Employee turnover, also known as staff churn, is one of the big challenges in restaurant management.
With team members constantly changing, operating costs for hiring and training are high and service quality can suffer.
To keep that from happening at your restaurant, it's important to understand its causes and put some actions in place to reduce the turnover rate. That's what we'll look at in this article. Keep reading to find out more!
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What is employee turnover or staff churn?
The employee turnover rate is an indicator that shows how often employees join and leave the restaurant's team. It takes into account both dismissals and resignations.
To calculate it, you add the number of hires and the number of dismissals and divide by 2. The result should then be divided by the average number of employees in the period. So the most widely used formula is the following:
Where:
- Hires: Number of employees hired in the period analyzed
- Dismissals: Number of employees let go in the period analyzed
- Average number of employees: Number of employees at the start of the period + Number of employees at the end of the period / 2
Turnover = [(Number of Hires + Number of Dismissals) / 2] / Average Number of Employees x 100
For example: considering that a restaurant hired 20 employees and let go of 30 employees over the past year, and has an average of 100 employees.
Turnover = [(20 + 30) / 2] / 100 x 100
Turnover = [50/2] / 100 x 100
Turnover = 25 / 100 x 100
Turnover = 25%
So, the higher the turnover rate, the greater the flow of employees in and out. Working to reduce this indicator is essential for the restaurant to become more competitive in the market.
Why is there high staff turnover in restaurants?
According to a survey by the Associação Nacional de Restaurantes (ANR) in partnership with Future Tank, the bar and restaurant sector had a turnover rate of 77.6% in 2023. Ela é considerada alta quando comparada a outros setores de serviços e ao mercado de trabalho como um todo.
There are several factors that can lead to a high turnover rate in restaurants. Among them we can mention:
- Salaries and benefits that aren't competitive. Generally below the market average.
- Long working hours and unconventional shift schedules.
- A lack of growth opportunities in the field, with little training and development.
- A poor work environment, with a lot of stress, conflicts, and communication difficulties.
- Management and leadership problems, which can demotivate the team.
All of these aspects can lead to employee dissatisfaction and cause them to look for better opportunities and end up resigning.
When the team goes through constant changes, there are several consequences for the establishment, as we'll see next.
What are the consequences for your business?
High staff turnover can hurt your restaurant in many ways, starting with the increase in operating costs.
Whenever an employee leaves the team, there are costs involved in the termination and also in hiring and training someone else to take over the role. These investments end up hurting the profitability of the business.
In addition, high turnover hurts team productivity and the quality of the service offered. Como há muitas mudanças e quem chega ainda não tem tanta experiência e conhecimento dos processos, é mais difícil manter um padrão.
And customers notice. If the experience at your restaurant isn't consistent, your clientele may feel frustrated, decide not to come back, and even become detractors. In other words: you lose loyal customers and the establishment's reputation is damaged.
Finally, if the work environment isn't healthy, former employees may talk about the problems with other professionals in the field and make it harder to hire new staff.
What can you do to reduce staff turnover?
To avoid all these problems that come from a high staff turnover rate, it's important to manage people well, ensure the work environment is pleasant for everyone, and offer good benefits to your employees.
There are several actions you can take to increase satisfaction and retain your employees. Check out some of them below!
Hiring process
Selecting professionals with the right profile to work at your restaurant is essential for reducing staff turnover rates. So it's worth refining your hiring process.
To do that, you can define the ideal skills and traits, create an org chart with the roles and duties, expand the channels where you advertise the job opening, ask for referrals, and improve the interview process.
That way, you'll be able to attract the best professionals in the market.
Leia também: Hiring a restaurant team: how to get the selection right
Competitive salaries and benefits
Many employees leave their jobs because they're looking for better salaries and benefits.
So, to keep the best ones with you, it's essential to offer salaries and benefits that are competitive with the competition. High commissions can help attract and retain more qualified professionals.
Flexible schedules and working hours
Another reason many employees resign is the difficulty of balancing their work routine with their personal life. That's why it's important to be flexible and create work schedules that account for the needs of the whole team.
Be open to negotiating and give your employees room to adjust their own hours when they need to. Just be careful to set clear rules to avoid conflicts.
Recognition and opportunities
Professionals who feel valued and who see opportunities for growth tend to stay at the company longer.
That's why it's important for managers to recognize employees' work, give feedback, and encourage development. To do that, offer training, development programs, and opportunities for those who are interested in growing.
Leia também: Night Shift Pay at Restaurants: Learn How to Calculate It
A positive work environment
Running a restaurant can be quite stressful, which is why creating a pleasant environment is crucial. Management should encourage teamwork, respect among staff, and open, transparent communication.
In this sense, the role of leadership is essential to inspire and guide employees. Leaders can also identify and help resolve conflicts when necessary, preventing departures.
Investing in technology
Technology makes it possible to reduce your headcount and, consequently, lower turnover. Solutions such as digital menu e totens de autoatendimento, for example, give customers more autonomy and speed up service.
Although they don't fully replace employees, they're a great alternative for reducing operating costs, gaining efficiency, and improving your business's performance.
Improve your restaurant's results with EPOC
By following these tips, you'll be able to reduce staff turnover at your restaurant and improve your results.
With a team that's experienced and engaged, you not only ensure quality but also increase productivity and cut your operating costs. That way, you achieve a better profit margin.
EPOC offers solutions that can help your restaurant with these challenges. In addition to a fast POS and a complete ERP, we also offer a digital menu and self-service kiosks.
Using our platform, you can simplify management and optimize your operation end to end. Fale com nossos consultores to learn more!
