How to Compete for and Retain Employees in Today's Job Market

A lament shared by hospitality businesses in every region of the U.S. is the dearth of reliable employees. For example, in North Carolina's Raleigh-Durham metro area, industry leaders claimed there were approximately 700 hotel and restaurant position openings unfilled. Independent operators are feeling the pinch as much, if not more, than anyone else in this sector.

The conditions that have led to a paucity of employees extend beyond foodservice operators. "It is not just the restaurant industry," says Matthew Mabel, president of Surrender, Inc., a restaurant consulting firm in Dallas, Texas. "Talk to your general contractor about hiring people in construction; talk to your landscaper about hiring people to take care of your yard. There are not enough interested, talented, motivated workers to go around."

According to Mabel, "This is the first topic any restaurateur brings up in conversation, even before they say, 'It is harder to get sales gains these days,' or 'How can I afford the high cost of real estate being quoted for my expansion units?'"

"If you don't have people to staff your restaurants that stay, and are on board with what you are doing, it is going to be hard to hit your revenue and profit goals," adds Mabel. Most operations are just about fully staffed, he adds, "but there are a few cases where some are shorthanded, and managers are picking up the slack."

The Problem Defined

The reasons for this problem are varied. Not all of them are in your control.

"Many operators believe it is because there are many more choices for hourly workers to consider than there were before," says Chris Tripoli, FCSI, president of A'la Carte Foodservice Consulting in Houston, Texas. "Some operators tell me it is because restaurant work is very difficult. In any event, I find that there are more restaurants searching for staff in a pool that is getting smaller."

Mabel notes the U.S. is in a period of economic expansion and the unemployment rate is relatively low. "Couple this with a social phenomenon: people want more meaningful work. Even though our industry is still a desirable one and many people want to be part of it due to the cultural phenomenon of rock star chefs, the Food Network, and the fact that half of the 360 million Americans seem to self-identify as foodies, that trend has peaked. Now, every young person you meet wants to go into cyber security."

"Unemployment is down, so fewer people are looking for work," says Anton J. Villado, Ph.D., chief people officer for RestaurantOwner.com. "Technology has changed the way people search for work and list openings; posting a job opening has gotten easier, so more restaurants are posting jobs."

Additional Challenges for Independent Operators

Angela Lindberg, a senior consultant with 4 Point Consulting in Chicago, Illinois, which specializes in human resources consulting for startups and small businesses, indicates that the restaurant industry faces unique hurdles that other employers may not, making it even more challenging to find top talent.

"For example, restaurants need to find employees who are willing to work evenings and weekends," Lindberg explains. "Additionally, high employee turnover is a consistent problem for the restaurant industry. The job types found in restaurants are often a temporary, part-time or a secondary source of income."

For myriad reasons, finding quality employees is a rising challenge for the restaurant industry. Smart operators know that finding quality staffers becomes easier once they accept that their employees are also their customers.

Ironically, the best potential employees are often those who are the least available. "Good employees already have jobs," says Lindberg. "You have to do more than post a job online; you need to source and draft top talent, which is an argument for working with human resource recruiters."

The national chains are offering benefits that are hard to match, says Villado, citing Chick-fil-A and Starbucks, which offer scholarships. "Job seekers often do not see restaurant positions as careers," he notes; however, they will take jobs in restaurants to provide resources to achieve their career goals. This evokes the cliche of the actor or musician waiting tables until he or she gets a break; except in today's market it is just as easily the aspiring computer programmer or doctor bussing tables to make ends meet in school. If you can offer that person anything that will make that journey easier, such as flexible hours and time off before exams, it might be worth an extra dollar an hour to them.

Bright Spots

It's not all bad news, however. There are factors in your control, particularly if you accept that potential employees, more than ever before, are basing their job choices on factors other than just salary - corporate culture, work environment and lifestyle head the list - means restaurants must market themselves in order to woo the best candidates.

