All Articles Food Restaurant and Foodservice 5 things that will keep restaurant workers around, and 3 that will have them looking for the exit

5 things that will keep restaurant workers around, and 3 that will have them looking for the exit

Amidst the ongoing ripple effects of the Great Resignation and rising costs, restaurants are scrambling to meet soaring customer demand by focusing on employee retention strategies like flexibility, benefits and fostering a positive work environment.

5 min read

By D.J. Costantino 08/07/24

FoodRestaurant and Foodservice

Restaurant workers

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The restaurant business has been on quite a ride for the past five years. We’re still witnessing the ripple effects of the Great Resignation of 2020. The hospitality industry lost millions of workers, and the term “labor shortage” echoed throughout back offices and the media. Restaurants scrambled to figure out how to entice workers back with offers like hiring bonuses. Wages drove up, and tipping entered the conversation yet again.

But customers have returned in droves, and restaurants are looking to meet the demand.

According to the National Restaurant Association, restaurants hired about 300,000 employees last year and expect to hire another 200,000 this year (not including the more than 500,000 jobs restaurants expect to fill for the summer). About 45% of restaurant operators said they need more employees to meet customer demand.

Restaurants also face rising food costs, labor costs and increasing competition. The restaurants prioritizing the employee experience will come out on top. How can restaurants retain those great workers they’ve hired? Here are things restaurants should focus on in their employee retention strategies to get their best workers to stay, according to recent research report published by 7shifts:

  1. Provide flexibility and some predictability: Give employees their schedule as far in advance as possible. Eliminate close-to-opening “clopen” shifts and prioritize giving consecutive days off. When people feel no division between their work and home lives, they get burned out faster.

  2. Restaurant workers want PTO: With hourly work, taking time off can mean sacrificing take-home pay. Losing even a day’s wages discourages employees from taking time off, increasing their risk of burnout.

  3. Health insurance and retirement benefits help, too: Restaurant workers have started requesting the benefits of traditional 9-5 jobs over the past few years. It’s likely no surprise that other than PTO, people want health insurance and retirement benefits the most. It can be challenging for small businesses to offer these benefits. Still, there are options for restaurant owners to consider, such as plans under the Affordable Care Act or through third parties such as OS Benefits. Since these benefits are still a rarity in the restaurant industry, any business that offers them will have a huge leg up on the competition regarding employee loyalty.

  4. Promote a cooperative work environment: Sixty percent of employees list “Getting along with coworkers” as one of the top three reasons for job satisfaction in the restaurant industry. The people with whom restaurant workers spend their time significantly affect their satisfaction at work. Therefore, managers and owners should focus on fostering a cooperative work environment rather than a competitive one.

  5. Workers want feedback and opportunities for growth: More than half of the restaurant workers surveyed by 7shifts (64.3%) rated “More recognition from management” as something that would increase their engagement at work. However, when we asked how often they currently receive feedback (either positive or constructive), a quarter of all employees said they rarely received any at all. While restaurant work is often transitory, it’s a career for many. Restaurant operators can use this to their advantage, building up their top talent to succeed long-term.

Of course, the kitchen door swings both ways. When employees leave, they often work in another job within the restaurant industry — 58% of employees who have left their jobs do so to work in another restaurant. So here are three things restaurant owners should ‘86 if they want to retain their best workers:

  1. Low pay: People need enough money to live outside of work. Restaurant workers frequently cite low pay as one of the top reasons they look for other jobs.

  2. Bad managers: The restaurant industry is notorious for high turnover. Our data confirms that 66% of employees indicated that they had quit a restaurant job, with a quarter having quit more than once. One of the main reasons for this high turnover is poor management, cited by nearly half of all employees who have left a restaurant job before.

  3. A lack of flexibility: It’s essential to recognize that many restaurant workers balance school commitments like high school or college. Seasonal breaks, internships and fluctuating class and club schedules can significantly impact workers’ availability. Flexibility has limits, but when reasonable adjustments can be made, it often increases employee satisfaction.

It may seem surprising, but many employees consider hospitality a long-term career. The list above is an excellent start if restaurants want to retain their best workers. However, to change the game, restaurants must create strong feedback loops and apply what they learn to maintain a happy, productive team.

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