How To Retain Staff

Why is it important to keep employees happy?

Staff turnover in the first 12 months in Australia is costing $3.8 billion, with nearly a quarter of workers leaving their job within one year.

In a survey of over 900 people in work currently looking for another job, the average tenure before looking further afield was 4.5 years. However, for hospitality, this number drops to just over 2 years.

Clearly, something needs to be done to boost staff retention in the hospitality industry.

In a line of work with such a high turnover rate, that means there’s always another job waiting for your employees if they want to jump ship. It’s estimated that replacing an employee costs more than double their yearly salary, so keeping as many of those you’ve brought through the door is essential.

As well as the costs of HR personnel, job ads or whatever else goes into hiring – there’s also the hidden costs day-to-day in terms of productivity. It’s not always possible to hire someone during your out-going employee’s notice period, so there may be a time when you’re a man short.

And even if you do, the new person has to learn the ropes. It could be months before your operation is running at the efficiency it was before your employee left – and that’s just if one person leaves. If you have people leaving all the time, new faces have fewer experienced heads to learn on the job from.

In short, keeping your staff who know the drill and who you trust is imperative to a high-functioning business.

So, how do you retain staff in the hospitality industry?

Accurate job descriptions

Overselling a role or giving inaccurate information creates unrealistic expectations. If someone comes through the door and finds the reality of the job is not what was advertised, it won’t be long before they decide to leave.

Misrepresentation breeds disloyalty, resentment and ultimately – another recruitment search in the near future.

Hire suitable people

The first step is hiring people who you believe are likely to stick around. Checking a candidate’s employment history will tell you how often they change jobs, and finding out their career goals and future plans (ie someone starting university at the end of the summer) will indicate whether they see your vacancy as merely a stop gap.

Personality is important as well. At the interview, does the candidate project a positive outlook and upbeat demeanour? Clearly this is essential for front of house staff, but even back of house must have the right temperament to handle the heat of the kitchen.

Consider asking prospective employees to have a short trial shift to gauge suitability. Witnessing a candidate completing simple tasks like serving bread and butter, or standing at the pass to get a feel for how kitchens run, gives you a better idea of how they will perform. It also gives the candidate first-hand experience of the role before any commitment is made on both sides.

However, be careful with unpaid trial shifts. There may be some legal concerns if the trial goes beyond a “reasonable” demonstration of a person’s suitability.

Giving a candidate some on-the-job experience before hiring is beneficial for the both of you, as is making them aware of the realities of the position. If they will work split shifts, tell them. Are they opening up at 6am? Are they closing and cleaning at 11pm? Honesty will go a long way to getting the right person through the door.

Article: Hiring and Managing Hospitality Staff

Pay

Though it’s not the sole factor, pay is undoubtedly always at the forefront of employees’ minds. No-one wants to feel like they are underpaid – and if they do then they won’t be around for long. People who work hard and get results should be rewarded. If people feel like their experience will warrant a better financial package elsewhere, it’s inevitable they’ll look to take that opportunity.

An annual salary review helps staff feel like they aren’t standing still by sticking around. It’ll also help them feel valued and rewarded for their good work. A great way to get people invested in company performance is offering a bonus based on how well they company did the previous year. Staff will be more engaged and tuned in to how the business is doing and realise how their performance can make a difference.

No-one will be doing the bare minimum when they know a big cheque could be waiting for them at the end of the year. And equally as important, people will be less inclined to leave if you offer financial incentives.

Face-to-face meetings

Having regular one-to-one sessions with your staff is a good idea for a number of reasons. Firstly, these meetings give you the chance to chat privately and build rapport – it’ll also give you the chance to address any concerns before they have the chance to grow into something bigger.

Workers will stay on task, motivated and engaged if they have assigned goals to aspire to – even beyond their probationary period. Knowing a meeting is around the corner where performance will be discussed keeps workers on their toes in a positive way – so rather than plodding on they will remain sharp and focused.

These meetings give two additional benefits to employers. It gives them the chance to monitor performance and give regular feedback, so if a worker isn’t on track to achieve targets you can find out why and aid improvement. It also gives the opportunity to praise an employee who is working well. Praise and acknowledgment of good performance helps an employee feel appreciated, which is key to retaining your staff.

Involve them in the business

It should never be a case of “us vs them”. Allowing this attitude to fester between management and employees creates a discord in the business.

Of course, we’re not saying ask the kitchen hand to decide the advertising budget – but give staff regular updates on how the business is performing, listen to their views on what’s working and what isn’t.

