How to cut hiring costs in hospitality without sacrificing staff quality

Hiring can get pricey. Recruitment agencies, job ads, and the time spent interviewing all add up quickly—not to mention the hidden costs tied to staff turnover. According to an ELMO report, based on a survey of 1,800 HR professionals in Australia and New Zealand, the average cost to hire for a single position is a staggering $10,500.

But what if you could cut those expenses without sacrificing the quality of your team? The good news is, it’s entirely possible! Let’s dive into some practical strategies for reducing hiring costs while still attracting and retaining top-tier talent.

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How to reduce hiring costs?

Hiring in hospitality is a constant challenge, high turnover, unpredictable demand, and the pressure to maintain top service all add up. But constantly recruiting new staff is expensive. Between job ads, recruitment agencies, interviews, and training, hiring costs can quickly spiral out of control.

There are smarter ways to approach hiring that don’t involve burning through your budget. Here’s how to cut costs without cutting corners.

1. Use Technology to Streamline Recruitment

Recruitment is time-consuming and expensive, especially in hospitality where turnover rates are often high. Technology can help you cut down on hiring costs without sacrificing quality.

Using platforms like Sidekicker, which offers pre-vetted hospitality workers, can save you time and money. Sidekicker allows you to access a pool of skilled candidates ready to work, eliminating the need for costly recruitment agencies. With the right tech, you can speed up the hiring process, reduce advertising costs, and even fill roles on short notice without compromising quality.

2. Use Temporary and Casual Workers for Flexibility

In hospitality, the need for staff can fluctuate depending on the time of year, events, or even weather. Instead of hiring full-time staff and committing to long-term salaries, consider hiring temporary or casual workers during peak periods. These flexible roles can significantly cut down on hiring costs while still ensuring you have the staff you need when it’s busiest.

Platforms like Sidekicker make it easy to find reliable temporary staff. You can fill roles quickly and at a lower cost than hiring full-time workers, while still maintaining high standards of quality and service.

How this helps:

• Fewer unnecessary hires: You only pay for staff when you actually need them, reducing long-term costs.
• Lower training costs: Many temp workers are already experienced and don’t require as much onboarding.
• Trial period before commitment: You can assess their performance before offering a permanent role, cutting down on hiring mistakes.

Casual workers can also help you assess whether someone is a good fit before committing to a permanent role, which can reduce hiring risks and the associated costs of turnover.

3. Invest in Employee Retention to Avoid Repeated Hiring

One of the biggest costs in hospitality hiring is turnover. Constantly hiring and training new staff not only costs you money but also impacts the overall experience of your guests. By investing in staff retention, you can reduce these expenses and avoid the need for frequent recruitment.

There are several ways to improve retention:

• Encourage Peer Relationships: People are more likely to stick around if they have friends at work. Try to create a space where your staff can bond, whether it’s through team-building activities or just fostering a more collaborative environment. People who feel connected to their coworkers are less likely to leave.
• Give Regular Feedback: It’s frustrating when you don’t know how you’re doing, especially when you’re putting in the effort. Regular feedback gives your team a sense of direction, and it shows them that you’re invested in their development. Plus, when people know they’re making progress, they’re more likely to stick around and keep giving their best.
• Offer a Balanced Workload: Overworked employees are more likely to burn out and look for opportunities elsewhere. Make sure your staff have a manageable workload that allows them to perform at their best without feeling stressed or overwhelmed. Offer breaks, avoid excessive overtime, and keep an eye on workloads regularly.

4. Cross-Train Staff to Fill Gaps Without Extra Hires

Instead of hiring new staff for every position, upskill your current team so they can step into different roles when needed.

How cross-training helps:

• Reduces last-minute hiring: If a bartender calls in sick, a cross-trained server can step in. No need to scramble for a replacement.
• Keeps staff engaged: Employees appreciate learning new skills, and variety can help prevent burnout.
• Improves efficiency: A flexible workforce means smoother operations during peak periods.

How to implement cross-training:

• Rotate roles during quieter shifts: Let kitchen staff assist with front-of-house duties or train waiters to handle basic barista work during quieter periods.
• Offer paid skill-building sessions: Employees will be more motivated to learn new skills if there’s an incentive.

Cross-training gives your business more flexibility, reduces reliance on last-minute hires, and keeps staff engaged by offering variety in their roles.

5. Rethink Your Recruitment Strategy

Traditional hiring methods can be costly and time-consuming. Instead of relying on recruitment agencies or expensive job boards, consider these alternatives:

• Tap into industry networks: Word-of-mouth and referrals can bring in high-quality candidates without the hefty price tag.
• Recruit in-house: Train managers to identify and bring in potential hires, cutting out the need for external recruiters.

By shifting how you search for staff, you can significantly lower hiring costs without compromising on quality.

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How Sidekicker Can Help You Cut Hiring Costs (Without Cutting Corners

1. Skip the Expensive Job Ads & Recruitment Fees

Recruitment agencies charge a fortune. Job ads? They’re hit or miss. With Sidekicker, you ditch the middleman, save 30% on recruitment fees and get instant access to a pool of experienced hospitality workers who are ready to go. 

2. Only Hire When You Actually Need Staff

The unpredictable nature of hospitality means that sometimes you’re overstaffed, and other times you’re desperate for extra hands. Instead of committing to full-time hires, Sidekicker lets you bring in temp staff on demand—for a night, a weekend, or a season.

• No paying wages for staff you don’t need
• No last-minute hiring panic
• No overworking your core team

3. Pre-Vetted Workers = Less Training, Faster Hiring

Ever hired someone only to realise they have zero relevant experience? We’ve all been there. Sidekicker pre-vets all workers, so you’re getting qualified, skilled professionals who actually know what they’re doing. Less time training = more time focusing on running your business.

4. Reduce Turnover (And The Costs That Come With It)

Nothing burns through your hiring budget faster than high staff turnover. With Sidekicker, you can trial workers before offering them a permanent role. That means you only hire people who truly fit your team, lowering the risk of costly hiring mistakes.

5. Fill Shifts Fast—Without Overpaying

When someone calls in sick, you don’t have time to post a job ad and wait days for applications. With 90% of jobs posted to Sidekicker being filled within the hour, you’re not left scrambling (or paying someone overtime just to keep up).

Hiring doesn’t have to drain your budget. By using smarter hiring tools, cross-training staff, and focusing on retention, you can cut costs while keeping your team strong.

Want to save time and money on hiring? Sign up to Sidekicker today.

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