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Attrition rate hits hotel industry at entry, junior levels
Nina Varghese
Chennai , May 9
THE hotel industry is facing a manpower crunch especially at the entry and junior management levels. More than half of the students, who pass out from catering institutes, are not interested in getting into the hospitality industry, industry sources say.
According to a Federation of Hotels and Restaurants Association of India (FHRAI) survey in 2001, about 10,000 catering graduates come into the job market. Industry sources said that though there is no official numbers available, these numbers would have now gone up to about 15,000.
These students are opting for jobs on cruise liners, airlines, which offer attractive remuneration. Both these industries have the added incentives of glamour and travel. Lately, call centres and business process outsourcing centres have also become an option.
Mr E. Balaji, Executive Director, Staffing Solutions, Ma Foi Management Consultants, said the hospitality industry had traditionally found cost effective talent by grooming entry level intake over the years.
He said that when the industry grows in a scorching pace, it would find itself in a difficult position to attract cost effective talent.
Hotel management graduates who gain two to three years experience are also sought after for their people managing skills, Mr K.C. Tharyan, Executive Director, Residency Group of Hotels, said.
According to information available on the Net, an assistant housekeeping manager with two to three years experience on the Cunard lines makes about $1,900 (Rs 82,650) a month. An assistant purser front desk receptionist for the same liner, with some experience, will get about $1,650 (Rs 71,775).
Recently, Indian Airlines was hiring cabin crew and the minimum salary offered was Rs 22,000, including the flying allowance and other benefits such as gratuity and provident fund.
Mr M.O. Koshy, Vice-President of the Chennai-based GRT Grand, said that the average starting salary in the hotel industry would be around Rs 6,000 a month for a hotel management trainee.
The entry level at a call centre would range from Rs 6,000 to Rs 8,000. But faster upgrades and promotions in the information technology-enabled services industry make the difference.
In just a year or two, some of those working in the call centres could become supervisors and earn over Rs 20,000 per month. But such quick promotions and salary increases are unheard off in the old economy jobs, according to industry sources.
They said that some years ago, hotel jobs were associated with glamour. But now, it's the money that matters.
Another problem in most of the major metros is that a large number of hotel rooms are coming into the market, so the need for trained staff has increased.
In Chennai, for instance, about 600 new rooms are expected to come into market in the next two years. Mr Koshy said that the attrition rate among the management level would be about 7 per cent.
This the article published in the Hindu BusinessLine, May 10, 2005
Did not find any specific information on the attrition rates in hotel industry in india...