THIS IS THE ANSWER TO YOUR EMPLOYEE TURNOVER PROBLEM

By | 2017-12-21T00:55:45+00:00 July 6th, 2016|Hiring process, Operations Management|0 Comments

There is often a lot of talk around the high cost of losing a customer—definitely a valid concern for the hospitality industry. Consequently, many of the tools and processes adopted by operations management aim to directly improve the experience of the customer. And that logic makes complete sense:

  • If you provide the right technology solutions to your team,
  • And if you create a consistent dining experience for all of your guests,
  • Then your brand loyalty and customer base will increase.

We can’t argue with the importance of keeping guests happy—they’re the reason you’re in business in the first place. But we can’t help but wonder why more restaurant operators aren’t focused on a proactive—albeit less direct—approach to improving the customer experience. The logic looks something like this:

  • If you provide the right technology solutions to your team,
  • And if you hire the right people the first time around,
  • Then your restaurant operations will be more stable and you’ll be able to provide a consistent and positive guest experience across all locations.

As a restaurant manager, you are well aware of the direct correlation between the quality of your staff and the overall satisfaction of your guests. (Yelp and Trip Advisor reviews can speak to that.) So rather than focus on investing in more FOH technology or more training for employees who don’t embody your restaurant’s goals or mission, take a look instead at your hiring process.

An Argument for Predictable Hiring

Regardless of how high your employee turnover rate is (and if you’re in the restaurant industry, that number is likely too high for your tastes), the cost of each employee you lose and then have to replace is disturbing. Most studies put that number at a loss of anywhere between 15% and 30% of that employee’s salary.

Your restaurant’s hiring process is undoubtedly the most critical piece of your business. It also may be one of the most expensive parts of your operations. In addition to the monetary toll your business will take, there are other costs to consider:

  • A decrease in team morale.
  • An increase in stress as your team juggles ongoing responsibilities with new ones associated with hiring, onboarding, and training.
  • A disruption in the customer experience.
  • A decrease in productivity, which a Cornell study found comprises 52% of the total costs associated with employee turnover.
  • A drop in brand perception and loyalty.

Restaurant managers understand that consistency and predictability are key to their operational success. The hiring process should be no different.

As a restaurant operator or manager, these should be your goals for the hiring process:

  1. Go Paperless: Use a paperless and digital hiring software solution.
  2. Enhance Control: Cloud-based HR management tools ensure that applications are never lost and that operators have full visibility over the hiring process.
  3. Increase Convenience: Utilize an applicant tracking system to import all applicant information into one platform.
  4. Be Picky: Develop a set of screening questions to help you filter out any candidates that don’t meet your expectations or requirements.
  5. Create Consistency: All locations can conduct hiring the same way: with the same job descriptions, applicant screening process, and interview questions.
  6. Improve Communication: Your team will be able to communicate professionally and with a consistent voice and message with new applicants and hires.
  7. Save Time: De-boarding and onboarding tasks are very distracting for your team. By hiring right-fit candidates and ultimately reducing turnover, your team can focus on being efficient, positive, and effective in their respective roles.

So how can you guarantee that your hiring process will lead to the right hires the first time around? Well, finding the right technology solution is key. With a digital hiring and applicant tracking system in place, restaurant management across all locations can cut down on the waste often associated with hiring and bring more consistency to the overall process, leading to a higher quality of new hire.

If you’re interested in learning more about how you can provide everyone—your management, staff, and customers—with a seamless hiring process guaranteed to produce predictable and quality results, let’s talk.

About the Author:

Better Chains is simplifying the hospitality industry with our restaurant management software designed by industry professionals to increase your profit and growth. Use our modules separately or together on any mobile device or tablet throughout the day. We are here to bring much needed change to an industry we love.

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