Any Solution To Attrition?

Newton's third law of motion fittingly exemplifies the existing condition of the hospitality industry. While occupancies and ARRs are escalating, one vital characteristic of the sector is suffering. Retention of human resource. Vyas Sivanand asks the industry for a solution.

The hospitality industry is witnessing comprehensive augmentation in business with most hotels raking in the moolah owing to the vast gap in demand & supply. It may seem to be the best of times for the industry, but one vital area, which is simultaneously ‘suffering’, is the human resource segment. The attrition level has escalated like never before. While the industry is losing their best resources to competition, other industries like airlines and the IT sector have suddenly diverted its preference towards hospitality industry's human resource. To discourage attrition, bigger hotel chains are trying to utilise their network to send their staff to different destination with a promotion within the chain, while small hotel groups resort to improving the working environment. According to the industry, the problem is grave, but there is no solution until and unless the industry's man power allocation increases, which is a distant possibility.

Ajay Kashyap, human resource manager, Trident Hilton, Cochin

"Specifically talking about the unit in Kerala, the phenomenon is, people tend to focus on going to Gulf countries. This is very exclusive to Kerala and is a state of mind. This is one factor, which we at the hotel completely focus on. Previously, the tailor-made approach involved a hotel management school and the hotel industry, but now there are many other service centers, which are on the look out for students passing out from hotel management schools or even those working with the industry. But the industry's business model does not support the requirements needed to tackle the issue. While for a Call center, the percentage of man power cost out of the total may be as high as 40 per cent, while in a hotel, it is only in the range of about 12-20 per cent. In such a scenario, attrition is unavoidable. The approach taken by me is to plan accordingly so that there is enough time for a new person to join and yet be comfortable. There is enough supply of man power, so we are not overtly concerned.

Ashok Tiwari, human resource manager, The Kenilworth, Kolkata

"The main reason for high attrition levels is obviously the salary. Freshers from hotel management schools are paid about Rs 5000 in the first year, Rs 6000 in the second year, after which they are taken on rolls. But the difference is huge, when compared to the package given by other industries. The only way we can tackle the problem is by providing them a better working environment, give them responsibilities and opportunities and also by making them feel important. Monetary aspects do define, but such personal issues also play an important role in deciding comfort levels. We also compare the package provided by other hotels and try to match them."

N Muralikrishnan, area manager-human resources, Taj West End, Bangalore

"Supply towards the industry from from the hotel management colleges is coming down and we realise that we have to develop from within by retention of key employees. It is mostly the young employees who tend to leave us more often than the older employees, further to which our focus is more towards them. We try to be sure that we are picking those who are keen on joining and continuing with the industry. An advantage of the Taj group is that we have minimum level of attrition within the industry. We do not lose people to our competition and being a large chain, we can strengthen it by internal movement within the Taj group, which paves way for growth. We are also focussing on trainees through specialised programs, wherein they are with us for about 2-3 years and at the end of which, they become our resources. We can even use them when there is dearth.

S R Thiyagharajhan, human resource manager, Radisson GRT, Chennai

"We are finding it very difficult as far as retention of employees is concerned. We are currently recruiting through consultants. The problem is currently with retaining ladies, who are moving to the airline industry. Earlier it was the IT industry, which was taking most of the chunk, but now the airline industry, which is also booming, is pulling in a lot of people from us. We can match the packages to a certain level, but then we just cannot afford to match the levels of airlines and IT industry."

Vikrant Usgaonkar, director-human resources, Radisson White Sands Resort, Goa

"In Goa, the attrition levels are very high especially because of the cruise liners. They prefer the local staff as they are well versed with English and even have a natural accent. Other than the cruise liners, Goa also poses attrition concerns because of the large number of international chains in the state, especially with the executive and the lower level employees. The HODs typically jump from one hotel to another rather than going for other industries and with rampant poaching every now and then between the hospitality industry, HODs jump even for few thousands more. We can negotiate with such movements, but with cruise liners, we just cannot afford their package. We are also providing extra perks to the HODs and are also focussing on recruiting hotel management graduates as much as possible."

Vivek Mudaliar, human resource manager, Taj Exotica, Goa

"To counter the rising attrition levels, the only feasible option is the raise the bar on salaries so they refrain from even thinking of going to some other company. We are also applying a career progression option wherein an employee can also go to other hotels in various destinations in the country and abroad, within the group. With the group on a major expansion drive, we can provide several options to our employees within the group. If an employee has been with a hotel for sometime, and is able to handle higher responsibility, we can work out a way so that he gets a movement to a higher designation in a different hotel under the Taj umbrella."

Sujeet Kumar, director-operations, Goa Marriott Resort

"We do have to cope up with the high attrition levels in the industry, but with the culture followed by Marriott, there is a balance in place. We are proud to have the lowest attrition rates in the country, which we have acquired after taking care of the basic needs of our employees. We might be the only hotel to provide six days off in a month, other than having flexibility in timing. Marriott has huge operations abroad and utilising the network, we were able to send almost about 150 people to our network outside the country in the last three years. We are following the policy of promoting from within and these steps have delivered. Though attrition is a fact and it will continue without doubt.”

Major Manish Juyal, human resource manager, Chola Sheraton, Chennai

“Attrition is something which will be quite prevalent in any industry, irrespective of the sector. Earlier, employees used to quit the hotel industry to join call centers, but now people are quitting call centers to join other call centers which are paying better packages. Soon, a time will come when the segment will have less demand, which I feel is happening now. As of now, I feel, the attrition levels, which used to be quite high till sometime back has reduced dramatically. We in the human resource department can only make things more conducive for the employees, the rest depends on their decision. But one thing is for sure, the problem is not as severe as it used to be."

Raja Gopaal Iyer, corporate director, Uday Samudra Leisure Beach Resort, Kovalam

"The management should understand that when compared to other industries, the hotel industry is a 24/7 job where an employee ends up sacrificing a lot of personal time and pleasure due to odd working hours, which is inevitable. However it is also important for the management to come out with an innovative human resource practice to compensate the staff for the same. There can be different types of compensations - be it in cash, by means of comp-offs, compensation by means of other incentives like gifts, sponsored holiday etc. Team building exercise, excellent work atmosphere, clearly defined career advancement plan for each employee, transparent management style are some essentials to maintain employee loyalty towards the company. Management should differentiate between outstanding performance and plain performance and pay better package to the outstanding performer ignoring company scheduled salary structure. There should be awareness created. There should be some commitment towards the opportunity given to them."