Staff outsourcing has become very popular within the hospitality industry in recent years; gaining the benefit of a large talent pool of skills upon need has become very useful for companies. Many outsource companies specialize in specific staff, such as stewarding or housekeeping, in order to provide hoteliers a better quality at lower costs, resulting in hotels managers using several outsourcing providers at once.
Controlling these increased outsource expenses has become a challenge for many hotels. In theory, the HR or Operations department pay for the work that was ordered and delivered. In practice, invoices not once include hours not delivered, or hours performed without pre-approval. Managers commonly report feeling a lack of control, and witnessing negative effects on their budgets.
“Fixed-hours agreements” are one method that hotel managers use to control outsource expenses. Knowing in advance the budget needed for the planned work, the hotel pays only for the hours that were ordered, so additional costs for overtime or extra employees are unpaid. In that way, managers still have limited knowledge and control on the work that was actually performed. Also, this leads to a lack of flexibility, especially if unplanned situations occur, such as weddings or conferences that need extra staff.
In order to be flexible while still controlling your budget, outsource providers should be treated like your own employees. Use forecasting tools to determine how many service providers are needed and then schedule them according to the needs.
Track outsourced employees based on their real attendance hours, meaning each of these outsourcing employees should have their own badge (preferably biometric to ensure credibility). This way you will be paying for labour that is delivered according to schedules and actual hours worked, which are approved by department supervisors.
Make sure you are able to control the expenses rather than letting the expenses control you!