How to Make a Staff Budget and Hire the Right Staffing According to Your Hotel Property

Staffing is one of the largest and most critical expenses in hotel and restaurant operations. A well-planned staff budget, combined with property-appropriate hiring, ensures excellent service, controlled costs, and sustainable profitability.

We try to explains how to prepare a staff budget and how to hire the right team based on your hotel property type, size, and service level.

Why Staff Budgeting Is Important in Hospitality

• Controls payroll and operating costs

• Ensures optimal manpower utilization

• Prevents overstaffing or understaffing

• Maintains service quality

• Supports long-term financial stability

Step 1: Understand Your Property Type

Staffing needs vary based on hotel category:

Budget / Economy Hotel

• Multi-skilled staff

• Lean staffing structure

• Limited service departments

Mid-Scale Hotel

• Department-specific roles

• Balanced staffing levels

• Moderate service offerings

Luxury / Resort / Full-Service Hotel

• Specialized roles

• Higher staff-to-room ratio

• Personalized service standards

Step 2: Define Hotel Size & Facilities

Consider:

• Number of rooms

• Number of restaurants / bars

• Banquet and event spaces

• Spa, gym, swimming pool

• Room service availability

More facilities = higher staffing requirement.

Step 3: Determine Staffing Structure (Manpower Planning)

Core Departments to Budget

• Front Office

• Housekeeping

• Food & Beverage Service

• Kitchen (Production)

• Engineering & Maintenance

• Sales & Marketing

• Finance & Accounts

• HR & Training

• Security

tep 4: Calculate Staff-to-Room Ratio

General guideline:

Property Type	Staff-to-Room Ratio
Budget Hotel	0.5 – 0.8
Mid-Scale Hotel	0.8 – 1.2
Luxury Hotel	1.5 – 2.5

(Example: 100-room mid-scale hotel × 1.0 = approx. 100 staff)

Step 5: Prepare Department-Wise Staff Budget

Sample Staffing Structure (Mid-Scale Hotel – 50 Rooms) + Restaurant

Department	No. of Staff
Front Office	6
Housekeeping	12
F&B Service	10
Kitchen	13
Engineering	3
Sales & Marketing	2
Finance	2
HR & Admin	1
Security	4
Total	53 staff

Step 6: Calculate Staff Cost (Payroll Budget)

Components of Staff Cost

• Basic salary

• Allowances & incentives

• PF, ESI, gratuity

• Uniform & meals

• Training cost

Industry Benchmark:Staff cost should ideally be 18–25% of total hotel revenue.

Step 7: Decide Hiring Strategy Based on Property Needs

Permanent Staff

• Core operations roles

• Leadership and supervisory positions

Contract / Outsourced Staff

• Security

• Housekeeping attendants

• Stewards

• Gardeners

Casual / Seasonal Staff

• Banquets

• Events

• Peak seasons

Step 8: Hiring Timeline (Pre-Opening or Ongoing)

• Senior Management: 4–6 months before opening

• Supervisors: 2–3 months before opening

• Operational Staff: 30–45 days before opening

• Casual Staff: As per occupancy and events

Step 9: Skill-Based & Multi-Skilling Hiring

• Hire staff with cross-functional skills

• Train front office staff in reservations

• Train stewards for banquet and room service

• Cross-train housekeeping and laundry staff

This reduces manpower cost without compromising service.

Step 10: Control Staff Cost After Hiring

• Maintain duty rosters and productivity tracking

• Use occupancy-based scheduling

• Monitor overtime strictly

• Link incentives to performance

• Conduct monthly manpower reviews

Common Mistakes in Staff Budgeting & Hiring

• Overstaffing during initial months

• Hiring luxury-level staff for budget properties

• Ignoring training costs

• Poor workforce planning

• High attrition due to wrong hiring

Best Practices for Effective Staffing

• Hire attitude, train skills

• Maintain clear job descriptions

• Focus on productivity, not headcount

• Use HR analytics and KPIs

• Regularly review staff budget vs. revenue

Key Staffing KPIs

• Staff cost % of revenue

• Revenue per employee

• Employee turnover rate

• Guest satisfaction score

• Productivity per department

Creating a staff budget and hiring according to your property type is essential for delivering quality service while maintaining profitability. The right balance between manpower, cost, and service standards leads to sustainable hotel success.

At County Park & Suites, we support hotel owners with manpower planning, staff budgeting, recruitment, SOPs, and training, ensuring the right team, right size, and right cost from day one.