Indian hotel salaries suffer in downturn – survey
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Gurgaon, Haryana, May 25, 2010 /India PRwire/ — The cold winds of global recession have adversely impacted several Indian industries, especially Hospitality. With a downswing in revenues, hotel management companies have decided to tighten their belts and right size their workforces as well as the remuneration packages drawn by them. These are the findings indicated by the 2010 India Salary Survey Report.
Speaking on the release of the 2010 India Salary Survey Reports, Manav Thadani, Managing Director, HVS India said, “The Indian hospitality is poised to grow exponentially. With the impending growth, we at HVS expect a steep rise in demand of trained manpower to help hotels perform optimally in the ever competitive market.” Commenting on the occasion Natwar Nagar, Executive Director, HVS Executive Search – India said, “Owing to the severities of the downturn, all companies are under severe pressure to rationalize their pay scales as this would be the second year wherein no or limited increments have been given out to most of the employees. With the expected opening of 50,000 new rooms across the country, HR managers are working aggressively to implement retention strategies for their key employees wherein the movement could be sharper. The compensation range for most companies in the current year is under consideration and we believe that the average increase would fall in the range of 10%-15 % for the key operating functions.
The 2010 India Salary Survey is a follow-up of the immensely popular 2008 India Salary Survey and as before, aims to provide the most comprehensive guide to all-India compensation trends in the hospitality industry. It is encouraging to note that the 2010 survey includes data from over 200 hotels across 52 markets as compared to the 2008 survey that had been formulated with the participation of around 160 hotels across 47 markets.
Excerpts from the 2010 India Salary Survey indicate that the median salaries of positions across the hotel hierarchy have seen dramatic movements. While declines have been observed across departments, Resident Managers have been the worst affected with a 46% decline in the median salaries. HVS observes that though the position is not being rendered redundant, it is certainly experiencing a strike-off from the hierarchy of several hotel companies across India. Several Resident Managers have known to have been promoted with no replacements being proffered.
The survey however does show an increase in salaries of Departmental Heads across Front Office and Food & Beverage, thus indicating a renewed requirement for quality professionals to guide these revenue producing areas more efficiently than earlier. The rise in the salaries across the Food and Beverage domain may also be attributed to the emergence of quality stand-alone restaurants and food chains that are recruiting hotel professionals from the said department at extremely competitive packages.
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