Award Date


Degree Type

Professional Paper

Degree Name

Master of Hospitality Administration


Hotel Administration

First Committee Member

Gary Potts, Chair

Number of Pages



Choice Hotels has franchised hotel owners who must understand the financial impact that arises from turnover due to employees’ perceptions of inequitable total compensation. Currently, for franchise hotel owners, there is not any guidance on this from Choice Hotels. The purpose of this paper will be to explore the current literature regarding total compensation and to develop a set of recommendations that Choice hotel owners can use to retain both their managers and employees. If there is any question as to why turnover is such an issue in the hospitality industry, one only needs to look at the countless studies on the subject to find that most agree that poor total compensation is one of the major reasons for turnover. Owners and companies must understand that there is a direct link between equitable, competitive compensation and increased revenues. If hospitality companies continue to have the reputation of having high turnover and poor compensation, companies will not be able to get the most productive employees to work for them. If owners feel that they cannot afford to have competitive compensation plans, they must understand the true cost of turnover. It is more cost effective to pay a good employee to stay and to be productive, than to incur turnover costs when they leave.


Employee fringe benefits; Hotels; Hotels – Employees; Labor turnover – Economic aspects; Pay equity; Wages — Psychological aspects


Hospitality Administration and Management

File Format


Degree Grantor

University of Nevada, Las Vegas




IN COPYRIGHT. For more information about this rights statement, please visit