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3 Ways to Reduce Hospitality Human Resources Expenses

In any business model, when expenses are centralized and consolidated savings can be realized. Human resources functions and employee benefits are no exception. Some of the biggest expenses a hotel property owner face include the human resources ones: health insurance, worker’s compensation, criminal liability insurance and risk management. If there are 50 people employed at a hotel, the costs per person to insure are significantly higher than they would be if the group size were 1000. A larger headcount can equal significant savings. Regularly monitoring the liability insurance options and the costs of benefits like medical, dental, vision and life insurance are critical to ensuring that expenses are controlled and profit goals are met. Here are three ways to reduce a hotel’s human resources expenses: 


  1. It’s More Affordable in a Group
    While the human resources department is not revenue generating, it can assist in meeting financial goals by reducing reoccurring costs. As the headcount of covered employees increase, the some premiums are lowed and costs are reduced in the long run. An experienced hospitality HR staff can lessen other HR expenses like time and attendance, payroll processing, pre-employment drug screenings, background checks and much more when they are linked to higher use or demand. There is more leverage in negotiating these services.

  2. One (HR Staff) for Many 
    A dedicated and centralized HR department can save substantial funds for a hotel ownership group. When a hospitality management company provides that function, they are geared towards profitability and eliminating duplicated functions. They are proactive in training and can respond quickly to any incidents in the workplace. When they roll out identical programs at multiple properties in the ownership portfolio, it reduces time and materials that having an onsite human resources staff would mean. They are also critical in relieving duties and freeing up General Managers to focus on running the hotel.

  3. Take It Online
    Minimize costs by reducing the amount of paper that the HR department produces. Many payroll companies now offer paperless stubs and insurance companies are encouraging customers to sign up for paperless explanation of benefits. This can lead to fee reductions for employers as the insurance company’s fees will be lower. Establishing online communication portals for a company intranet, payroll and benefits portals and effectively utilizing them will lead to savings in the short and long term. 
Would you like more information on how PHD Hospitality provides these services to our customers? Give me a call at 602-714-2442. I’ll be happy to share how we can make a difference in your bottom line.

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