Human Resources

Exploring the human capital crunch

Many a surveys have stated that the hospitality industry has been found to be one of the largest employers, even exceeding the IT industry. Add to this are the numerous hospitality institutes mushrooming all over the country with a variety of short-term, long-term and part-time courses. Why then are the attrition rates so high? By Beryl Menezes

In an industry which has boundless scope for various vaccancies and is one of the biggest employers, it is difficult to imagine how demand for human capital severely exceeds supply. Today, out of all the management courses opted for by students, hospitality management or short-term hospitality courses are the most popular. This is perhaps because they offer all-round interpersonal, social and human relation skills, leaving graduates with multi-tasking and crisis handling abilities far superior to that of ordinary management students.

B P Sahni Principal of Anjuman-I-Islam's A K Hafizka College of Hotel & Tourism Management Studies & Research

B P Sahni, principal of Anjuman-I-Islam’s A K Hafizka College of Hotel & Tourism Management Studies & Research, says, "Despite this, almost 90 per cent of all hospitality management students either leave for foreign shores like the Middle East and Europe or join other sectors like travel, MNCs, BPOs, retail or fast-food chains. This is because of meagre pay packages, pre-conceived notions about the industry, long working hours, lack of holidays, lack of fringe benefits and dissatisfaction due to lack of acknowledgement."

Aishwarya Mudaliyar, assistant manager (Training), The Park, Bangalore, says, "Hospitality students are welcomed by all industries for their superior training. So why should they stay in the hospitality industry when other sectors are offering far more attractive packages with lesser working hours and more holidays?"

While pay is the main grouse among dissatisfied hospitality employees, long working hours and few holidays come a close second. Says Delyse Braganza, VP (sales & marketing), Kamat Hotels, Mumbai, "Hospitality industry employees do not get Sundays or long weekends off or on festivals either. While guests are enjoying themselves, the staff has to work twice as hard. This is increasingly putting more pressure on employees."

Aishwarya Mudaliyar Assistant manager - training, The Park Bangalore

Anju Timblo Managing director Cidade de Goa

There is no real solution to this problem, as the hospitality industry being a service industry needs to be operational 24 hours with the result that employees are forced to work in shifts with no fixed work timings. According to Narinder Singh Bhuie, director (studies), NCHMCT, "Abroad there is an act stating minimum working hours for all employees. Something similar like the Factories Act should be enforced here as well."

However, not many in the industry agree with him. They believe that it is not possible to ensure fixed working hours for employees. But as compensation, they all agree that a lot of other options can be taken into consideration to ensure employee satisfaction. "On the job-training as well as team-building where each employee is allowed to voice their opinion and ideas will encourage a sense of empowerment. Also, all employees should be treated at par with their superiors and be allowed to participate in decision making," says Ruchita Verma, director, ITM Institute of Hotel Management, IHM.

Besides this, fringe benefits like medical allowances, day-care centres for children, regular bonus and other incentives as well as employee award functions, recognising their efforts at all levels will also lead to a more satisfactory and pleasant work environment, because a healthy work environment is of paramount importance in an industry like hospitality.

A little respect

K N Vasudeva President, Bangalore Hotels Association

Delyse Braganza VP (sales & marketing) Kamat Hotels, Mumbai

As far as increasing the pay scale of employees is concerned, there is dispute in the industry as to the minimum pay, profit-sharing and payment in comparison with other industries. Sahni notes, "Hotels today are making huge profits and importing everything from machinery to chefs. Yet they do not know how to respect their employees who are directly responsible for their success. Employees are made to work long hours with low wages and do not have a chance to rise quickly in their career. If they leave for better opportunities, it is a normal thing, but if employees are dissatisfied, there is a serious problem."

Remarks Dr Jagmohan Negi, advisor, FHRAI-IHM, "HR persons from individual establishment should conduct extensive research in order to reach a satisfactory wage scale that is equivalent to those offered by other industries."

Yet in the midst of all these concerns is a major glitch. "Hotels can increase wages only to a certain extent. After that, it will put pressure on the hotel's revenue model," says K N Vasudeva, president of the Bangalore Hotels Association. However, a solution jointly voiced by him and Bhuie is that the government needs to intervene by providing grants to hotels so that they can increase wages. According to them, employees, the industry and the government should work together towards enhanced productivity and mutual satisfaction of all.

Another crucial aspect to this is providing adequate training to employees. "While there is no dearth in training institutes, they should not be purely commercial ventures but institutes of quality learning," says Anju Timblo, managing director of Cidade de Goa. Many hospitality institutes today are even affiliating themselves with foreign hospitality institutes. But as is often the case, training stops once a student starts working.

However, it must be remembered that constant updating of skills and regular training throughout the course of employment is required for maximum output. Today, many institutes are offering three-year graduate courses and even one-year diploma or six month short-term courses at the operational level, which is a much needed step, as it is at this level that the most attrition takes place, mainly due to insufficient training, state both Timblo and Braganza. Timblo adds that at the managerial level, where employees would have already put in five to ten years in the industry, they are less likely to leave for better prospects, but would rather work on improving existing conditions for the ultimate betterment of the hotel.

Thus, the need of the hour remains an attractive entry-level pay package combined with an interactive and friendly work environment. It is important to remember that employee satisfaction is of utmost importance, not only to prevent attrition but also for the hotel to meet with success. As Mudaliyar says, "In the animal kingdom, might is right. In the human realm, everyone has rights."