Increasing the profit margin in your budget can make a big difference in the health of your company or department, but there are other reasons why it’s important, too. If you’re in the hospitality industry, that higher profit margin can mean that you get a bonus, and in some circumstances that bonus can be a substantial amount of money. It may also be tied directly to your level of performance. So, how do you increase the profit margin in your budget, so you can get the bonus you deserve? Here are three areas to look at when you’re working on a budget adjustment.
1). The People
Because the hospitality industry is so focused on people, there are a lot of employees. Does your department have too many? Are there overlaps, or people who only get a few hours? Are there better ways to use the people you have more efficiently? Being in management can be stressful, and one of the reasons for that stress is the decision-making process. You may need to lay off some people, or re-structure your department so you can see a higher profit margin in your budget. Just make sure you make changes after a lot of thought, and that you don’t end up reducing the number of people so much that the work doesn’t get done. That won’t help your bottom line. To increase your profit margin, you have to gain or lose people the right way, and plan their job duties and time spent strategically.
2). The Growth
Growing and changing is part of life, and also part of business. The hospitality industry is always changing, because it has to meet the needs of the customers. If you don’t change and grow, you could end up getting left behind, and see your profits (and your bonus) evaporate. One of the best ways to help earn that bonus is to show initiative for growth. Earning certifications through an online program like Harpwest Hostpitality (which is certified by the American Hotel Lodging and Education Institute (AHLEI)) is one of the ways to demonstrate that you’re focused on the future. You can use what you learn there to increase the profit margin in your budget, because you’ll develop tools and techniques that can be used to work smarter and do more in less time and with fewer resources. That will keep customers and higher-ups happy, and provide a better experience for everyone.
3). The Value
Value is what everyone looks for. Why would they do something if it didn’t have any value? What people value can be very different, though, depending on the person. With that in mind, you can increase your budget’s profit margin by finding what your employees and customers value, and then finding the best and most efficient ways to give them those things. By giving customers value, they will come back. Giving employees value means that they will work harder. Both of those things help contribute to the bottom line of your budget, and can be used to adjust profit margins. That can help you earn your bonus, and also help you feel better about yourself and the work you do. It’s a winning situation for everyone involved.