The article shares personal views upon the varied facets of human resource management in the Indian hospitality landscape.
"The only constant is change, continuing change, inevitable change..."
Isaac Asimov
Hospitality India is no stranger to this maxim and now finds itself
in the midst of yet another change as the hands of time whirl on. As
the sector transits from a period widely accepted as the ‘Golden Age of
the Indian Hospitality Sector’ to one that could well be known as that
of the ‘Golden Handshake’. The challenge for the Hotel Human Resource
(HR) department in the year 2009 would, thus, be in keeping the
employees motivated as well as informed about the fall out of the
global meltdown, which could impinge on the work environment in terms
of job security, reduced growth avenues, and compensation. It will not
be easy for employees to rein in their needs and aspirations and
changing their mindsets will be the next challenge for HR. The scenario
requires precise and timely communication with employees apprising them
of the situation.
The drastic shift in world economies has led to emotional upheavals
and turmoil for the employees, which would need to be identified and
appropriately managed. Most employees, having not witnessed an era of
pink slips and pay cuts, would also need to be psychologically
counselled to avoid feelings of failure, insecurity, rejection and
restlessness. On a more positive note the supply-demand imbalance in
the Indian Hospitality industry means that for the average and good
employees, the market still remains strong in the medium to long term.
Therefore, the numbers of hotels that are likely to come up are going
to ensure that there will be job opportunities in the medium to long
term. This is certainly a bright spot compared to other sectors that
currently look bleak.
Compensation
HVS predicts the current fiscal year to have relatively smaller
growth in terms of real capital for employees. From a high of 15% in
terms of year-on-year real compensation in the last three years, the
industry now faces a ‘ZERO year’. A few corporates are even planning on
pay cuts for their senior management. With shrinking revenues and
virtually non-existent profits/bonuses, the biggest dilemma is that of
companies’ inability in meeting variable compensations. This problem is
more serious amongst the mid-level and senior management who face the
prospect of a lifestyle transformation with the fear of defaulting on
their commitments and over-stretched loans, the repayment of which had
been largely apportioned to the profits. Individuals would have to
rework their financials to be better prepared for the immediate future.
Companies might also benefit in terms of building upon employee trust
and loyalty by extending soft loans to employees or finding other
measures that ensure the continuity of their basic needs/ commitments.
Leadership and Role Models
These difficult times would test the strength of the leadership, who
would not only be responsible for managing the operations and improving
the bottomlines but also providing emotional stability to their staff.
The proverbial ‘pat on the back’ and ‘sharing and bonding’ with
employees will make a come back as most managers believed that
emotional bonding between employees had evaporated with ‘scarcity of
time’. The credibility and openness of the leader is very important for
motivating employees in roughing the conditions till the next fair
weather patch as dissatisfaction spreads faster when employees lack
faith in the abilities of the leadership, which eventually leads to
lower quality services.
Skills set comprising of experience, maturity, intransience, and
ability to withstand pressure would become even more crucial. The
younger workforce, too, would stand in good stead to imbibe these
values and let arrogance give way to humility. Moreover, they should
look at longer stints within companies where they can learn the trade
rather than short career jumps across companies driven only by
moneynomics.
Building New Talent
We believe that it would be the golden opportunity for companies to
attract good talent and enhance their capabilities for the long run and
the good times. Regional players, boutique operators and independent
owners should stretch themselves to find and attract human talent
across the spectrum. The timing is perfect to invest in human talent at
a more realistic price. With hotel professionals from other industries
- such as real estate, health care, aviation and retail - desiring to
come back to hospitality, it maybe predicted that we are standing on
the threshold of a reverse flow of hotel professionals from other
sectors to hospitality. Some family run organisations and single owners
who have ambitious plan to grow can attract top talent to their fold,
both at the corporate and functional levels. Hotel professionals in
India are very myopic in the view of their employment needs as they
prefer to work with only established, large brands. Unlike,
counterparts in the West who take calculated risks and are willing to
explore work with small and unorganised players, Indian professionals
are relatively averse to risk and try to play it safe. HVS Executive
Search research shows that professionals who take the extra risk and
are entrepreneurial in nature gained considerably more both in terms of
job enhancement, satisfaction and growth in their careers. Small
players/independent owners can provide a very attractive enriching
career option that can be financially viable for professionals in
providing a stable long-term career as both parties are well protected
by tailor-made contracts and commitments.

Emergence of New Mid Market and Budget Hotels
Traditionally, Indian hotels have been a mix of Luxury, First-class
and Mid Market properties that have been able to nurture the classical
hospitality professionals. However, with the recession on and Corporate
India giving way to moderation, HVS believes Budget hotels with quality
without frills will dominate the market in the coming years. The slew
of mid market and budget brands - such as Premier Inn, Ibis, Red Fox,
Hometels, Fortune Select - have already captured the imagination with
their value products. This would also breed a new hotel professional
completely different in attitude and aptitude from the existing pool of
Indian Hospitality professionals, who will have to acknowledge their
presence and emergence.
Sales and Marketing
The function of Sales and Marketing would be under a lot of stress.
Gone are the days where rooms were full due to the market dynamics and
a feel-good factor of the Indian economy. Sales and marketing
professionals have to ‘reach out’ and connect every day with their
potential targets and audiences. New strategies and innovative pricing
along with a demanding customer shall be the call of the day. Virtues
and skills such as experience, humility, energy and enthusiasm that had
disappeared from the Sales vocabulary in the last three years have to
be demonstrated by all the sales professionals. Suddenly the Role of
E-marketing, revenue management, and channel partners will increase and
become robust as the second line of sales will flow through these
measures.
General Manager
The role of the General Manager in the coming year would be the
toughest as s/he would face a new reality of shrinking revenues,
demanding market, a greedy customer and low morale of employees.
General Managers will have to lead their teams directly from the front
by connecting with their customers. They will have to be bold,
aggressive, risk takers and willing to share their dream everyday with
their team. Moreover, General Managers need to build in their team
members a positive atmosphere and firm belief in a better and
not-so-distant future. Recognition, reward and reprimand to the
employees have to be quick, controlled and managed effectively on a
day-to-day basis. S/he needs to be dynamic to meet the new challenges
each day, along with being a visionary. The prior focus on rooms would
have to be widened to encompass Food & Beverages (F&B) as that
is where the future revenues would be coming from.
To summarise, the hospitality sector in India is fundamentally
strong and well placed for further growth and consolidation across all
levels of the market. Human resources along with key stakeholders will
play a crucial role in managing and balancing the hopes and despairs of
their employees as the sector makes a transition in the fallout of the
global meltdown. However, it is at times such as these that the light
at the end of the tunnel shines more brightly and through it signals
the industry to innovate and advance. We, at HVS Executive Search,
would continue to highlight key issues and share our experiences and
feedback from the employees, industry leaders and captains of the
industry. Being an optimist, I would like to end by sharing that our
industry would open 50 new hotels in the financial year 2009 and shall
provide direct employment to more than 10,000 people during the time of
recession!
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