According to BioHr, the F&B industry has a high staff turnover rate, with about 75% leaving their jobs. This is higher than the average of 46% in other industries. Many F&B workers are young and less experience, which adds to the high turnover. To ensure the long-term success of your restaurant, follow this step-by-step guide to hiring the best F&B staff, thereby decreasing the staff turnover rate.

5 Ways on How to Reduce Restaurant Employee Turnover

1. Hire Right

Hiring the right people in the restaurant industry is a strong way to reduce employee turnover. It's not just about matching skills to the job. It is also about finding staff who fit well with your restaurant's culture and team. Here's a comprehensive approach to achieve this:

• Skill Matching
  Make sure that their work experience and skills match the job requirements. This alignment enhances job performance and job satisfaction, contributing to lower turnover.
  
  
• Cultural Alignment
  Evaluate candidates to determine if they resonate with your company's culture, managers, and existing staff. A harmonious cultural fit fosters a sense of belonging, reducing the likelihood of employee turnover.
  
  
• Detailed Job Descriptions
  Create a detailed job description in the job posting that provides a clear and comprehensive overview of the role's responsibilities. This transparency ensures that candidates fully understand their roles and responsibilities.
  
  
• Feedback Collection
  Gather insights from both the restaurant owner and former employees about why the employee leaves and their work experience. This feedback can reveal valuable information about the reasons behind employee departures and their overall work experiences.
  
  
• Intention Clarification
  During interviews, ask the candidates about their short-term and long-term goals to gain a better understanding of their career intentions and commitment levels. This practice helps increase the chances of hiring employees who will remain committed to your company.
  

2. Meeting Your Staff's Needs for Lower Turnover

Listen to your employees' feedback and take action when possible. Communicating with your restaurant staff and addressing their concerns can significantly improve their engagement and commitment.

Regular communication with employees and valuing their input can boost their dedication to their work. Engaged and valued employees are more likely to stay with your company, leading to reduced turnover rates.

Related: Top 15 Must Ask Questions When Hiring for the F&B Industry

3. Offering Training for Career Advancement

Make sure to provide regular training for your staff. This shows them that you believe in their abilities. A standard orientation help restaurant employee to pick up the jobs smoothly.

Always remember to provide positive feedback to motivate your employees. At the same time, provide your new staff with the training materials, handbooks and a clear job descriptions with defined goals.

These are the example of F&B Trainings:

• Food Handling Training
  Food handling training equips your staff with the knowledge and skills needed to safely prepare, store, and serve food. It covers essential topics such as proper food storage, temperature control, and foodborne illness prevention.
  
  
• Food Safety Training
  Food safety training is crucial to maintain high hygiene standards in your restaurant. It educates your team on safe food handling practices, including handwashing, cross-contamination prevention, and sanitation procedures.
  
  
• Cleaning and Sanitation Training
  Proper cleaning and sanitation are fundamental in food establishments. Training in this area teaches your staff how to maintain a clean and hygienic environment, including sanitizing surfaces, kitchen equipment, and utensils.
  
  
• First Aid Training
  First aid training ensures that your employees can respond effectively to common injuries and emergencies that may occur in a restaurant setting. It covers topics like CPR, wound care, and handling minor injuries.
  
  
• Communication Training
  Effective communication is key in providing excellent customer service. Communication training helps your staff improve their interpersonal skills, handle customer inquiries and complaints, and create a positive dining experience.
  
  
• Customer Service Training
  Customer service training focuses on delivering exceptional service to guests. It includes topics like greeting customers, handling difficult situations, and ensuring guest satisfaction to enhance the overall dining experience.
  

Remember to celebrate their achievements, no matter how small it is, to boost morale and show appreciation. You will also build a more efficient workforce when your employees are cross-trained.

Teaching new skills boosts your restaurant team's confidence, making them feel more invested in their jobs and increase the employee retention rate. When your employees feel valued and capable in their roles, they will be more committed to your restaurant's success.

4. Reward Your Staff

Make sure to reward your employees regularly. You don't always have to give them money. Here are 5 employee rewards ideas:

• Formal Letters or Awards
  A formal letter of appreciation can be a powerful tool for recognizing exceptional employee contributions. It should be personalized, highlighting specific achievements and qualities that set the employee apart. Additionally, tangible awards such as certificates, plaques, or trophies can be presented during ceremonies to publicly honor the employee's accomplishments.
  
  
• Words of Encouragement
  Verbal recognition is a simple yet effective way to acknowledge employees. Offering regular words of encouragement, compliments, and positive feedback directly to employees can boost their morale and motivation. It's important to be specific about what they've done well.
  
  
• Gift Cards
  Gift cards to popular stores, restaurants, or online retailers are a versatile reward option. Employees can use them for personal enjoyment, adding an element of choice to their recognition. Personalize the gift card selection based on the recipient's preferences.
  
  
• Shift Choice
  Providing employees with the opportunity to select preferred shifts or work schedules can be a valuable non-monetary reward. It allows them to balance their work and personal lives more effectively, contributing to overall job satisfaction.
  
  
• Featuring in Company Communications
  Recognizing employees through company newsletters, emails, or social media platforms is an excellent way to showcase their achievements. Share their success stories and contributions to the team or company, giving them visibility and recognition among their peers and stakeholders.
  

When employees receive recognition and praise, it creates a positive work environment. They feel appreciated and valued, which motivates them to stay productive and loyal to the company. So, remember to acknowledge and praise your employees for their hard work and dedication.

5. Crafting an Ideal Restaurant Work Schedule

Consider the number of employees you have and the specific needs of your business and your staff. Ensure that everyone is working the appropriate number of hours to maintain a balanced workload.

Avoid overburdening your current employees with excessive tasks, as it can negatively affect their work quality. Effective management of work schedules can lead to stronger relationships, improved employee retention, and reduced overtime requirements. A well-structured schedule benefits both the hospitality industry and your employees.

Consider introducing more flexible schedules for your staff, which they will likely appreciate. In return, you can expect increased loyalty from your team.

• Encourage employees to take short 10-minute breaks.
• Implement a four-day workweek schedule.

What is a Good Turnover Rate for a Restaurant?

• A turnover rate below 50% indicates that most employees are happy working with you.
• If the turnover rate is more than 50%, you may have experienced saying goodbye to most of your staff. Although this is the average restaurant turnover rate for the majority of companies, it may not be the situation you desire.

Why High Turnover is Bad for Restaurant?

A restaurant with a high turnover rate may experience declining quality, employee burnout, and a less satisfying customer experience.

How to Calculate Your Employee Turnover Rate for F&B Industry?

• Step 1: Average number of your employee for current year = (Number of employees you had at the beginning of the year + Number of employees you have at the end of the year)/ 2

For example: If you had 50 employees at the beginning of 2022 and you had 30 employees at the end of 2022, the average number of employees for 2022 is 40 (80 divided by 2)

• Step 2: Turnover Rate = [ (Number of employees you had at the beginning of the year - Number of employees you have at the end of the year) / Average number of your employee ] * 100

For example: subtract 30 from 50, and divided by 40, which equals to 0.5, then multiply by 100. From this figure, we know that an employee turnover rate is 50%.

After calculating your employee turnover rate and finding it to be more than 50%, it's time to explore the guidance below. Discover what steps you can take right now to effectively reduce your employee turnover rates.

We hope that these top 5 tips helps you to address your employee turnover rate for F&B industry. Give these employee retention tips a try and share your experience with us. We look forward to hearing how they worked out for you.

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