Hiring and Managing Hospitality Staff

Staffing Matters - The WHY

The importance of attaining and retaining highly proficient and loyal hospitality staff cannot be overstated. Poor retention rates result in a constant drain of resources involved in recruiting and training new staff, diverting management’s ability to devote their full attention to their business.

Unfortunately retention rates in this industry are notoriously low with businesses retaining only half of their new hires after 12 months, according to an Employee Retention Report in 2016.

This problem is industry specific, with retail, construction, manufacturing and healthcare, all displaying significantly higher retention rates than the food service sector.

In monitoring the employee lifecycle, workplace studies indicate that the employer /employee relationship undergoes three distinct stages.

Stage One

The honeymoon period begins with an employee becoming acquainted with their role. This is the training phase where staff are finding their feet and the relationship between management and employee is evolving.

This learning curve may last a few weeks or months but ideally is short, allowing employers to quickly gain a return from their investment in the recruitment process.

Stage Two

By stage two, the employee has reached their period of peak productivity. They have a good understanding of their role and are able to perform their duties with proficiency.

Ideally workers would not move out of this stage but research suggests that, without successful retention strategies in place, it can be expected that this period may begin to wane during the fifth to sixth month.

Stage Three

At this point, familiarity, lack of challenge and boredom can lead to dissatisfaction in the job. Unless these issues are properly addressed, disconnection can occur and within a short space of time, the employee may contemplate leaving.

As can be seen, it is this third stage where high attrition rates occur and incentives must be implemented to keep staff engaged, committed and remain within stage two.

Lose this window of opportunity and the resultant effect can be a lower standard of customer service, decreased morale, disenfranchisement and finally, a loss of staff.

Generation 'Why?'

A high proportion of hospitality staff are sourced from Gen Y (born in the early 80’s to the mid 90’s) and increasingly Gen Z (born after 1995).

Unlike previous generations, many of these individuals are university educated or currently studying. They value career development and often have higher expectations around a work-life balance and job satisfaction, than previous generations.

They respond well to performance milestones, promotion and a fun workplace culture. Understanding how their role is contributing to the overall success and objectives of a business may be key in attaining their reliability and commitment.

Rostering

Anyone charged with managing a rostering system can attest to it being a huge bone of contention between staff and management. Rotating rosters, whilst touted as a fairer system, can alienate staff with young children, students and those with other standing commitments. Studies have found that 90 percent of workers prefer fixed shifts, so it stands to reason that employee satisfaction is connected to the rostering process.

Listening to staff and making concessions which accommodate their unique work/life balance, can be of benefit to all concerned. Many staff prefer working nights and weekends as they may have easier access to childcare or are influenced by penalty rates.

Rotating rosters are ideally suited for casual staffing during peak periods.

Identifying The Ideal Individuals — The WHO

Across all areas of the hospitality spectrum — exceptional bartenders, wait staff, chefs, kitchen and catering staff, are always in demand.

Aside from the basic qualifications and certificates required by those in the hospitality industry — including RSA, food handling and food safety — employers need to identify a demonstrable level of commitment to an industry which is known for its itinerant staff.

For many staff members, hospitality work is viewed merely a means to an end — whether that end be university or a career in another field. The irregular hours of casual work can also instil a feeling of employment instability, not conducive to fostering a strong commitment to a business.

Differentiating between those dedicated to a career in hospitality and those looking for a short term income begins with the advertising and interview process.

Ideally, hospitality and catering staff should display the following attributes:

• A multifaceted skill set
• Motivated
• Wide knowledge base
• Enthusiastic
• Flexible
• Punctual
• Energetic
• Conscientious
• Willing to learn
• High level of customer service
• Exceptional interpersonal skills
• Reliable
• Trustworthy
• Clean and well presented

Interviews with candidates should cover a range of personal and professional enquiry. Begin by noting not only what they are saying but also body language and demeanour — seeking honest, straightforward answers.

Questions should address key qualities such as the ability to work as part of a team.

Begin by asking about their personal achievements and hobbies and then move on to their professional life, for instance:

Tell me about yourself — encourage them to be expansive. Answers to this question can provide insights into character and endeavour in other facets of life such as team sports or educational achievements.

Why are you leaving your current position? — identifies where expectations were not being met and whether these are valid.

Why do you want to work here? — discovers whether an applicant knows your establishment and has a genuine desire to become part of your team or is motivated simply by a pay check.

What are your long term career goals? — gains a clear picture of how they intend to grow within your business, their ambitions and whether these can be realised within your system.

What did you like/dislike about your last job? — if there was dissatisfaction with the work, hours or industry, chances are that pattern will continue.

Reference Checking

Hiring managers should invest a substantial amount time and effort in checking a candidate’s credentials. It is not always easy, as referees are often busy, so have a list of targeted questions ready.

A basic check will cover the length of their employment, their capabilities and reasons for leaving. If the time is available to be more expansive, the following questions can be used as a guide:

• What were the candidate’s strengths and weaknesses?
• Were they punctual/reliable?
• How did they work within the team and autonomously?
• Would you rehire them for future work?