According to Villado, "the labor pool today is different from the labor pool of a decade ago in a couple of ways. Younger people are more technologically savvy, and expect results immediately. They also expect to be able to customize their experiences. In addition, they have a strong drive for quality; they want to produce quality products and work in a place where quality is highly valued." Among the major hiring hurdles in today's market, says Villado, are a lack of qualified applicants, competition for qualified employees, a lack of competitive benefits/pay and poor job postings. Successful operators are overcoming these obstacles in a number of ways, starting with "rethinking who they hire; hiring the unqualified and training and developing them to become qualified."

"The people looking for jobs are not motivated by money," says David Kincheloe, president of National Restaurant Consultants in Golden, Colorado. "Sure it is important, but working environment and management style are the keys."

The Employee as Customer

Tripoli's best advice for operators having trouble finding good employees is to begin looking at them like customers. "We always say that the best way to increase the number of customers is to satisfy the ones we have, so that they may tell others. It's the power of word-of-mouth advertising, and the same approach works for increasing the number of good employees."

Tripoli finds that the current labor force cares about their work "but in different ways than before. Today's employee wants to work where he feels he belongs. It isn't simply about working for money, but a combination of compensation, work environment, and lifestyle."

In his experience, Tripoli is seeing that today's restaurant employee will search for a position "and then stay longer where they feel involved in the operation, appreciated for their time, and offered opportunities to improve and advance. In today's labor market, we find more staff working two part-time restaurant jobs than before."

The executives at 4 Point Consulting are seeing a trend in which candidates have more power in the hiring process. In the past, the employer held all the cards, Lindberg notes, "but today candidates are holding cards that were not even dealt. The talent pool now has access to information on what it's really like to work for a company, big or small."

Online employer review sites have also disrupted how job seekers make their next move, she adds, and organizations have little to no control over these reviews. "Strong candidates are doing their homework, so it is crucial for employers to promote themselves as a favorable place to work."

Operators are also crafting and marketing the employee experience and culture, and increasing pay. "But not everyone can do this," says Villado. That means they must "offer and advertise other benefits (and) a great culture and employee experience." Many are also rethinking job postings, including information about the company's culture, and involving those with marketing skills in drafting and writing those postings.

Create a Positive Employee Experience

Villado offers some good advice for restaurants having trouble finding top-flight employees, beginning with making sure they "create, encourage and defend a positive employee experience. Your employee experience is what you are offering to employees, so begin by making sure you are offering a great employee experience."

"If you have done a great job recruiting them, telling them the compelling story about why they ought to work for you and how they will be treated, it is imperative to act that way immediately and walk your talk," says Mabel. "If you tell them yours is an exciting and fun place to work, where you care about each other, and then it turns out that training is drudgery and they don't feel the love, you are toast."

Mabel identifies not having a compelling story that attracts employees as one of the biggest obstacles in attracting good candidates. He also cites "not having a hiring process that identifies people who will succeed on your team, not putting energy into recruiting every day, whether you need applicants or not, and not putting onboarding/training procedures in place to keep the ball rolling."

"Good employees find successful restaurants," says Jeff Bennethum, principal of family owned and operated Bennethum's Northern Inn in Gaylord, Michigan. Guest traffic and sales are not the only indicators of a successful restaurant, he says. You need to create an environment that attracts good people to serve your guests. "Work hard to find, care for, and retain, good staff and use them for referrals," Bennethum suggests. "Don't allow your situation to become desperate. Work from a position of strength rather than weakness. Work on your operation and reputation, and then they will seek you out."

That's not just theory at Bennethum's, he continues. "Warm hospitality is at the heart of everything we do. Because we are family-owned and operated, we personalize your visits and attend to special needs. Our staff is our greatest asset, and we work hard with them to create extraordinary dining experiences."

