Fixing Your Restaurant’s Turnover Problem

Anyone whose worked in a restaurant can tell you, employee turnover has always been a problem.

The average employee turnover is 29% for the U.S. hospitality industry alone. Hiring and keeping a solid support staff of employees is essential to a businesses success, and without it can be its downfall.

The glaring issues with employee turnover have a negative effect on the employer’s time and resources. On average, for employees that earn under $30,000 a year, the cost to replace a $10/hour retail employee is $3,328. In addition to the monetary cost of finding, on-boarding and paying a new employee, this process takes up much of an employer’s time and can be extremely stressful. Loss of productivity can result in managers using their time and energy to find and hire new employees as well, especially when other employees are then needed to train new personnel.

A less obvious, but still very important issue caused by high turnover is the effect on staff morale. Seeing employees consistently filtered through and replaced doesn’t cultivate a positive and secure employee culture. Statically, employees are happier in jobs where average turnover is lower, and happy employees translate to good workers. Working with new people regularly also means a new productive relationship must be built and formed each time. When employees don’t know each other as well, there’s likely more miscommunication and less productivity.

Here are some ways to minimize your turnover, and create a solid employee hiring structure.

Hire more qualified people using new hiring technology.
Having this same issue ourselves, the team at Staffed Up created our platform to automatically filter out applicants that don’t meet establishment qualifications. New hiring technology like this can decrease turnover drastically by helping you find qualified people based on specifications customized to your business. It not only saves you time and resources, but also increased the rate of return for applicants by 95%.

Educate them to succeed

New employee education, although tedious and time consuming, is key to their success in your company. Make sure there are specific and consistent procedures to follow to ensure employees are given the necessary tools to succeed. Depending on your business, this could mean having specific training courses via video, handbook or dedicated personnel. The more they are taught and retain initially, the better they will be prepared to represent your brand, solve problems and be proactive in the workplace.

Provide help and mentor-ship as needed

Even with good training and the right hires, make sure you are checking in with your employees along the way. Have people available for new hires to talk to and be supervised by to ensure continuous success. Even when moving up the company ladder, employees should always have someone available to not only ask questions to, but monitor their growth and make sure they are on the right path.

Don’t forget to evaluate yourself

As easy as it is to blame an employee’s failure on them personally, don’t forget to recognize when it is the fault of the management as well. Less than one-third of employees felt their organization would be willing to change practices based on feedback. Show them your company is different. This will give you outside perspective on management tactics, and foster an environment of constructive criticism. Even with new technology, effective training and proper mentor-ship put in place, somewhere along the way there could be a slip up. Make sure that you take into account all possibilities for failure by holding yourself accountable as well.

By adopting these hiring practices you will be well on your way to reducing turnover and improving your businesses hiring culture. Don’t forget to visit the Staffed Up website to get your permanent solution to hire better!

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