Staffing for Profit in the Hospitality Industry

Posted January 10, 2014

If your company is like most, labor is the biggest line item on your P&L. The more actively you manage that expense, the more profitable you can become. To increase overall profits, you need to make your staffing and hiring costs leaner—without affecting your productivity or processes. How?

It’s not rocket science! To increase profits, you have to increase revenues, decrease expenses, or do both. That’s it. And from the assembly line to the executive office, effective staffing is essential to maximizing profitability. Here are a few ideas to get you started on the path to staffing for profit!

1. Convert Fixed Cost to Variable.
Reduce your core staff to levels necessary to maintain normal operations. Additionally, partner with a qualified staffing firm to supplement your staff with trained temporary personnel when you need to meet unusual production demands, such as seasonally.

2. Eliminate Overtime.
Overtime is an extremely expensive way to get work done. Using temporary employees in place of overtime can reduce labor costs by 20% or more.

3. Limit Benefits Expense.
On average, benefits cost 20% – 25% in excess of payroll expenses. Using temporary and payrolled employees when and where it is appropriate will eliminate a large chunk of your benefit expenses.

4. Reduce Risk.
Using temporary and payrolled employees in place of independent contractors will reduce your employment risks. They work for your staffing partner, not for you, so their unemployment and workers’ comp claims won’t affect your rating or your bottom line.

5. Outsource Time-Consuming or Non-Critical Tasks.
This will reduce your total expenses and improve productivity by freeing your company to focus on its core competencies.

6. Reduce Training Costs.
Training is expensive in more ways than one. Cut training costs and improve quality and productivity by employing skilled temporary employees. By working closely with your staffing partner, you can gain access to candidates who are well-trained and have experience in the skills you need.

All Team Staffing’s Food Team is the nation’s premier staffing agency for the food service and hospitality industries, providing our clients with employees for temporary, part time and full time assignments. All Food Team employees are referenced checked, criminally background checked, drug tested and skill certified based on their area of expertise.

Have questions on how a partnership with our team can positively impact yours? Contact us today!