate in developing and cultivating highly skilled personnel. The company should provide its employees with training that incorporates leadership skills, technical skills and personal development. A highly skilled employee contributes more to hotel productivity (Al-Madi et al., 2017). Also, training impacts employees’ attitude towards the company; training show how a company value and consider employee as important assets. In return, employees become loyal and dedicated to the organisation.

The hotel should design an effective incentive mechanism that focuses more on tangible financial rewards such as pay rise and bonuses than recognition awards and development of social amenities facilities. The company continuously engage in employee recognition awards with little or no financial benefits. Even though recognition plays a significant part in employee attitude towards the job, financial rewards imply an improvement in the economic situation of employees (Al-Madi et al., 2017). Financial benefits significantly impact employees’ productivity as it eliminates financial worry and distress.

Additionally, the hotel should eliminate its strategy that bases employees bonuses on the overall performance of the entire group of companies. Banyan Tree Hotel employees receive bonuses every fiscal year; the amount varies depending on the overall performance of Banyans Tree Holdings (Banyan Tree n.d). The hotel should base the bonuses on individual company performance, not group performance. An employee whose group company branch performs well is bound to receive less or similar bonuses with an employee from a group company branch that performs poorly. This kind of motivation impacts negatively on employee attitude. The bonuses rewards should be the expense of a specific Banyan Tree company, not the entire group, to ensure that employees from branches that perform well are fairly rewarded. This will also reduce incidences where employees use the worst-performing Banyan Tree Holding company branch as a yardstick to measure performance. Although financial incentives such as bonuses motivate employees to work hard and remain loyal and dedicated to the company, a fair financial reward system significantly affects employee motivation.

ConclusionsAn employee is a significant asset in the success of the business. This report provides insight into the types and importance of employee motivation, an aspect of business that will benefit my plans to open and operate a successful company. The research used a small sample size in its analysis; the findings might change when big sample size is used. Additionally, the study focused on the hotel aspects of Banyans Tree Hotel, a holding company with a diverse portfolio; the findings might be different if other parts such as SPA and golf are included. Big sample size is necessary to improve the overall results of the research. Most organisations and employers consider motivation to be costly to the business. Even though this might be true, in the long run, a well-motivated workforce pays off and is crucial in company growth, competitive advantage and productivity.

ReferencesAl-Madi, F. N., Assal, H., Shrafat, F., & Zeglat, D. (2017). The impact of employee motivation on organisational commitment. European Journal of Business and Management, 9(15), 134-145.

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He, J., Morrison, A. M., & Zhang, H. (2021). How high-performance HR practices and LMX affect employee engagement and creativity in hospitality. Journal of Hospitality & Tourism Research, 1096348021996800.

Lee, M. T., & Raschke, R. L. (2016). Understanding employee motivation and organisational performance: Arguments for a set-theoretic approach. Journal of Innovation & Knowledge, 1(3), 162-169.

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