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Due to a weak economy, hotels, casinos and vacation ownership properties have faced increased pressure to cut costs, as well as the growing number of government imposed hiring regulations.

Outsourcing in the hospitality industry is growing by leaps and bounds across the United States and in the Caribbean. Since the Great Recession started, Steve Wilson is often asked to explain the benefits of outsourcing in hospitality. Here are a few of the most frequently asked questions and answers he and his team receive:

1. What are the benefits of outsourcing?

The greatest benefit is savings in time and money. Outsourcing can eliminate hotel management's role in recruiting, background employee checks, drug screening, and training expenses, all saving executive time which can then be focused on sales, marketing and customer service. For employees, it offers the opportunity for more job training and advancement possibilities. Plus, it can eliminate concerns and worries about the ever increasing government and workplace regulation. And finally, it can mean quality assurance. Some companies guarantee certain high levels of quality.

2. Can I provide five star service if I don't have my own employees?

Absolutely. Five star hotel and resort companies and independent properties frequently outsource part or all of their service departments. It is critical that the outsourcing partner understands the culture and quality expectations for the brands and properties in which they serve.

3. Are there benefits for employees?

Leading companies offer participation in everything from medical, dental and vision benefits, to short term disability insurance, IRAs, credit unions and discount programs with select suppliers. Plus, there can be opportunities for advancement in this fast growing field as well as training. Benefits vary by company.

4. Can I keep my existing employees?

Most companies retain existing staff at their same rate of pay; they just add to existing staff.

5. What are cost savings I can anticipate?

Depending on the number of services chosen, savings can be anywhere from several percentage points to up to 20%.

6. What services can be outsourced?

Turnkey housekeeping (including vacation ownership and timeshare cleaning), night cleaning, stewarding, window and chandelier cleaning, floor care, kitchen cleaning, casino cleaning, security, landscaping, laundry management and valet parking services.

7. Who handles immigration and other governmental regulations? If, in the event of problems, who is liable?

The outsourcing company handles all government and workplace checks for everything from drug testing and background checks for immigration and criminal records (e verification) to payroll.

8. What services are not customarily handled by hospitality outsourcing companies?

Front of the house operations such as front office, sales, marketing and accounting.

9. How can the outsourcing companies achieve these often double digit savings?

Lower vendor prices and economies and efficiencies of scale.

10. How do I choose a hotel outsourcing company that is best for my needs?

Ask colleagues in the industry for recommendations and then set up interviews with candidates. In addition to reviewing the answers to the above questions, ask about their longevity with existing clients and look at the credentials of the management team and, very importantly, ask a lot of questions about employee background checks and employment verification compliance.

About the author: Steve Wilson is the President and CEO of The Service Companies (TSC), a one-stop-shop for outsourcing in the hotel, casino and vacation ownership industries. The 24 year old TSC today serves nearly 375 properties in 38 states and the Caribbean with 4000 employees. Before joining TSC Wilson spent 20 years with Hyatt Hotels including general manager positions at several high-profile domestic properties.

Megan Sterritt
786-247-4812
KWE Partners