The
last 12 months have been a time of mixed emotions for C.K. Baljee,
the Chairman and Managing Director of the Bangalore-based Royal
Orchid Hotels, one of the youngest hospitality chains in the country.
While on the one hand, he's in the midst of setting up around
10 properties across the country, on the other, he's chewing his
fingernails to the skin as he tries to solve the problem of finding
enough people to run the hotels he is establishing. Baljee, however,
is hardly alone in the race to recruit and retain people in an
industry that is estimated to be growing at around 18-20 per cent
annually. With the industry expected to add around 50,000 rooms
in the next three-to-five years, hoteliers are rapidly discovering
that people just may be the most important cog in their business.
"There is massive demand for people
across the board, but the most acute requirement is seen in food
and beverage (F&B)," says Baljee, who plans to add around
300 rooms in the next 12 months to the chain's 460 room inventory.
Besides expanding at its HQ in Bangalore and New Delhi, the group
has just opened a hotel near Mysore and plans to enter markets
such as Hyderabad and Pune. Other groups such as the Leela, meanwhile,
have laid out plans to add another 1,500 rooms over the next three
years. "Human intervention is critical in the service sector,
hence experienced professionals are always in demand, all the
more in the current environment of robust economic growth which
is driving growth in the hospitality and travel business,"
says the Leela Group's Vice Chairman and Managing Director Vivek
Nair. Apart from F&B specialists, therapists, spa managers
and front office and sales pros are also in demand, say hoteliers
and headhunters.
TAPPING TALENT |
WHO'S HIRING: Luxury hotels, restaurants,
lounge bars, specialty spas and resorts
HOW MANY PEOPLE: 150,000 people in the next couple
of years
WHAT'S THE PAY: Freshers start at Rs 6,500-Rs 8,000
p.m., while senior managers (head of a property for example)
could earn over Rs 30 lakh per year
WHY ARE THEY HIRING: The hospitality industry is
in growth mode and all the large players are adding properties
across the country and overseas
WHAT'S IN DEMAND: Food and Beverage (F&B) personnel
remain the most in demand, but there's also growing demand
for spa managers, therapists as well as sales and marketing
personnel
CAREER PROSPECTS: Freshers start at the bottom
of the food chain and work their way up. Hours are long
and irregular, but given the 18-20 per cent growth in the
industry, hikes and bonuses are generous
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While there may be a huge demand for people
(some optimistic chief executives estimate that the industry will
recruit over 200,000 people in the next 18-24 months), average
starting salaries, which are actually quite low and long, erratic
hours of work remain strong deterrents to being employed in the
hospitality industry. "Entry salaries would be around Rs
6,500-8,000 a month, but senior managers, especially people who
are heads of properties would earn upwards of Rs 30 lakh a year,"
says E. Balaji, Executive Director, Ma Foi, a Chennai-based hr
Consultancy. "Increments are in the region of 10-12 per cent
and bonuses are productivity linked and could be in the region
of 15-25 per cent of the fixed salary." Rather than pay alone,
says Anil Madhok, Managing Director, Sarovar Hotels and Resorts,
"you have to enjoy the hospitality industry to be in it"
and the long hours and relatively low-pay are "compensated
more than adequately" as you rise up the ladder.
Of Hiring and Poaching
While the hospitality industry may be in
the midst of a previously unseen boom, it is also unfortunately,
a happy hunting (or poaching) ground for other sectors. "There
is more turnaround of talent (read attrition) at the entry level
in areas like sales and front office," says Leela's Nair.
"There are several service sectors like airlines, cruise
companies, BPOs, telecom companies and banks which hire from the
hospitality industry," he adds.
The industry itself hires from without only
at middle and senior levels. Royal Orchid's Baljee claims that
a hotel management degree or diploma continues to be a pre-requisite
at the lower levels. Some companies, such as East India Hotels,
the company that owns the Oberoi Chain, run courses (for those
who have been through high school) to satiate their own requirements.
"The Oberoi Group is in search of people who really like
people, even if they are not always likeable," says a spokesperson
for the chain, which plans to add another 12 properties to its
portfolio. "Guests may occasionally get upset, even angry
and emotional. People who have the service ethic at the core of
their being are able to deal with such situations with confidence
and assertiveness."
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...but demand is also increasing for scarce
spa personnel... |
However, it isn't just about finding the right
people for conventional areas such as F&B, but zeroing in
on the right personnel for emerging areas such as wellness and
health that are proving to be a bigger challenge. "Trying
to retain therapists and spa managers is a huge challenge since
there are many (potentially more lucrative) opportunities for
them overseas," says Vinita Rashinkar, Spa Director for the
recently established Windflower Spa and Resort, Mysore. Like several
other hospitality start-ups, Windflower has struggled to keep
masseurs and managers from moving to the high-paying West Asian
and European markets. "Retention is achieved through competitive
emoluments, training, aggressive career mapping and exposure to
interesting assignments," explains Leela's Nair. For wannabe
hoteliers this means that as you go up the organisational chain
you could also look not just for interesting job opportunities
within India, but as chains such as the Oberoi and Taj (Indian
Hotels) expand overseas, even at sought-after destinations such
as London and New York.
