5 Ways to Improve Labor Retention in Restaurants

Labor retention is still a substantial challenge from the food service sector.

Restaurants experience yearly turnover rates which are greater than any other industry, occasionally exceeding 70%! After the employee turnover rate is high, the costs of hiring and training new workers can really cut into potential profits. With increases in costs, labor competition, and minimum wage rates, it is becoming much more important to concentrate on retaining the appropriate employees.

Just a small amount of investment in retention can quickly pay off in labour costs. Here are five pointers to help improve labour retention on your restaurants.

1. Focus on Development and Training — Create a workplace culture dedicated to your employees’ professional development. Bear in mind, a large section of the restaurant work force is comprised of teenagers and college students. There was a time when this demographic has been happy with only working entry level jobs at minimal pay, but times have changed. These youthful adults want more opportunities for expansion and will appreciate a company dedicated to assisting them. Consider offering management career paths, assigning mentors, and providing regular training across the organization.

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2. Align Your Leadership Team — Occasionally, turnover rates are not a reflection of the workers or the organization. An ineffective leader can wreak havoc and ruin a group of good employees. Invest time into creating your business’s leaders to reflect the values and mission you would like your company to represent. And don’t be reluctant to terminate the individuals who don’t appear to be a fantastic fit. The leaders that you use set the tone for everybody under their leadership. It has been said that,”Employees do not leave companies; They leave managers.”

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3. Initiate Friendly Competition — Consider’gamification’ as a means to boost engagement. Setting up periodic competitions can inspire employees to go above and beyond in their job. Whoever gets the most tips could be rewarded with a day off for providing outstanding customer service. Or everyone could be given a free meal if the company reaches a monthly revenue target. To maintain turnover at a minimum, employees will need to be motivated and inspired on a regular basis. Friendly competition coupled with rewards definitely keep the workday interesting.

4. Consider Adding Benefits Packages — One surefire way to guarantee your restaurant stands out from the crowd is to provide employee benefits. Restaurants are not generally expected to provide benefits to hourly employees, so this could be an incentive for employees to think twice before leaving the business. It is not easy to discover a part-time job that offers sick or parental leave. College tuition assistance would be ideal for attracting and retaining talented people. With the increasing number of students in student loan debt, having a job that eases the burden might be sufficient to secure employment till graduation.

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5. Use Technology to decrease Hassle — Difficult daily procedures can get in the way of a worker’s success and engagement. Mix up with POs, schedule confusion, cluttered inventory management, etc., all contribute to frustration on the job and increase employee turnover. Identify and optimize the procedures which may be causing difficulties for your shops. Pen and paper scheduling, spreadsheet stock, and multi-system procedures are only creating added strain. Explore streamlining your store and company procedures with restaurant management software solutions to help simplify labour, scheduling, inventory management, data visibility, and business reporting. Comprehensive solutions can help you handle all your data and procedures in 1 spot, freeing up your employees to concentrate on the fantastic stuff.

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High turnover isn’t new to the restaurant business, but as our insights and tools improve, so should our labour retention efforts. Some causes of employee turnover are inevitable, but many aren’t. The most prosperous restaurant owners get ahead not by accepting the status quo, but by challenging their assumptions and considering innovative approaches to combat labor management difficulties.

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