Unify HR Software to Reduce Hospitality Costs in India
Substantial investments are pouring into India’s tourism and hospitality sector buoyed by strong economic growth, greater interest in its cultural heritage and the diverse nature of its places of interest. The hospitality sector anticipates increasing revenues in the coming years, but ensuring profitability is another matter. It is important for hospitality companies to incorporate efficiency measures to reduce costs and direct revenues to areas that directly affect growth. Since hospitality companies are labor-reliant, one of the opportunity niches for efficiency improvement will be in the area of employee data management.
Overview of the Hospitality Industry in India
The potential for human capital management or HCM strategies in improving cost efficiencies is huge in companies that rely on heavily on a talent pool to keep the business running. To understand this in the context of India’s hospitality sector, consider the following statistics:
- Hotels and restaurants are classified as a sub-segment of the services sector along with trade and repair services. This sector accounted for 19.2 percent or US$295.7 billion of India’s gross domestic product in 2015-2016.
- The travel-related sector that includes hotels, restaurants and travel agents is expected to create 13.45 million jobs
- Disposable income has been rising among the middle class, boosting domestic and outbound travel, the latter of which grew by 19.9 million or 8.7 in 2015. The number of Foreign Tourist Arrivals (FTAs) has grown at a CAGR of 3.7 per cent to 5.29 lakh year-on-year in May 2016
- In June 2016, tourists arriving on e-Tourist Visas was close to 37,000 for a year-on-year growth of 137.7 per cent.
- In 2016, online hotel bookings in India is expected to be double the 2015 figures because of better internet access and widespread availability of smartphones.
Increasing Profitability through Efficient Employee Data Management
In companies that rely heavily on the quality and motivation of its talent pool, it makes sense for managers to prioritize human capital management or HCM solutions to direct its talent pool and oversee its talent data. There are various components of employee data that must be maintained as part of permanent personnel files. Other components have to do with performance metrics and achievements vis-à-vis preset goals. To ensure efficient employee data management, there is a need for a comprehensive dashboard that gathers all the information together in one place, creating a valuable resource for managers to view the strengths, skills and improvement areas of its employees.
One such solution is Cornerstone Link, a comprehensive HCM solution that centralizes employee data and provides an interface for managers and employees. Centralized data provides managers with an overview of individual and team information.
Cornerstone Link as an HCM Solution
Employee database management should not be treated as a cost center with limited impact on the bottom line. In many companies in the hospitality sector, employee data is collected and stored using various employee management software. These apps may be specialized to perform specific functions such as time and attendance software, payroll management or benefits monitoring.
Different departments may be collecting employee data and filtering the information as they see fit. Manager access is restricted, and they are unable to see the big picture because of the piecemeal presentation of information. Other issues include inability to access employee information in a timely manner and delayed updating of information that should be refreshed frequently. However, Cornerstone Link serves as a common platform for employee data regardless of which app was used to create or collect the information.
Benefits of Using Employee Management Software
Efficient and productive employee database management will ensure that managers are given the leeway to access and update their personal data even if a different time and attendance software was used. This is helpful for companies that have various locations locations and locally or globally. Data consolidation enhances efficiency, leading to increased savings and reducing costs in India's hospitality sector.