Dallas - People Report™, a research and consulting company that tracks human resources information for its member restaurants, recently recognized two dinner-house chains for reductions in their manager turnover rates.

The entire executive staff for Texas Land & Cattle Steak House, which more than halved its turnover in two years, was honored at the presentation here.

Maggiano's Little Italy, which had the lowest turnover rate among People Report™ members, was not represented at the awards event, but its absence underscored its award winning policies. Yorgo Koutsogiorgas, Maggiano's operations vice president and chief people officer, could not attend because he was hosting managing partners and their spouses on a trip to New York for a night of fine dining and a Broadway musical.

The actions of both companies demonstrated some of the reasons why they seem to be winning the war in manager retention. Both are considered quick to show support and recognition as well as to provide incentives and rewards to their employees.

The awards followed a daylong People Report™ seminar for some 80 recruiters and human resources managers. Attendees represented 40 casual-and upscale-dining chains around the country that belong to People Report™.

While retention was the hottest topic for the members, they have reduced their own turnover, said Joni Thomas Doolin, president of People Report™.

"It was not an accident," Doolin told the members. "It was through your efforts to really understand and reach out to our incumbent workforce."

About two years ago Texas Land & Cattle, concerned about turnover, conducted a comprehensive survey of its managers.

Restaurateurs David Franklin and J. Aron Fogiel founded the upscale, casual steak-house concept in 1993 in Dallas. The company has expanded to 19 units and reported total annual sales of more than $19 million. But the company was losing too many people, its leaders said.

The survey led to several changes, from better compensation to improved communication in the organization, said Eric Bierbrier, Texas Land's vice president of marketing.

Compensation improved, he said, and managers are better rewarded, not just for meeting typical operations and sales goals but also for lowering turnover in their restaurants and boosting scores from mystery shoppers and guest comment cards.

The company also developed a small booklet about its mission statement and values. At the back of the book are blank postcards employees can fill out and mail directly to Franklin, who is chairman and chief executive. Employees are guaranteed a reply in two weeks, whether their comment is negative or positive.

Texas Land & Cattle's manager turnover dropped from 74 percent a year and a half ago to 25 percent this year, Bierbrier said.

"We found if we invest in our people, they will have a much higher level of loyalty and commitment to their job and their career," he said.

At Maggiano's, a Lettuce Entertain You Enterprises-devised concept now owned by Brinker International Inc. of Dallas, open lines of communications have been keys to retaining managers, Koutsogiorgas said in a phone interview after the People Report™ Awards were given.

"People, managers leave an organization because they don't feel included," he said. "They don't feel they are important enough to be consulted or asked their opinion. We realize how important that is. We energize our troops by keeping them in the loop."

General managers and managing partners of Maggianos' 13 restaurants hold weekly meetings with executives and receive daily voice mails from them. Their compensation packages are substantial, with their salaries being among the top 15 percent to 20 percent in the industry, Koutsogiorgas said.

The chain's managers can earn bonuses up to 45 percent of their salary. General managers also can work up to managing partners and receive car allowances and other perquisites.

Maggiano's turnover rate for managers is around 13 percent to 14 percent a year, Koutsogiorgas said.

Texas Land and Cattle was awarded the 2000 Catalyst Award by People Report™ Focus on Recruitment. Shown from left are: Eric Bierbrier, VP of marketing; David Oden, Ex. VP and CFO; Aron Frogiel, owner and VP; David Franklin, owner, chairman and CEO; Sherry Detwiler, director of People; Don McElroy, SVP and COO, Mo Lasater, area director; Scot Thomas, area director and Brett McCullough, area director.

Reproduced with permission of the copyright owner