Stop Ignoring Staff Turnover: What You Can Do to Keep Employees Happy and Engaged
Employee turnover is a significant challenge faced by businesses across all industries, but particularly for the restaurant industry. Turnover disrupts operations, adds substantial costs to your operations, and decreases the overall productivity of your team.
However, turnover is still something many restaurant owners aren’t paying enough attention to. Thankfully, there’s plenty of research explaining why employees leave and what you can do to turn things around.
In this article, we'll examine why turnover is something you can’t ignore and explore strategies for reducing staff turnover in the restaurant industry, with a focus on keeping employees happy and engaged.
Why Employee Turnover is Rampant in the Restaurant Industry
Employee turnover poses a significant challenge in the restaurant sector, and various factors contribute to this trend. First, the restaurant industry tends to employ a high percentage of people who are working their first jobs. These people will naturally bounce around as they explore what suits them best.
Moreover, with numerous dining establishments available in most communities, restaurant staff have ample options when seeking employment. Hearing about higher wages or better opportunities elsewhere can swiftly prompt them to switch jobs. Given the pervasive issue of turnover, many restaurants are frequently in the process of hiring new staff.
Lastly, changes in technology have given rise to the modern gig economy and numerous online job boards. So, workers have more options than ever before to find employment that pays them well and suits their needs.
The Costs of Turnover
Restaurant managers must recognize the significant costs associated with turnover. Beyond the expenses of recruiting, hiring, and training new employees, turnover can lead to decreased productivity, disrupted workflows, and lower morale among remaining staff. In the fast-paced and competitive restaurant industry, managers simply cannot afford to overlook the impact of turnover on their bottom line.
A study from the Center for Hospitality Research at Cornell estimates the per employee costs of employee turnover at around $5,864 per person for a typical front-line employee!
How does that figure break down?
- 3% Pre-departure: $176
- 20% Recruiting: $1,173
- 11% Selection: $645
- 14% Orientation & Training: $821
- 52% Productivity Loss: $3,049
Pre-departure Costs: The figure quoted in the Cornell study is low for pre-departure, only looking at the time spent removing logins, changing keys, etc. However, there are additional intangibles that can impact your operations during this time. Employees during the pre-departure time decrease morale among remaining staff and disrupt workflow.
Recruiting Costs: On average, restaurants spend between $1,000 to $5,000 on recruiting and hiring a new employee (depending on their experience and what position you’re hiring for). This includes expenses related to job postings, advertising, background checks, and recruitment agencies.
Orientation & Training Costs: Restaurants invest significant resources in training new hires to ensure they are equipped with the necessary skills and knowledge to perform their roles effectively. The cost of training can range from $500 to $2,000 per employee.
Productivity Loss: High turnover rates can lead to decreased productivity and efficiency, as remaining staff may need to pick up the slack or spend time training new hires. This can result in additional costs associated with overtime pay and reduced operational effectiveness.
Overall, Research from The National Restaurant Association found that restaurants, on average, are losing around $150,000 a year due to employee turnover.
It should be clear that employee turnover has significant financial and operational costs. But there are things you can do to reduce your turnover rate, which we’ll discuss now.
The Importance of a Positive Onboarding Experience
One crucial factor influencing employee retention is the onboarding experience. Research shows that organizations that standardize their onboarding experience have a 50% greater new hire retention rate! For deskless workers in the restaurant industry, a seamless and comprehensive onboarding process is essential.
By providing clear expectations, adequate training, and opportunities for growth from the start, restaurants can set their employees up for success and foster a sense of belonging.
Click Here to learn more about how Taskworld can help you manage your restaurant, Bar, or Franchise!
Investing in Technology Solutions
Another key aspect of employee satisfaction is access to efficient and user-friendly technology solutions. Deskless workers often rely on technology to perform their tasks effectively, from order-taking systems to communication platforms. By providing employees with the right tools and resources, such as Taskworld's work management software tailored for the restaurant industry, managers can streamline operations, improve communication, and enhance overall job satisfaction.
When employees feel supported and empowered by technology, they are more likely to be engaged and committed to their roles. If they’re given a tech solution that helps them communicate more effectively, retention is increased by 4.5 times!
Strategies for Success
Every restaurant manager should focus on reducing staff turnover and prioritizing employee retention. By implementing a few strategies, restaurants can help curb employee exits and further maximize their profits.
- Prioritize a positive onboarding experience for new hires, including thorough training and mentorship programs.
- Invest in technology solutions that streamline processes and empower employees to perform their jobs more effectively.
- Foster a culture of appreciation and recognition, acknowledging employees' contributions and achievements.
- Provide opportunities for career growth and development, such as cross-training and promotion pathways.
- Regularly solicit feedback from employees and take action on their suggestions for improvement.
By implementing these strategies, restaurant managers can foster a supportive and inclusive work environment that values and respects employees, motivating them to thrive.
Introducing tools like Taskworld early during onboarding not only simplifies the process but also provides an easy-to-use tech solution that enhances employee satisfaction. As workers enjoy using Taskworld's intuitive features in day-to-day operations, they feel empowered and engaged in their roles. Ultimately, prioritizing employee happiness and engagement leads to reduced turnover, increased productivity, and sustained success in the competitive restaurant industry.
