Outsourcing – a Housekeeping Perspective – by Liz Lycette

Some questions on outsourcing were recently asked of Liz

What are the big trends in outsourcing?

There is a significant global shift in Housekeeping operations from internally run operations to using an outsourcing contractor/ agency. The main reason for this is that hotels are unable to find a ready pool of qualified staff and there is also a trend by senior hotel management to focus on working with clear and finite costs within the housekeeping operation.

Arguments for outsourcing – why should businesses consider it?

For most operations, there is an ongoing challenge to find suitable staff especially in city locations where staff lives a long way away and it is expensive for them to come into work.

Another challenge unique to Australia is the issue of worker’s compensation blow out charges; this is a major reason why Australian hotels are going down the outsourcing route.

Another reason hotels may choose to outsource is that there may be a corporate directive when a whole chain of hotels chooses to outsource to one supplier.

With outsourcing there is a more finite cost structure, that’s why Financial Controllers love it. No holiday pay, no sick leave, no workers comp, no high training costs due to high staff turnover. This means you are only paying for the specific cleaning of rooms as they are occupied.

Another reason to choose outsourcing is that the Housekeeper doesn’t have to handle the continual occupancy fluctuations. The way people travel, booking hotels at the very last minute means that occupancies can change quickly making rostering a nightmare, this burden then becomes the outsourcers problem to fix.

Arguments against outsourcing – what are the risks and pitfalls?

The main issue for the Housekeeping Manager is to maintain the quality and consistency of the outsourcers work. It is difficult to set up a good working model of ensuring every guest room is cleaned perfectly every time and all public areas are always spotless. One pitfall often not clearly defined is the issue of additional charges. It is important to ensure all parties have thought through all the grey areas which may come up such as training, spring cleaning, mattress turning and all the extra duties which don’t come under daily departure and occupied room cleans. There is a risk when integrating an existing pool of staff to an outsourcer or agency that some staff may not want to work for them and this then leads to a loss of strong, loyal and well trained staff at the time of change over. The most important issue to understand is how well will the outsourcing business blend with the rest of the hotel? Does the agency understand all the key criteria of the hotel branding, guest service and customer satisfaction or are they just in it for the money?

What is the best way to proceed if you have decided to outsource?

Several factors are key to making it work – it is important to ensure there is a good rapport between the Housekeeping Management team and the outsourcing agency. Of course the cost factor is important but it is essential not to just go for the cheapest option. Favourable reference checks are critical as is the careful negotiation and agreement by both parties. The outsourcing provider must show a very clear attitude that they think like an operator and that this is not merely a business deal.

How often should you review/assess your contractors if you are already outsourcing? What is the key to a harmonious outsourcing relationship? 

Frequent reviews are important. Weekly meetings with a review of quality scores and issues from both sides are vital. Meetings should be minuted and there must always be an open dialogue with honesty and a sense of trust being paramount. I would suggest regular participation in these meetings by senior management including the Financial Controller and the General Manager to ensure everyone has a clear understanding of the ongoing issues. An agreed procedure on the levels of communication at a daily, weekly and monthly is essential. Both parties need to have a very clear understanding of the extent of training required for all staff. How many days training for new Room Attendants? Every hotel varies enormously in terms of setups and procedures. It is impossible for even an experienced Room Attendant to be fully productive within 1 or 2 days.

A clear understanding of the OH&S responsibilities for both parties is also critical. The final key factor to a harmonious outsourcing relationship is the full commitment and “buy in” by all parties concerned to make it work.