An Outlook Business – Hewitt Associates Study of 25 companies that keep employees smiling even in these bad times
THE
DOWNTURN, THE MUMBAI TERROR ATTACKS, AND MOST
recently, the shifting of the IPL to foreign
shores, have affected the hospitality sector
adversely, but the Rs 2,300 crore ITC
Welcomgroup hotel chain has no plans to slow
down. The company isn’t lowering growth
projections or reducing its workforce. In fact,
ITC’s cash-rich, debt-free hospitality division
plans to double the number of rooms in its
luxury hotels to 5,000 in the next three years,
to be in a good position to ride the upturn when
it happens.
At a
recent conference in Gurgaon, senior officials
from across the country discussed how to weather
the current difficulties without any major
internal upheaval. The message that went out to
employees at the end of the three-day conclave
was: “no layoff s or pay cuts’’. Given how most
other companies are taking drastic cost-cutting
measures just to stay afloat, that message would
have been very reassuring for employee morale.
Employees have always been treated well, even
after they retire. Although it is the ideal
hunting ground for other services players such
as airlines, business process outsourcing (BPOs)
and banks, especially at the junior management
level, ITC Welcomgroup has managed to keep
attrition down to 11%, well below the industry
average. “That has been made possible,’’ says
Anil Sharma, Vice-President and Head of HR at
ITC Welcomgroup, “by benchmarking our salaries
to those paid in these industries, ensuring that
the cash component is the highest in the salary,
and also paying a handsome retention bonus at
the end of three years.’’
For
middle-level managers, the benchmark is the
hospitality sector: hospitals, competing hotels
and real estate companies, because these
companies were luring away its managers. ITC
Welcomgroup also added the best in lifestyle
benefits—houses in good locations and expensive
cars—to take care of employees’ family needs.
For those at the very top, it is Hindustan
Unilever, Infosys and the Tata Consultancy
Services (TCS) that became the competition.
A
high basic pay is just one part of the package;
other intangible benefits such as job
satisfaction, ability to move within the
organisation and the freedom to express opinions
also help in employee retention. Moreover, the
company’s distributive leadership model, as
opposed to centralised leadership followed by
most companies gives strategic business unit (SBU)
heads full autonomy and authority to run their
respective businesses as they see fit. Also, its
emphasis on collective action has built team
spirit among employees.
Nakul Anand, CEO, ITC Welcomgroup, feels that
morale is high because the company takes care of
most employee needs. And he should know, having
spent 33 years in the company. Every employee
gets ample opportunities to rise up the ladder.
Says Sharma: “The only limits to growth in our
company is our own competence.” He cites the
example of Sunil Sikka, who rose from bellboy to
general manager over a 30-year period, after
getting 17 promotions.
Anil
Sharma recruited Jeevan Unnithan, who was a
captain in the army, as an assistant manager
nearly six years ago. Today, Unnithan has risen
to the post of Divisional Human Resource
Manager. “Even in these troubled economic times,
I know I can sleep soundly because I am working
with ITC Welcomgroup,’’ says Unnithan.
