Career Focus

Cashing in on hospitality

Bean counting and number crunching might not be up everyone's alley, but the hospitality industry definitely makes a career in this field more interesting. Neeti Mehra analyses how a finance professional can cash in on the hospitality boom

Picture an atypical finance professional and immediately a vision of an accountant surrounded by a mountain of files and a litany of vouchers conjures up. Relegating this image to the background, a finance professional in the hospitality industry today is not defined by a singular role or a linear growth pattern.

Today, each role chosen within this field encompasses a wide gamut of responsibilities, and requirements for personnel including that of an accounts executive, income accountant, credit manager, F&B controller, chief accountant, financial controller, director of finance, general manager of finance, group financial controller, group internal audit manager and so on. The industry's dynamism commands a level of involvement - a far cry from a job formerly maligned as mundane and monotonous.

Exploring the field

Finance as a function within the industry acquires dual proficiency - a degree in commerce being a basic requirement - an added qualification of chartered accountancy or an MBA for upper managerial levels coupled with a diploma in hotel management. This ideal combination is a rarity, according to hospitality veterans, with the hospitality education being absent.

Delnavaz Kapadia, financial controller of Oberoi Hotels & Resorts, Mumbai, joined the company twelve years ago armed with a degree in chartered accountancy. "For managerial roles we look at chartered accountants, but for the assistant manager level we consider commerce graduates as well," she says. Kapadia added that the organisation offers many opportunities for growth with five levels of hierarchy starting from the staff and supervisory level, moving on to the assistant manager and the manager, the chief accountant, the financial controller and finally, director finance.

Nevertheless, knowledge of hospitality is an integral for effective performance, says H A Mishra, managing director of Foodesign Hotels & Resorts Systems. He explains, "A complete and thorough knowledge of the industry is necessary. Only someone proficient in the operational aspects of hospitality and financial knowledge can perform to their potential." This knowledge not only requires analytical skills but the ability to develop ratios and thumb rules for various business functions like sales to cost ratio and PE ratio, apart from being aware of laws and tax holiday schemes announced by the finance ministry.

Operational knowledge becomes a necessity at unit levels since employees have to deal with specific departments in depth. However, a hospitality-specific education is not required at the head office level since there one is involved with the broader functions and not the nitty-gritty. Up the hierarchy, the job role moves away from the rudimentary debit and credit, moving towards qualitative controls and costing, and more procedural and planning.

The qualities necessary for a successful financial manager include leadership skills and excellent communication, apart from team work management, supplemented with training in the same area. People skills are as important too; a pleasant persona and a willingness to interact with people and think beyond the pure accounting domain to essay a greater role and understanding the way a hotel functions is imperative.

Vishwas Shetty, general manager (Finance), Chalet Hotels, believes that the finance function becomes the nerve centre of information creating excellence within a property. "It requires special orientation in the mindset as well as special competencies in the individual. This is a necessity since the hotel business is an inward-looking business. Hence it is logical that robust processes and systems are created to drive efficiencies. Finance managers are the ones who have the entire operations and cost overviews and their competency determines accuracy of reports for the management and provide assistance to other HODs regarding the financial implications on their business decision," he says.

Additionally, knowledge in the requisite accounting systems and technology is a must, given that manual accounting has given way to a wired world. Mishra avers, "Today technology gives maximum results and helps obtain optimum potentiality and helps to take corrective action. Otherwise it is hard to handle volumes. This enables time to hone skills to monitor and interpret results."

Unique hospitality

Working in the hospitality industry is quite unlike others. The job, though challenging with high stress levels, is equally rewarding with the quality and job satisfaction that it yields. As many say - once involved in the finance department of a hotel, other industries don't hold that much appeal. Working with a hotel also affords professionals opportunities to rise to the cluster level and then to the regional level, apart from exposure across all properties. However, the drawback is that at unit levels, treasury and other functions may be handled at the corporate office, thus restricting exposure.

Also, attrition levels are not as high as compared to key operational areas where employee turnover goes up to as much as 80 to 100 per cent. And salaries, though not comparable with that of the fast growing retail industries, is creeping up the value chain. Says Shashi Mishra, senior HR manager at Mumbai's The Club, "This industry is growing very fast and reputed brands are paying high salaries." According to Shetty, pay scales at the beginner levels start from Rs 12,000 to Rs 15,000, mid-level ranges from Rs 35,000 to Rs 50,000 going on to approximately Rs 1,00,000 to Rs 1,25,000 per month at the senior level.

Unfortunately, the industry is still male-dominated except in the areas of guest service and housekeeping. For instance, according to Kapadia approximately 10 per cent of the finance department at Oberoi Mumbai consists of women. Growth in this industry is a function of performance and not the number of years one puts in, she says, with the qualification not restricting one from breaking through the glass ceiling. Rigorous training procedures serve as crash course to acquaint professionals with the operational aspect of hospitality, but it depends on the interest levels of an individual to constantly endeavour to pick up skills alongside work. But today, opportunities are available galore in the hospitality industry, especially for one who has balanced his knowledge of industry operations and finance; a perfect chance to cash in.