Reduced Staff Turnover Equals Increased Profits for Restaurants

According to the Bureau of Labor and Statistics, in 2018 the employee turnover rate jumped to 77% in the hospitality industry (from 69% just 4 years ago). That means that 7 out of every 10 employees will leave their job.  

Newly hired restaurant employees have notoriously short tenures. The average employee lasts 56 days, managers 164 days, and hosts 39 days. When you factor in the cost of job postings, interview time, employee onboarding, uniforms, and training, businesses often have several months worth of monetary value invested in each new hire. Keeping your employees in place for longer periods of time is paramount to profiting from their experience and offering your customers better service. 

There’s a saying, employees don’t leave jobs, they leave bosses; and nowhere is this more true than in the restaurant business. 60% of restaurant managers admit that filling staff vacancies is one of their most time consuming challenges in maintaining a successful business.

Restaurants that are successful in retaining employees save time and money resources that can be funneled directly back into business growth. Saving themselves as much a $6,000 per unskilled, and then trained, employee.

Tipping Into the Staff Retention Direction

It is possible to reduce the staff turnover rate in your business. Here are a few steps you can take to make a difference quickly.

Interview carefully to ensure the prospective employee understands, and fits in with, the general workplace culture in your restaurant. If you have a vegan restaurant, you’ll want employees that enjoy vegan food, if you have a steak house, a vegan employee might not be the best hire.

Encourage shared goals and team responsibility. Develop menu items and drink specials with employee input. Your staff will up-sell the items they are most excited about more often. Give them items and services to brag about with pride to their customers.

Consider a performance enhancing plan by offering learning opportunities, financial incentives, benefits, and other tangible rewards; praise and support employees to express their value. Confident employees ensure happy, well served, customers.

Have clear policies and reasonable expectations. Hold managers and shift supervisors to the highest standards for responsiveness in employee exchanges and guidance. Be flexible with scheduling emergencies. Employees who feel their boss understands their challenges in life and is willing to work with them repay that loyalty in kind, and in time.  


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