Employee turnover can be a significant challenge for restaurant owners. Not only is it costly to constantly recruit and train new staff, but high turnover can also negatively impact the overall customer experience.
According to the National Restaurant Association, the average employee turnover rate in the restaurant industry is more than 70% and has been rising in the last few years.
While a high turnover rate in the restaurant industry is the norm, managers shouldn’t accept defeat. There are several strategies that restaurant owners can implement to minimize employee turnover and create a more stable and satisfied workforce.
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Tactics to Minimize Restaurant Employee Turnover
In this article, we will explore various ways to minimize restaurant employee turnover. Whether you’re a small independent restaurant or a large chain, these strategies can help you retain your best employees and build a more successful and sustainable business.
1. Offer a competitive wage
One of the main reasons employees quit their jobs is to seek better financial opportunities. Offering competitive compensation is a great strategy that helps lower your turnover rate and future-proof your business.
Benchmark with other restaurants in your area, see what benefits they offer their employees, and use this information to your advantage.
Increasing your payroll expenditure might seem like a bad financial move, but the reduction in restaurant staff turnover you’ll enjoy will eventually work in your business’s favour. Considering all the time and effort that goes into training a new employee, turnover is also a major expense, so incentivizing your employees to stick around is a way to save time and money in the long run.
When deciding what to pay your employees, you can also check the Bureau of Labor Statistics average wages and use it as a guideline.
2. Encourage a supportive team environment
As a restaurant operator and manager, one of your top priorities should be to build a supportive team environment and a positive workplace culture that prevents staff from burning out due to emotional and mental strain.
While you only have so much control over your employees’ behaviour, a manager has to set a standard for communication among staff and enforce consequences if that standard isn’t met.
When you have a supportive team environment, you can also rely on your employees to execute their jobs effectively.
Encourage your staff to help out in small ways that don’t keep them from their own duties. For example, set a “full hands in, full hands out” standard where wait staff gets in the habit of bussing empty plates on their way to the kitchen and lending a hand to bring big orders to a table on their way out.
When you develop a team-focused environment (and aren’t afraid to get your hands dirty too), you’ll experience a ripple effect where your restaurant will run more smoothly and employees will be more satisfied with their work.
3. Don’t overlook soft skills when hiring
The first step to ensuring restaurant staff retention is selecting the right people for the job. Hiring employees who naturally fit into your company and its culture means they’re more likely to be satisfied with the job and stay longer.
Relevant experience is important, and having great interpersonal skills is integral to success in the restaurant industry. Staff must also be emotionally intelligent enough to keep a level head in stressful situations to effectively coordinate with other employees and skillfully manage customer conflict.
Consider giving a chance to less-experienced candidates that show strong potential to work well with others as well as a commitment to stay in the role longer. Though you’ll invest more time and effort into their training, you’ll be rewarded in the long run by a dedicated employee who sets the standard for other employees and guarantees positive experiences for your customers.
4. Build trust with employees
One of the best ways to minimize employee turnover in a restaurant is to build trust with your employees. When employees know they can turn to management for help when an issue arises, they tend to stick around longer.
As a restaurant manager, you must possess the critical thinking to diffuse tense situations that go beyond the scope of what your employees have the training to handle. Stepping in to provide appropriate support when a customer gets unruly or disrespectful is an important way to let your staff know they can come to you with issues that are outside of their control. Having their back in these moments ultimately helps create a positive work environment based on trust.
You can also try getting to know employees as people, asking about their interests and free time during the slower periods of the day. Also, be willing to share about yourself. Having a baseline for open communication helps your employees feel more comfortable communicating with you about personal or workplace issues.
If you notice that a particular employee is having a rough day or week, expressing concern shows that you genuinely care and makes your restaurant a better place for them to work.
5. Consider updating your POS and scheduling
Scheduling can be complicated, especially when last-minute call-outs wreak havoc on your efforts. It goes without saying that restaurant employees must be somewhat flexible with their expectations of having a set schedule and willing to occasionally trade or take on additional shifts.
That being said, restaurant managers also need to understand that this level of inconsistency increases burnout.
Consider rewarding your most dedicated employees with a more consistent schedule so they can get into a rhythm and rest on their days off.
One way to make this easier is to upgrade to a modern restaurant management system that simplifies operations and scheduling.
With an improved restaurant POS, it’s much simpler to manage shifts even with large numbers of staff, plus you’ll simplify all aspects of operations like taking orders, generating reports, and managing deliveries.
Making this process easier on yourself means your employees will be happier with their schedules and you’ll have more time to dedicate to the front of the house (or, let’s be honest, take a well-deserved break).
6. Take time to listen to employees’ concerns
It’s important to check in regularly with your employees. As a manager, you don’t always have the perspective to understand the obstacles your employees face. If they don’t feel safe coming to you with ideas or concerns, they’re more likely to move on to another job sooner.
Take the first step and create a space for your employees to come to you with creative ideas to improve how things are run in the restaurant. They’re more likely to open up when you take the initiative to start the conversation.
Even if their suggestions aren’t easy for you to implement right away, just knowing you’re open to hearing them is the first step in improving workplace culture and earning trust. If you do implement changes based on their feedback, employees will get a sense of involvement in and appreciation for their workplace, which helps build loyalty.
If you worry your staff won’t feel comfortable coming to you with criticisms, consider setting up an anonymous survey using Google Forms or something similar.
7. Incentivize referrals when hiring
If you have staff members you enjoy working with, tapping into their network is a great way to find new employees.
The great thing about referrals is that the employee that recommends them can speak to their character, so they’re more likely to fit into the workplace culture and be a high-quality team member. Referrals also tend to stay at a job longer because they don’t want to make the friend who recommended them to look bad.
You can encourage your best staff to refer their friends by offering incentives and rewards for every successful new hire. Something as simple as a gift card or cash lets employees know you are taking your hiring process seriously and want to show appreciation for their help in bringing dedicated staff to your restaurant.
Conclusion
Although employee turnover in the restaurant industry is higher than in other industries, your restaurant doesn’t have to fail due to staffing issues. The best restaurants make their employees feel supported and develop a positive culture to minimize turnover for the wrong reasons.
Put strategies in place to build a restaurant where people actually enjoy working. A harmonious and collaborative work environment is the key to minimizing restaurant employee turnover and building a business with a reputation for a committed, thriving staff.