Strong employee recruitment and onboarding can save restaurants money and increase employee retainment, a number-one issue facing the industry. Utilizing onboarding software cuts costs by digitizing processes, tracking important documents, automating tasks & integrating background screening and organizing employee files. Employee onboarding for restaurants tames key financial ratios (benchmarks), both front and back of house, fattening your bottom line.
If 2022 has presented hiring challenges across many US industries, the Great Resignation walloped the restaurant industry.
According to Restaurant Business, eateries "saw more of their workforce quit … than employers did in virtually every other type of U.S. business, with 6% of the hospitality industry's total labor force walking off the job … Across all industries, the quit rate was 2.9% …" Making matters worse, restaurants can't find replacements for those who jumped ship.
"Many operators have trimmed their hours and days of operations because they can't hire fast enough to staff every shift. Filling late-night or overnight hours has proven particularly difficult."
A National Restaurant Association 2022 State of the Restaurant Industry Report states, "50% of restaurant operators in the full-service, quick-service, and fast-casual segments expect recruiting and retaining employees to be their top challenge in 2022."
While this year may stand out, the hospitality industry always employs more teens, first-time workers and students than other industries, and, with numerous local restaurants tempting workers with greener pastures, employee churn typically tops 70% compared to under 50% for all workers.
The old adage, "measure twice, cut once," could've been created with employee recruitment in mind. Madeline Laurano, VP and principal analyst, Talent Acquisition, Brandon Hall Group, serves up a scary proposition in her research brief, The True Cost of a Bad Hire, stating that organizations "often make bad hires due to poor interviewing processes, a weak employer brand, poor onboarding, a negative candidate experience, and a lack of data …A bad hire can impact productivity, retention, engagement and performance."
Employee turnover burns through money wasted on rehiring and training, money better spent on promotion, renovations, upgrades, bonuses, etc.
An oft-quoted study by The Center for Hospitality Research at Cornell University put a $5,864 price tag on staff turnover, and that's already 16 years old!You can save yourself a lot of trouble by getting a solid employee recruitment plan in place.
Big or small, all eateries practice employee onboarding to some degree. An effective onboarding process boosts retention and productivity, while poor onboarding can lead to employee frustration, dissatisfaction and quick churn. Proper onboarding begins before the employee's start day, and while smaller eateries may use informal procedures, and different restaurants have varied needs, an employee onboarding checklist includes:
The Society for Human Resource Management (SHRM) reports that:
No matter the type or size, your restaurant will profit from solid onboarding. With new technology, you can speed up the hiring and onboarding process, cutting costs and creating a happy workforce. Regardless of your methods, review your recruitment and onboarding process and make sure you're giving yourself the best opportunity at hiring and retaining great workers.