MSC Cruises Increases Crew Salary and Introduces Performance-Based Bonuses

Jul 29, 2023

MSC Cruises recently announced a boost in crew salaries, aimed at attracting and retaining talent in the industry. The wage increase started in June, ranging from 2.5% to 6%, and applies to all crew members, officers and staff regardless of their positions. This step by MSC Cruises is expected to bring crew wages closer to industry standards, ensuring fair compensation for their hard work and dedication.

Basic Wage Increase for All

The wage increase will cover crew members across various departments, including Deck, Engine, and Hotel. Specifically, 53 positions that contribute significantly to providing guests with an unmatched experience on board will benefit from these salary raises. By enhancing the basic wages for all positions, MSC Cruises is demonstrating its commitment to recognizing the essential role crew members play in ensuring a memorable and enjoyable cruise experience for their guests.

Performance-Based Bonuses

In addition to the general wage increase, MSC Cruises is introducing a performance-based annual bonus scheme for managerial positions. Crew members in key roles such as Chief Housekeeper, Dining Operations Manager, Cruise Director, and Facility Director will be eligible for this bonus. The bonus will be equal to 5% of their yearly income and will be linked to several key performance indicators (KPIs) that align with the company's goals and values.

The bonus will be determined based on the following metrics:

•40% Net Promoter Score (NPS) per ship/canvas: NPS measures customer satisfaction and loyalty, a crucial aspect of delivering exceptional service to guests.

•30% BETTER Crew Survey: This survey assesses the crew's job satisfaction and engagement, which directly impacts their ability to provide outstanding guest experiences.

•30% Other KPIs: Specific performance metrics related to the crew's responsibilities will also be considered to determine the bonus.

Targeted Positions and Salary Increases

MSC Cruises has identified specific positions for which the salary increases will be higher, based on their importance to the overall cruise experience and the industry standards. Some of these roles include Chief Housekeeper, Executive Chef, Chief Engineer, Hotel Director, and Cruise Director.

For instance, Chief Housekeepers, Executive Chefs, and several other managerial positions will receive a salary increase of 7%, in addition to the performance-based annual bonus. Chief Engineers, Hotel Directors, Staff Captains, and Staff Engineers will see a salary increase of 6%.

The aim of these targeted raises is to reward and incentivize key personnel who are directly responsible for delivering outstanding guest services, maintaining the ship's operational efficiency, and ensuring the overall success of the cruise.

New Compensation Model

MSC Cruises is introducing a new compensation model that includes a general increase of 6% in the basic salary for all crew members. Additionally, a portion of the pay will be determined based on the crew member's performance and their experience in the industry.

Certain positions will also be eligible for an additional beverage gratuity allowance and a booster revenue bonus, depending on factors such as their total beverage revenue compared to the target.

Attraction, Retention & Guest Satisfaction Boost

To further enhance crew motivation and job satisfaction, MSC Cruises is implementing a new compensation model for F&B (Food & Beverage) and Housekeeping departments. Crew members in roles such as waiters, bartenders, cabin stewards, and butlers will experience salary adjustments driven by factors like guest satisfaction, departmental performance, prepaid packages commissions, role seniority, and a booster bonus. This booster bonus will be activated when the total beverage revenue (prepaid & direct sales) exceeds the target in PPD (per passenger per day).

MSC Cruises' decision to increase crew salaries and introduce performance-based bonuses is a significant step towards recognizing and rewarding the hard work and dedication of its crew members. By aligning compensation with crew performance and industry standards, MSC Cruises aims to create a motivated and engaged workforce, ultimately leading to an even more exceptional and unforgettable experience for their guests on board their cruise ships.