HR

People Report: Data links low turnover rate to retention of Hispanic managers

By Dina Berta

(Jan. 5) - Limited- and quick-service restaurants that promote and develop minority employees, particularly Hispanic males, experience lower turnover, according to a recent analysis by Victor Fernandez, a senior analyst for People Report, the Dallas-based firm that tracks human resource practices and information for restaurant companies.

Victor Fernandez

Fernandez, a native of Guatemala, began crunching numbers for People Report in October 2003 after obtaining master's degrees in business administration and information systems at Indiana University.

In reviewing the past four quarters of data from People Report members — the firm tracks more than 75 restaurant companies — Fernandez noticed an interesting connection between Hispanic male managers and hourly turnover rate.

What is the connection between Hispanic managers and employee turnover?
We found a clear correlation between the number of Hispanic male managers hired and the turnover for limited service and quick service. The average [People Report member company] hires 8-percent Hispanic male managers and has an average hourly turnover of 131 percent. However, those companies that hire more Hispanic male managers had lower turnover. The group that averages 28-percent Hispanic managers had a turnover of 102 percent — a 29-point difference.

Why does having a Hispanic male manager affect turnover?
What we think is motivating retention is you have a better match with an hourly Hispanic population in such factors as language and culture. When the hourly Hispanic population sees more representation [of Hispanics] in management, it gives people an incentive to strive for those management positions.

Where are restaurants finding Hispanic males for management positions?
From their own hourly ranks. They promote, on average, 11 percent of their managers internally. They provide a career path, something people can aspire to. People Report consistently has reported a link between internal promotions and hourly retention.

What about Hispanic female managers?
While we believe that there is probably a similar relationship with Hispanic female managers, there are not currently enough of them for us to know if this is the case.