In both Nigeria and in England, the cost of labor varies based on a number of factors. One such factor is the skills that the labor market offers and those that are actually available in the employees. Casual laborers normally get paid fewer amounts than the highly skilled employees who may be the head of department or the key marketing managers in the hotel industry. Some employees also generally attract more salaries than others even though they may be working at the same level. This depends on the actual contribution that they give to the company in which they work for. Certain skills are also scarce in the market. They are therefore very costly to hire on permanent basis.
The hotel industry in Nigeria offers considerably low pay. Most employees in the hotel sector in the country prefer hiring employees on temporal basis. This can be attributed to the considerably low cost of labor that is highly available in the market and the uncertainty in the market Kellner 1995). The ambiguity in the market related laws gives the hotel management an advantage over their employees. The laws which are not very clear in Nigeria on employee-employer relationship guidelines leads to underpayment of the employees who are mainly left to work in very unfriendly and insecure working conditions. However, in the four and five star hotels in Nigeria, payment of employees, both casual and the skilled, is much better than that of the low level hotels in the country. Corruption also greatly dominates the entire country thus making is very complicated for the country’s hotel industry to fully practice transparency and equity in the employment market (Krugman 1991).
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