The Benefit that Benefits
Recently my husband and I went to a local restaurant to dine. When we approached the front door a sign greeted us: “Sorry, we’re only offering pickup and delivery at this time.” We were surprised but undeterred. We walked in to place a to-go order and spoke to the owner. He shared that his last waiter had just quit and now it was just him on the floor, so he had to eliminate table service in order to maximize pick-up and delivery orders. But this operator is not alone. Everywhere I go I see it; restaurants open five or six days or even five or six services. It’s a constant refrain: the lack of staff and the high rate of turnover is affecting everyone. People in hospitality and in all sectors are reporting higher than average turnover of their team members.
I recently joined a webinar featuring a retention expert, Richard Finnegan from C-Suite Analytics. He shared some statistics from the “great resignation” that took my attention. One is that there are literally fewer people in the workforce. Between the declining birthrate, boomers leaving the workforce, and one million fewer H1B visas being issued, the workforce has become smaller. Alongside that, entrepreneurs increased at a rate of 24% during the past 2 years. There are more independent businesses than ever before - a huge uptick in new restaurants - and these entrepreneurs are creating more positions and more competition for qualified staff.
But what really got my attention is why people leave. The most obvious reason is pay…but it is #16 on a long list of reasons why people leave their jobs. Right now people are throwing money at candidates but this won’t keep them in your operation. The number one reason people leave jobs is “toxic corporate culture.” More than money, toxic workplaces are causing employees to turnover, again and again. If you don't think this applies to you, take heed. Finnegan shared the two main elements of a toxic culture and they're pretty common:
Job insecurity and reorganization: when schedules change and growing businesses shape-shift, this creates instability for employees. As humans we crave stability and will seek it out until we find it…in a new job at another business.
Failure to recognize performance: when employees’ efforts go unnoticed and unacknowledged they feel ignored and taken for granted. Like stability, people crave acknowledgment, and this need will keep them on board (when they are recognized) or cause them to depart (when they are not).
The old adage is especially true today: people don’t leave jobs, they leave managers. And this is where benefits come in. When you invest in your leaders by offering them training and development, you are investing in your culture and in your entire team. When your managers and leaders are supported and cared for, they, in turn, will support and care for your team members. Creating a culture of caring and a culture of acknowledgement will keep your team engaged and satisfy their needs. This benefit, leadership development, can help you impact retention by giving your leaders something to learn, ways to grow & expand, and necessary support as they impact your employees and guests. So few restaurant operations invest in training and coaching - I know this very well! But those that do report that the benefit is huge: to their managers, to their culture, and to their teams.
People don’t leave caring cultures, nor do they leave caring managers. The trickle down of support is real. As a leader your mood is contagious: it’s much easier to express care when one is cared for themselves. Creating a culture of care by investing in your leaders is the benefit that will benefit everyone. Reducing turnover in your operation at the very same time.
