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Compensation & Benefits

Kimpton: A Universal Approach to Compensation and Benefits

Agatha Gilmore

In a time when massive conglomerates and executive perks are the norm, it’s tough to imagine an organization in which custodians can expect the same financial treatment as the CEO.

Yet, at Kimpton Hotel & Restaurant Group LLC, the philosophy really is the same across the board: Get everyone involved, and manage everyone equally.

“One of our cornerstones is care: That’s the care of our guests and the care of our employees,” explained Alan Baer, senior vice president of human resources at Kimpton, a San-Francisco-based hospitality company with roughly 6,500 employees in 42 hotels nationwide. “Well-cared-for employees treat our guests with respect; [they] treat our guests better when they’re compensated and their benefits are in line.”

For this reason, Baer shares the responsibility for enterprise-wide compensation and benefits with his colleague, Lori Newberg, director of compensation and benefits, as well as with a panel of volunteer employees who offer advice and input.

“The amazing thing is that we get a tremendous amount of response — people want to do [it],” Baer said. “Those in the operating lines and those who are dealing with our guests everyday and dealing with our clients, those are the folks that have to be part of the process. When you leave it to people whose job it is — for example, human resources — you only get one perspective.”

In order to get different perspectives and viewpoints, Baer said Kimpton has implemented a formal compensation committee, chaired by the company’s board of directors, to tackle executive-level compensation considerations.

The compensation and benefits evaluation process is “ever evolving,” according to Baer. Every year, the company conducts a wage and benefits survey of the competitors in each of its markets — 13 cities in all — to determine what’s fair and reasonable. It also reviews its own plan annually and encourages employees to weigh in because it’s important not to work in a vacuum, Newberg said.

The resulting benefits menu is the same for every employee and includes health, vision and dental insurance, as well as tuition reimbursement and access to the company’s training and education program, Kimpton University. The company also has created a mentorship program in which managers, regional employees and others are paired up with corporate executives for one year.

“It really gives the employees at every level access to key executives within the home office,” Baer said.

Kimpton also makes good use of its background in customer service, taking cues from guest policies when considering employee benefits. This often can result in quirky yet thoughtful amenities. For example, when the company opened its doors to pets and began offering pet insurance to guests, it soon extended the promotion to employees as well.

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