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Outsource or Insource Housekeeping
Outsource or Insource Housekeeping
Outsource or Insource Housekeeping
Housekeeping is what gives hotels the 'wow' factor. It's the moment that guests walk into
the hotel and are impressed, then enter their bedrooms and think 'wow, this looks wonderful'.
Freshly laundered linen, fluffy towels and a welcoming atmosphere, which is all about creating a
big impression and exceeding expectations.
of
services
and duties.
types
of
Responsibilities of Housekeeping
One of the most diverse departments in a hotel, housekeeping plays as
important a role in guest relations as it does behind the scenes.
The
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same
To provide uniforms for all the staff and maintain adequate inventories
blankets
To ensure training, control and supervision of all staff attached to the
department
Advantages
and
Disadvatanges
of
Outsourcing
Housekeeping
Staffing a hotels Housekeeping department with reliable personnel can
be rather difficult at times. It can require a detailed hiring process to bring
unfamiliar associates on board, and usually an entire Human Resources staff
to handle any needs or requests they may have.
Running a hotels
(http://bpenow.com/ways-
reduce-expenses-hotels-housekeeping-laundry-departments/)
Fully-qualified housekeeping staff trained to high standards
to
choose
among
the
Furthermore,
it
gives
the
human
resources
an employee
with
resentment,
and
therefore the
company will
be
negatively
perceived.
language barrier)
No previous knowledge about the quality service that will
be received until we receive it > could be a waste of time
and a mistake.
Loyalty of the staff Their loyalties would lie with the person
who gives them the salary and not the property where they are
working.
Tired to the financial Well-Being of another company - if
the company that we choose goes on a bankruptcy, it will highly
Advantages
and
Housekeeping
Disadvantages
of
In-sourcing
Internal housekeeping is where the housekeeping department and its staff belong to the
hotel and the housekeepers are part of the hotel personnel. Internal housekeeping means all the
cleaning of the hotel which includes not only the housekeeping department and room cleaning
but also all public areas and behind the scenes areas of the hotel. Since the housekeeping
department is responsible for cleaning and maintaining so many different areas of the hotel,
planning the work of the department can seem like a huge task. The housekeeping department
works closely with the engineering and maintenance division to ensure the proper preventative
maintenance procedures are carried out effectively.
The advantages of internal housekeeping are as the following:
The internal housekeepers feel more pride and belonging to the hotel - consistent
quality service, dedication, sincerity, honesty can only be achieved if the above staff
have a sense of belonging towards the organization.
Keep
more control of
other
Fixed
departments
team number
which
reduces
the
turnover - Bisswurm (2001) reported that in the contract cleaning profession: The
average turnover rate most often used in industry conversation is around 300 percent,
but [a Contracting Profits] survey found a much lower industry average of 73 percent.
Even so, a turnover rate of 73 percent is still high. The stability offered by in-house
cleaners is a benefit to customers as they know who to contact, when, and where.
Security
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house custodians provide a reassurance that the work will occur as normal.
Institutional Knowledge - If employees have been in a building for numerous years,
they tend to get to know the building, its quirks, and departmental needs. This is an
incredible service to plumbers, electricians, or any trades professionals when they are
called to respond to a problem.
valuable in guiding the trade worker to the problem, and in many cases, the housekeeper
may even know the cause of the problem. In-housekeepers with longevity also can assist
in anticipating maintenance needs and special event needs.
However, there are also many disadvantages for internal housekeeping that could negatively
affect the hotel, which are as the following:
Keeping costs down while wages and materials are monthly expenses that can be
budgeted, the equipment needed to start an in-housekeeping is a capital expense that
occurs all at once. This means the cost of buying equipment can be quite high depending
on the size of the hotel, which in the David Intercontinental Tel Aviv case, is quite big.
Moreover, cleaning carriages, buckets, brushes and other equipment need to be bought
regularly so as to replace the worn and torn old ones. Also, during peak season, the
increase of employees is necessary and in low season, the reduction of staff is essential;
therefore, the contracts are very varied and it is very rare that employees these days have
there to improve morale with internal recruitment, it could turn the other way and help to
lower morale because employees become focused on competing for jobs rather than
trying to become proficient at their current positions (for instance: to compete of
becoming supervisors)
Managing the workforce housekeepers make up a large part of the hotels staff and are
usually the largest group of employees in the hotel. This may mean that in some cases,
the workforce doubles in a short period of time. This can be difficult for the human
resources departments as the workload increases due to the influx of employees. As the
hotel grows, then the workforce must grow too. The quality has to improve and stay at an
acceptable level; which puts a pressure of workers to keep it at the level it should be. Too
many slips in the quality or bad feedback from customers could be a setback for the
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NB:
Prices are in
Shekels. The percentages are the one from the cleaning and maintenance company MB in Israel.
