Restaurant Turnover and Recruitment Challenges are Here to Stay!

Restaurant Turnover and Recruitment Challenges are Here to Stay!

I have been in the hospitality recruitment business for 30 years (and will now stop counting!) and every year I hear that hospitality recruiting agencies will no longer be needed.  The goal has always been for restaurants to find their own staff and as Staffing Partner to my clients we help with that goal.  But the stark reality that restaurant turnover and recruitment challenges are here to stay!

The best restaurateurs know that it takes more than a good restaurant menu to bring guests in the door. Every year, new restaurant industry trends shape and reshape the industry, and staying ahead of those trends is the difference between a restaurant that succeeds and one of the many that fail every year.

My clients all focus on guest enthusiasm, profit and success but the biggest challenge restaurant owners face today is staff turnover.  The loss of an employee at your restaurant is more than just a change in your staff – it’s all of these things.

  1. Cost: In time and money for hiring a new employee (e.g. advertisements, your time, the time of staff that you may use for interviewing, etc.)
  2. Shift Changes: Without proper notice, the loss of an employee can be disastrous to your shift scheduling
  3. Training: Exposure to your restaurant and its operations is essential to on boarding a new employee. The cost of this is both time and money.
  4. Customer Experience: Ramping up a new employee takes time and that can sometimes mean a dip in the customer experience in your restaurant while new employees get up to speed.
  5. The Loss of Additional Staff:  when you lose an employee you generally will not be able to operate without that shift being covered – which means other employees are working doubles.  There needs to be a sense of urgency to replace that employee before other staff members tire of working doubles and start looking for a new job themselves.

When looking at that list, think about the cost involved, in dollars and cents. My research shows that, on average, the cost of hiring an hourly employee (such as a restaurant employee) can be as much as $3,500. In the restaurant industry, that’s an investment that walks out the door nearly 50% of the time.

With all of that in mind, it’s more important than ever to understand the staffing trends in the restaurant industry – it may be your ticket to overcoming the challenges!

1. Labor Challenges Are Emerging (Again)

The economy is on the rise, unemployment rates are going down – and restaurants are having more trouble recruiting and retaining their employees. For the 15th year in 2014, restaurant employment growth outpaced overall employment growth in the private sector.  A gap between open positions and available candidates is the consequence. In other words, you’ll need more staff and the candidates simply won’t exist. According to the NRA, “Recruitment and retention of employees continue to strengthen as a top challenge for restaurant operators in 2017. As the economy keeps improving and employment levels rise, there is more competition for qualified employees to fill vacant restaurant positions.”

2. Employee Turnover Is Rising

Recruitment is not the only challenge restaurant owners face as a result of the improving economy. When jobs were more scarce, people were less likely to leave their existing jobs. Now, an improved economy means employees are more likely to leave (and leaving existing jobs faster for new opportunities). Coupled with the fact that restaurant turnover is always higher than the overall private sector and you have a recipe for disaster.

“Currently, four in 10 restaurant employees are aged 16-24, however, the number of job seekers in that age group is shrinking.”

 

While servers and kitchen staff were among the lowest turnover rates (28%), that remains a troubling churn rate for most restaurants in a tight labor market.”

Some other data-driven insights from the report you’ll want to hear about:

  • Weekly turnover rates increased from July to September on a weekly basis.
  • An employee’s position in the restaurant is a greater signal of turnover risk than region.
  • Pay rates were highest in the West and lowest in the South, and that gap is likely to increase in 2018.
  • Base pay rate has little impact on turnover.

Bottom line: Good help is hard to find, even harder to keep.   You need to discover ways to source top talent.  Many companies are turning to Hospitality Recruitment Agencies to make proactive calls to source candidates not found on the internet.  They also generally offer a free replacement guarantee which helps you control your hiring costs.

3. The Labor Pool Is Shrinking (And Aging)

As if turnover and labor challenges are not enough, a shrinking and aging labor pool is going to make hiring much different. Currently, four in 10 restaurant employees are aged 16-24, however, the number of people in that age group who are looking for jobs in the industry is shrinking. This prime age group is participating less, which means restaurateurs will have to look elsewhere… like to the aging population and workforce. This means a change in how you hire, and how you create a position culture in your restaurant staff.

