The Side Dish

Finance to Table Education for Operating Your Restaurant

Deterring restaurant turnover

employee retention, loyalty, culture, engagement, governmentEmployers incur costs to recruit, hire and train new employees. Typically, these turnover costs in the restaurant industry can range anywhere from $3,000-5,000 or more, depending on the level of employee. So high turnover can be detrimental to any restaurant and business. There are some things that can be done that might help reduce turnover. Here is a list of some items that businesses can try:

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  1. The most obvious motivator is money. Employers can increase pay, give bonuses, etc. It is important pay be competitive in the industry as well.
  2. Have patience in the hiring process if you can afford to. It may be worth it to wait for the right person to come along because that right person may be a great employee that wants to stay.
  3. Employers can set up an employee loyalty program that works best for them. It also may be a good idea to allow the employees to have a say in the system and rewards/incentives as they may be more inclined to work towards them. You can even barter with other companies to cut costs on obtaining the rewards (i.e. gift cards).
  4. Provide opportunities for advancement. If employees have a promotion to strive for, they are more motivated to excel in their current position.
  5. Come up with a scheduling system that provides some flexibility. A big portion of the service industry employees are on the younger side. They are often students trying to balance school and work. Consistency is also key. If schedules fluctuate too much, it may be difficult for employees to plan and schedule their lives.
  6. Nail down your training process. Everyone likes to do things they are good at. If employees are trained adequately, they will enjoy the job more.
  7. Have a good manager to help keep things running smoothly. Staff will work harder if they like who they work for and where they work. They will put in the effort if they think they are getting something in return.
  8. Ask! Survey your staff to see what they say can be improved. If they leave, conduct an exit interview to find out why.

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Instilling these ideas into your restaurant business should also help you bring in some additional revenue. By having happier employees that are good at their job, customers will be more pleased with the service that’s being provided. Employers should choose which of these will work best for them.

Feel free to reach out to your Henry+Horne adviser with any questions. For more information on how Henry+Horne can help your restaurant accrue more revenue, check out our restaurant services page.

Kelsey L. Phillips, CPA