When evaluating your restaurant’s bottom line, the annual cost of employee turnover is oftentimes overlooked. According to the National Restaurant Association, the employee turnover rate across the industry was 61% in 2016. And for front-line workers, that percentage is almost twice as high. While an actual dollar amount may be calculated to pinpoint exactly how much your own restaurant is losing per year, employee turnover can cost you more than just cash flow. Hiring and training employees take time. You put resources and energy into building a robust team. Making up for the loss of an employee can be difficult.
The Many Layers of Employee Turnover Costs
The Center for Hospitality Research at Cornell broke down the cost of employee turnover into five major categories: pre-departure, recruiting, selection, orientation and training, and productivity loss. Among these categories, the selection process was pinpointed as the most expensive step. This is because selecting suitable employees for your restaurant is a time and
Building a Strong Employee Foundation
There are several simple ways to help ensure that your business reduces its high turnover rates as much as possible. Offering competitive pay, instilling flexible and reasonable work schedules, and appreciating employees for their efforts and triumphs are all practices that factor into worker satisfaction. But in the long run, the “getting it done right the first time around” method can go a long way, and this all relates back to the hiring process.
Prevent the Fire with Bikelane HIRE
As the Cornell study illustrated, the selection process of hiring new employees is the most expensive category in regards to the cost of employee turnover. A less than satisfactory pool of applicants makes this step even more costly. Sifting through stacks of unimpressive and underqualified candidates yields no reward. Vetting employees who don’t plan on staying with your business can be a tedious and pricey task, especially when you’re constantly searching for new workers. This is where Bikelane HIRE comes in handy: the hiring platform specifically built for the restaurant and hospitality industry. Bikelane HIRE can help your business acquire top-performing employees, reducing risk and costs all while improving your bottom line. Quality workers contribute to lower turnover rates, helping you build a go-getting staff that wants to better your business every day. To learn more about our new restaurant hiring and vetting tool, visit Bikelane HIRE for your free 30-day trial.