The Five Ws of Workforce Management in Hospitality

We have all been in the internal meetings, the session where a leader explains why their department has gone over their labor target. At times, the explanation makes sense, a particularly labor-intensive set of meeting room re-sets in banquets required more housepersons. Or the four-to-a-room youth sports groups drove the need for additional housekeeping support staff. However, many of us have also heard far less plausible thoughts – “we were really busy,” or “there were so many call,” or maybe “the group block did not materialize, and we had more staff scheduled than we ended up needing.”

And we stood in the lobby and watched a line of guests wait somewhat impatiently at a front desk reception area with six workstations – with only two of those occupied by staff. Or we have walked by a handful of puzzled guests waiting at an unmanned host/hostess stand into a bustling and somewhat chaotic restaurant. As we turn a corner, we see plenty of occupied tables, yet not much eating going on – and there we find the host, bussing a table from an early lunch guest.

What is Workforce Management?

Workforce Management is getting the right person from your staff, in the right place, at the right time to serve your customers. 

Why is Workforce Management Important?

Effective workforce management drives four key components of every hospitality business. 

1. Cost Savings/Labor Optimization

It is nearly universal that wage spend is the highest cost in the hotel. And it is true in nearly every operating department – housekeeping, front office, restaurants, bars, banquets, spa, etc. And even in the places where other expenses like food cost in the kitchen or service contracts in R&M can be higher than wages, the dollars spent on labor in those areas are significant and have a meaningful impact on overall hotel profit.  

2. Customer Service

Even if every employee in the hotel has a great smile, connects with each guest they encounter, and is a highly trained expert in their area – that is of no value to the guest if they are not in the right place at the right time. Since the employee you put in front of that guest needs to have the skills to deliver expected service, job records need to include accurate occupation codes and skills. 

3. Compliance

Labor regulations and CBAs are complicated. Meal and rest break rules, fair scheduling legislation, and timecard accuracy are just a few of the many places where a plaintiffs’ attorney, a state/local government wage and hour auditor, or a union representative can question your practices – and involve you in expensive claims. The right tools and processes put your hotel in the best position to avoid costly penalties and build trust with your most valuable asset, your employees.

4. Employee Engagement

Highly effective workforce management is something your employees want because great WFM goes beyond saving money. Your employees in the bar and restaurant want to provide great service because their gratuities are higher when they can provide excellent service; however, they don’t want five servers on the shift when three is the correct staffing. Likewise, an hour of overtime one or two days a week for the room attendant is a welcome addition to the income, but two hours four days a week is a physical and work-life balance burden they cannot tolerate. They expect management to get the schedule right so they can provide service and cleanliness they can be proud of.

Who Needs to Consider Workforce Management?

Any operation where business volumes fluctuate needs to assess the effectiveness of their Workforce Management capability. If you are reading this, you may be thinking – that is very like almost every hotel we own, operate, or I have ever stayed in. Correct! Of course, that does not mean every hotel needs significant improvement in process and/or technology – but you should be assessing your WFM needs on a regular basis.

Who Should Own Workforce Management? 

This is a very common question – and the topic of an entire panel discussion at WFM industry events. The answer, like many things in business and life, is not 100% black and white. The best Workforce Management in hotels happens when the top Finance, Human Resources, and Operations leaders in the hotel commit and execute at a high level – and there must be a champion for the WFM capability and daily, weekly, monthly, and annual execution. It can be one of the “Big Three” from Ops, Finance, or Human Resources, or it can be a dedicated leader who carries the weight and backing of the top trio. Both models work well, however, overspending, poor compliance, and lackluster customer service can occur when only one or two of the parties are engaged or when no clear leader keeps it on track.

What is Next for Your Hotel?

Complete a quick self-check with these questions: 

• Are we above 90% accurate with our weekly volume forecast for covers by meal period, arrivals, departures, spa treatments, cars parked, etc.? 
• Does the scheduling platform or process provide a planned hours target, by day and function based on labor standards in combination with the volume forecast? 
• Are the scheduled shifts staggered based on historical trends of guest contacts as tracked by your POS and PMS platforms? 
• Do our managers get “next day” labor analytics? (When they come in on Tuesday morning, do they see actual hours against target for yesterday, week to date and the month?)

If the answer to one or more of these questions is no or I don’t know, there is an opportunity for you to improve business outcomes. As the leader in Finance, Human Resources, or Operations, and you are a key part of the Workforce Management ownership group in your organization, now is the time to reduce wage spend, improve service delivery, and improve employee engagement by enhancing your workforce management.

About the author

Brian Schoettes is the founder of Valico. He is an accomplished leader specializing in workforce management, labor optimization, and process transformation for hospitality, retail, and healthcare organizations. Brian has designed and implemented innovative workforce solutions that deliver measurable cost savings, enhanced service delivery, and operational excellence. As Vice President of Workforce Management at Marriott International, he established the company’s first Workforce Management capability, resulting in $300 million in annual labor savings across nearly 300 hotels, while preventing cost creep. Brian has led the onboarding of 165 Starwood-branded hotels to new timekeeping and labor reporting systems as part of the merger with Marriott. With his extensive background in operations, finance and deployment of numerous projects across various markets, Brian has experience with complex labor management requirements. This makes him an expert in utilizing workforce management to ensure compliance with Collective Bargaining Agreements and local and federal labor regulations. Brian is an active member of Cayuga Hospitality Consultants.

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