More than 19 million United States (U.S.) workers have quit their jobs since April 2021, creating a widespread labor shortage in the country across all industries. The scarcity of labor has had some devastating effects on the hospitality industry, especially as it pertains to back office and administrative support.

The Great Resignation has challenged business owners with both retaining their current employees and finding new employees to fill open positions. Unemployment is low and owners have already tapped the pool of available talent, so finding qualified employees is more difficult.

We are currently in an employee job market. It easy for people to find a job and set their own terms, negotiate higher salaries, and demand additional benefits because fewer applicants are looking. This leaves very few available candidates for those businesses that do not have the infrastructure or resources to attract new talent when they lose current employees.

If you are a hospitality business owner struggling with labor challenges, you may consider outsourcing specific finance, accounting, and processing responsibilities.

Business process outsourcing

Outsourcing can help to alleviate the effect of the Great Resignation on your business in the short term, and is a valuable solution to navigate the current landscape more effectively.

Outsourcing can help with employee retention problems in several ways. The right outsourcing strategy can cost you less than hiring a new employee. It also allows you to tap into a much larger talent pool that delivers services outside of your expertise.

1. Expertise and industry knowledge – Business process outsourcing (BPO) professionals, like the dedicated team at Citrin Cooperman, have a deep understanding of the unique financial intricacies and regulatory requirements that hospitality businesses face. They can provide comprehensive support including bookkeeping, financial reporting, budgeting, cash flow management, tax compliance, and payroll services tailored to the specific needs of hotels, restaurants, and other establishments.
2. Cost optimization and flexibility – In a time when many businesses are trying to reduce overhead expenses, outsourcing can be a cost-effective alternative to maintaining an in-house team of staff. Outsourced services allow businesses to access a team of experienced professionals without the need for hiring, training, or providing benefits to additional employees. This flexibility enables businesses to allocate their resources more strategically and to focus on core operations and guest experiences.
3. Staffing stability and reliability – A good advisory firm can offer a dedicated team of professionals, ensuring continuity and uninterrupted support regardless of staffing fluctuations or turnover rates within the organization. This stability is vital in maintaining accurate financial records and meeting reporting deadlines, even during times of uncertainty.
4. Technology and efficiency – BPO teams embrace the latest technological advancements in financial management. They employ cutting-edge software, cloud-based platforms, and automation tools to streamline processes and enhance efficiency. By leveraging these technologies, businesses can benefit from real-time financial reporting, seamless integration with other systems (such as point-of-sale or property management systems), and improved data accuracy. These efficiencies reduce the chances of errors, enhance decision-making capabilities, and facilitate timely responses to changing market conditions.
5. Strategic financial insights - Beyond day-to-day tasks, BPO services can provide strategic financial insights that empower hospitality businesses to make informed decisions. These services offer financial analysis, key performance indicators (KPIs) tracking, benchmarking against industry standards, and forecasting services. Such insights help businesses identify areas of improvement, optimize revenue streams, control costs, and devise effective financial strategies to navigate the challenging times posed by the Great Resignation.

As the hospitality industry grapples with the impacts of the Great Resignation, outsourced accounting services offer a lifeline of support and stability. By tapping into the experience, industry knowledge, cost optimization, reliability, and technological advancements offered by these service providers, hospitality businesses can better navigate the evolving landscape and focus on their core competencies of providing exceptional guest experiences. Embracing outsourced accounting services not only ensures financial stability and accuracy but also positions businesses to adapt, thrive, and emerge stronger in the face of unprecedented challenges.

Citrin Cooperman’s Business Process Outsourcing team is prepared to help your hospitality business thrive with the most effective strategies customized to your unique needs. Please reach out to one of the team’s professionals or Bob Gilbert at rgilbert@citrincooperman.com.