As the restaurant industry continues to navigate the ripple effects of the Great Resignation and rising operational costs, establishments are focusing on innovative employee retention strategies to meet soaring customer demand.

The National Restaurant Association reports that restaurants hired about 300,000 employees last year and plan to hire another 200,000 this year, excluding the seasonal spike. However, around 45% of restaurant operators still claim they need more staff to satisfy customer needs.

The High Cost of Employee Turnover

Despite the return of customers in large numbers, challenges like increasing food and labor costs persist. In this competitive environment, prioritizing the employee experience has emerged as a critical factor for success.

1. Providing Flexibility and Predictability

Flexibility is key to retaining staff. Restaurants should aim to:

• Offer schedules well in advance.

• Eliminate close-to-opening shifts.

• Ensure consecutive days off to prevent employee burnout.

  
  

2. Offering Paid Time Off (PTO)

Hourly employees often forgo taking time off due to lost wages, leading to burnout. Implementing PTO policies can mitigate this risk and boost employee satisfaction.

3. Health Insurance and Retirement Benefits

Health and retirement benefits have become increasingly important. While challenging, exploring options under the Affordable Care Act or third-party providers can give restaurants a competitive edge in employee retention.

4. Promoting a Cooperative Work Environment

A significant 60% of employees rate "Getting along with coworkers" as vital for job satisfaction. Managers should foster a collaborative rather than a competitive atmosphere.

5. Providing Feedback and Growth Opportunities

Regular feedback and opportunities for professional growth are crucial. Over half of restaurant workers (64.3%) seek more recognition from management, yet a quarter rarely receive any feedback at all. Building up top talent can help in long-term retention.

Common Pitfalls Leading to Employee Turnover

Low Pay

Inadequate compensation remains a critical issue, frequently cited as a top reason workers seek other opportunities.

Poor Management

High turnover often stems from poor management practices, with nearly half of former employees citing this as a reason for leaving.

Lack of Flexibility

Balancing educational commitments with work can be challenging for employees. Reasonable adjustments to schedules can increase job satisfaction and retention.

Moving Forward: A Long-Term Perspective on Hospitality Careers

While it may come as a surprise, many employees see hospitality as a long-term career. To retain top talent, restaurants must prioritize flexibility, offer valuable benefits, and create a supportive work environment. By implementing strong feedback loops and applying these insights, restaurants can maintain a happy and productive team, setting themselves up for long-term success.