Your workers are the people on the ground floor in the day-to-day, so take advantage of their knowledge. Two-way dialogue makes them feel involved and their feedback can also help your business prosper.

Team spirit

Firstly, eradicate the word “staff”. Referring to employees as team members instead will create unity and engagement as they begin to think about the group more than themselves. Introduce new starters to everyone in the company – even those at the top of the chain – and let them know you’re all in it together.

Celebrate successes and occasions like birthdays and work anniversaries together, and have team outings. A group who gets on well will enjoy working together and project a positive atmosphere.

This will also be evident to customers who recognise and appreciating a vibrant workforce from an uninterested one.

By promoting the importance of teamwork, the group will help each other and go the extra mile. Working towards a common goal will breed a culture of positivity and success will help your business drive forward.

Employees who get on well with colleagues, enjoy their job and feel like they’re part of something bigger will want to stick around.

Development

No-one wants to work in a job they feel is leading nowhere. If your company promotes a mentality of stand-still-or-move-on, people will likely use you as a stop-gap before finding something more meaningful.

The hospitality industry is renowned for its reliance on youth. Young people (aside from culinary school students) will likely be looking for quick cash on the weekends while they study, or in the first few months after leaving school when reality of growing up hits.

While they may not necessarily enter the workplace motivated with a passion for service, the work culture you breed can certainly help this develop.

Consider putting in place a structure that helps staff move up in the business. A ‘future leader’ programme where interested and deserving staff are given weekly training to learn different sides of the business, expanding their awareness of the company and putting them in a position to move upwards when vacancies arise.

Offer training – whether in-house or externally – so that staff continue to learn after they’ve become comfortable in their role. A stagnant workforce loses motivation and productivity, so keeping people sharp is a sound investment.

Making staff feel like there’s scope for progression will take their focus off simply getting through their shift and onto how they can move to the next level.

A policy of promoting within will go a long way to keeping staff motivated to stick around. It’s up to you to recognise the most deserving, have faith in them and act accordingly!

Flexibility

Millennials (recognised as those born between the early 80s and early 00s) value flexibility in their working life. Fair Work Australia study in 2015 found that 32% of Aussies wanted “the flexibility to balance work and non-commitments”. Whether it’s working from home or flexible hours – workers just don’t want to be stuck on the job.

This can be tricky for the hospitality industry. But if it wants to shake the long hours tag, something must be done. Offering flexible hours – whether that’s a later start or the option of working extra on a busy day and getting that time back on a quiet day – will go down well with staff.

Social responsibility

Companies that take environment seriously will be more attractive to an increasingly aware generation of workers.

Millennials will make up half of the labour market by 2020, so companies must adapt to what this generation values most. According to the 2015 Deloitte Millennial Survey, 75% agreed that ‘businesses are too fixated on their own agendas and not focused enough on helping to improve society’.

People desperate for a job might join you, but if your company values aren’t good for the environment and the local community then they probably won’t stick around. If you get your meat from inhumane slaughterhouses abroad or don’t pay a fair rate for dairy from local farmers, you’ll likely find shrinking profits and a shrinking workforce if word gets out.

Things are shared quickly via social media and there can be backlashes against perceived unethical business practices. Go green and shout about it!

Actively promoting your company’s commitment to the environment and fair trade will give your staff a sense of pride for where they work. This will certainly help with both recruitment and retention in the long term.

Exit interviews

If they leave, find out why they made that choice! You can gain valuable insight into what leads your employees seeking work elsewhere. As they’re on their way out, they may open up and talk freely and honestly about what it’s like to work for you and how you can improve.

Whether it’s due to salary, work culture, their relationship with you, workload, work/life balance or career growth – there are many reasons people might have for leaving. Multiple exit interviews will help build a picture as to what it is driving people away – and you can move to rectify the situation.

Also consider ‘stay’ interviews to find out what you’re doing right. Sit down with long-term employees and find out what it is that’s made them stay with you. What do they like? Can you find a way to boost these positives? Finding out what people like and don’t like about working for you is essential feedback to help you improve.

Worth the effort

A lot of work goes into finding the right candidate for the job and keeping them in the role. It can take a change of business culture, a bigger chunk of company profits and time and effort into getting it right.

However, the benefits far outweigh the negatives – both financially and in terms of reputation. Retaining your staff shows both you and the outside world that your business is doing something right, which can even increase consumer confidence in what you have to offer.