Seth McDonald had worked only a few lawn mowing jobs when he went to work for a Dairy Queen franchisee in Two Harbors, Minn. Fifteen years later, the 31-year-old is now vice president of operations for that 11-unit franchisee.
Cheryl Soest was just looking for an after-school job when she applied at a White Castle in St. Louis 22 years ago. Since then, she has gotten married, had three children and run several White Castles as a general manager.
Managers like Soest and McDonald defy the odds in the restaurant industry and American business in general, where research has shown that retaining motivated employees is a constant battle.
Nearly three-fourths of a employees from various industries last year were actively seeking different jobs or had at least posted their resumes online, according to a study by CareerJournal.com and the Society of Human Resource Management in Alexandria, Va.
Kenexa Research Institute, a New York-based recruitment and employee research firm, found earlier this year that 57 percent of new hires become disengaged after two years on the job. And according to the U.S. Bureau of Labor Statistics, the category of accommodations and foodservice ranked among the top five industries for high rates of volunteer separations in February.
The average restaurant turns over its entire staff of hourly workers and loses almost one-third of its managers every year, according to People Report, a Dallas-based employee metrics and research firm.
Despite the churn of employees that many businesses experience, some restaurants have been able to retain highly engaged employees for years. To do it, though, takes planning and a desire by management to motivate workers, say operators and human resource experts.
“We kind of stumbled on it, but you can turn your front-liners—employees on the front line in your stores—into star performers,” says Gloria Plaisted, the DQ franchisee, who with her husband, Rick, hired McDonald when he was in high school.
“The first thing you have to realize before you can motivate any staff is you have to believe the bottom line is critically tied to your front-liners,” Plaisted says. “Once you understand that, I believe motivating them comes easier.”
Engaged employees stay on the job longer, and the longer they stay, the better they perform as a team in the restaurant and the better they serve customers, says Jeff Campbell, chief people officer for Morton’s Restaurant Group, the 74-unit fine-dining steakhouse chain based in Chicago.
“It’s clear that the teams that work together over time have lower turnover, and guest relations and number of repeat guests are higher,” Campbell says. “Regular guests who come in at our price point know what they want, and who they want to serve them and open their wine. You cannot put a price tag on how valuable that is.”
Make expectations clear Most employees start off enthusiastic about their work but become disillusioned over time, says Jeff Saltzman, practice leader for the Kenexa Research Institute. “In general, the most satisfied and engaged employees are the ones whom you just hired,” Saltzman says. “In most organizations, that lasts for as little as six months, for some it’s as much as 18 months, then you begin to see a decline. Then people hit bottom.” One of the biggest dampers on an employee’s enthusiasm is unmet expectations, he explains, noting that an employee might say, “You told me the job is going to be this, and it’s not.” Being clear on expectations, pay and job duties is critical to employee motivation, operators say. “It’s absolutely vital that everyone in the restaurant understands the critical nature of their job and how it contributes to the end goal,” says Eric Bartlett, director of training for Rib Crib Corp., the Tulsa, Okla.-based barbecue chain with 43 units in seven states. When Robert Gamboa, general manager of a Stanford’s restaurant in Lake Oswego, Ore., hires an applicant, he goes over the rules and regulations and his expectations. “I tell them if you’re not the friendliest employee in the restaurant, you are not going to make it,” says Gamboa, whose restaurant has consistently had the lowest turnover among the nine Stanford’s and 27 total restaurants that are owned by privately held Pacific Coast Restaurants Inc., based in Portland, Ore. Gamboa estimates that hourly turnover at the restaurant is 28 percent and management turnover is about 22 percent. Select employees carefully In his 11 years of running the Lake Oswego unit, Gamboa has learned another big key to motivating employees is starting with the right people. “You have to be really picky,” he says. “I’m very selective on who I hire. I’m looking for people who want to stay. I don’t hire summer help, I’m looking for 30-hour, 40-hour-a-week, full-time employees.” He also looks for people who are friendly and smile easily, since that behavior is a requirement for the job. Campbell from Morton’s also stresses the importance of employee selection. “I spend a lot of time, more than I have with any other company, making sure [new hires] are good at what they do,” he says. As employees advance or move into management, Gamboa lays out for them the expectations and requirements of the next position. “You have to make them understand what they have to do—give them a goal to get from point A to point B,” he says. Ask employees not only how they want to be rewarded, but inquire about their goals and plans, says Bartlett of the Rib Crib. Managers at the barbecue chain are expected to find out not only why a person wants to work in the restaurants, but how they believe working at Rib Crib will help them accomplish their own personal goals. “Motivation is an internal force and not one that can be tapped without knowing a person’s goals,” Bartlett says. Presenting employees with a clear career path also helps engage them, says John Kelley, assistant vice president of human resources for White Castle, the more than 320-unit burger chain based in Columbus, Ohio. Up to 90 percent of White Castle’s