Published: December 2019<\/p>\n
While there seems to be lots of misconceptions about the failure rate of restaurants these days, one thing we do know is that the employee turnover rate remains high. For one reason or another, whether students returning to college or employees seeking other challenges, the majority of people hired by restaurants move on quickly. <\/span><\/p>\n Considering the cost of recruitment isn\u2019t exactly low, this is becoming a huge insignificance for restaurant owners. Let\u2019s explore the issue some more and really find out why the turnover rate is so high! <\/span><\/p>\n Exploring the Truth <\/span><\/p>\n With a simple search online, you\u2019re likely to come across all sorts of facts and figures, so let\u2019s assess the real position of the current market. As a restaurant owner, you\u2019re probably well aware that the turnover is much higher here than in the rest of the private sector. <\/span><\/p>\n In both the front and back-of-house, we know the value of good staff and having a high employee turnover rate prevents any sort of stability. There are lots of effects of a high employee turnover; <\/span><\/p>\n Thanks to the research of various agencies and industry experts, we\u2019re able to analyze the industry and find the reasons for this problem (as well as potential solutions). For example, one finding was that turnover is inspired by role rather than pay or location. For managers and staff with more responsibility, they\u2019re more likely to stay beyond a few weeks. <\/span><\/p>\n Reasons for High Employee Turnover <\/span><\/p>\n Seasonality<\/b><\/span><\/p>\n Of course, one of the industry\u2019s biggest problems is the nature of the job. When it comes to the roles with less responsibility, they tend to be taken by high school students, college students, and those who have plans to go on to bigger and better things. After working through the summer, they\u2019ll eventually go back to school or college and this is why turnover is, according to many sources, is noticeably higher in the third quarter of any given year. <\/span><\/p>\n Of all the seasonal jobs available during a calendar year, a significant number will be taken by students who are home temporarily and need to earn some money before going back to their studies. <\/span><\/p>\n Pay <\/b><\/span><\/p>\n Across the country, there seems to be a growing gap in pay. If we compare the South and West for example, the average wage for bar staff is much higher in the West than in the South. While many western municipalities and states have increased the minimum wage, those in the south haven\u2019t had the same luck. <\/span><\/p>\n In 2019 and beyond, experts believe that this gap will continue to widen. In the Northeast and West, more and more states are increasing the minimum wage. Meanwhile, the southern states just aren\u2019t doing the same and this causes frustration for workers. <\/span><\/p>\n Role<\/b><\/span><\/p>\n Does service area affect the turnover rate? Yes, and we know this because the turnover rates in the Midwest are normally higher than in the West. Despite the importance of pay, role and position are considered to be even more important. If you compare the turnover rate of the different roles, those in a cashier position normally stay the shortest time while managers and supervisors stay the longest. Consistent across most regions, there\u2019s a clear willingness to stay once responsibility has been received. <\/span><\/p>\n As we move forward, one thing has been made abundantly clear; it\u2019s important for a kitchen to keep their staff. If we compare base pay for specific positions, the lowest and highest paid regions yielded a small difference per year for kitchen staff. Interestingly, the gap is actually smaller than the gap for management. In tight labor markets especially, an ability to hold onto staff could be the difference between success and failure. <\/span><\/p>\n Can we just increase the base pay and expect staff to stay longer? Unfortunately, it isn\u2019t as easy as this because the correlation between employee turnover and pay increases is non-existent. Comparing staff who decided to stay and those who left, base pay wasn\u2019t too different. <\/span><\/p>\n The Control of Restaurants<\/span><\/p>\n In a perfect world, we would have control over everything in the business world. Sadly, this isn\u2019t a perfect world and there are things we can\u2019t control. <\/span><\/p>\n Out of Our Control<\/b><\/span> <\/b><\/p>\n As we\u2019ve already discovered, lots of teens choose the restaurant industry as their first venture into the world of work. With this in mind, we can\u2019t control; <\/span><\/p>\n In Our Control<\/b><\/span> <\/b><\/p>\n On the other hand, there are three things in our control that can affect labor turnover; <\/span><\/p>\n In the restaurant industry, it\u2019s almost in the culture that