Staff turnover remains a significant challenge in the restaurant industry, particularly in North America and Canada. In Canada, the average voluntary turnover rate stands at 10.2%, with the retail and wholesale sectors experiencing the highest rates at 21.0%. Specifically, in the restaurant sector, 82% of operators reported being short at least one position.
High turnover not only disrupts operations but also incurs substantial costs. On average, replacing an hourly restaurant employee costs approximately $5,864. This demonstrates the importance of implementing proven strategies to retain staff and maintain a stable workforce.
This guide outlines practical strategies to help restaurant owners and managers address staff turnover challenges and foster a loyal, engaged team.
Key Takeaways
Right Hiring Leads to Long-Term Retention: Hiring candidates who align with your restaurant's values and culture increases the likelihood of long-term commitment.
Invest in Onboarding and Training: A well-structured onboarding and continuous training program builds confidence, enhances skills, and integrates employees into your restaurant’s culture.
Recognition Drives Engagement: Regular acknowledgment, whether through public praise, rewards, or celebrating milestones, motivates staff and strengthens loyalty.
Growth Opportunities Matter: Clear career progression and skill development opportunities help employees see a future with your restaurant, reducing turnover.
Work-Life Balance Reduces Burnout: Flexible schedules and promoting time off help prevent burnout, creating a healthier, more engaged workforce.
Importance of Retaining Employees in a Restaurant
Employee turnover is a common challenge in the restaurant industry, and while job-hopping is less stigmatized, it puts pressure on restaurant managers to address the causes of attrition. High turnover can hurt a restaurant in several ways:
Recruitment Costs: Hiring new staff is expensive, with costs often reaching several times an employee’s salary. Many restaurants rely on external recruiters, which adds further expense. Better retention allows these resources to be spent more strategically.
Morale and Team Stability: Frequent turnover creates instability, leading remaining staff to question their own job security. High retention, however, makes a stable, motivated team and signals to staff to build a career.
Lower Productivity: When employees leave, the remaining team often picks up extra duties, leading to burnout and reduced productivity. Losing high performers can have an even greater impact, disrupting operations and affecting service quality.
Operational Output: Frequent turnover weakens a restaurant’s ability to deliver consistent service. Losing experienced staff means losing valuable knowledge that keeps the kitchen running smoothly.
Customer Experience: A high turnover rate can affect the quality of service. Distracted or unhappy staff aren’t as motivated to assist customers, which impacts their dining experience and leads to lower customer satisfaction.
Top 8 Proven Strategies for Retaining Employees in a Restaurant
Employee retention strategies are essential for keeping staff engaged and committed to your restaurant. Factors like compensation, company culture, work-life balance, and career growth all influence whether employees stay long-term. Here are the strategies to help you retain your restaurant staff and build a loyal, high-performing team.
1. Hire the Right People from the Start
Effective employee retention begins with hiring individuals who align with your restaurant's values and culture. According to industry experts, hiring employees who are passionate about the hospitality industry increases the likelihood of them staying with your establishment for a longer period.
Strategies to Implement:
Craft Compelling Job Descriptions: Go beyond listing duties; highlight growth opportunities, unique benefits, and your restaurant’s culture to attract candidates who resonate with your values.
Employ Multiple Recruitment Channels: There are various platforms, such as job boards, social media, and industry-specific networks, to reach a diverse pool of candidates.
Screen for Cultural Fit: Incorporate questions into the hiring process that assess whether candidates share your restaurant’s core values, also you will be able to gauge if they align with your team dynamics.
Use Structured Interviews: Implement consistent interview questions and evaluation criteria to assess candidates' qualifications and suitability for the role.
Offer Trial Periods: Consider implementing temp-to-hire arrangements, allowing both the restaurant and the employee to assess fit before making a permanent commitment.
2. Onboard and Train Thoroughly
Effective onboarding and training are pivotal in reducing turnover and building long-term employee retention in the restaurant industry. A well-structured onboarding process not only equips new hires with the necessary skills but also integrates them into the restaurant's culture, setting the stage for their success.
