Travel firms have been warned against offering large salary hikes to fill gaps in workforces and urged to consider incentive schemes and spot bonuses as a more sustainable way to attract and retain staff.
Speakers at Travel Weekly’s first People Summit in London this week said new candidates and existing staff could demand salaries significantly higher than those previously offered due to a competitive recruitment market.
But they cautioned against committing to significant cost base increases with the economic outlook remaining so uncertain.
More: Industry leaders call on travel firms to step up recruitment efforts
Travel firms urged to treat outgoing staff ‘fairly’
Hays Travel owner and chair Dame Irene Hays said: “Hiking baseline salaries and having big salary increases is not the way forward from where I am sitting…when you don’t know what is around the corner.
“We would much rather give a really significant bonus than bake your baseline salary. For us, that’s the best way for our business model.”
Hays added that any baseline increases should be awarded “equally and fairly” to ensure all employees in the same role received the same reward. She also cited how Hays Travel had recently introduced a rewards scheme in which staff can win monthly prizes including some to help with cost-of-living pressures.
The Travel Network Group chief executive Gary Lewis used a football analogy to illustrate how businesses could leave themselves exposed by setting a precedent for an individual.
“It’s the John Terry effect; you have to increase salaries for everyone else,” he said, in reference to challenges faced by Chelsea Football Club after then-captain John Terry became the highest-paid player in Premier League history in 2007.
Miriam D’souli, human resources director at Jet2.com and Jet2holidays, said the airline and operator had made two 4% company-wide baseline salary increases to reflect “the market rate”. But she also hailed the impact of spot bonuses on staff morale, describing it as a “whoosh effect”.
All 12,000 Jet2 staff who worked throughout the summer will receive a £1,000 bonus this month, while cabin crew were previously given a shopping voucher worth £250 after a particularly tough operational period.
D’souli said the bonuses would undoubtedly help with staff retention but companies which used the term “retention bonus” risked missing the opportunity to connect in a positive way with their teams.
She added: “We are deliberately calling it a ‘thank you bonus’. The terminology makes a difference. It’s had a ‘whoosh’ effect. We didn’t have to do it; we chose to.”
Delegates at the People Summit were also urged to treat outgoing employees “fairly” and with respect, with staff who chose to return at a later date described as “the best advertisement for a company”.
USAirtours chief executive Guy Novik said one member of staff had rejoined his firm four times in the past 25 years, having left for a variety of personal and professional reasons.
He added that recommendations from his own employees were the “biggest source of new staff”.
Accord Marketing chief executive Sally Winfield said it was “important how you treat people, whether they are coming or going”, adding the return of five employees after the pandemic was the “best advertisement” for her company.
Barbara Kolosinska, managing director of C&M Recruitment, added: “The likelihood is you’re going to cross paths again in the future. Always keep that door open.”
More: Industry leaders call on travel firms to step up recruitment efforts