Hospitality attrition rate may go up 50% during CWG

Hospitality attrition rate may go up 50% during CWG

New Delhi: Attrition rate in hospitality industry is set to double to nearly 50% from the present 25%, with rapid expansion on account of Commonwealth Games (CWG) 2010, fuelling huge demand for trained and skilled personal in large number in next three years, according to Assocham.

In a paper on attrition rate: its possible impact on hospitality industry, the chamber estimates that CWG 2010 alone will create job opportunities for nearly 50,000 skilled professionals as about 70 hotels are likely to be commissioned in next three years, assuming that each hotel will need about 600 workers.

This huge requirement will but push up attrition rate in hotel industry, as it will create greener pasture for those experienced employees, currently engaged in established business houses in the hospitality sector.

What is adding to the HR pressure is that established hoteliers are embarking on expansion strategies overseas in countries like Dubai, Saudi Arabia, Bahrain, Iran, Oman and European Nations of UK, Germany and Italy including Australia and New Zealand.

Key Findings

* Indians preferred since quality of education imparted in hospitality management schools considered better

* Indian staff likely to work longer hours

* Positions to be filled in overseas hotels

* 300 million job opportunities for hotel professionals likely to come up by 2008, leading to higher attrition rate

* Manpower crunch more pronounced at entry and junior management levels

* Students from catering institutes prefer overseas jobs, working in cruise liners and airlines rather than opt for budget hotels in India

* Assistant housekeeping manager with two to three years experience on the Cunard lines makes about $1,900 (Rs 82,650) a month while an assistant purser front desk receptionist for the same liner, with some experience, will get about $1,650 (Rs 71,775).


* Industry to work on how to attract good talent and retain existing workforce

* Deal with poaching legally since this results in at least 30 to 35%

* India has hotel room inventory of over 1,10,000 across all categories in the organized hospitality sector. Utilize this during peak and non peak seasons.