Description
the various strategies of Hannibal Group for employer branding
Employer Branding.pdf
Employer Branding-Hannibal Group
Introduction Hannibal hotels are one of the leading market players in hospitality industry across the world with a strong hold in India. Although it is offering one of the best pay packages yet it is facing the following problems• • • Increase in attrition rate from 23% in 2006 to 35% in 2007 Employees shifting to various MNCs Drop in profits from Rs. 680crore in 2006-07 to Rs. 570crore in 2007-08
Some of the major reasons for occurrence of the above problems are• • • Outdated HR and training methods followed. Drop in quality of customer service due to dissatisfaction among the employees. Competition from international players.
The Hannibal hotels operate in 3 categories namely-Luxury, Premium and Regular.
Assumptions• • • No. of hotels in India- luxury(8), premium(10) and regular(13) Luxury hotels are present in metros, Premium in cities and Regular in towns. No. of hotels established internationally are classified as: USA: 2L and 2P UK: 2L and 2P UAE: 2L and 2P Mauritius: 2L and 1P Zambia: 1L and 1P Sri Lanka: 1L and 1P Maldives: 1L and 1P (L-luxury and P-Premium)
PDF created with pdfFactory Pro trial version www.pdffactory.com
•
The hierarchical structure of the management is as follows-
•
Number of employees in each Luxury hotel are Top management – 6 Middle Management – 40 Staff- 350
•
The number of employees in each Premium Hotel are Top Management – 6 Middle Management- 30 Staff-200
•
The number of employees in each Regular Hotel areTop Management- 4 Middle Management- 20 Staff-125
The following graph shows the total number of employees in India across each segment.
PDF created with pdfFactory Pro trial version www.pdffactory.com
Similarly the number of employees internationally can be represented as below:
•
Each Hannibal hotel has four departmentsØ Front office operations Ø Food and beverage services Ø Food and beverage production Ø House keeping Each of the department has one head of the department (HOD) who is supervised by Resident Manager and General Manager. All these together form a team of 6 top management employees.
Strategies The Hannibal Group should adopt employer branding strategies to reduce the attrition rate, some of which are mentioned below:
Employee Perks and Incentives: • • Performance Appraisal: Recognition in the form of “Employee of the Month” should be given to the employees as performance appraisals.(Refer table1) Shuttle Services: Pick and drop facilities or car pool should be arranged by the management for the employees. (Refer table1)
PDF created with pdfFactory Pro trial version www.pdffactory.com
•
Food and Beverage Incentives: The staff members must be provided with food facility at a very minimal rate at the price of Rs. 200/month. They should be given all the meals during their working hours. The top managers must be given free food and beverage facility in the various restaurants of the hotel.
•
Personalized Commemoration: Birthday celebrations of the employees by giving souvenirs would develop a sense of belongingness and loyalty amongst all.(Refer table1)
• • • •
Security Vaults: Locker facilities should be made available to all employees for safely keeping their personal belongings. Cashless Hospitalization: The management employees are provided with swipe cards for doing payments at hospitals. Employee Reservation Rate: Employees can make bookings at a very minimal rate eg. Rs3000 for Rs15000 room. Working Hours: The new HR policies will ensure that no employee works for extra hours
Training and Workshops • • • Audio Visual Training: Regular training of the employees should be conducted with the help of audio visual aids. Outdoor Activities: Activities like trekking, adventure sports would help in building a congenial atmosphere. Personality Development: Special training for improving the attitude towards work, handling of tough people and overall personality development should be administered at all levels. • Time Management Training: Importance of prioritizing work and having a systematic schedule to achieve the results in the stipulated time should also be encouraged. • Stress Management Workshops: Yoga and meditation camps should be made a part of their routine to de-stress from the day to day problems.
PDF created with pdfFactory Pro trial version www.pdffactory.com
•
Cross Training: Inter department training would be provided to various middle managers for better understanding of the working of the industry and sharing of responsibilities.
Refer to Table1 for financial allotments of training expenditure.
Recreational Activities • • • Regular team tasks and groups activities should be encouraged to build team spirit. Access should be given to top management to use facilities like golf, gymnasium etc as a part of recreational activities. Competitive sports like Table tennis, chess etc. should be made a part of the team development strategy.
Miscellaneous Expenditures
Total Cost per head(Rs) Employee Celebration and Gifts Trainings Performance Appraisal (annual) Corporate Connection Transport facility Recreation Total Expenditure 200 1000 1000 100 200 No. of employees 15000 15000 250 15000 10000 Expenditure (Rs) 3000000 15000000 30000001 15000002 20000003 25000004 27000000
Table 1
1 2
Rs.5000 is allotted for 4 departments per month per hotel To provide common mobile connection to the employees at reduced rates for
better connectivity.