general managers were promoted from within, Kelley said. The average general manager has been with the burger chain for 14 years. The turnover rate for managers was only about 4 percent last year. Pay fairly and offer benefits Good benefits also contribute to White Castle’s low management turnover, Kelley says. The chain offers pension plans, profit sharing, performance bonuses and three weeks of vacation to general managers. Soest in St. Louis took paid maternity leave with each of her three children and had her job waiting for her when she returned. Her supervisors also were accommodating when she had doctor’s appointments while she was pregnant. “This is the only job I have ever had, but I hear from different people from other fast-food restaurants that their benefits are not as good as what we have,” she says. Employees often become disengaged in their jobs if they don’t receive the pay and benefits they were promised when hired, says Saltzman of Kenexa. “It’s common in an interview to paint rosy pictures of how much money people can make, whether in tips or bonuses,” Saltzman says. “But it’s better to be realistic and have fewer people accepting the jobs than to keep losing people.” Some operators cannot afford to offer higher wages than their competitors do, but that does not mean they cannot motivate their workers, says Dairy Queen franchisee Plaisted. “Some of us can’t play the pay card,” says Plaisted, who is also an author and consultant to small businesses. “We have a budget. We can’t just give people what they want. We think there are other ways we can take care of them and keep them energized.” Have fun Plaisted polled 100 of her nearly 200 employees, most of whom are in their late teens and early 20s. When she asked them what was most important to them on the job—fun, pay, recognition or workplace incentives—nearly 70 percent of them said fun was the most important aspect of their jobs. “Today, that’s where it’s at,” Plaisted says. “Operators have to ask what is their fun-factor rating? When was the last time they had fun with their employees?” Managers and owners should find out from their employees their definition of fun, she says. Some may like cash, while some may prefer games and contests. With some thought and effort, managers can come up with ideas for fun that are inexpensive. One game played at some of the 11 stores the Plaisteds operate is the hidden cone. A manager will hide a plastic cone, usually in an area that needs to be cleaned. The employee who finds it gets a reward, usually something less than $25, such as a gift certificate, a DVD or a CD. Gamboa at Stanford’s likes to keep contests small and brief to generate the most interest among his staff. For example, the employee who sells the most desserts in an evening wins a candy bar or a Starbucks gift card. “Sometimes when you do the big contest, not everyone is motivated on a daily basis,” he says. “If they are falling behind and not in the running for a big huge contest or they are not doing that great, they lose interest and stop competing. We do small meetings and small prizes at lunch and dinner. And we don’t do it every day.” Keep the environment clean and equipment working People also get frustrated on the job when they don’t have the tools to complete their tasks, Saltzman says. “An effective leader makes sure the nuts and bolts of how to get the work done are in working order,” he says. At Morton’s that means all the equipment should be functioning properly. If employees find the cappuccino machine to be faulty, they get a better one, Campbell says. The steakhouse chain also assists employees with supplying their uniforms or helps defray the cost of dry cleaning bills for managers, who are required to wear tuxedos, says Maureen Pearman, director of recruiting. Plaisted says that employee motivation starts with the status of their environments: Is the restaurant clean? The parking lot picked up? Are the uniforms faded? “I’ve seen through the years when you replace old stainless steel or a worn-out broom, it generates excitement among the staff,” Plaisted says. “You have to have regular equipment upgrades, and then they can get excited about pride of ownership. If you have a lifeless work environment, you’ll have lifeless people.” Recognize and appreciate employees Employees respond positively to praise and recognition, operators says. Bartlett of the Rib Crib sends out a weekly e-newsletter to employees recognizing store teams for achieving sales goals, winning contests or giving exceptional customer service. “Their full names are listed prominently in bold red letters on the page with descriptions like these,” says Bartlett who gives the following excerpts from the newsletter: “Anthony continues to be our anchor in the kitchen at Sapulpa. He always completes assigned tasks and fills in whenever needed.… Erica comes to work every day at Meridian with a positive, can-do attitude. She is always taking care of the guests in her section as well other guests in the restaurant.” Motivating employees begins with appreciating the work they do, says Gamboa of Stanford’s. “I’m not sure if there is one thing that motivates, but you have to make sure employees know they are appreciated, that you appreciate them being there,” he says. “It’s about saying thank you.” Employees who stay engaged are ones who feel they are treated well by their supervisors and peers, Saltzman says. “There’s no generation, or ethnic difference, no gender difference—everyone wants the same thing: to be treated with respect and dignity and to feel they have a future,” he says. McDonald, who began serving Dairy Queen ice cream cones when he was 15, says he was motivated to stay with the Plaisteds because he always believed they had his best interests at heart and often helped employees with personal issues. “I have personally experienced that assistance and have been told by others that Rick and Gloria run their business in a way that honors hard work and loyalty,” McDonald says.