Thinking Outside The Square

One source of experienced, responsible staff which is often overlooked, is the mature worker. Favouring maturity, skills and commitment over youth often pays off huge dividends for employers willing to look past prejudice and stereotypes.

Other industries where maturity is more highly valued, report older workers are consistently more stable and deliver a better customer experience. Mature workers are often freer from outside distractions and bring with them life experiences and a stronger work ethic.

It has been reported that older employees are almost three times as loyal as their younger counterparts, three times happier and are five time less likely to change jobs than workers aged 20–24.

In fact studies have shown that mature workers are least likely to take time off due to personal illness. They also have a lower rate of absenteeism, dispelling the myth that they may be prone to health problems.

According to the Australian Human Rights commission, negative stereotypes surrounding older workers are seeing them overlooked in industries where there are skill shortages. The fact is, mature workers deliver an average net benefit of almost $2,000 per year to employers, over younger workers.

This is particularly resonant, as hospitality is often considered an interim job for travellers, students and those using it as a stopgap until they can find employment in their preferred field.

457 Working Visa Law Changes

Until recently the skills shortage in the hospitality industry was shored up by overseas workers on 457 working visas. Changes to the law , effective from 1 July 2017, mean the visas have been abolished and replaced by Temporary Skill Shortage visas.

The ramifications of this is that there will be a requirement for a higher standard of English and there won’t be permanent residency outcomes at the end of the two year (dependant on skill level) visa.

Sourcing Solutions — The WHERE

Most managers and employers will use a number of different hiring streams to source staff.

• Social media — consider LinkedIn for management positions and platforms such as Twitter or Instagram for casual staff
• Word of mouth through current employees
• In-store advertising
• Online applications through a website
• Online job boards such as Seek or Indeed
• Hospitality staffing agencies such as Skilled — these are handy to build a relationship with for emergencies and over peak periods like Christmas
• Headhunting

There has long existed a black hole within the hospitality industry between establishments seeking experienced staff and job seekers looking to gain experience. Many trained but inexperienced staff are frustrated hearing about a skills shortage in the industry as they find it impossible to get their foot in the door.

Schools such as Emmaus College in Melbourne are currently running Vocational Education and Training Programs from Year 9, which includes mandatory completion of hospitality and barista certificate training courses. Identifying hospitality as a viable career choice at this point will hopefully remove the mindset of hospitality being a stop-gap job.

Becoming an employer of choice, especially in an age where employees have platforms such as Glass Door and Indeed, where current and former employees can anonymously rate and review an employer, can provide valuable assistance in attracting high quality staff.

Equipment Matters — Providing The Tools For The Job

Part of becoming an employer of choice is equipping staff with the tools to perform their job with optimum safety and efficiency.

Hospitality suppliers who specialise in catering and restaurant equipment provide fit-for-purpose utensils, lightening the burden on staff, increasing safety and freeing up time to focus on operational tasks.

The essential kitchen equipment for one establishment might be clutter in the next, so it is important to regularly assess your operations to identify where time and effort can be saved. This is where the input of your staff is invaluable — no one knows a job quite like the one doing it.

Consider these potential efficiency improvers:

Bar Staff

• The correct glassware — wine glasses, champagne glasses, beer glasses, tumblers, shot and cocktail glasses
• Enough coffee cups and mugs
• Bar supplies — including cocktail equipment, bar accessories, ice machines
• Quality commercial glasswashers
• Drink machines — coffee machine and grinder, juicers, milkshake mixers

Kitchen Staff

• Commercial grade cookware
• Food prep equipment — food processors, kitchen mixers, vegetable prep machines
• Professional chef knives — sharp and maintained
• Kitchen shoes — non-slip footwear specially designed to withstand the hazards of a busy kitchen
• Sufficient kitchen work benches and sinks

Serving Staff

• An informative menu, preferably with options for those with varying dietary requirements
• A POS or efficient ordering system
• Baby highchairs and folding furniture
• Kitchen shoes — non-slip footwear specially designed to withstand the hazards of a busy kitchen
• Catering supplies — service trays, bain maries, catering disposables

Getting Engaged — Attaining and Maintaining Staff Commitment

One major factor in staff retention within the catering and hospitality sector, is the challenging environment — dealing with the general public as a whole and their treatment of service staff can at times be demoralising.

Challenges encountered by bar and wait staff have never been greater, with the changes to laws surrounding the responsible service of alcohol meaning staff often face abusive or confronting situations.

Expecting young and inexperienced staff to cope in this environment, without supervision or support is a recipe for disaster. Combating this requires a supportive culture, where staff feel management ‘have their back’.

To find strategies which work at creating an environment in which employees flourish, let’s return to Richard Branson and his philosophies.

Recognition & Reward

If people are properly and regularly recognised for their initiative, then the business has to flourish. Why? Because it’s their business.

Listen to employees input regarding your business and encourage their investment in its success.

