Hotel and restaurant owners/operators constantly struggle with busy schedules, overwhelming responsibilities, and cost increases. To save time and relieve some of the, many of them consider outsourcing certain tasks or functions. Which ones make the most sense to outsource, and which ones should be kept? When is the right time to seek outside help?
Let’s take a closer look.
The Benefits of Outsourcing
Hospitality professionals often consider outsourcing because it offers several benefits:
- Reduce costs while maintaining (or even elevating) the quality of service
- Get the best talent without the burden or risk of having to carry them on your payroll
- Learn new insights and methods that help you see the trees, build a competitive advantage (especially since outsourcing is shifting from being purely tactical to more strategic), and improve performance
- Complete the task(s) at hand faster
- Have a partner who can push your team to be more proactive
- Have to test out a relationship without a long-term commitment
- Avoid the need for training or retraining
What to Outsource vs. What to Insource
Outsourcing typically provides the biggest advantages for large cost centers and functions that require advanced skills and/or significant time, such as accounting, sales and marketing, administration, payroll, and human resources. (Learn more about how Patton Asset Management negotiates better pricing for these services.)
On the other hand, it often makes more sense to insource when the function involves direct guest contact at the property (such as bell staff, housekeeping, and other customer-facing staff) because it’s easier to maintain a consistent guest experience when you’re hiring and managing staff.
Finding the Right Partner
Outsourcing isn’t a silver bullet, and having the right partner makes all the difference. If you’re thinking about seeking outside help, here are a few steps to get started:
- define your goals and needs for the relationship.
- Ask your colleagues in the industry for referrals of people and companies that have helped them fulfill similar goals and needs.
- Verify if the potential partner has had experience working with businesses like yours.
- Meet with them in person or over to ensure their working style meshes with yours.
- Request a proposal, including references and samples of relevant past work.
For more guidance on outsourcing vs. insourcing, or to learn how Patton Asset could save you time and money, reply to this email and tell us more about how we can help.