Good article in the current edition of QSR magazine entitled, “More Than Minimum Wage.”
While the article is focused on reducing employee turnover in quick serve restaurants, it is relevant to any industry — B2C or B2B — even in the midst of 9%+ unemployment.
During most of the past decade, quick-serve restaurants experienced 100% turnover over the course of a year. This number fell to 85% in 2010 and is currently running at 80%.
The decline in turnover is a function of people who have jobs are hanging on to them in times of high unemployment.
When the economy improves, turnover will increase. I’ve seen studies reporting that 60 to 70% of employees are not engaged with their current employer — and this is during a recession and period of stagnation.
Three chains are recognized as leaders when it comes to keeping their employees happy: Starbucks, Chipotle and Panera Bread.
What they all have in common is a hip brand that people want to be associated with and a culture that encourages entry-level employees to see themselves at the beginning of a career, not just a job.
According to Chris Arnold at Chipotle, “the key to our success is the strength of our people culture.” Chipotle promotes more than 90 percent of it managers from within the company.
Eating at Chipotle five times a week for the past five years, I can attest to the fact that Chipotle does a great job of developing employees and promoting from within. This results in a better understanding of the product, the service culture and the brand values.
So what are the four keys to keeping your employees?
- Providing training programs
- Having clear career-path development
- Paying above minimum-wage labor rates
- Providing an inclusive culture and camaraderie
A lot of companies don’t want to invest in training their employees because they’re confident the employee will change jobs when offered more money.
However, if you commit to, and connect with, your employees on a personal level and show them that you are truly committed to their success and growth within the company, it will take a lot more money to get them to leave you.
A stable employee base is key to providing a consistently positive customer experience, regardless of the business you are in.
What are you doing to keep your employees?