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The High Cost of Low-Price Hospitality Staffing

hotel manager staring at 1-star review

As a hotel manager, you are always looking for ways to cut costs and improve the bottom line. However, when it comes to staffing—a critical component of guest satisfaction—opting for the lowest bidder can be a costly mistake.

Like buying the cheapest possible tires for a high-performance sports car, skimping on staffing costs might save you money upfront but will likely lead to a bumpy ride, frequent replacements, and potentially disastrous outcomes.

Let’s delve into why choosing the least expensive hospitality staffing option over the highest quality is a decision that could end up costing more in the long run.

Turnover Turmoil

First and foremost, lower-cost staffing options often lead to higher turnover rates. Just as a cheaply made tire wears out faster under the strain of the road, underpaid and undervalued staff are far more likely to leave their positions in search of better opportunities.

This constant cycle of hiring and losing employees not only incurs direct costs associated with recruitment and training but also disrupts the consistency and quality of service that guests expect. Each new wave of staff needs time to learn the ropes, leading to a period of adjustment where mistakes are more likely, and service levels may falter.

revolving door of talent
Low-cost, low-quality staffing creates a revolving door of turnover that you pay for over and over.

The Training Trap

With high turnover comes the relentless need for retraining. Training new staff is not just about teaching them the technical aspects of their job but also about instilling the values and standards of your brand. This process requires time and resources, and when it’s a frequent necessity, it becomes a significant drain on both. Continual retraining due to staffing churn is akin to patching up a leaky roof with temporary fixes rather than investing in durable materials that will withstand the test of time. It’s an ongoing expense that could be mitigated by investing in quality staffing solutions from the outset.

Reputation Repair

Perhaps the most significant cost associated with choosing low-price over high-quality staffing is the potential damage to your hotel’s reputation. In the age of social media and online reviews, it only takes a few unhappy guests sharing their bad experiences to tarnish your brand’s image. The analogy here is clear: just as you wouldn’t serve a fine wine in a cracked glass, delivering subpar service through under-qualified or disengaged staff can undermine the entire guest experience. Repairing a damaged reputation can be far more expensive and challenging than the initial savings from choosing a cheaper staffing option.

Choosing Quality: A Worthwhile Investment

By putting a premium on quality and forming a strong staffing partnership, the initial higher markup is quickly offset by the benefits. With a team of well-trained, motivated, and engaged employees, hotels can achieve lower turnover rates, reducing the costs associated with constant hiring and training. Moreover, happy staff lead to happy guests, who are more likely to leave favorable reviews, refer friends and family, and become repeat customers.

In conclusion, while the allure of immediate cost savings by opting for low-price hospitality staffing options is understandable, the long-term costs far outweigh these initial benefits.

Investing in quality staffing is not just an expense; it’s an investment in the future success and reputation of your hotel. Like choosing the right tires for a car, it’s about ensuring safety, performance, and satisfaction for the long haul. For hotel managers looking to steer their properties to success, prioritizing quality staffing is the surest route to a smooth and profitable journey.

Heart of the House is a multi-year winner of the Best of Staffing Award for Client and Employee Satisfaction. Learn more about how our quality-focused staffing solutions can improve your bottom-line and earn higher guest satisfaction scores from guests!