3
The allotment of funds by company is as mentioned. The employee has to pay
Rs. 200 per month for availing the service.
4
Recreation includes the various festival celebrations, sport competitions and staff
picnics. An amount of Rs. 50,000 is allocated for one hotel per year.
PDF created with pdfFactory Pro trial version www.pdffactory.com
Financial Analysis of Hannibal Hotels in India
India (Luxury Segment) No. of employees Top management Executive development programme (Dubai)1 Medical Insurance 6 6 8 8 18000 8000 864000 384000 per hotel No. of hotels cost per head Total Expenditure (Rs)
Middle management Executive development programme (India)2 Medical Insurance 40 40 8 8 8000 4000 2560000 1280000
Staff Education cover3 Medical camps Total Expenditure 350 350 8 8 800 15 2240000 42000 7370000
Table 2
1
Executive Development Program (Dubai) is an initiative to give top managers an
insight into the running of other hotels across the globe. Air Fare India Dubai return Rs 15,000 and stay is within the Hannibal Group.
2
Executive Development Program (India) is an initiative to give the middle
managers an insight into the running of the other hotels within India. Air Fare return within India is Rs. 7000.
3
Education Cover is given to the staff to support the studies of their children.
Additional benefits: Top management: free stay, food and beverage services across all the branches in the world. Loan of Rs2 lakhs p.a. can be availed at zero interest. Medium Management: Employee reservation rate applicable for stay at any hotel in India. Loan of Rs 1lakh p.a. can be availed at zero interest.
PDF created with pdfFactory Pro trial version www.pdffactory.com
India (Premium Segment) No. of Top Management employees per hotel Executive development programme (Dubai) Medical Insurance 6 6 10 10 18000 5000 1080000 300000 No. of hotels cost per head Total Expenditure (Rs)
Middle Management Medical Insurance Executive development programme (India) 30 10 8000 2400000 30 10 3000 900000
Staff Education cover Medical camps Total Expenditure 200 200 10 10 600 10 1200000 20000 5900000
Table 3 Additional benefits: Top management: free stay, food and beverages across all the branches in the world.Loan of Rs 1 lakhs per year can be availed at zero interest. Medium Management: Employee reservation rate applicable for stay at any branch in India
PDF created with pdfFactory Pro trial version www.pdffactory.com
India (Regular Segment) No. of employe es per Top Management Medical Insurance Executive development programme (India) 4 13 8000 416000 hotel 4 no. of hotels 13 cost per head 3000 Total Expenditure (Rs) 156000
Middle Management Medical Insurance 20 13 2000 520000
Staff Education cover Medical camps Total Expenditure 125 125 13 13 500 10 812500 16250 1920750
Table 4 Additional benefits: Top management: free stay, food and beverage services across all the branches in the world. Loan of Rs 50000 per year can be availed at zero interest. Medium Management: Employee reservation rate applicable for stay at branches in India
PDF created with pdfFactory Pro trial version www.pdffactory.com
Financial Analysis of Hannibal Hotels outside India
Outside India(luxury Segment) cost No. of employees Top Management Executive development programme (Dubai) Medical Insurance 6 6 11 11 35000 12000 2310000 792000 per hotel No. of hotels per head Total Expenditure (Rs)
Middle Management Executive development programme (within the country) Medical Insurance 40 40 11 11 10000 5000 4400000 2200000
Staff Medical Camp Total Expenditure 350 11 20 77000 9779000
Table 5
cost No. of employee Premium (top) Executive development programme (within the country) Medical Insurance 6 6 10 10 8000 5000 480000 300000 s per hotel no. of hotel s per hea d Total Expenditure (Rs)
Premium(middle) Executive development programme (within the country) Medical Insurance 30 30 10 10 8000 3000 2400000 900000
Premium (staff) Medical Camp Total Expenditure 200 10 20 40000 4120000
Table 6
PDF created with pdfFactory Pro trial version www.pdffactory.com
(all figures in Rs lakhs)
Total budget= 1% of Rs 570 crores = Rs5.7crores. Total Expenditure= Rs.5.609crores. Remaining Amount = Rs 9.11Lakhs
Conclusion: The various strategies as given above when implemented by the Hannibal group will result in the following: • Reduction of the attrition rate by 5% in the first year because of employee satisfaction. • Increase in the profits due to the inclusive growth of both the employees and the company. • Improve the brand value of the Hannibal group benefitting the company in the long run.