Eight Proven Recruiting Tactics

1. Employee referrals. One tactic restaurants are using to recruit quality staffers is employee referrals. In a recent recruiting survey, says Villado, "we asked where independent restaurant owners and operators found the best employees." The most popular response, at 48%, was employee referrals, followed by internet job sites at 16%.

Villado, a social scientist specializing in human resources, and a former member of the faculties at Texas A&M and Rice universities, believes employee referrals are powerful. "Why? Who is better qualified to market your employee experience better than your employees? But there's more to it than that. People with similar characteristics and interests often spend time together."

As supporting evidence, Villado offers a comment he received from an independent restaurant operator: "Find good people and have them recommend good people based off of the culture your company is about."

2. Tap culinary and hospitality schools and national and state association educational foundations. Culinary schools and high schools and colleges with hospitality-related courses of study serve as a natural farm system for restaurant employees.

Mabel points out that the National Restaurant Association's Education Foundation, cognizant of this fact, has created a program called ProStart as a workforce-development vehicle for high schools. "Students learn culinary and management basics before they graduate and hit the full-time labor force."

Operators should get in touch with local restaurant associations and see which local high schools have ProStart programs, Mabel suggests. "Volunteer to speak to those classes; they are hungry for experienced industry insiders. Also, offer internships and jobs to those students whether they are part-time while they are in school or full-time once they graduate."

Marilyn Schlossbach, executive chef and owner of The Marilyn Schlossbach Group in Asbury Park, New Jersey, says she is developing online hiring networks through her state's restaurant association. "We use Instagram and Facebook to post for front-of-the-house, and LinkedIn and Instagram for culinary."

Healthcare benefits remain "a big hurdle," Schlossbach is finding. "It is so expensive and somewhat prohibitive for small independent operators to offer to employees." Indeed, she concedes that this is a challenge that she "can't wrap my head around, but we have taken on the training component by partnering with non-profits, other operators and spirit vendors."

Trying to give her employees ways to bring their creative talents into the business "has brought excitement to the company," Schlossbach notes. "We have bartenders doing graphics, runners doing inventory, chefs working on weekly projections. They get excited to bring their outside passions into our environment."

3. Always be hiring. Like opening the doors, brewing the coffee, and turning on the music, says Mabel, operators should "always be hiring. Work on this every day. If you are not attractive to employees, that may be an indicator that your restaurant is ill-defined and not unique or special. That is not a good thing to be, whether you are attracting a guest or an employee."

Villado urges restaurateurs to "always be recruiting. I like to ask owners, 'Is there ever a wrong time to hire a great candidate?' With a 70% average turnover rate in restaurants, you're either hiring or going to be hiring. Don't pass on a great hire because you don't have an opening today."

4. Aim higher. Successful restaurant operators are finding better employees because they hire by design rather than by need, according to Tripoli. In other words, he says, "they are always taking the time to interview and upgrade staff rather than only do hiring when there is a shortage," he says. "They have to find employees less and less often because they cultivate a work environment that is conducive to today's worker." That includes flexible scheduling, digital training, and a commitment to continued education. The more knowledgeable staff is, the more valuable they become, he adds, the better they work and the longer they stay.

Villado also recommends operators identify and focus on recruiting quality over quantity. "Don't focus on recruiting that draws in big numbers of applicants; focus on recruiting that brings in your ideal applicants. Remember, recruiting is finding and attracting the best employees, and the best employees are going to come from your ideal applicants."

He sees it as far better to receive five applications from people who are "qualified and want what you have to offer than 100 applications from people who are unqualified or want things you don't offer."

Once again, Villado stresses using an employee referral program. "Your best employees are going to know who would be a great restaurant team member, so use that to help you recruit. Encourage referrals from employees, and reward employees who refer successful hires."

5. Make the first day great. Handling new employees properly is just as important as finding them in the first place, Mabel asserts. "Great, you just hired a grill cook, server or host you are really excited about. With the right onboarding, training and support you can make them into a long-term employee." With the wrong onboarding, training and support, however, they may well be a no-show before they even get on the schedule.

