Sponsored by Branch
In November of 2021 alone, more than 4.5 million Americans quit their jobs—and 1 million of them were restaurant and hotel employees. As we enter the second half of 2022, the restaurant labor shortage shows no sign of letting up. Tipped workers are dealing with economic uncertainty and demanding more from their jobs—and this power struggle is playing out across the country as both quick serve and fine dining experience ongoing staffing shortages.
As an employer, you have the opportunity to be a catalyst for change. Along with ensuring employees have a competitive, livable wage, there are other things you can do to attract and retain more of your workforce. Here are four strategies that won’t cost your company a thing.
Improve your onboarding
Getting started on the right foot with a new hire sets the tone for your entire working relationship. It’s so important, in fact, that businesses with an engaging onboarding process have been shown to retain 91 percent of first year workers. (Yet only 12 percent of employees think their company does an adequate job onboarding.)
Here are ways to improve on your onboarding process:
- Clearly communicate your guidelines and policies and have an open door policy where your new hires feel comfortable enough to come to you with problems or concerns.
- Empower them with online shift scheduling. Consider a tool that lets your employees pick up shifts to earn more, or swap shifts with others when they need to.
- Offer mentorship and shadowing opportunities. It’s important for people to understand every aspect of the business, as every part works in tandem to deliver a good customer experience.
- Set up direct deposit and payments ASAP. One of the best things you can do for a new hire to instill confidence in your organization is to set them up with a strong financial start.
Employee turnover can cost more than $5,800 per employee. Get off on the right foot with each of your new hires to avoid unnecessary turnover costs and staffing shortages.
Provide a path for growth
The culture of the Great Resignation has many employees abandoning their jobs to find more meaningful work. In fact, 59% of millennials reported that opportunities to progress in their career were extremely important when applying for a new job—and 94% would stay in their role longer if they felt their company could invest in that progress.
You can start these conversations even as soon as your new hire starts. Get to know them and ask about their personal and professional goals. Where do they see themselves next year or five years from now? How can you help them get there?
Additionally, consider promoting from within more often. Up-skilling or re-skilling employees can be a great way to help people grow by teaching them new skills where the company needs them.
Move money faster
In today’s on-demand economy, workers of all industries are seeking faster access to payments, but it’s become especially expected in the restaurant space. Waiting two weeks to have their tips added to their next paycheck—or waiting for managers to run to the bank to make change—hurts your workers’ cash flow.
If you still use cash to tip out your employees—or reimburse them for expenses like miles driven—this outdated process is costing you, too. The burdens of cash include risk of theft, lost hours spent reconciling tills and making bank runs, and constant cash flow monitoring. Switching to instant tip and mileage payouts can be life-changing for you and your workforce.
Provide fee-free financial services
Along with providing faster payments, you can also be the conduit to providing free and fair access to banking services for your employees. There’s a startling number of working Americans who remain unbanked or underbanked in this country, making depositing paper checks and paying excessive fees a struggle. If they go to cash those paper checks—or open an account by paying for traditional banking services—the normal fees associated can eat away at a significant portion of their pay.
Offering a fee-free direct deposit option that eliminates overdraft fees, account balance requirements, and other roadblocks to financial security can help.
Conclusion
As the labor shortage continues, so does the fight for talent. Particularly when it comes to tipped service professionals, job seekers are going to follow the benefits. Providing strong onboarding, clear pathways for growth, faster payments, and free financial services are all ways you can attract and retain more talent—so you can get back to running a successful business.
