HVS releases 2010 India Salary Survey Reports
HVS, a fully integrated consulting and appraisal global firm focused on hospitality today released the "2010 India Salary Survey Reports". The HCE Data Servicesī¤, is the largest industry forum for the exchange of benefits and compensation information for corporate and property-level positions of the hotel industry in India.
Tweet-- 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.
Please see the attached table on "Year on Year comparison"
For other departmental head positions, the decline may be attributed to either or a combination of the following reasoning:
- Salary rationalization across all Department Head positions
- Movement of people within the company by means of internal promotion, which has provided the promoted employee a larger span of control with notional hike in overall compensation
- Recruitment been undertaken at lower compensation levels than benchmarks
- Redundancy of positions
- Emergence Budget and Economy hotels that have significantly lower compensation trends as compared to First Class or Luxury hotels.
Notes to Editor
About HVS
HVS is the world's leading consulting and services organization focused on the hotel, restaurant, shared ownership, gaming, and leisure industries. Established in 1980 by President and CEO Steve Rushmore, MAI, FRICS, CHA, the company offers a comprehensive scope of services and specialized industry expertise to help you enhance the economic returns and value of your hospitality assets.
Steve began his career in the 1970s as a consultant in the hospitality division of a prominent New York City real estate firm. Through that experience, Rushmore noted the limited body of knowledge available to assess the value of hotels and motels, taking into consideration both the business and real estate components. Rushmore's first book, The Valuation of Hotels and Motels, quickly became the definitive work on the subject, and soon after, HVS was born. The HVS method of providing an economic study and appraisal for hotels and motels immediately became, and continues to be, the industry standard.
Over the past three decades, HVS has expanded both its range of services and its geographical boundaries. The company's global reach, through a network of 30 offices staffed by 400 seasoned industry professionals, gives you access to an unparalleled range of complementary services for the hospitality industry:
- Consulting & Valuation - Convention, Sports & Entertainment Facilities
- Investment Banking - Interior Design
- Asset Management & Advisory Services - Sales & Marketing Services
- Hotel Management - Shared Ownership Services
- Hotel Parking Consulting - Golf Services
- Executive Search - Eco Services
- Food & Beverage Services - Risk Management
- Gaming Services
Our clients include prominent hotel owners, lending institutions, international hotel companies, management entities, governmental agencies, and law and accounting firms from North America, Europe, Asia, Latin America, and the Caribbean. Our principals literally 'wrote the book' on hospitality consulting, authoring numerous authoritative texts and hundreds of articles. HVS principals are regarded as the leading professionals in their respective regions of the globe. We are client driven, entrepreneurial, and dedicated to providing the best advice and services in a timely and cost-efficient manner. HVS employees continue to be industry leaders, consistently generating a wide variety of articles, studies, and publications on all aspects of the hospitality industry.
HVS is the industry's primary source of hotel ownership data. Our 2,000+ assignments each year keep us at the forefront of trends and knowledge regarding information on financial operating results, management contracts, franchise agreements, compensation programs, financing structures, and transactions. With access to our industry intelligence and data, you will have the most timely information and the best tools available to make critical decisions about your hospitality assets.
For further information regarding our expertise and specifics about our services, please visit www.hvs.com.
HVS - India
Anupama Jaiswal / Siddharth Choudhry
Phone: +91 124 461 6046
Email: ajaiswal@hvs.com / schoudhry@hvs.com