6. Listen, listen and listen. Mabel asks operators to take note of who is doing most of the talking during a job interview. "If it is not the candidate, change that. Spend time listening. Ask open-ended questions about what restaurants they respect and why? Ask them where they like to eat. Determine how those answers truly relate to your operation. Do they have the consciousness to become excited by, and to represent, your brand?"

Operators should also ask candidates where else they are applying for work. That, Mabel finds, will tell a lot about an applicant. "If they will work anywhere, that does not indicate they will stay for long. Don't knock their other choices, but point out why yours is the best choice. Get them telling stories and they will reveal themselves. That is much more important than your checklist."

Owners and managers should also talk to their staff frequently about recruiting their friends, family or neighbors, Mabel adds. "If you have a committed, motivated staff, this will be very effective."

Mabel recommends having the general manager, operations director, or owner conduct exit interviews. "Assemble a strategy for a long-term fix to this challenge, then implement." Some operators actually set an annual turnover goal. "Identify the difference between good turnover and bad turnover, especially at the beginning while you work this out. Track incessantly and include it in your bonus program."

7. Outsource your recruiting. Human beings "will always be predictably unpredictable," Lindberg has found. "One minute someone is onboard and about to sign an offer letter, and then they disappear. Or you have a series of excellent interviews with what seems like a rock star hire, and they do not have the knowledge, skills or abilities to perform the job."

Using professionals in the hiring process can help mitigate these issues, she continues. Talent acquisition professionals are trained to design and advertise tailored job descriptions, perform targeted sourcing and outreach, conduct phone screens, and analyze work samples that reflect the requirements of the job. As Lindberg points out, "These recruiting methods are legally defensible and take the risk away from a team lead or restaurant manager who may not be formally trained in what they can or cannot inquire about during an interview."

8. Reach out electronically. Operators should also use social media to promote their restaurants to the applicant pool. "Remember," Mabel says, "you probably have the same marketing message to employees as you have to guests. Make sure you are speaking to both." The image you project on Facebook, Instagram and Twitter should be as appealing to prospective employees, as they are to prospective guests.

Get Creative

Independent and startup restaurants have to get creative and offer something that their competition isn't to stand out as an employer of choice, Lindberg insists. "Think of what perks you can offer that have little impact on your bottom line, like discounts on products or employee development opportunities. You need to leverage everything that may be of value to the talent pool."

Schlossbach likewise urges her fellow restaurant operators to "think outside the box. Network and bring value to why they should work for you." Mabel believes that restaurant executives not allow themselves to become victims and blame outside forces like the economy, the competition or the market for their problems. "That kind of self-talk can drag you down and make you feel like you are stuck. The truth is, you are the master of your own destiny, so get to work."

ENROLLING EMPLOYEES IN A CAUSE

"Successful restaurants find employees by paying at market or above, treating people well, and enrolling them in a cause," says Matthew Mabel, president of Surrender, Inc., a restaurant consulting firm in Dallas, Texas.

It is just as important to market to your employees and applicants today as it is to your guest. In fact, you may have the same marketing campaign going to both. You have to be able to enroll people by giving them a compelling reason why they should work with you instead of the restaurant across the street.

A restaurant's cause is something that its people represent and are proud to be a part of, Mabel explains. Maybe it is your existing community involvement, your locations or your neighborhood, or how you treat people. "Maybe it is an aspect of food, beverage or service," he says.

According to Mabel, "Your employees must be able to tell themselves, their friends, and your guests, 'I work here because we have the best damn Italian food in town, and I care about representing that… I work here because this neighborhood needs a place like this to hang out, and I am happy to be part of that… I work here because this is a company known for hiring all different kinds of people and letting them be themselves.'"

Mabel believes recruiting success "won't be about money or flexible hours, although they help. You've got to give employees a reason, a cause, to be part of your team."