Following the Leaders
by T.J. Schier

In case you haven’t studied the recent correlation between the economy and restaurant turnover, here are a few items to get you off easy street. Though millions of jobs have been lost over the last 2 years (increasing applicant flow), restaurant jobs continue to increase. The employment numbers have allowed people to breathe a sigh of relief. After all, it’s easier to hire now than in years past.

But, people are hanging around due to uncertainty. The minute the economy heats up, people will move…unless they are connected to their boss and their company. What are you doing to earn your team’s commitment now so you will have it in the future? What are the common things successful companies do better than others?

People Report^TM (www.peoplereport.com) has tracked metrics of its member companies for over seven years and recently studied the companies in their consortium for links to performance and lower turnover. They shared the results at a members-only conference and celebration of best practices. (Noah’s Bagels, Corner Bakery, and El Pollo Loco are the past two years’ category winners.) Some of the common success factors seen in the research, which included full-service award winners as well:

• Classroom training hours—outside of on-the-job training—were significantly greater in the companies that performed well.
• The more successful companies hired a higher percentage of women and minorities.
• The successful companies promote more people from within. Internal promotions have longer average tenure as well as help lower turnover at both the manager and hourly employee level, because employees see a career path.

Need to lower hourly turnover? Companies offering the following have significantly lower turnover than their counterparts who don’t:

• Survey employees twice per year versus annually or infrequently.
• Provide benefits to hourly employees.
• Contribute, sponsor, or encourage participation in community involvement.
• Provide four or more hours of orientation (hourly turnover is 30 points lower!).

Those are the facts. So how can you move the needle in your restaurant?

Hire reflective of the guest base versus a bunch of clones—your employees and guests will appreciate it! Football teams don’t have 11 people who look like the quarterback (or, worse yet, the coach).

Everyone has a different role to play with separate skills required to be successful.

Engage them from day one. Provide an in-depth orientation on the culture as well as the company. Orientation needs to be “wow,” not “oh, brother.” It’s not a rules session, it’s a chance to begin to cement the bond. Also, move the “Are there any questions?” to two or three weeks down the road so they have some time to understand what is going on.

The minute the economy heats up, people will move… unless they are connected to their boss and their company.

Provide classroom training. Sit down and learn the menu (don’t forget to sample items), teach the POS system in a role-play scenario versus on the guests, conduct “walking classrooms” and tours versus reading the manual. Domino’s Pizza provides an outstanding self-guided CD and mini-modules. Be imaginative—today’s employees learn differently.

Listen to your employees and find out what they need to improve their performance. Employees want challenging work, a career development path, and a boss who appreciates their efforts. Survey them frequently and respond!

Provide the opportunity to obtain benefits (which don’t have to be 100 percent employer-paid).

Be involved in a cause. People want to be part of something bigger and be proud to work for an employer actively involved in assisting in the community.

Provide a path to career development. Show employees the ladder of success and the tools available to get there. Trainer, hourly supervisor, assistant manager. What are you doing to provide a path? Why do so many leave the industry? They see company after company hire manager after manager from the outside—to replace the one they just hired a year ago—and overlook the talent within the organization.

Hook employees in and show them how great it is to work on a winning team—a team that values input, differences, and being involved in a cause. Restaurants don’t just serve guests. They also serve employees, the community, the local economy, and their shareholders. Treating employees as professionals ensures they treat the guests in the same manner.

Finally, provide incentives to keep your resolutions. Football teams are rewarded with a first-down for getting 10 yards within 4 plays—they don’t have to go the length of the field all at once. Once the team hits the goals you set, move the chains—reward steady improvement.

Don’t let another January pass with empty resolutions. You might have your own set of opinions on these items, but the facts don’t lie. Listen to the leaders in the industry. They have blazed the trail and and in many cases are far down the path.

This column originally appeared in the January 2004 issue of QSR. Subscribe and get QSR delivered to your door twelve times per year.