Outsourcing could serve as the boost many businesses need to go from struggling to thriving.

When Outsourcing Jobs Makes Sense

Productivity Efficient Solutions

Not every position needs to be in-house. Outsourcing jobs could serve as the boost many businesses need to go from struggling to thriving.

Let’s face it: When companies start outsourcing jobs, it has the ability to stir up emotions. And it’s understandable; people feel threatened that their position could be next in line. However, there are very specific instances when it makes more sense to outsource jobs than it does to try to meet the needs with in-house talent.

This is especially true within the hospitality and gaming industries. According to a recent Winhotel article, the reduction of fixed costs is the main advantage of outsourcing, as it enables hotels to operate solely on the expenses of what is used by guests, and nothing else. “This means that the hotel can hire the services of another company depending on their workload,” Winhotel reports.

Outsourcing could be a life-saving approach for any hospitality or gaming entity that experiences noticeable seasons. Routinely, what happens in these instances is that the hotel will have to lay-off staff during slow times or find ways to temporarily transition workers into other positions with the hope that they can keep them as long-term team members. The problem in taking this approach is that it often results in lower satisfaction levels — both for employees and guests, while often costing the business unnecessary expenses. By outsourcing, the business can keep its core staff in place at all times, empowering them to always concentrate on their individual areas of expertise, while leveraging outside services to meet seasonal boosts.

Outsourcing Jobs Successfully

Naturally, core management or talent-based positions are most often best to keep in-house. After all, it’s often this blend of internal abilities that serves as the organization’s differentiating factor. Likewise, there will always be positions that make financial sense to outsource, such as housekeeping, valet, maintenance and potential food service. However, it’s often a mistake to outsource in any one of these areas if they are significantly contributing to the establishment’s ability to attract clientele. Specifically, if your hotel is known for signature dishes, it may make sense to keep the restaurant team intact even during off-peak seasons because of its revenue-driving capabilities.

The key to success here is to have a solid understanding of the organization’s strengths and weaknesses before ever exploring outside solutions. In fact, when armed with a comprehensive understanding of the establishment’s weaknesses, it may shine a light on where outsourcing could help improve the reputation. Consider the reverse of the previous restaurant example: If the organization is known for poor food service, contracting this out to someone with a specialty and expertise in running restaurant operations could ultimately result in significant improvements to overall guest satisfaction.

Know Your Organization

Beyond a potential danger to quality control, other cons of outsourcing include a lack of alignment. The way individuals within an organization communicate is complex and can be easy both to misinterpret or misalign altogether. Communication must flow, unimpeded, in both directions. However, the pros — a fixed reduction of costs and potential increase in quality of specialized services — can be worth navigating any alignment mishaps that may arise. As hotel management begins to walk hand-in-hand with technology in more advanced ways, outsourced professionals can offer value with solid ROI thanks to quality technology or marketing knowledge your internal staff may lack.

The question to ask is whether the service is providing value in its current set-up and if it can be easily justified on a per-guest basis by outsourcing jobs (i.e. dollars per room per night). It’s crucial to understand how significant the service under consideration is to the organization’s bottom line.

Peter Fretty
Peter Fretty

As a highly experienced freelance journalist, Peter Fretty has written thousands of feature articles and cover stories for an assortment of trade journals, business publications and consumer magazines. With a B.A. in Business Management and an M.B.A. in Marketing and Communications, Fretty spent roughly fifteen years working in various capacities in the aerospace, automotive and telecommunications industries. Fretty has since worked with over forty publications as well as co-authored a book with Dr. Shelton Rhodes which focuses on government contracting.