Once you have hired a good employee, though, how do you keep them?  The restaurant industry is seeing an exceptionally high employee turnover as the economy is beginning to shift.  When the economy was slow, employees had a tendency to stay where they were, and turnover slowed to a crawl.  Now, though, the rates are rising again.  And because restaurant turnover is typically higher than other business sectors, it makes it especially difficult for employers to retain good help.  The NRA suggests making sure that employees know they are valued on a personal level as well as within the restaurant.  Additionally, the NRA advises employers make sure their employees have the tools and knowledge to be successful in their position, and finally, they urge management to encourage communication in order to resolve issues quickly.  Happy employees tend to stay in their jobs longer than unhappy employees, and in a time of rapid turnover, it is imperative to give your workers incentive to stay.

Training.  It’s one way to retain employees, but the benefit doesn’t stop there.  Training can enhance productivity as well, and higher production can increase your operation’s earning power.   Investing in your employees’ knowledge will in turn make them feel valued—and feeling appreciated may encourage them to stay with your company.

According to the NRA, “the prime restaurant labor pool is shrinking” recently as well.  What this means is that the 16-24 year old age group that has typically worked in the restaurant industry is rapidly declining.  What does this mean for operators?  Well, for starters, thinking outside the box is a surefire way to come up with solutions that work for your specific establishment.  For example, Marnie Swedberg of Solutions Over Coffee Espresso Café loves to hire moms who had left the workforce to raise their children.  She says they are “awesome in a restaurant!  Multitasking mavens responsible for everybody and everything, compassionate, willing to work long and hard…moms are the best!”

And the workforce is getting older, too, notes the NRA.  As baby boomers are aging, they are also staying in the labor pool longer.  But don’t frown at the idea of hiring from this sector too quickly; the older generation seems to bring with them an eager-to-please attitude, along with a service-oriented approach to work.  They are great team players and have a work ethic that is nearly unmatched by most Gen-Xers and Millennials.   Baby boomers come from a time when hard work was a necessity and it shows.

Have you noticed any of these trends in your restaurant?  How are you working to alleviate employee turnover?

The post Surviving the 2015 Restaurant Workforce Trends appeared first on Houston's Blog.

The debate over minimum wage is a heated one, with valid arguments on either side. Of course there is the economic issue, with opponents arguing that ultimately minimum wage increases stunt job creation while at the same time sparking rising costs for consumers. When wages are raised, they contend, there is an increased labor cost associated with the increase. Menu prices go up within a very short period of time, and soon everything costs more. It doesn’t take long before wages earned by employees are soon eaten up by the rising cost of living. The threat of layoffs is also more imminent, according to some opponents, as operators can only raise menu prices so much before business begins to fall off, leaving them no choice but to pursue other savings avenues. Although eliminating or halting hiring may be a last resort, it still may be the only option remaining to restaurant owners who are struggling to meet their bottom lines.

Conversely, proponents argue that increasing the minimum wage will stimulate the economy by simultaneously increasing consumer spending, especially in their local communities. Minimum wage workers right now are simply trying to get by, to make ends meet, to survive…let alone putting any money back in to the local economy. A raise hike will give these employees a spending cushion, proponents contend, that will filter into the economy. And many restaurant owners agree. Tony Crump, restaurant owner in Tempe, Arizona, pays his employees nearly $2.00 more than the standard Arizona wage. He says, “I’ll pay a little more and expect a little more.” What’s more, Crump believes that a raise in minimum wage will actually help his fast-casual restaurant, seeing it as “an opportunity to gain even more ground with a quality product and service.”

There is another side of the minimum wage debate, though, a human side that can’t be overlooked. While many people think that minimum wage affects mostly the teenaged working population, research shows a different story: according to the Coalition on Human Needs, “the average age of workers who benefit from raising the minimum wage…is 35 years old. More than a third of workers affected are at least 40.” They argue, too, that more than two decades worth of minimum wage increases shows no negative effects to job creation in the US. Economy aside, the extra money invested in employees stands to have an even larger psychological effect—an overall sense of happiness. Psychology Today believes that a higher minimum wage has the potential to:

• Decrease family stress
• Give individuals more spending power
• Have a positive impact on self-esteem
• Make people feel they are being treated fairly

Economic wellbeing and psychological wellbeing go hand in hand, and “the problem of happiness is closely linked to the process of social comparison.” Being fairly compensated for their work can lead a person to feel more confidence and self-respect, and thus put them on the road toward happiness.  Ironically, this could result in positive changes for restaurants, even if prices are slightly elevated. In general, when a person feels appreciated, they may work harder, and high turnover rates may eventually dwindle. And the changes will ultimately be felt by the customers who frequent establishments—they may be more inclined to visit your restaurant because of the quality of service they receive, or maybe from the smiles they are given by the happy employees who work there.

Where do you stand on the minimum wage? Do you think it will help or hurt the economy? Will you try to keep wages low so that operating costs will remain low? Or will you do as Crump does, pay more and expect more?

The post Restaurant Trend #9: The People Behind the Food appeared first on Houston's Blog.