How do I monitor my pay costs?
Payrolls, including Employers PRSI, pension scheme contributions, bonuses and other staff benefits, are one of the largest costs in a hotel operation.
Payroll costs and staff levels can escalate if not closely monitored. You should set the following in euro and percentage terms:
- Targets for payrolls in individual revenue-earning departments, eg Rooms, Food and Beverage.
- An overall target for the hotel’s total pay bill.
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This formula also applies to other departments, eg, Rooms and Beverage.
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Use our Pay Cost Calculator to calculate your total payroll cost percentages and compare with industry averages
Remember!
Compare your Departmental Payroll Cost Indicators on a regular basis with:
- previous periods
- target percentages to be achieved
- industry averages
Track your results over time.
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