The Cost of Saving On Health and Safety Inspections

Just recently, I received a very distressed call from a hotel that had been asked by a travel agency for a copy of their most recent safety audit. They had a substantially large booking lined up for this luxury exclusive hotel. 
The problem was, since the hotel decided to change from two to one audits per year, and in fact missed one year completely to save costs, their scores had gone down and down and down… Their current audit results were not ones to shout about let alone present to their business partners.  
 
Many factors lead to this. 
Management was told to cut costs. 
As they had continuously proved to do well with their safety systems and had excellent ongoing systems in place, they decided to cut out one of their bi annual safety audits.  
 
Continuously High occupancymeant there was not time to fit in a visit and provide a one night stay for the Health and Safety Auditor. Therefore it was then 15 months since their last audit.
 
 
Change in Management 
New management arrive and feel under pressure to perform, and one way they do that as we all know…. is to save cost/increase revenue.
 
Change of Priorities
Comes with change of management – Some respect staff as part of the success of the operation some don’t.  Staff in this case were not supported and left alone to their own devices.
 
Unsupported Staff
No liaising with the HR manager to ensure regular trainings are carried out.
Failing to acknowledge and continue original systems, where staff had to provide regular documentation to the management on a weekly basis and discuss any problem areas – these systems were no longer requested so staff stopped producing them....or reporting potential hazards and problem areas.... 
 
 
The fallout and results from this speak for themselves. 
Several sections of the audits failed. Equipment and property malfunctioned and deteriorated. 
 
Personally I felt sorry for the staff, many of whom I had worked with since the opening. We worked diligently to get the results we did and make the property safe for guests, staff and the owner. Staff were very proud of their achievements and scores. They felt part of a team.
Staff morale was now very low - This is not only about the property but their pride. It was like a KPI for them, to see firstly they passed all areas, then to see if they could increase their scores on the next audit.
 
The hotel will without a doubt lose the booking, a considerable loss of money for such an established and highly sought after property. 
 
 
 They saved approx. US$1200 in health and safety auditing
 
 
That saving, on one lost booking alone cost them approx. US$50,000 US$ 
 
 
 
 

---