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The common objective for HR is to derive the greatest value from its human capital

Employee attrition is the major cause of worry for any HR professional. The HCM software streamlines all processes and provides an IT backbone to the organisation, says Sapna Kulshrestha

Efficient human resources management can make all the difference between a well run and a poorly run hotel. Recruitment, training, compensation, and motivation, all form varied parts of the HR department functions; the common objective remains one that is to derive the greatest value from the human capital of the organisation.

Ankur Arora, vice president sales, Saigun Technologoies, says: “Hotels are moving away from administrative human resource processes, and embracing progressive approaches that can better understand the development needs of an individual on a collective basis.”

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The Human Capital Management (HCM) specialised software now offers an outstanding option irrespective of company size, to effectively aid in the handling of many different areas that a corporate human resource department is generally in charge of.

This includes responsibilities like new hire processing, employee benefits, payroll and employee development, and cost management, in addition to managing personnel legal matters and staff development programmes to ensure all employees have fair opportunities for advancement through learning.

In addition, as the legacy HR systems are mostly manual processes containing standard operating procedures that consume a lot of full-time equivalent in getting approvals and physical verification, the process is prone to errors resulting in lack of coordination, under utilisation of employee skills, and pay inequality across properties.

Thus, HR automation today is being recognised as a source of performance enhancement by hospitality businesses around the world. For instance, The Park Hotels use SAP- Human Capital Management that currently runs live at many of its properties in India.

Vijay Dewan, managing director, The Park Kolkata, says: “Having an integrated HR system can add value to the company, reduce mistakes, and increase productivity, thus translating into a reduction in costs.”

Tools of HCM software are distinct from HR applications that simply automate repetitive processes such as payroll.

Contributing directly to the company’s performance, it is an instrument for not only helping manage the people aspect of a hospitality business, but can also organise the various components of human resource department for the betterment of the company and the employees that work there.

Though the contents of the system such as the goals of the organisation and required skill sets have to be determined by the HR department, HCM software helps provide a framework to define these strategic objectives and identify the availability of those skills in the existing workforce.

The new solutions allow a hotel to enhance its ability to identify, nurture, and retain talents within the organisation, while attracting new ones.