PDF created with pdfFactory Pro trial version www.pdffactory.com
doc_550396417.pdf
the various strategies of Hannibal Group for employer branding
Employer Branding.pdf
Employer Branding-Hannibal Group
Introduction Hannibal hotels are one of the leading market players in hospitality industry across the world with a strong hold in India. Although it is offering one of the best pay packages yet it is facing the following problems• • • Increase in attrition rate from 23% in 2006 to 35% in 2007 Employees shifting to various MNCs Drop in profits from Rs. 680crore in 2006-07 to Rs. 570crore in 2007-08
Some of the major reasons for occurrence of the above problems are• • • Outdated HR and training methods followed. Drop in quality of customer service due to dissatisfaction among the employees. Competition from international players.
The Hannibal hotels operate in 3 categories namely-Luxury, Premium and Regular.
Assumptions• • • No. of hotels in India- luxury(8), premium(10) and regular(13) Luxury hotels are present in metros, Premium in cities and Regular in towns. No. of hotels established internationally are classified as: USA: 2L and 2P UK: 2L and 2P UAE: 2L and 2P Mauritius: 2L and 1P Zambia: 1L and 1P Sri Lanka: 1L and 1P Maldives: 1L and 1P (L-luxury and P-Premium)
PDF created with pdfFactory Pro trial version www.pdffactory.com
•
The hierarchical structure of the management is as follows-
•
Number of employees in each Luxury hotel are Top management – 6 Middle Management – 40 Staff- 350
•
The number of employees in each Premium Hotel are Top Management – 6 Middle Management- 30 Staff-200
•
The number of employees in each Regular Hotel areTop Management- 4 Middle Management- 20 Staff-125
The following graph shows the total number of employees in India across each segment.
PDF created with pdfFactory Pro trial version www.pdffactory.com
Similarly the number of employees internationally can be represented as below:
•
Each Hannibal hotel has four departmentsØ Front office operations Ø Food and beverage services Ø Food and beverage production Ø House keeping Each of the department has one head of the department (HOD) who is supervised by Resident Manager and General Manager. All these together form a team of 6 top management employees.
Strategies The Hannibal Group should adopt employer branding strategies to reduce the attrition rate, some of which are mentioned below:
Employee Perks and Incentives: • • Performance Appraisal: Recognition in the form of “Employee of the Month” should be given to the employees as performance appraisals.(Refer table1) Shuttle Services: Pick and drop facilities or car pool should be arranged by the management for the employees. (Refer table1)
PDF created with pdfFactory Pro trial version www.pdffactory.com
•
Food and Beverage Incentives: The staff members must be provided with food facility at a very minimal rate at the price of Rs. 200/month. They should be given all the meals during their working hours. The top managers must be given free food and beverage facility in the various restaurants of the hotel.
•
Personalized Commemoration: Birthday celebrations of the employees by giving souvenirs would develop a sense of belongingness and loyalty amongst all.(Refer table1)
• • • •
Security Vaults: Locker facilities should be made available to all employees for safely keeping their personal belongings. Cashless Hospitalization: The management employees are provided with swipe cards for doing payments at hospitals. Employee Reservation Rate: Employees can make bookings at a very minimal rate eg. Rs3000 for Rs15000 room. Working Hours: The new HR policies will ensure that no employee works for extra hours
Training and Workshops • • • Audio Visual Training: Regular training of the employees should be conducted with the help of audio visual aids. Outdoor Activities: Activities like trekking, adventure sports would help in building a congenial atmosphere. Personality Development: Special training for improving the attitude towards work, handling of tough people and overall personality development should be administered at all levels. • Time Management Training: Importance of prioritizing work and having a systematic schedule to achieve the results in the stipulated time should also be encouraged. • Stress Management Workshops: Yoga and meditation camps should be made a part of their routine to de-stress from the day to day problems.
PDF created with pdfFactory Pro trial version www.pdffactory.com
•
Cross Training: Inter department training would be provided to various middle managers for better understanding of the working of the industry and sharing of responsibilities.
Refer to Table1 for financial allotments of training expenditure.
Recreational Activities • • • Regular team tasks and groups activities should be encouraged to build team spirit. Access should be given to top management to use facilities like golf, gymnasium etc as a part of recreational activities. Competitive sports like Table tennis, chess etc. should be made a part of the team development strategy.
Miscellaneous Expenditures
Total Cost per head(Rs) Employee Celebration and Gifts Trainings Performance Appraisal (annual) Corporate Connection Transport facility Recreation Total Expenditure 200 1000 1000 100 200 No. of employees 15000 15000 250 15000 10000 Expenditure (Rs) 3000000 15000000 30000001 15000002 20000003 25000004 27000000
Table 1
1 2
Rs.5000 is allotted for 4 departments per month per hotel To provide common mobile connection to the employees at reduced rates for
better connectivity.