Key Strategies:
Structured Onboarding Program: Implement an onboarding plan that spans the first 30 days, covering areas such as restaurant policies, safety protocols, and job-specific training. This keeps the new employees well-prepared and confident.
Mentorship Pairing: Assign a seasoned staff member as a mentor to each new hire. The mentorship will give the employee guidance, belonging, and support.
Hands-On Training: Utilize shadowing sessions where new employees observe experienced staff members during actual shifts. This will allow them to learn real-time operations and customer interactions.
Clear Expectations and Feedback: Set clear performance expectations from the outset and provide regular, constructive feedback, further contributing to their professional growth.
Continuous Learning Opportunities: Offer ongoing training sessions to keep staff updated on new menu items, technologies, and industry best practices.
In the restaurant industry, competitive compensation and benefits are crucial for attracting and retaining skilled employees. With high turnover rates and labor shortages, offering attractive pay and perks can differentiate your establishment from others.
Key Strategies:
Benchmark Industry Standards: Regularly compare your wage offerings with industry standards like Mercer's Restaurant Compensation and HR Practices Survey to stay informed.
Implement Performance-Based Incentives: Introduce bonuses or tip-sharing programs to reward exceptional customer service and motivate staff. Performance-linked incentives can increase job satisfaction and retention.
Provide Comprehensive Benefits Packages: Offer health insurance, paid time off, and retirement plans to support employees' well-being and financial security.
Offer Non-Monetary Perks: Implement flexible scheduling, meal discounts, and opportunities for career growth without significant financial investment.
Communicate Total Compensation Clearly: Ensure employees understand the full value of their compensation, including benefits and perks, to increase perceived value and satisfaction.
4. Recognize and Reward Excellence
Studies indicate that 66% of employees would consider leaving their jobs if they felt unappreciated, with this sentiment being even more pronounced among Millennials. Implementing recognition programs can significantly increase employee satisfaction and retention.
Effective Strategies:
Personalized Recognition: Tailor recognition to individual preferences. Some employees may appreciate public acknowledgment, while others might prefer tangible rewards.
Timely Acknowledgment: Provide recognition promptly after the desired behavior or achievement. Immediate acknowledgment reinforces positive actions.
Peer-to-Peer Recognition: Encourage employees to recognize their colleagues' contributions. Peer recognition can instill a collaborative environment and team cohesion.
Diverse Reward Options: Offer rewards like monetary bonuses, gift cards, and extra time off.
Celebrate Milestones: Acknowledge significant milestones such as work anniversaries, birthdays, or when a customer appreciates their service.
5. Cultivate a Positive and Inclusive Workplace Culture
A positive and inclusive workplace culture builds employee loyalty and reduces turnover in restaurants. When employees feel valued and part of a supportive team, they are more likely to stay, perform better, and contribute to a high-quality guest experience.
Key Strategies:
Promote Open Communication: Encourage transparent and honest dialogue between management and staff. Regular check-ins and feedback sessions can address concerns promptly and build trust.
Implement Diversity, Equity, and Inclusion (DEI) Practices: Ensure that hiring, onboarding, and training processes are inclusive, providing equal opportunities for all employees regardless of background.
Establish Clear Expectations and Support Systems: Define roles and responsibilities and provide the resources to help employees succeed in their positions.
Encourage Team Building and Social Interaction: Organize team-building activities and social events to strengthen relationships among staff members.
Lead by Example: Management should model inclusive behaviors and attitudes, setting the tone for the rest of the team and reinforcing positive workplace culture.
6. Provide Clear Paths for Career Growth
A study by the National Restaurant Association indicates that 77% of restaurant operators view employee retention as a significant challenge, which emphasizes the importance of providing growth prospects to staff members.
Key Strategies:
Define Career Progression Paths: Clearly outline career trajectories within your establishment, such as moving from server to lead server, then to assistant manager, and ultimately to restaurant manager.
