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

“Communication, a key to improving engagement in hotels, should be secure and constant, leading to role clarity and performance expectations setting. This is where 360-degree assessments can bring out issues in workplace cooperation,” says Sunder.

Human resource management is now more about a more proactive approach that blends traditional HR practices with technical measurements and financial disciplines. The hotel industry is showing a cautious response to adapting advanced HCM software.

In fact, organisations who have not invested in HR software so far, may find a reason to wait as it has mostly intangible ROI associated with it. Sehgal concurs: “As hotels see no imminent need for advanced software, they may overlook the long-term advantages attached with it. However, I think the industry is slowly recognising its value and the demand will increase.”

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Another hurdle for HR professionals is the implementation of HCM. Also, as HR practices vary from company to company, the software needs to be versatile enough to adapt to an organisation’s style of functioning without requiring extensive customisation and cost escalation.

Organisations need to continually look at their priorities and thus HCM application would continue to require active HR engagement.

Managing hotels is complex as it involves shifts, the patterns of work scheduling, specific skills sets, tracking of employees, and people management and coordination with several departments.

Traditional HR systems fail to address such requirements and that is one of the reasons some hospitality groups are adopting HCM as part of their overall ERP implementation, while others prefer to choose specific modules aligned to their specific needs.

As Debasmita Majumder, manager, international media, public relations and corporate communications, The Leela Palaces Hotels & Resorts says: “As of now, the Leela uses only payroll software, however we are working towards installing similar software shortly. The Indian market for HCM software is gradually picking up, with companies used to MS Excel-based HR systems moving to adopt end-to-end HR Systems.

As the hotel industry is forced to recognise the importance of standardised HR systems - albeit with localised features - even hotels with small employee counts would be compelled to consider HCM software, though they may look at hosted HCM solutions that charge on a pay-per-use basis.

Arun Prasad, assistant manager, marketing, Adrenalin says: “A good HCM approach can achieve increased revenue and profit margins, as also prepare the organisation for a new economic and cultural shift.”

In fact, with fast emerging cutting-edge communication systems and information enriched processes HR departments are shifting focus from traditional functions to expanding their outlook where they can tap the potential of every employee, and ensure their performance is aligned with the company’s goals. Chandra opines: “In future, we can see a more aggressive adoption of strategic HCM processes that would be linked to a company’s business plan.”