10 Strategic Reasons to Outsource Your HR

HR best practice for hospitality operators is more often than not put on the bottom of the priority list, leading to costly employee turnover and less than desirable workplace culture. Here are ten reasons to outsource your HR and partner with someone to make it a priority. 

Warning. Reading this may enhance the productivity of your operations and boost your bottom line.

With the increasing pressure on business owners to cut costs, increase revenue and exceed customer services expectations, the outdated "do everything" mentality must mellow and specialist support must be provided for venue managers to be successful.

Yes, most of today’s time poor operations managers are obligated to absorb the accountability for administrative duties as well as operations, usually with an unsuccessful outcome. Why should a manager be responsible for tasks like advertising,  resourcing administration and HR, in addition to the true and inherent tasks of the role ? Especially when there is a solution available.

Continuing on this path more often than not leads to poor decision making and forces under qualified front of house managers into skipping out on process that would otherwise enhance their operation, not harm it. Therefore making offers to people that may not be the right fit for the business.

Add in a national skills shortage and no wonder your team chemistry and culture is a mess.

What HR services can venues outsource?

Hospitality businesses can outsource HR tasks like recruitment, resourcing and administration. Dive a little deeper; this includes writing job descriptions, distributing the correct employment contracts, conducting employee inductions through to employee background checks, and training expenses, all saving valuable time which can then reallocated towards increasing guest spend through sales or up selling techniques and customer service.

Here are 10 of the most significant reasons you should consider outsourcing HR in your hospitality business

#1 Remove or reduce administrative salaries

While opening one restaurant or bar is manageable, expanding to 3 or 4 venues will put a significant amount of pressure on the people in your team that were tasked with this, who perhaps don't have the ideal skills required to get you where you are going. Hiring experienced HR professionals will expect market level salary + benefits, and then you need to consider the process of replacing or transitioning a specialist role like this in the unlikely event of departure.

Replacing a bar supervisor is something you excel in, replacing a Payroll or HR Specialist perhaps not.

#2 Remove software application costs and training

Cloud based software has reduced the costs associated with some applications, but finding a program that is perfect for payroll, scheduling, contracting, and recruitment equally is somewhat of lost cause. The time involved in onboarding, customising and training for your managers is rarely recouped and has a significant overall cost to a business. Partnering with a hospitality HR specialist have access to the best systems and process, without the cost additional cost.

#3 Exchange time for the freedom to focus on profitability

As a business owner or manager, how valuable is your time?

Imagine switching the time and internal labour spent on recruitment, interviewing, skills testing, trialing, onboarding & ongoing compliance for revenue driving activities with staff who have been professionally recruited and delivered as per your minimum requirements?

Seriously, picture that.

#4 Attract aligned, skilled and quality candidates

It may seem a hard to believe at first, but when a company chooses to outsource HR to a 3rd party, they are 100% accountable to understand accurately what your business needs and deliver candidates that uniquely match your requirements. The final decision on offer then is for the client to make.


#5 Access your very of team of experts 

Look at it as having payroll, training, HR & recruitment departments all working on your account who have detailed and industry specific experience in HR, recruitment and front line operations, who work collaboratively to support positive outcomes and understand the dynamics and expectations of a challenging industry. What skills shortage!


#6 Maintain engagement of your current staff and increase retention 

Allow a personable, empathetic and patient representative of your business listen to the needs and current personal challenges of your front line. A collaborative partner will also manage an employee's training and development expectations, long term career planning, conflict management and complete support throughout the employee life cycle.

If your team was receiving this support, do you think they would  ever want to leave?


#7 Additional employee benefits 

Aside from salary, employee benefits are next in line for the most sought after advantages for restaurant and hospitality staff.

Sure free meals and half price drinks are attractive, but what if you could offer goods and services usually only reserved for big business? Like novated car leasing, discounts on groceries, gym memberships. Winning!


#8 Opportunity for more job specific training

Being a part of something bigger means access to specialised training with industries best operators. Think of it as a growing network of people helping skill up our workforce for the benefit of the entire industry.


#9 100% workplace compliance

Avoid an embarrassing moment for your business by allowing professionals to be 100% accountable on all legislative matters.Eliminate concerns and worries about the ever increasing government regulations, including immigration matters.


#10 And finally, it can mean quality assurance

The best companies guarantee exacting high levels of quality in everything they do. The greatest benefit is savings in time and money and entrusting these functional tasks to an industry expert, trained and conditioned for hospitality HR services.


How do I choose a hospitality outsourcing company that is best for my needs?

Ask your colleagues in the industry for recommendations or speak to some of the candidates or employees they may manage. In addition to reviewing the points above, 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.

To discover more information about how the benefits of partnering with a hospitality industry specialist, download our HR Services fact sheets below.

HR services

About the author Marlowe Bennett

Drawing on 22 years personal experience and over 23,000 professional hours working across Sydney’s hospitality industry, these articles intend to inspire young candidates to join our industry and support aligned operators in building positive employment environments for the aspiring hospitality professional. Please feel free to contact me directly if you feel I could help or if you would like us to cover an important topic or industry matter.


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