Thursday, August 15, 2013

Employee Retention- Is Turnover the name of the game?

"Start with good people, lay out the rules, communicate with your employees, motivate them and reward them. If you do all those things effectively, you can't miss."  Lee Iacocca

Even with the current job market, in the restaurant industry, employee retention numbers are staggering.   According to Restaurant News, as much as 50% of a fast-food restaurant’s staff should be expected to turn over in every given year.  Casual dining restaurants average a turnover rate of 44% -- a cost of nearly 3.5 billion dollars in recruiting and training.  How do you tackle the chore of retaining and sustaining the value of a one of your most crucial assets? 

Below are a few tried and true ways to keep your employees happy – and employed with you!  Let’s take a closer look at Mr. Iacocca’s suggestions:

If the shoe fits.  Even Cinderella’s Prince knew how important it was to have the right fit.  Make a short list of the qualities that you need your employees to have.  Not just the experience; not just the technical know-how – but the personal qualities.  Need some help deciding?  Try this trick: If your restaurant/business were a person … what would he/she be like?  Young, enthusiastic, energetic?  Gentle, soft-spoken, conservative?  Choose your employees as you would a “friend” for your restaurant.

Rules are goodEffectively communicating the rules – even better.  “Any student can hit any target if you identify it and hold it steady” is a common adage in education – but a remarkable tool for management, as well.   Clearly define your rules.  Keep them consistent -- from staff member to staff member.  Sue doesn’t get a different set of rules than Jim.  They may not like the rules – but they will respect the fairness. When your employees have clearly defined guidelines, they’ll know themselves where they need to be. 

You can do it!  Motivate your employees with achievable reward programs.  Raising the bar unrealistically high will have the exact opposite effect.  Consider rewarding your employees weekly – or even daily.  It helps to keep everyone focused with their eye on the prize.  

We appreciate you!  Think out of the box when you think “reward.”  Monetary gifts are welcomed pats-on-the-backs, but it may surprise you to find that so is the “Thank you, Brian.  Great job.  We really are lucky to have you on our team.”   Offer gift certificates that your employees can share with their families – or even a percentage off the bill for those invited by your server or chef or dishwasher.  That will be a certain win-win!


These are just a few ideas that may help in encouraging your staff to feel good about where they are – and great about the work they do!