Avoiding Overstaffing and Understaffing in Hotels
Avoiding Overstaffing and Understaffing in Hotels In the hotel business, people are one of your greatest assets and one of your biggest operating costs . Having too many employees can significantly increase payroll expenses, while having too few can lead to poor service, employee burnout, guest complaints, and lost revenue. The real challenge for hotel managers is finding the right balance: having the right number of people, with the right skills, in the right department, at the right time. What Is Overstaffing? Overstaffing occurs when a hotel employs more people than it needs to operate efficiently. For example, a hotel may schedule ten front-desk employees during a period when guest arrivals are low and only four or five employees are actually required. While the hotel may still provide good service, it is spending money on labour that is not generating sufficient value. Problems caused by overstaffing include: Increased payroll and overtime costs Lower employee productivity H...