Best and Next Practices in the Service Sector Workplace

By Grace Kaucic Associate Marketing Manager, TDn2K | March 18, 2018

Co-authored by Joni Doolin, CEO & Founder, TDn2K and People Report

Attracting and retaining enough qualified employees has become one of the most pressing issues facing the service sector today, particularly the restaurant industry. With the national unemployment rate reaching its lowest levels since 2001, the constricted labor market is placing great strain on operators trying to recruit and hold onto their skilled employees. 

Employee Retention - Why is it a Problem?

Employee turnover rates for both management and hourly restaurant employees have now reached record highs. Over 70 percent of all restaurant employees, including front-of-house, back-of-house and management employees, are leaving voluntarily. Furthermore, the top reasons for voluntary termination are job dissatisfaction and opportunities for higher pay elsewhere.  

This level of turnover has proven to be extremely costly in more ways than one. The latest data shows that turnover in the restaurant industry now costs over $2,000 per hourly employee and over $15,000 per management employee. Additionally, TDn2K research also shows how high employee turnover in a restaurant can have a seriously detrimental effect on sales and traffic. In fact, the worst performing chain restaurants, in terms of sales, reported over 20 percent higher management turnover and over 25 percent higher hourly turnover in the second quarter of 2017.

Best Practices Awards Highlight Performance

Choose a Social Network!

The social network you are looking for is not available.

Close

Hotel Newswire Headlines Feed  

Tim Peter
Renu Hanegreefs-Snehi
Laszlo Puczko
Doll Rice
Randa Tukan
Sapna Mehta Mangal
Jonathan Wilson
Tim Sullivan
Renee Moorefield
Andy Ellicott
Mike Nedeau
Tony Heung
Coming up in December 2018...

Hotel Law: New Administration - New Policies

In a business as large as a hotel and in a field as broad as the law, there are innumerable legal issues which affect every area of a hotel's operation. For a hotel, the primary legal focus includes their restaurant, bar, meeting, convention and spa areas of their business, as well as employee relations. Hotels are also expected to protect their guests from criminal harm and to ensure the confidentiality of their personal identity information. These are a few of the daily legal matters hotels are concerned with, but on a national scale, there are also a number of pressing issues that the industry at large must address. For example, with a new presidential administration, there could be new policies on minimum wage and overtime rules, and a revised standard for determining joint employer status. There could also be legal issues surrounding new immigration policies like the H-2B guest-worker program (used by some hotels and resorts for seasonal staffing), as well as the uncertain legal status of some employees who fall under the DACA program. There are also major legal implications surrounding the online gaming industry. With the growing popularity of internet gambling and daily fantasy sports betting, more traditional resort casinos are also seeking the legal right to offer online gambling. Finally, the legal status of home-sharing companies like Airbnb continues to make news. Local jurisdictions are still trying to determine how to regulate the short-term apartment rental market, and the outcome will have consequences for the hotel industry. The December issue of Hotel Business Review will examine these and other critical issues pertaining to hotel law and how some companies are adapting to them.