Management staff without management skills is one of the best formulae for operational disasters and high turnover.
When we conduct operational audits this does not only mean viewing procedures, physically reviewing the site, verifying controls, how they are implemented, cleanliness, etc.. We go even further; We observe the behavior and attitude of your staff and their interaction with the management team and even with customers. This is where a very common cause of staff turnover is very hidden: a lack of management skills.
You can’t take for granted that turnover is imminent in the restaurant business and that you should live with that, that's a defeatist position. There are several alternatives to decrease high rotation but the first is to identify the causes.
You can start by identifying the causes by running the training and development needs program (DNI). This evaluation program includes a review of the selection, hiring, training, and development processes, and even an evaluation with exit interviews, but no do stop there, it’s important to identify the succession program as well as rewarding one.
Promoting someone just because? If a bad promotion is carried out, not only will you lose the operational experience that this person has developed, it will also affect the rest of the team.
When a person who works as a part-time and is promoted to a management position, not only should be promoted by his/her operational knowledge, he/she needs to be trained in management skills.
The strategic human resources plans must have well-established training programs; operational, technical, and personal development.
Your HR Strategic Plan is ready?
Train and develop your staff and they will stay, take care of them and they will also take care of your business.
The high turnover in the restaurant industry is not unknown at all, regardless of whether they are franchises, corporate or independent restaurants, the truth is that the turnover of the management is almost 75% and about 35% of managers of restaurants resign within the first year. The associated costs and consequences are more expensive than you may think because of impacts each and all areas of the business.
Lack of teamwork and low productivity
Preparation of low-quality products, more waste, high food costs.
Instability in the quality of products and services, consequently affecting customer base what means the ultimate sales.
Loss of customers among other things.
Many restaurants manager fails in their job due to the lack of direction from the middle and top management, motivation, goals, lack of training & development, work/life balance, and bonus structure.
If you want to lower the staff turnover, then the company must have a development plan, and regardless of the size of the operation. So, what’s the secret to making them stay?
Create a re-engineering of positions within your restaurant, and this is even easier when you have a multi-unit system. Implementing the management positioning system by areas offers some of the following benefits:
Development of a career plan within the company.
A better implementation of training systems
Less management turnover
Implementation of savings programs
More productive teamwork
A decrease in staff turnover
Better operational controls and programs
Better general restaurant performance
Incentive plan by areas
Wanting only the manager or the staff to know and manage everything is an operational and management error, it is important to detect the skills and specialization, and do not confuse the multifunctional training system with job specialization. Each member of the team has special abilities, lean on that.
What I see from a restaurant standpoint, is that restaurants that have great leaders – leaders who are positive, capable, calm, solutions-oriented – those restaurants are thriving, they are doing well and they can recruit people to come back and work for them if you have a great restaurant manager, you have a great restaurant.
But even great restaurant managers need good employees to succeed, but it’s here where a great training and reward program comes into action.
Any good operation cannot afford to have a bad interaction between management and staff members. When there is no good interaction between the staff and team management, the customer often pays by receiving low-quality products and services. It's very important to make sure the staff member is being cared for.
Due to the nature of the restaurant business, it is likely that staff turnover is always latent and be part of the business characteristics, therefore restaurant owners, operators, and restaurant companies must implement all the necessary measures to minimize the impact of staff and management turnover.
Sadly, it is very common to find that many companies looking for highly trained managers “and this is worst when they look for district or operation managers” since they do not promote the training & development of their employees but on the other hand, the salaries they offer are very low.
The only thing that causes this balance is high turnover and very low productivity = low profit.
Paying cheap, in the end, the cost for the company or business is very expensive and that if only the cost of rotation is taken into consideration, and if we add to that the collateral damage caused by high staff turnover, it is a tremendous cost.
Is there any hope? Yes, of course always there are alternatives.
We do not want everything to sound so bad, it is enough with the situation of the C-19 that all of us we are living, remember not everything is lost but one must think that the best is yet to come but you have to prepare for the worst for that there are plans to work, strategic, development, expansion, etc..
There are things you can do to help reduce employee turnover at your restaurant. These are some of the best ways to fix the problem, particularly employee turnover...
Change the way you hire, don't just stick to a candidate profile. Work with your HR coordinator.
Create a pleasant work environment.
Conduct exit interviews, but not immediately as when an employee leaves a job it brings a lot of emotional charges.
Recognizes the effort of the team and the individual.
Prepare a salary analysis among your competition, be competitive. Remember that low pay does not bring any benefit in the medium or long term.
Analyze your management team. Many times here is the problem. If more than one person resigns for the poor or lacks management reasons, it is time to be alert.
Analyze workloads and procedures. Luckily the Inquisition is over, you don't want a single employee to do everything.
Review your operations reports. Implement software that helps you track your workforce, monitor expenses, and see how turnover is affecting your results.