ITC Hotels overhauls policies in talent war
ITC Hotels battles talent competition by altering workforce policies and compensation structure
Mumbai: ITC Hotels is battling competition for talent from retail and airline industries by changing its workforce policies and compensation structure, a top company executive said.
The hotel chain has instituted nine-hour shifts, tweaked variable pay, brought in quarterly incentives, and plans to amp up campus hiring, said Sanjay Bose, executive vice-president and head—HR & learning and development, ITC Hotels.
“There is a huge availability of jobs for people from the hotel industry in retail and airlines. Attrition will be there because you are a pipeline to other industries. Our work practices, compensation and benefits, career plans need to be as competitive as retail etc," Bose said in an interview.
Hotels companies have faced severe attrition in the last two years thanks to poaching by rival hotel companies as well as other sectors. When the travel industry rapidly opened up after the pandemic, attrition in the hotels segment jumped to as much as 45%. While the number has since slowed to around 30%, it is still more than pre-pandemic levels of 20%. “ITC has been 30-40% below industry levels, and that pattern maintained pre, through and post pandemic," said Bose.
ITC’s hotel business includes ownership, licensing and management of hotel properties, as well as providing services including accommodation, dining and banqueting. However, the company has taken cognizance of the changing profile of its workforce, who now have more options available in sectors like airlines, cruise liners, retail and FMCG.
One of the first changes to attract and retain talent is a nine-hour work day policy, in a sector where extended shifts are common.
“Earlier, it (working hours) could go up to 12 hours-15 hours, depending on the job. But (today) if I am a 25-year-old getting an 8-9 hour job, giving me more time to be with my hobbies, passion, family, then I would rather take that," Bose noted.
ITC Hotels also wants to bring in flexible working options for its employees, but is yet to work out the logistics for this.
Besides, ITC Hotels also increased the variable salary component for its employees by 15-20% for middle and senior and by 10% for juniors, and introduced quarterly incentive plans.
ITC Hotels plans to hire from 100 campuses this year instead of the usual 20-25 colleges. It plans to pick up 60 management trainees, which is 20% more than last year, and about 200 freshers for junior levels, almost double of last year.
If the entry-level packages are increased, overall compensation levels will also go up, Bose noted.
He said even before the pandemic, the company had identified that its competitors were not just hotels, but other sectors including those related to FMCG.
The changes come at a time when board of ITC Ltd has approved a proposal to demerge the company’s hotel business and separately list it on the stock exchanges within 15 months. According to an industry executive, the company is planning a special long-term incentive plan for its top management. The company is also expected to look at the way workforce will be structured in the demerged entity at time when competition becomes aggressive.
“With ITC Hotels a separate entity, it will call for more agility. I do not think the philosophy of the company will change, because the DNA remains the same, the core values remain the same," Bose clarified.