To clarify, an Israeli employee of the housekeeping department will receive 25 shekels an
hour if he/she is a hotels worker and 27 shekels or more if he/she is an outsourced cleaning
company worker. The hotel will pay to the employee 25 shekels NETO but will have expenses
towards him such as social security, holidays etc. At the end of the day, even if it seems that the
hotel will pay more by employing from an outside company, it is actually the same. The
difference is that the company will take care of attributing the money to the social security,
holidays, and furthermore.
From a loyalty point of view, it is certain that an employee from the hotel will become
attached to the hotel and delivers a loyalty feeling and attachment; however by being paid the
minimum wage, it is not quite certain that he/she will give his best performance possible.
Whereas an outsourced company cleaners are paid better. Therefore, they are more likely to
invest in their job more. Outsourced or internal, the costs are quite the same, but one big
difference is that the hotel will not have to worry about missing workers and salaries (such as
paid sick days.)
In order to avoid as many disadvantages and cons as we can, and maintain a successful
hotel with a reduced labor cost, we have decided to mix both strategies in order to ensure safety
of the business as well. A balance of Outsourcing advantages that will cut cost and project
overruns with In-sourcing advantages that lead to effectiveness which is exactly what we are
aiming for.
To begin with, unfortunately, we will need to let go of some employees (around 30% 40%), or transfer them to other departments that may be quite potential for their talents; however,
we will maintain a core team in the housekeeping department such as the manager and
housekeepers based on different criteria, experiences, and quality of their work, in order to
maintain a unity and precious members that we do not want to lose. Moreover, the goal of this
remaining team will be able to handle the situation of the hotel based on the hotels occupancy
(low and medium only.)
Furthermore, if the occupancy is forecasted to be higher, then we shall connect with
manpower companies in order to receive significant help that will meet and potentially exceed
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the guests expectations. To clarify this strategy, we will need to explain those two factors which
are as the following:
Creating three shifts A normal shift in Israel (work period per law) is eight hours
with an additional hour for lunch/dinner and tea breaks. A busy hotel (in our case,
it is the David Intercontinental Tel Aviv), would have three shifts to cover 24
hours of the day while a remote resort property may operate with one general
shift. Then there is the aspect of covering seven days a week. Employees will
also need an off day. Israel has a six day week. This complicates scheduling
further to find substitutes (relievers) during the off days. The housekeeper has the
option of hiring daily wagers; scheduling on the basis on split shifts; creating
teams for critical areas who will cover each other; or outsourcing during high
occupancy rates (usually Fridays and Saturdays; Yom Shabbat; or during big
holidays and events) to an outsourced housekeeping company.
Covering three shifts A busy city hotel (David Intercontinental situated in the
busy city of Israel; Tel Aviv) will need to have all three shifts manned as arrivals
and departures are continuous. While the normal check-out time is 12 noon,
people may check in at all different hours based on their flight arrivals, road and
train schedules, and furthermore. The housekeeper has to balance the productivity
norms, off days, relievers, and peak and trough times. The housekeeper always
factors in the expected occupancy to determine the number of people required.
By using the mixing strategy that the hotel already uses for some F&B outlets, we will be
able to reduce the labor cost (such as employees that we need to pay even with no sufficient
income, sick days, minimum number of shifts, and furthermore.) The laundry will remain
outsourced in order to keep the cost lower with no need to pay the maintenance of heavy
machinery. Moreover, we will apply a few changes in our inside strategy with low costs, such as
a rewards program to generate excitement and continuous motivation within the department.
Furthermore, the outsourced help from the company will be led by our internal team
which will create a feeling of leadership and accomplishment that will improve the bounding of
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the team and delivers the feeling of membership and belonging to the outsourced company,
which may be the solution to one of the disadvantages of the outsourced organization.
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Conclusion
In conclusion, a mixing strategy of in-sourcing and outsourcing housekeeping at the
David Intercontinental Tel Aviv will reduce labor cost and benefit the hotel in various ways that
have been mentioned earlier. During low and middle occupancy rates, the housekeeping shall
remain in-sourced; however, during high occupancy rates, the outsourcing will take place that
could ensure safety in case of (i.e. sick days), and helps the hotel to maintain its reputation as a
luxurious 5-star hotel.
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