The Gig Economy
“How do I hang onto my employees in the gig economy?” is a question all too frequently asked these days, especially in the food service industry. Turnover is frequently over 60% and recently has been more than 70% – meaning 7 out of 10 new hires leave within a year. Considering that it costs thousands of dollars to train each new worker, the costs of high turnover are considerable. Assuming that your employees are productive, you want to keep them with you as long as possible in order to have a profitable business. But how?
Why They Leave
To answer that question, first we need to take a look at why restaurant employees leave in the first place. Two of the top reasons are:
- Internal conflict, and
- Lack of opportunity
Let’s take a look at that first one: internal conflict. Simply put, you need to put as much effort and oversight into managing your employees’ experience as you do that of your customers. If employees are unhappy due to conflicts with co-workers, and if they perceive that nothing will change, they will almost certainly “solve” the problem by leaving. You don’t want it to get that far. That’s why it’s crucial to have an experienced management team who will keep an eye on staff dynamics and who will listen and respond to complaints. Have protocol in place to address your workers’ issues. Do this and your staff will be much happier and almost certainly more productive. They will also be far less likely to leave.
As for the second reason, lack of opportunity: good employees who are kept in entry-level positions will become bored and will feel unappreciated and boxed-in. Don’t let that happen. Schedule time with workers regularly to discuss their experience, aptitude, and aspirations. Gradually give them more responsibility and as they prove themselves, move them up the ladder.
How to Keep Them
Above, we’ve addressed two ways to reduce turnover: resolve internal conflict, and offer opportunity. To those, we add three more:
- Give them the tools they need
- Encourage and motivate them, and
- Conduct exit interviews
Giving your employees the tools they need to help them do their job increases their job satisfaction as well as your profit, because it increases efficiency. Investing in educating your staff makes them feel valued and like they are gaining the tools to succeed in their jobs. Tipzyy allows management to easily educate and reward their staff for exemplary work. Giving staff the tools they need and encouraging/motivating them for success.
No matter what you do, employees will sometimes leave. When they do, conducting exit interviews can greatly help you to refine both your hiring process and how you deal with employees in the future.
Putting all of these ideas into practice as soon as possible should almost certainly result in higher employee retention as well as higher profits in the coming years.
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