New Opportunities
While the hours may be long and erratic and
starting pay relatively low, the shortage of qualified people
means that rapid internal promotions are the norm and the chances
of managing a property individually, even a region, are bright.
And while a chef would begin right from the bottom (chopping,
cutting, barbequing and grating, irrespective of the school he/she
graduated from) the best of breed rise up to running a kitchen,
perhaps a restaurant. Many aspirants shell out for exorbitant
hotel management degrees from overseas institutions, but the industry
itself is divided on their utility, with some placing them on
par with those offered by local institutes, while others contend
they offer an edge in the job market. "Indian hotel management
degrees/diplomas are today no less to the ones being offered abroad,"
says Royal Orchid's Baljee, whose chain also runs the Presidency
College of Hotel Management, while Leela's Nair counters that
"degrees or education from international catering and hotel
management schools are welcome, especially when they come with
experience of working in different environments."
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...as it is for front-office execs and
managers |
The boom in alternative tourism is also opening
up new vistas for those looking for a job in the industry. In
the sphere of eco tourism, for example, there are emerging opportunities
for people with experience in actually setting up new resorts
and acting almost as a pro-tem coo. While large chains are slowly
getting into this area, many resorts and retreats continue to
be owned by entreprenuers, who are willing to give youngsters
a go at running their properties. "Youngsters are more energetic
and dynamic and this is useful when the day starts as early as
4 a.m.," says Tiger Ramesh, a techie-turned-hotelier and
CEO, Wilderness Resorts.
With the demand for people in the hospitality
industry reaching a high, several unseen walls are also being
broken in the pursuit for personnel. For example, hotels today
are breaking through a previously unseen gender wall and hiring
women as chefs and men as masseurs. In addition, specific academic
requirements are being cast aside in some fields such as naturalists
where the requirements are urgent and people scarce. "There
are very few colleges that teach you to be a naturalist, and we
have to look for people who have an eye for nature and teach them
hospitality skills on the job," says Ramesh.
COUNSELLING
Help, Tarun!
Q: I am a 23-year-old commerce graduate with an MBA (HR), working
as a recruitment and training executive in a private insurance
firm for two years. My true interest lies in HR and I always wanted
to shift to development and training in the domain of Six Sigma.
Please advise.
Since you already have an MBA, look for a job (either within your
company or outside) that has a management development angle to
it. But with your limited experience, you will have to start at
the entry level. Also while Six Sigma is great, you need to figure
out whether in the long term you want to be a specialist in it
or a generalist. Select your future employer and career path carefully
to meet this ambition.
Q: I am a 23-year-old working in a bank.
I've done MCom and am currently pursuing a part-time MBA. I'm
quite unhappy with my present job as it doesn't pay well. Now,
I want to switch to marketing. I live in a small town where there
aren't very many educational institutes. Please help.
You could get into sales of financial services.
Unless yours is a very small town, you will have firms selling
insurance, loans, etc. Or apply for jobs in towns with better
prospects. A part-time MBA from a little-known institute will
not catapult you into something big overnight. You will have to
work your way through it.
Answers to your career concerns are contributed
by Tarun Sheth (Senior Consultant) and Shilpa Sheth (Managing
Partner, US practice) of HR firm, Shilputsi Consultants. Write
to Help,Tarun! c/o Business Today, Videocon Tower, Fifth Floor,
E-1, Jhandewalan Extn., New Delhi-110055..
Jumping
Jobless
The first labour-ecosystem based ranking
of states by Teamlease makes the case for massive job creation.
The
world is now more than aware of the demographic revolution happening
in India and the special gains that it will bring for the country.
As of 2001, according to temping major Teamlease, the bulk of
the population was in the 20-59 age group (486 million). However,
the working age population in the 20-59 years group by 2020 will
be over 761 million.
Even today, about half of all Indians (about
567 million in 2006) fall into the 20-59 age bracket. The 761-million-by-2020
figure means that the working population will account for 56 per
cent of the country's overall population of 1.35 billion. With
agriculture accounting for 73 per cent of employment (currently),
the central government and the governments of the states must
focus on boosting non-farm employment. That is easier said than
done, says the report, raising labour demand takes five years
and improving labour supply probably needs fifteen years. As for
the ranking, Delhi, Gujarat, Karnataka, Tamil Nadu and Maharashtra
make up the top five. Bihar is last if one leaves out Jammu and
Kashmir.
The Coming Explosion |
»
India's working population in 2020 will be equal
to India's total population when reforms started in 1991
» Projecting
current variables forward means 211 million unemployed in
2020; an unemployment rate of 30 per cent
» Unemployment
will largely be a problem of the young; nine out of 10 unemployed
are likely to be in the 15-29 age bracket
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