Staffing
Restaurants need to implement these actionable retention techniques
Consider these tips when retention becomes a problem.
January 11, 2024 by Jessica Bryant — Vice President and Restaurants Head of Operations, NCR Voyix
Restaurant staff turnover isn't just a problem for team morale – it's a major issue for their bottom line. The real cost of turnover is estimated to be between 33% of and two times the employee's annual salary, according to Edie Goldberg, president of talent management at E.L. Goldberg & Associates. Of that turnover cost, about 67% can be attributed to soft costs like lost knowledge and productivity.
The key to restaurant retention is identifying and addressing the core reasons employees are unhappy before they decide to quit, and effectively supporting your team with the right technology.
Provide the tools your busy employees need
Speed and accuracy are critical to the success of your restaurant, and you can increase both with reliable, easy-to-use technology that streamlines staff workflow. Try handheld POS systems to reduce human error and save the time servers spend walking to and from payment stations. These mobile devices have the same functionality as POS terminals – connecting to your physical or online store inventories, tracking customer data and running your restaurant more efficiently from end to end.
Or try enhancing customer experiences with contactless QR code dining. Have guests scan a QR code at their table to view your menu on their own device. Digital menus give your restaurant the ability to update its menu anytime, anywhere and eliminate the cost of printing new physical menus. QR codes also help reduce waitstaff stress by decreasing the number of touchpoints needed to service a table.
Protect employee workload and schedule with smart technology
Relying on manual scheduling is time-consuming and often inaccurate. Unpredictable hours and lack of advance notice for shifts can make working in the restaurant industry challenging, especially for parents and other caregivers.
Using scheduling software not only allows employees to choose/swap shifts, create schedules in advance and request time off, but also saves managers up to 10 hours a week. You can collect real-time labor data and link it to your POS to integrate staff and sales insights – arming you with accurate, smarter information on business operations to schedule the appropriate number of staff members to avoid overtime and downtime.
You're a busy restaurant operator - put down the pen and paper!
Create consistent employee experiences
In 2021 alone, 56% of workers in the hospitality industry left their jobs due to burnout – without even having another job lined up. We always hear about how important it is to create the ultimate customer experience, but what about the employee experience?
Creating consistency for waitstaff could mean assigning each server to turn the same number of tables per shift or achieve the same sales targets in a given day. It could also mean setting expectations like punctuality and attendance or setting a target time for how quickly staff should prepare a table for future diners. By setting achievable targets that employees can meet on a day-to-day basis, they are less likely to experience burnout. And in turn, restaurant operations will become more predictable.
Burnout can be caused by external factors that are out of your control, but restaurants need to provide consistent employee experiences to generate consistent guest experiences.
Optimize back-of-house operations
Restaurant employees at chains like Chipotle report that increased demand for digital orders has been extremely challenging – even walkouts were reported. To resolve this, Chipotle added a second makeline dedicated to digital orders.
Embracing technology is a great recruitment and retention tool. Take the guesswork out of inventory management, recipe control, guest count, product mix to streamline operations and, in turn, improve employee satisfaction and ease the stresses on current staff. When technology handles the repetitive, routine work, employees are free to excel in more creative roles.
The National Restaurant Association reports in their 2023 Employment Forecast that 8 in 10 restaurant owners started their industry careers in entry-level positions and 9 in 10 restaurant managers started in entry-level positions, so it's critical restaurants implement technology that drives career pathways.
Leverage data from your POS
If you want data to make a real difference in your restaurant, don't focus solely on the math. You'll get far more applicable insights by trying to decipher the trends that are driving the numbers.
Leverage your POS to identify your rockstar employees. Use your POS data to find the servers who are great at upselling, which means more revenue for the restaurant and more tips for them. Also take note of qualitative data like number of guests requesting to sit in a certain server's section or guests tipping above 20%. Consider rewarding these top revenue generators with spot bonuses, gift cards and other incentives.
You can even integrate your POS system with payroll to get hardworking employees paid faster. Eliminate errors that come with manually transferring employee tip data from POS to payroll and manage varying rates by role with ease. For example, an employee working as a server in the morning and as a bartender in the evening can be paid at different rates.
To be successful tomorrow, restaurants must hire strategically today, and carefully consider where technology and automation can support their operations and attract and retain staff.
About Jessica Bryant
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