HTM 2030 Lecture Notes - Lecture 21: Deferred Compensation, Manulife

• School: University of Guelph
• Department: Hospitality and Tourism Management
• Course: HTM 2030
• Professor: William Murray

Document Summary

Labour is a major component of prime costs: can range from between 15-45% of sales. Ability to deal effectively and manage labour is an important requirement for food and beverage managers. Direct compensation (cid:858)dire(cid:272)tly related to a perso(cid:374)s jo(cid:271)(cid:859: salaries, wages, overtime, tips or gratuities, bonuses, commissions. Indirect (cid:858)co(cid:373)pe(cid:374)satio(cid:374) other tha(cid:374) dire(cid:272)t(cid:859: paid vacations, health benefits/life insurance free meals free living accommodations, discounts, company vehicles, education/child care, employee assistance programs. Deferred compensation is received by and employee after the conclusion of his or her period of employment: pension or health benefits, all have some impact, direct or indirect, on the overall cost of labour in an establishment. According to manulife financial, the cost of turnover is approximately 40% of that e(cid:373)ployee(cid:859)s salary: this includes the cost of lost business, lost training, departure costs, disruptions in productivity, and the expenses involved in hiring new people. Wages: 7 cooks x 35 hours x per hour = ,410. 00.