Implement a culture of recognition which rewards initiative. Simple suggestions may include:

• Public praise
• Showcasing exemplary employees i.e. Employee of the Month
• Financial rewards
• Status Incentives including development, increased responsibilities
• Gift cards
• Time off

Fostering Passion

The best advice I could give anyone is to spend your time working on whatever you are passionate about in life.

Passion is infectious. If management is passionate about their restaurant, food and service, it filters down through the workforce and eventually to the customers.

Invest in Exceptional Managers & Management

Having a personality of caring about people is important. You can’t be a good leader unless you generally like people. That is how you bring out the best in them.

Richard Branson is known for his personal involvement with his staff. When visiting Virgin offices, he acknowledges each staff member and was known to personally thank members of staff who performed well.

Taking the Time to Listen

I am a firm believer in listening to your staff at all times. The moment you stop doing this, you are in danger of losing your best people.

Research has found that one of the pivotal reasons for staff disengagement is they feel their opinions don’t matter — that they aren’t being listened to.

From the Ground Up — Culture of Engagement

Some 80% of your life is spent working. You want to have fun at home; why shouldn’t you have fun at work?

Spending the majority of one’s waking hours in an environment which is soul destroying, one can’t wonder at the high attrition rates which follow.

As an employer, an investment of time and resources has been made hiring and training staff. It is worth continuing that investment by building a cohesive and supportive environment where staff are invested in the success of the company.

Positive outcomes may lay in changing the mindset that hospitality is a career, rather than just a job until something better comes along, through internal promotion policies and valuing and rewarding talent.

Acceptance & Understanding

If I can help it, I never let good people go. I feel people should be given more than one chance within the Virgin Group.

Allow employees some latitude to make and learn from their mistakes — whilst avoiding blame and recriminations.

Managing The Management

Any positive and successful culture changes must begin at the top. As a food business owner, if there appears to be a revolving door attitude amongst lower level employees, it may pay to consider your manager’s people skills.

The lines of communication between owners and managers should also extend to employees who should feel confident that any grievances regarding their treatment by management will be heard in strictest confidence. The fear of repercussions from managers, mean many younger staff will merely leave rather than address problems.

A high number of businesses have lost valuable staff through managers who lack strong leadership qualities. Rather than inspire and motivate through encouragement and mentoring, many merely demand blind obedience.

Young workers are often intimidated by management and reluctant to approach them regarding concerns, fearing they will appear incompetent or lose their job. This trepidation can contribute to the alarming statistics surrounding injuries in young, inexperienced workers.

To combat this, managers need to be approachable and receptive to staff. Traits of an effective manager who displays advanced people management skills would involve:

• Empathy
• Positive Attitude
• Warmth, compassion and control
• Patience
• Mentoring abilities
• Leading by example

A good manager can set the tone for the whole business, if they don’t care or aren’t invested in the success of the business, it is unlikely that staff will be. Their language and body language should be open and positive.

Caring Culture — Creating a Safe & Equitable Work Environment

As an industry, hospitality is the single largest employer of inexperienced and young workers, and has a duty of care to provide a safe work environment for their young charges.

The Occupational Health and Safety act specifies that young workers between the ages of 15 and 24 require supervision, proper training and information so they can perform their duties safely.

It is a disturbing fact that young workers have the highest rate of injuries and are more likely to require hospitalisation for their injuries.

A PDF from Worksafe Victoria which details guidelines for businesses employing young workers, can be accessed here.

Safety — Legal Onus

WorkSafe also provides a range of guidance material, including:

• Compliance Codes
• OHS issues
• Guidance notes
• Alerts on industry specific hazards
• Advice on processes and actions required by employers to meet their legal obligations

As of 1 August 2017 amendments to the Victorian Working with Children Act (2005) came into effect. The changes will affect those working with youth under the age of 18. To find out whether these changes will apply to you, information can be accessed through the Working with Children Government website which can be accessed here.

These changes are related to Victoria only. Please refer to specific State or Territory guidelines.

Wages

From 1 July 2017, changes to minimum penalty rates in the hospitality, restaurant, fast food, retail and pharmacy awards, kicked in. This drop in income for an industry already suffering from some of the lowest wages will likely see an even greater difficulty in securing productive, trained staff.

The key word here is ‘minimum’. One good staff member is worth much more than a team of unmotivated ones. Rewarding staff for exceptional contribution should be standard practice.

Training — An Investment Worth Making

Job progression into managerial roles or other areas within the restaurant or catering sector can be an enticement to ambitious workers.

Upskilling, training and promotion of internal staff is both financially and philosophically rewarding. A strong workplace culture which encourages self-improvement and values personal and professional growth, will pay dividends.

Identify and promote key talent. Have patience and take advantage of the knowledge of experienced staff in your training. Install a mentorship program where staff are given independence and autonomy backed by a supportive network.

Returning to Richard Branson’s philosophy regarding creating a culture of support and inclusion, Richard himself has been quoted as saying, “there is no magic formula for creating great company culture. The key is just to treat your staff how you would like to be treated."

Since Virgin Australia won the gong as the place most Australians would like to work — he must be doing something right!