employees move job when they want to progress. Some sources believe around nine in ten people move to higher-paying jobs in the industry; to prevent this, staff management is essential and we\u2019re going to look at some techniques to retain valuable staff. <\/span><\/p>\n Reducing Employee Turnover: Our Tips <\/span><\/p>\n Let\u2019s just stop for a moment and think about the amount of money that a single employee can earn for us over the years. That is, of course, if they stay. In the next handful of years, you won\u2019t change the culture of the industry because restaurant jobs will always be attractive for students. Yet, this doesn\u2019t mean you should just accept an unbelievably high staff turnover. <\/span><\/p>\n When turnover is high, we spend most of our time training new employees and this costs us both time and money. Also, the customers are having to deal with \u2018oh, it\u2019s their first day\u2019 every couple of weeks. If you want to take control and reduce this problem for your own restaurant, here\u2019s our advice. <\/span><\/p>\n Change Your Recruitment Strategy <\/b><\/span><\/p>\n Throughout this guide, we\u2019ve focused on students and those who are leaving the business through their own choice. However, this isn\u2019t the only reason for a departure\u2026we can hire poorly too. <\/span><\/p>\n Rather than taking anybody and everybody in the business, refine your recruitment policy and only hire the best candidates. If you want to reduce the number of contracts you cancel after the trial period, this is the best way to go. It\u2019s the old adage; \u2018do it right or do it twice\u2019. <\/span><\/p>\n First things first, go for candidates with experience. Not only will this reduce the amount of time you spend on training, they also know the job and its sometimes-demanding nature (there\u2019s less of a culture shock). Especially for supervisor and managerial positions, make sure they\u2019ve worked in the restaurant industry previously. <\/span><\/p>\n For the lower roles, they may not have experience in a restaurant but anything in hospitality is useful. As long as they show an understanding of the required skills, they should fit nicely into the business. <\/span><\/p>\n Contact References <\/b><\/span><\/p>\n If you aren\u2019t asking for references, you\u2019re making a mistake. If you aren\u2019t contacting them, you\u2019re making an even bigger mistake. References aren\u2019t just random numbers on the page, they\u2019re your way of learning exactly how a candidate works and will add to the team. Even after interviewing somebody and getting a great feeling about them, due diligence will always serve you well. <\/span><\/p>\n In total, we recommend asking for at least two references and then following up the interview by contacting them. Here are some questions you can ask for a candidate we\u2019ve named for the sake of ease; <\/span><\/p>\n If possible, you can also talk with one of their peers because this will give an insight into their day-to-day motivation, working habits, and more. <\/span><\/p>\n Think Carefully About Questions<\/b><\/span><\/p>\n Whenever we think of a job interview, an image of an awkward encounter comes to mind; in this setting, no candidate can really portray what they can add to the business and you don\u2019t even learn anything. Therefore, try to keep it casual while thinking carefully about what to ask. Rather than having a question and answer format, try to have a conversation and steer the conversation towards the topics you want to cover. By following this technique, you get your answers while also seeing if there\u2019s a connection. <\/span><\/p>\n In terms of the questions themselves, don\u2019t just look up common questions online, base them around your business and the role available. Talk about what can happen on an average day and ask how they would handle this. Furthermore, we always suggest asking two major questions; <\/span><\/p>\n If they chose you for the money or another reason that suggests they won\u2019t stay long, choose another candidate. <\/span><\/p>\n Offer Development Opportunities <\/b><\/span><\/p>\n As soon as somebody feels over-qualified for their position, two things happen; 1) they lose their passion for the job and the company and 2) they look for positions elsewhere. Whenever an employee feels under-appreciated, or as though they would be better than the current supervisor or manager, this is where rifts can arise. <\/span><\/p>\n As we\u2019ve noted before, employees need to feel as though all their hard work is contributing towards something; they don\u2019t want to work for the sake of it. Therefore, make the path clearer for them. Not only should you explain their potential path, you should set goals and check in with them frequently to discuss performance and development. <\/span><\/p>\n If there\u2019s no spot open for them, you can still keep them motivated with on-the-job training. Keep them informed about industry news, new additions to the menu, and advice on increasing tips or cooking a dish slightly better. People either want to progress or learn while they\u2019re waiting, don\u2019t let a skilled employee walk away by forgetting this. <\/span><\/p>\n Promote from Within<\/b><\/span><\/p>\n There\u2019s no better manager than somebody who has worked for your restaurant, knows how everything works, and has already shown their commitment and desire to progress. Additionally, they know their colleagues (and vice versa!). Why risk disruption by hiring externally when you can encourage a smooth transition with somebody already in the team?