Increasing Short Term Savings
Successful hotel managers are often on the lookout for little ways that can improve their service every day. While some tasks take longer to complete than others, there are plenty of savings you can put into practice that profit you in the short term. Here are four ways that you can increase the short term savings of your hotel:
Low bill rates can lead to high turnover in staff because of payrates that simply do not reflect the market reality. While there may be workers willing to accept low rates in the short term, they are far more likely to find work elsewhere. Low pay rates also often mean lower quality; less experienced workers. Your staffing partner should work with you to determine payrates that meet your overall goals – not a low number to grab short term business.
Proper background checks and skills screening are an essential part of professional staffing. But agencies that pitch rock-bottom bill rates may have lower standards for hiring. With a shrinking pool of talent and rising pay rates, some agencies lower their standards to find workers. HSS follows a stringent set of rules throughout its organization for experience and background. These policies protect our company and the interests of the properties we serve.
HSS workers are all W2 employees of HSS. This ensures that taxes are properly reported and withheld. In order to achieve low bill rates, many staffing companies issue 1099s to employees, classifying them as contract labor. Short term, this seems like good news to employees who don’t have taxes withheld. Many are then willing to work for a lower rate. But employees do eventually have to pay taxes and may have been misled about this responsibility. This can result in a financial burden on employees could also lead to an investigation into misclassification of labor. Staffing agencies often hastily shut their doors leaving serious repercussions for the hotel and its brand.
Staffing companies are required to follow state and federal OSHA regulations. Clients of staffing companies are also required to ensure that these safety trainings are occurring. This can be a significant investment on the part of a staffing company. For example, HSS has a national team of safety experts that regularly train workers and ensure compliance. A low bill rate may mean that safety training either isn’t happening or not in a way that is compliant.
In the end, every GM needs to look at what is best for their property. However, a low bill rate may indicate that some essentials in staffing are simply not present. This can cause serious financial, branding, and legal issues for a hotel. Many times safety issues not addressed by a staffing company can impact a hotel’s standing with state and federal agencies. A misclassification of workers can invite the scrutiny of the IRS. And a less-than-robust screening process can lead to higher turnover, compromised guest safety and lower guest satisfaction scores.
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