The hospitality industry is seeing a surge in the northern region with all major groups setting their foot here. But rising attrition rates are posing a major threat to the hotel groups. Even though there has been an increase of over 15-20% in packages being offered to the youngsters here, they seem to be testing foreign waters for more lucrative opportunities. Countries like the US, UK, Canada, Dubai, Australia etc are being explored by the aspiring youth to start a career in hospitality industry.
A study conducted by the Associated Chambers of Commerce & Industry of India (Assocham) reveals that the attrition rate in the hospitality industry in India is set to double to nearly 50% by 2010, up from the earlier 25% growing at an alarming rate of 10% per annum.
Talking to FE about this problem, Arun Kaul, general manager, Radisson Windsor Hotel, Jalandhar said, “The source of recruiting new people for us is the hotel management and catering training institutes. Many people join us at levels of operational trainees, front and back office management, in kitchen or service but not many stay back. They move on either to some other country or industries like BPO, Banking, Call centers etc. Moreover, they explore better opportunities in the West Asia and Europe as well. As per estimates about 80% of people prefer going to UK and Dubai to join the food and retail industry. Since Radisson Hotel was amongst the frontrunners to set foot in Punjab, we have seen youngsters treating it as a training ground and later shifting base. The attrition rate here is also growing between 5-10% per annum.”
The industry, most, is losing its professionals at the top management level. Supporting this view, Manbeer Chaudhary, president, Federation of Hotel & Restaurant Association of India (FHRAI) shared, “The industry leaders are worried about losing qualified trained professionals to outer shores. But due to the burgeoning development in the hospitality sector, the hotel management institutes in India have mushroomed from just 18 to over 280 today. Top level management is feeling the pinch of attrition. The private sector and the government should make efforts to retain people in this industry. Some incentives, better perks etc, could be introduced through a policy to support retaining of talent in the private sector. Since our housekeeping, front office, bell desk etc, are performing at par with the international levels in big hotels, reducing attrition becomes all the more important.”