Offer Skill Development Opportunities: Provide access to training programs that build both technical skills (e.g., culinary techniques, POS system proficiency) and soft skills (e.g., leadership, communication).
Implement Job Rotation Programs: Allow employees to experience different roles within the restaurant, such as cross-training in both front-of-house and back-of-house positions. This keeps their work experience dynamic and engaging.
7. Encourage Work-Life Balance
Promoting work-life balance increases employee satisfaction. Given the demanding nature of restaurant work, implementing strategies that support employees' personal lives can lead to reduced burnout and increased loyalty.
Key Strategies:
Implement Flexible Scheduling: Allow employees to swap shifts or adjust their hours to accommodate personal commitments.
Provide Adequate Staffing Levels: Ensure that shifts are appropriately staffed to prevent overworking employees, which can lead to fatigue.
Set Clear Expectations: Communicate work hours, responsibilities, and performance standards to reduce stress among team members.
Encourage Time Off: Actively promote the use of paid time off and vacation days, allowing employees to recharge and maintain their well-being.
8. Solicit and Act on Employee Feedback
Creating an environment where employees feel comfortable and their opinions are valued can lead to real changes; they’re more likely to feel engaged and committed to their work. Regularly collecting feedback and acting on it helps address concerns before they escalate, increase team morale, and show that the restaurant owner is dedicated to continuous improvement.
Key Strategies:
Implement Regular Feedback Mechanisms: Utilize tools like digital surveys or mobile apps to collect feedback after each shift.
Conduct Exit Interviews: When employees leave, conduct thorough exit interviews to understand their reasons for departure. This can provide insights into areas needing improvement.
Create a Feedback-Friendly Culture: Encourage open communication by fostering an environment where employees feel comfortable sharing their thoughts without fear of retaliation.
Act on Feedback Promptly: Demonstrate responsiveness by addressing concerns raised by employees in a timely manner.
iOrders: Simplifying Restaurant Operations to Boost Employee Retention
Employee retention in the restaurant industry can be challenging when dealing with high turnover rates, inconsistent work schedules, and overburdened staff. This is where platforms like iOrders, a commission-free, tech-driven platform to optimize your restaurant's ordering and delivery process, ease the burden on your staff, and improve their work-life balance.
Key Services Offered by iOrders:
Online Ordering System: Seamlessly integrates online orders directly into your POS system, reducing order errors and increasing efficiency.
QR Code Ordering: Allow customers to place orders directly from their phones, minimizing staff interaction and enhancing customer satisfaction.
Delivery-as-a-Service: Manage your own delivery fleet or integrate with third-party delivery providers like Uber Eats for streamlined logistics.
Loyalty Programs: Implement rewards programs to encourage repeat customers and increase customer engagement, benefiting both staff and business.
Managed Marketing Solutions: Manage promotions and campaigns from a centralized dashboard to engage customers and drive sales.
FAQs
1. What are the 3 R's of employee retention?
The 3 R’s of employee retention are Respect, Recognition, and Reward. Respect ensures employees feel valued and treated fairly, recognition acknowledges their hard work, and reward refers to offering competitive compensation and benefits.
2. What are the effects of staff turnover?
Staff turnover can lead to increased costs for recruitment and training, reduced team morale, loss of experienced knowledge, and disruptions in customer service. It can also negatively impact the restaurant's reputation and affect overall business performance.
3. What are the 5 pillars of onboarding?
The 5 pillars of onboarding include orientation (introducing company culture), training (job-specific skills), integration (fitting into the team), mentorship (guidance from experienced staff), and feedback (continuous improvement).
4. What are retention techniques?
Retention techniques include offering competitive compensation, creating a positive work environment, providing opportunities for career growth, recognizing and rewarding performance, and promoting work-life balance.
5. What are the common retention mistakes?
Common retention mistakes include neglecting employee feedback, failing to offer career development opportunities, overlooking work-life balance, not providing adequate training or support, and ignoring the importance of recognition and reward.
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