Bottom line:  employee turnover is on the rise, and it doesn’t look as if it will decrease anytime soon – which means there will be changes in hiring restaurant staff from all aspects. How you respond will make or break you.

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What Clients Say About Patrice & Associates

  • Hospitality Recruiter Can Help You Find a Job!

    Karl was the best asset in securing my new position. He was there coaching and teaching me every step of the way. I have been working in the food industry for 20+ years and this is the first time I have used a recruiter. I have been on both ends of the hiring process and Karl has helped to know what people are looking for and what I should be looking for when hiring new employees. I look forward to meeting Karl and shaking his hand. If needed I would seek Karl out again!         Mahmoud Elkhyati         Need help with your resume – Have a Recruitment Specialist help you for FREE       Hospitality Recruiter Can Help You Find a Job!
  • Hospitality Recruitment Works!

    My interactions with Mr. Richard were professional. He was very accommodating to my wants in needs when it came to the company I was looking to become a part of. I had tried myself to obtain a position with this company, but I was not able to do so on my own. With Richard's help I was able to land the position.  He kept me in the loop when it came to every interview that I had from beginning to end and kept me very upbeat and positive about the experience. I believe this is how a head hunter or recruiter should perform when dealing with clients very professional and had integrity in everything that he did.     Albert Jones     Hospitality Recruitment matches YOUR skills with the perfect job Hospitality Recruitment Works!
  • Hospitality Recruiters Are Here to Help

    Daniel was a great help to me on my job search. From the first time I was contacted by him I felt he was here not only to help the company find the right candidate but he was there to make sure I was right for the position.  Daniel is very persistent when he is working with you.  He knows that time is of the essence and he helps you adhere to a very strict timeline to be successful.  Daniel is there for you when you are feeling unsure and is always available to discuss just about anything.  He has a wealth of FOH & BOH knowledge and that really put me at ease because I have not met many recruiters with FOH & BOH experience. Talking to someone who has been where you have been really puts you at ease!  I am very appreciative that I had the chance to work with Daniel on this occasion.  I am thankful he was understanding, attentive, communicative, and seems to generally care about you as a person and a perspective candidate! Katherine Woods         Career Coaches that help you for FREE Hospitality Recruiters Are Here to Help
  • Hospitality Recruiters Make the Best Match for You in Your Next Job!

    Tom Schmitt was nothing but more than professional and courteous to me.  He originally contacted me about a company looking for a General Manager.  I was employed at the time, but not very happy in my situation.  Tom talked to me in great detail in regards to the position he had.  After careful consideration, I decided to pursue the opportunity.  He helped me create a more professional resume to present to the company.  He communicated to me on a daily basis as I went through the interview process.  I was eventually given an offer for the General Manager position.  I can honestly say that without Tom's help, I would still be in an unhappy job.   Thank you,   Roy Riddle     What kinds of jobs does a Hospitality Recruitment Specialist have for me? Hospitality Recruiters Make the Best Match for You in Your Next Job!
  • Hospitality Recruiters can help YOU find a job!

    Stephanie Yee played a key role in not only getting me in the door for my first interview, but in every step thereafter in the process. Stephanie coached me on effective interview strategies specific to my prospective role and made herself available for questions anytime. I was consistently kept in the loop with each new step in the process and her client insights proved invaluable. I always knew what to expect at each turn and who I would be interviewing with, along with basics like where to park and expected attire…all things that can easily trip up a less informed candidate.  In addition to all of this, Stephanie’s naturally positive attitude helped me to stay calm throughout a lengthy interview process that spanned a number of anxiety driven weeks. In short, without Stephanie in my corner, I wouldn’t have been able to turn this new chapter in my career. Sincerely, Steve Davis Hospitality Recruitment matches YOUR skills with the perfect job Hospitality Recruiters can help YOU find a job!