If you ran a hotel and were wasting 1 million dollars in labor you didn't need, then you probably would have lost that hotel years ago.
You clearly didn't pay attention to what I said. I never said that the $1 million was strictly coming from reduced labor costs. I said that
my contribution to that $1 million was mainly in reducing labor costs. The total $1 million is coming from a combination of factors. We're pulling higher rates, we've increased occupancy, we've reduced labor, we've increased penalty revenues, we've reduced service recovery compensation (that is also mainly thanks to myself), we've reduced relocations from overbookings (partially thanks to me), and we've reduced utility consumption, etc. It's all adding up.
As for people who get wealth from providing customers with products or services, the only way to increase that wealth is to sell more products and services. That takes more people.
Someone clearly doesn't know what they are talking about. As I just explained, one of the ways we've grown this past year is by increasing our rates. Under the old management, the hotel was leaving alot of money on the table. There were instances where rates were being set at $89 for the night, when they should have been set closer to $149 for the night. That's a whole lot of money being left behind. We've fixed that, by and large.
Aside from that, increasing productivity does not necessarily require more labor, if labor is not being utilized to maximum efficiency. I've reduced our labor usage because under the previous management it was horribly inefficient. For example, there was alot of overtime bleeding through from shift changes, while the outgoing staff briefed the incoming staff on the day's events. There was also alot of dead labor, due to the fact that shifts were structured in a simplistic block format. And there was too much compartmentalizing of job functions. I've redesigned the shift structure so that there's natural overlap. Instead of people being scheduled for 40hrs a week, and ending up with 1.5 to 2 hours of OT, they're now scheduled for 37.5 hrs. This way, if they run over, there's a built in cushion. Meanwhile, there's no more of someone leaving at 3pm and the next person arriving at 3pm. The outgoing person might be scheduled to leave at 3:30, while the incoming person arrives at 3pm. This way, they can review any notes necessary without exceeding their scheduled hours. I've also implemented flex shifts and mid shifts. Before, a moderate day might have been scheduled for two AM people at the Front Desk, and two more in the evening. The morning would be too busy for one person, and the evening would be too busy for one person. But I've moved to an approach where we rely more on mid-shifts to cover part of the morning and part of the afternoon/evening. I've also implemented flex scheduling. One day you might be scheduled for 9 hours, the next day you might be scheduled for 6 hours. This has allowed me to better target labor usage for actual business demand. If the business demand requires more than two people, but isn't enough to really require three people, I now can essentially use only 2.5 people for the shift. I also completely eliminated our evening houseman, and have folded those responsibilities into our Front Desk evening staff. I realized that ultimately the evening Houseman just didn't have enough to do to justify dedicating an entire person. Finally, I've taken it upon myself to establish the habit of working 45 hours a week instead of 40 hrs. I'm spending a little more time helping with Desk coverage, and generally filling in with whatever may be needed at any given moment.
All the meanwhile, I've implemented new processes and provided better training so that my staff can complete their tasks more quickly and easily. They now spend 10 minutes on things that used to take them an hour simply because nobody ever knew a better way. I've been helping them improve their knowledge with the computer systems we have available. I've configured new reports that can give them pertinent information at their fingertips, where before they were having to search manually. They're working a little bit harder. But more than anything, they're working much smarter. The result is that we are doing more with less labor.