INDIANAPOLIS — Young employees at hotels need more than pure financial compensation and a clear pathway to earning incentives to be properly motivated, according to a panel of experts.
A clear pathway to career growth is key for retention for millennial and Gen Z employees — especially in revenue, sales and marketing, said Steven Chrappa, director of ecommerce at the Hard Rock Hotel New York.
"It really comes down to career progression and how you can realistically show it," he said at the 2025 HSMAI Commercial Strategy Conference. "It doesn't have to be a title change, but there if there are new projects that you can be involved in or new opportunities that you can go into, whether it's networking opportunities or organizations. But if someone's just being stagnant for two-plus years, it gets a little tough to stick around when you see your friends on Linkedin getting promotions or moving around."
Panelists said there can sometimes be unrealistic expectations for career growth, with some new employees expecting promotions as quickly as six months after starting, but employers are beholden to show a pathway regardless of expectations.
"I think also scope of work is big, as well," said Taylor Baca, director of revenue management for Kona Village, a Rosewood resort. "I left a director of revenue position for another director of revenue position because my scope of work changed. I have a larger portfolio with more responsibilities. It's important to think long term, and as long as I can keep adding to my skill set, that would keep me, for sure."
Chrappa said sometimes more unrealistic expectations for career growth can stem from a lack of communication from management.
"I think it's about having that constant dialogue and being able to understand where that disconnect is coming from because there might be unrealistic expectations from either side, whether it's the employee or the employer," he said.
In terms of cash incentives, panelists said the pathway to earning them needs to be clear and relevant to the employee's work.
"I need that person that's willing to chase the carrot, but I've got to make sure that the carrot is something that they eat," said Lori Kiel, senior vice president of revenue management for Pyramid Global Hospitality.
Kiel said it boils down to doing things that connect with employees and keeping it simple.
"I really think that some people that make these bonuses, they go to some special school of wizardry to figure them out," she said.
That underscores the need for two-way communication, and employees need to regularly be asking questions about things like bonus structure if they want things to get better, Chrappa said.
"The plans are developed in the back office," he said. "Everyone assumes that they know [how different jobs work], so if you're not really advocating for yourself, nobody else will."
Often a strong culture can be more of a motivator for employees than traditional incentives, Baca said. For example, giving employees flexible hours can move the needle significantly when it comes to retention.
Younger employees "want to be able to have that flexibility," she said.
Kim Snow, vice president of commercial strategy for Aimbridge Hospitality, said employee retention rewards need to come back to "the basics of our jobs — those things that net results."
"And if they understand how to achieve it, then it's easier for them to connect that these activities — these sales calls, this business that I'm booking, this group I'm converting — all of that sorts of builds the case or builds the foundation of them being able to achieve the budget," she said. "So I think it's just reminding them that what they do every day matters, and that's how we win."