Best and Next Practices in the Service Sector Workplace

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

This article was co-authored by Joni Doolin

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.

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Eco-Friendly Practices: Corporate Social Responsibility

The hotel industry has undertaken a long-term effort to build more responsible and socially conscious businesses. What began with small efforts to reduce waste - such as paperless checkouts and refillable soap dispensers - has evolved into an international movement toward implementing sustainable development practices. In addition to establishing themselves as good corporate citizens, adopting eco-friendly practices is sound business for hotels. According to a recent report from Deloitte, 95% of business travelers believe the hotel industry should be undertaking “green” initiatives, and Millennials are twice as likely to support brands with strong management of environmental and social issues. Given these conclusions, hotels are continuing to innovate in the areas of environmental sustainability. For example, one leading hotel chain has designed special elevators that collect kinetic energy from the moving lift and in the process, they have reduced their energy consumption by 50%  over conventional elevators. Also, they installed an advanced air conditioning system which employs a magnetic mechanical system that makes them more energy efficient. Other hotels are installing Intelligent Building Systems which monitor and control temperatures in rooms, common areas and swimming pools, as well as ventilation and cold water systems. Some hotels are installing Electric Vehicle charging stations, planting rooftop gardens, implementing stringent recycling programs, and insisting on the use of biodegradable materials. Another trend is the creation of Green Teams within a hotel's operation that are tasked to implement earth-friendly practices and manage budgets for green projects. Some hotels have even gone so far as to curtail or eliminate room service, believing that keeping the kitchen open 24/7 isn't terribly sustainable. The May issue of the Hotel Business Review will document what some hotels are doing to integrate sustainable practices into their operations and how they are benefiting from them.