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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


Dileep Pillay
Photo courtesy of : Dileep Pillay

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.

 

 

 





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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