<\/span><\/p>\n Sometimes, this won\u2019t be an option, but you could still encourage employees to recommend somebody. With an incentive program, they\u2019ll recommend reliable friends and family members. In truth, employee referral programs are growing in popularity. Everybody wins because the employees get a familiar face as a colleague, the business gets a reliable recommendation, and the customers enjoy the family atmosphere this creates. <\/span><\/p>\n Start Conducting Exit Interviews<\/b><\/span><\/p>\n Why are your staff leaving? There\u2019s no better way to answer this question than by asking people directly. Often, you\u2019ll find that a parting member of staff is willing to discuss their time with the company honestly. Even just sitting down with them for 20 minutes, the information you glean can be invaluable. If turnover is especially high, there could be an underlying issue and parting staff have the freedom of being honest now that they\u2019re leaving. <\/span><\/p>\n Have you ever lost one employee which then snowballed into losing three or four? Well, this is common, and it\u2019s the reason you should communicate with those left behind. When a popular employee leaves, have conversations with the team and address any concerns that arise. <\/span><\/p>\n Delegate and Trust the Team <\/b><\/span><\/p>\n Finally, there\u2019s something else employees need to stay with a business; trust and responsibility. As soon as you pass responsibility down the chain of command, there\u2019s suddenly an attitude that everybody is pushing towards the same goals; they also get a sense of purpose from their job. <\/span><\/p>\n Often, people think delegation only moves down to the bottom, but this isn\u2019t true. If you aren\u2019t willing to throw on an apron and wash some dishes when the going gets tough, you may have lost sight of your goals. Remember, your staff aren\u2019t hired to serve you, they\u2019re hired to serve customers; you\u2019re not immune from this. <\/span><\/p>\n Summary <\/span><\/p>\n There we have it, a full and frank look at the problem of staff turnover for restaurants. Whenever you hire, you\u2019re taking a risk; you can\u2019t guarantee that they will stay longer than a day let alone many years. However, there are some things you can do to reduce this risk and we\u2019ve explored them in detail today. <\/span><\/p>\n Though you can\u2019t worry about things out of your control, you can take responsibility for the factors that are in your control. If you invest in your staff, provide them with a clear path of progression, and give them responsibility, they\u2019re far more likely to value you as an owner or manager and go that extra mile for the company. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Published: December 2019 While there seems to be lots of misconceptions about the failure rate of restaurants these days, one thing we do know is that the employee turnover rate remains high. For one reason or another, whether students returning to college or employees seeking other challenges, the majority of people hired by restaurants move […]<\/p>\n","protected":false},"author":0,"featured_media":1512,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1511","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/cameochina.com\/es\/wp-json\/wp\/v2\/posts\/1511","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cameochina.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cameochina.com\/es\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/cameochina.com\/es\/wp-json\/wp\/v2\/comments?post=1511"}],"version-history":[{"count":0,"href":"https:\/\/cameochina.com\/es\/wp-json\/wp\/v2\/posts\/1511\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cameochina.com\/es\/wp-json\/wp\/v2\/media\/1512"}],"wp:attachment":[{"href":"https:\/\/cameochina.com\/es\/wp-json\/wp\/v2\/media?parent=1511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cameochina.com\/es\/wp-json\/wp\/v2\/categories?post=1511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cameochina.com\/es\/wp-json\/wp\/v2\/tags?post=1511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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