HUMAN RESOURCES: Salaries and Benefits Rising in the Tourism Industry
by go2

It has been speculated that the labour shortage will increase both compensation and benefits within the tourism industry. A recent study by the Canadian tourism industry confirms that tourism compensation is up in BC.

According to the survey conducted on behalf of go2 and the Canadian Tourism Human Resource Council (CTHRC) by Hay Group - one of the country’s most respected human resource management consultants - tourism industry employees in western Canada are generally the highest paid in Canada. 

The 2006 Canadian Tourism Industry Compensation Study builds on previous surveys done in BC in 2004, and the western provinces in 2005. The most notable finding is that from front-line to management positions, BC salaries and wages have significantly increased. For the surveyed positions, the average wage increase was 10% and average salary increase was 11%. The largest increase was noted at 29%.

1,153 organizations across Canada participated in the survey, which examined the range of compensation of more than 51,000 individuals in the 27 most common industry positions. Overall results were then divided into three sectors: Accommodation, Food & Beverage, and Recreation & Entertainment.

Based on this 2006 study, BC hourly wages and salaries are 14% higher than the national average. Here are some averages of the positions found in liquor primary establishments, based on the average rates for food and beverage establishments. Actual wages and salaries will vary depending on the specific industry sector, size, and location of the property. Region-specific data is also available in the full study.

PROVINCIAL HOURLY BASE WAGE
Bartender $10.18
Cook $11.66
Food & Beverage Server $ 8.76

It should be noted that gratuities can account for a large percentage of total compensation. For example, 44% of survey respondents report receiving over 100% of their base salary in tips; 11% receive over 200%.

Employee benefit programs across sectors are far more common in BC than in Canada as a whole. For instance, 81% of BC operators provide dental care, 77% offer extended health care, 74% provide employee life insurance, and 73% provide long-term disability coverage. Comparable percentages on those programs for Canadian operators range from 52% to 59%.

In terms of effective attraction and retention programs, BC tourism operators cite the following as the most helpful:
• Ensuring employees have the tools/training to "do the job" (56%)
• Providing a safe working environment 47%)
• Ensuring there is equal opportunity/lack of discrimination (45%)
• Providing high quality leadership at all organizational levels (43%)
• Communicating company goals to all employees (41%)
• Ensuring roles/positions are seen as meaningful (41%)
Interestingly, most of the items on this list go beyond the conventional basics of providing a safe work environment and basic tools and job training. 

Of course, there are many important HR considerations when dealing with a labour shortage - two of which include compensation and benefits. Beyond these, however, in many surveys employees have also noted the following as important: quality leadership, effective cross-company communication, a team environment, and the opportunity to be challenged and motivated. 

To learn more about the industry’s changing compensation/benefits structure as well as effective HR attraction and retention programs, the BC and national reports on the study are available for purchase through go2. Contact John Leschyson at go2 at 604-633-9787 x 225 for further information.

Submitted by go2 - The resource for people in Tourism. For more information on using human resources to improve your business’ bottom line, visit www.go2hr.ca.