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CUTTING
EDGE
HR as a
Profit Centre
Turning
HR on its head. Dileep Pillay talks to Paul Raj about HR creating
a revenue stream
published
September 2008
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Dileep
Pillay
Photo
courtesy of : Dileep Pillay
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Some organizations have toyed with the idea of
turning their HR center into a profit center. Yet, this has largely
been discussed at a theoretical level; very few have actually
moved ahead in practice. Paige Vesuvio in a Dashboard article
in Talent Management magazine, published in July 2008 talked about
the few who have generated HR department-driven revenue streams
by launching consulting practices – selling their HR expertise
and best practices.
On the local front, Klana Resort Seremban, a four
star resort hotel in Negeri Sembilan is certainly making great
strides in this space. Klana Resort has taken steps towards branding
itself as a teambuilding destination, as a market leader in experiential
training and leadership programmes. Employing a moderate workforce
of some 238 employees, there are eleven department heads including
the General Manager. Dileep Kumar Pillay, the Director of Human
Resources spoke to us at length about the exciting way in which
they have turned HR on its head, moving it from a cost centre
to a profit centre.
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Dileep
Kumar on.....
training initiatives at the hotel
“
The team has contributed much to the establishment
of the hotel’s Zero Defect Committee and their
GEM programme.
“Going the Extra Mile” was set up in 2003.
Geared at addressing product, services and skills,
employees from all divisions maintain a certain number
of contact hours in training; teambuilding is one
of the modules they need to complete. Conducted monthly,
groups are limited to twenty-five per full day sitting.
GEM is used for on-going training as well as for employee
induction, focusing on enhancing communication and
interpersonal skills, supervisory & leadership
skills, planning and collaboration methods and to
instill discipline and a positive work culture among
all. The GEM training initiative and module is an
HRDF-approved training programme and as such, training
cost is reimbursed.
The
programe is to assist further in developing employees
to work as a team as opposed to seeking individual
gratification. It’s to embed a strong customer
service culture and mindset. After all, it’s
the customer who dictates our business revenue. Fancy
jargon like “the customer comes first”
is meaningless if the passion and commitment to serve
is an afterthought or something plastered on the wall
to give you that “feel good” factor that
you have done your part to enhance customer service.
GEM
is cultivated through three main aspects, namely personalised
greetings, smiling and “don’t worry, be
happy”. Guests are welcomed with a personalised
greeting, the right hand palm spread out over the
left chest, is their way of welcoming and showing
respect. This greeting is nothing new and has been
in place with the Hospitality and Tourism fraternity
for some time. We have just adopted and enhanced this
practice across our employees so as to impress upon
our customers, Malaysian hospitality. Customer service
and the spirit to serve in the hotel is instilled
as ‘a way of life’. It has been said that
service to another is the greatest service that one
can fulfill and perform in our lifetime. And the results?
Feedback garnered through customer questionnaires
and evaluations has produced good reviews, comments
that validate their work and ratings at the 90% mark.The
hotel industry is different from other industries
in that we are so dependent on the customer. So these
programmes give the employee a sense of ownership,
a sense of loyalty to the organization and it certainly
builds self-confidence. I see this reflected in the
comments and evaluations we receive from our hotel
guests. At
the core of it, the hotel is determined to create
the inter-dependent worker as distinct from the independent
worker. I don’t want the superb employee who
lacks interpersonal skills, who cant manage team-work
and is individualistic in work and thought. Teambuilding
enhances this inter-dependence between workers, all
share one vision and one goal. Our goal is to be the
best hotel in Negeri Sembilan and we see that to achieve
this, we must all speak the same language and walk
the talk.
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Dileep
oversees two departments namely the teambuilding and training portfolios.
Teambuilding falls under the umbrella of the Sports and Recreation
unit at the hotel. A certified customer service Trainer, Dileep
talked about how the teambuilding idea came about initially. He
joined Klana Resort six years ago. Studying social policy and administration
in the UK, he saw himself as a self-starter and coming back to Malaysia
on completion of his studies, took up a position as an Administrative
Officer, with a Dutch company, contractors to a Shell refinery jetty
at Port Dickson at the time. All done on a handshake.
Possessing sixteen years in HR Administration and Training, a good
number of these years was spent in the oil and gas construction
sector. When Dileep joined the hotel, management had conceptualised
the idea of ‘my all-inclusive destination’ or MAD in
short. It was based around the idea that hotel patrons needed something
to occupy themselves with at their leisure. The hotel was sitting
on some twenty four acreas of land, and saw this offering as something
unique that they could provide the hotel patrons with. In time,
the teambuilding and leadership programmes have gone from strength
to strength and it has firmly become established as a HR initiative
in the last three years.
It
was at about the same time that teambuilding began to gain prominence
locally with outward bound training concepts being used as part
of a larger agenda towards training and development; lessons were
being incorporated into employee training sessions. With this move,
Dileep and his team began to slowly come out with their own programmes,
which are now being marketed externally as a service to others.
The beauty of this initiative is that over the last 3-4 years, the
department has been income-generating. For the year ending 2007,
teambuilding-generated revenue contributed 10% of total hotel revenue
in terms of room nights and food/beverage (F&B) sales. For the
My Teambuilding Destination (MTD) for July 2008, teambuilding has
so far contributed 5% to hotel revenue in terms of rooms & F&B
sales.
All manner of industry come for these events, ranging from manufacturing,
banking, insurance, multi-level marketing and the oil and gas sector.
On average, the hotel runs between seven to eight programmes a month,
last month accomplishing some thirteen programmes.
But
it’s a small team in HR & Sports & Recreation - two
supporting staff, the HR Assistant Manager, the HR Secretary and
the HR Director, and ably supported by a Programme Coordinator and
Two Programme Facilitators, who have duties in Sports & Recreation
in addition to their existing portfolios. The Managers, Coordinator
and Facilitators have all undergone Train-the-Trainer programmes.
They deal with spikes in service by multi-tasking and pulling staff
in from other departments on a regular basis, these staff comprising
what is known as the Teambuilding Reserve Unit (TRU).
Some of the more permanent members of the TRU have also undergone
Train-The-Trainer programmes, and all continuously expand on their
knowledge and training skills. In the last year and a half, the
resort has set a module for building and nurturing a high performance
culture, again emphasising the use of their 31-obstacle course and
the numerous extreme activities they have in place.
This,
the HR team undertakes alongside their other responsibilities with
the hotel. - none of their responsibilities are outsourced. Dileep
argues that it works well for them and its based on their preference
for a much more personal encounter with their employees, present
and prospective.
Curious
about forward plans for this, I asked Dileep about what lay ahead.
The contingency plan is to look at recruiting more people but Dileep
was keen to emphasise that, that call was determined by the business
volume generated – its all about the bottom line. For now,
its about using the HR and Sports & Recreation teams effectively,
taking on board the TRU as and when needed and running refreshers
every year to keep their eye on the ball.

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