People Report™ study: diversity, retention key to excellence
By Dina Berta

DALLAS - Diversity and retention are not mission statements or written goals, but a way of life, said restaurant operators who excel in keeping managers and multicultural staffs.
    An attitude that makes management diversity and management retention a part of corporate culture was the common denominator among restaurants deemed outstanding in both areas by People Report™, a Dallas-based human resources firm that tracks foodservice personnel data.
    People Report™ culled the list of exceptional operators from its 50 restaurant clients, which represent 4,600 units and total systemwide sales of more than $14 billion. The firm does not release individual company information.
    The companies that rank in the top 15 percent among People Report™ members for best composite management diversity are Red Lobster, Mimi's Café, Pappas Restaurants, la Madeleine French Café & Bakery, Taco Cabana Inc., and Claim Jumper Enterprises.
    The top 15 percent for management retention are Claim Jumper, Cheesecake Factory Inc., Maggiano's Little Italy and Corner Bakery.
    These top-performing companies had increases in hires of nonwhites and women that were greater than the 8-percent average increase for all People Report™ members. And the top group's management turnover averages 19 percent, well below the industry average that ranges from 25 percent to 100 percent.
    "The most exciting thing for us is we continue to work with companies that are exhibiting best practices in human resources practices," said Joni Doolin, president of People Report™.
    Several years ago executives at privately held Claim Jumper decided they wanted to improve both retention and management diversity, but the goal became an internal desire, rather than a stated quota, said Bill Story, director of management recruiting and training for the Irvine, California casual-dining chain.
    "It was not formulaic," Story said. "It was something we all felt was the best thing to do and the right thing to do. It was a feel-good goal."
    Claim Jumper upgraded salaries to improve compensation packages for managers, but executives knew money could not be the only incentive, he said. The focused on culture and making Claim Jumper a place where employees felt they were being developed and cared about.
    Promoting from within also has helped with both retention and diversity, Story said.
    Internal promotions were another common link among the top performers, Doolin said.
    "The greatest sources of management diversity for any company tends to be their internal hires," she said. "Companies that are focused on developing their internal candidates and identifying those people early on and investing in their development and retention have a leg up on the competition."
    Top performers for management diversity said it makes good business sense to have an employee staff that reflects the customer base.
    "People look at you and say, 'This is a place for me,'" said Jim Lynde, senior vice president of Red Lobster, which is owned by Darden Restaurants Inc. in Orlando, Fla. "It's a key component to expanding our market reach with customers and guest."
    Besides internal promotions, Red Lobster actively recruits candidates at historically black colleges and job fairs that target minority applicants. The result of such an effort is that 19 percent of Red Lobster managers are minorities and 40 percent are women, Lynde said.
    La Madeleine's customer base is predominantly female, said Catherine Kreston, vice president of people for Dallas-based company.
    "We've just been focused on hiring talent," Kreston said. "I wish I could say we had a secret formula for it, but our hiring strategies have allowed us to really hire the right talents for our concept, and that includes women and people of color."
    Restaurant operators need an open mind, said Mary Kate Scandone, manager of recruiting for Tustin, Calif.-based Mimi's Café. "You have to treat everybody equally and hire them based on their past performance and what they can bring to the company," Scandone said. "When you go into the interview process, leave your discriminatory attitude behind. Give everyone a fair chance."
    Companies also should take advantage of the demographics of the communities around their stores and among their customers, some operators suggested. And for some the restaurant concept lends itself to having a strongly diverse staff.
    At San Antonio-based Taco Cabana, minorities actually are the majority among managers. Nonwhites make up 68.5 percent of the management staff, and 40 percent are women, said Doug Gammon, senior vice president of human resources.
    "Being a Mexican food chain lends itself to an appreciation of that culture," Gammon said. "Once you start valuing diversity, regardless of the concept, it tends to be pervasive. It spreads. It's easier for people."
    As people are promoted through the ranks, they serve as role models, which helps attract more diverse employees, he said.
    "We have people like Mary Morales," Gammon said. "She started out taking a second job working the cash register. Now she's a division leader of multiple units. Her division leads the company in mystery shopper scores for customer service and cleanliness and in many other measures."