3 Reasons Restaurant Employees Leave: How to Manage Turnover

Restaurant Employee turnoverRestaurant Employee Turnover

Restaurant employee turnover is a common plague in nearly any industry today, but the restaurant business tends to get hit the hardest. In fact, according to the National Restaurant Association, the restaurant industry sees nearly double the employee turnover as U.S. private sector jobs. This revolving door makes it difficult to achieve the level of success you work hard for, as it creates distractions for management, seemingly endless recruitment, and skyrocketing costs to train new employees.

One of the key factors contributing to restaurant employee turnover isn’t within an owner’s control at all: Seasonality. Summertime sees an uptick in restaurant patronage, as people have more time off and want to spend less of it cooking at home. They’re also more likely to be taking vacations where eating out is sometimes a necessity. So, it should come as no surprise that restaurants go through a hiring spree to ramp up for summer months, typically choosing high school and college students as staffers—Pew Research reports that an estimated 30% percent of seasonal restaurant jobs are occupied by students. But once September rolls around and school is back in session, students either return to class full-time, or are let go due to the decrease in restaurant goers.

While it may be somewhat typical for restaurant staff to leave, there are ways to manage the ebbs and flows of your employee count. Here, we’ll take a look at three of the most common reasons for restaurant employees to quit and how you can address these issues head-on.

Wages and Hours

One of the main reasons for employees to part ways with their jobs is pay (or lack thereof). And when it comes to the restaurant industry, wages are lower than for any other industry—the federal tipped minimum wage is just $2.13 per hour, as noted by the Economic Policy Institute. True, there are tips to be accounted for which can result in a nice boost to pay, but what happens during the inevitable slow shift, or if the house is overstaffed one evening? To keep your staff happy (and in the green), familiarize yourself with your state’s restaurant labor laws and average restaurant wages. Paying your employees a fair wage can pay off for you in the long run by reducing the restaurant employee turnover.

Restaurant Employee TurnoverLack of Mobility

Employees want to succeed, to climb the ladder in their job and reach that next threshold of responsibility and opportunity. This holds true for restaurant employees as well, who often realize upward mobility only after they move to another restaurant. Yes, front-line staff positions far outweigh those of management positions, but there are ways you can help your employees grow—even if a management position isn’t on the table. For instance, teaching your team a new set of skills or giving them more responsibilities is a perfect way to ensure they feel like an asset to your business. Want proof? Check out what one fast food chain does for its employees to keep its turnover rate at astronomically low levels.

Also, take the time to set up regular check-ins with your employees on a one-on-one basis, and really learn what they want out of their restaurant career. The key to helping your employees grow is knowing their unique skills and desires (plus, a little face time can really go a long way).

Internal Conflict

When you’re running a restaurant, internal conflict is sometimes just the nature of the business. But it doesn’t have to be a problem if you’re equipped to tackle it as soon as problems arise. Whether your staff is disagreeing with management or there are arguments stewing amongst employees, having an ear to the ground on employee engagement is critical to your success in managing these situations. Make sure your employee handbook clearly states what is expected of your staff, and never attempt to solve disputes in front of your guests—it makes for an awkward and uncomfortable environment to which customers are less likely to return.

The turnover rate may be high across the board for restaurants but being cognizant of the small things you can do to ensure your employees are happy will pay off in the long run. If you’re interested in training opportunities for your staff or are looking to ramp up hiring, a restaurant loan from ARF Financial might be just what you need to get started. With a simple funding process, ARF offers flexible loan terms up to 36-months, affordable rates, with no need for collateral. APPLY NOW to find out how much you qualify for. We can get you approved in 24 to 48 hours and your credit will not be impacted!