3
The allotment of funds by company is as mentioned. The employee has to pay
Rs. 200 per month for availing the service.
4
Recreation includes the various festival celebrations, sport competitions and staff
picnics. An amount of Rs. 50,000 is allocated for one hotel per year.
PDF created with pdfFactory Pro trial version www.pdffactory.com
Financial Analysis of Hannibal Hotels in India
India (Luxury Segment) No. of employees Top management Executive development programme (Dubai)1 Medical Insurance 6 6 8 8 18000 8000 864000 384000 per hotel No. of hotels cost per head Total Expenditure (Rs)
Middle management Executive development programme (India)2 Medical Insurance 40 40 8 8 8000 4000 2560000 1280000
Staff Education cover3 Medical camps Total Expenditure 350 350 8 8 800 15 2240000 42000 7370000
Table 2
1
Executive Development Program (Dubai) is an initiative to give top managers an
insight into the running of other hotels across the globe. Air Fare India Dubai return Rs 15,000 and stay is within the Hannibal Group.
2
Executive Development Program (India) is an initiative to give the middle
managers an insight into the running of the other hotels within India. Air Fare return within India is Rs. 7000.
3
Education Cover is given to the staff to support the studies of their children.
Additional benefits: Top management: free stay, food and beverage services across all the branches in the world. Loan of Rs2 lakhs p.a. can be availed at zero interest. Medium Management: Employee reservation rate applicable for stay at any hotel in India. Loan of Rs 1lakh p.a. can be availed at zero interest.
PDF created with pdfFactory Pro trial version www.pdffactory.com
India (Premium Segment) No. of Top Management employees per hotel Executive development programme (Dubai) Medical Insurance 6 6 10 10 18000 5000 1080000 300000 No. of hotels cost per head Total Expenditure (Rs)
Middle Management Medical Insurance Executive development programme (India) 30 10 8000 2400000 30 10 3000 900000
Staff Education cover Medical camps Total Expenditure 200 200 10 10 600 10 1200000 20000 5900000
Table 3 Additional benefits: Top management: free stay, food and beverages across all the branches in the world.Loan of Rs 1 lakhs per year can be availed at zero interest. Medium Management: Employee reservation rate applicable for stay at any branch in India
PDF created with pdfFactory Pro trial version www.pdffactory.com
India (Regular Segment) No. of employe es per Top Management Medical Insurance Executive development programme (India) 4 13 8000 416000 hotel 4 no. of hotels 13 cost per head 3000 Total Expenditure (Rs) 156000
Middle Management Medical Insurance 20 13 2000 520000
Staff Education cover Medical camps Total Expenditure 125 125 13 13 500 10 812500 16250 1920750
Table 4 Additional benefits: Top management: free stay, food and beverage services across all the branches in the world. Loan of Rs 50000 per year can be availed at zero interest. Medium Management: Employee reservation rate applicable for stay at branches in India
PDF created with pdfFactory Pro trial version www.pdffactory.com
Financial Analysis of Hannibal Hotels outside India
Outside India(luxury Segment) cost No. of employees Top Management Executive development programme (Dubai) Medical Insurance 6 6 11 11 35000 12000 2310000 792000 per hotel No. of hotels per head Total Expenditure (Rs)
Middle Management Executive development programme (within the country) Medical Insurance 40 40 11 11 10000 5000 4400000 2200000
Staff Medical Camp Total Expenditure 350 11 20 77000 9779000
Table 5
cost No. of employee Premium (top) Executive development programme (within the country) Medical Insurance 6 6 10 10 8000 5000 480000 300000 s per hotel no. of hotel s per hea d Total Expenditure (Rs)
Premium(middle) Executive development programme (within the country) Medical Insurance 30 30 10 10 8000 3000 2400000 900000
Premium (staff) Medical Camp Total Expenditure 200 10 20 40000 4120000
Table 6
PDF created with pdfFactory Pro trial version www.pdffactory.com
(all figures in Rs lakhs)
Total budget= 1% of Rs 570 crores = Rs5.7crores. Total Expenditure= Rs.5.609crores. Remaining Amount = Rs 9.11Lakhs
Conclusion: The various strategies as given above when implemented by the Hannibal group will result in the following: • Reduction of the attrition rate by 5% in the first year because of employee satisfaction. • Increase in the profits due to the inclusive growth of both the employees and the company. • Improve the brand value of the Hannibal group benefitting the company in the long run.
PDF created with pdfFactory Pro trial version www.pdffactory.com
doc_550396417.pdf