30
Fall 2014 Issue
Effective restaurant owners and managers know workforce
trends can have a huge impact on an establishment’s success.
What might the future hold?
Consider these five patterns, which were noted in the National
Restaurant Association’s (NRA) 2014 Restaurant Industry
Forecast, some suggestions on how leaders might prepare:
1
Labor challenges are beginning to re-emerge
.
As the nation’s
economy strengthens and unemployment rates trend downward,
restaurant operators are likely to see recruiting and retaining
employees become difficult once again. A top-rated challenge
in the pre-recession era, this labor issue was alleviated during
the economic downturn. Restaurant employment growth is set
to outpace overall employment growth for the 15th straight
year in 2014, indicating that there will eventually be a gap
between open positions and available candidates.
Modern recruiting methods can give businesses a leg up in
the hunt for quality employees. Online job boards, social
media outlets like Facebook and Twitter and a company’s own
website can generate interest among potential candidates.
Likewise, automated tracking software enables employers to
efficiently evaluate their applicant pool as hiring needs arise.
2
Employee turnover is on the rise.
Similarly to relieving
some employee recruitment challenges, the recession also
affected employee turnover. As jobs became scarcer in the
overall economy, people tended to stay longer in their existing
positions. Now, turnover rates are beginning to rise again as
the economy improves. Further complicating the matter is
the fact that employee turnover in the restaurant industry is
typically higher than the overall private sector because of the
higher number of students and seasonal employees.
Putting a premium on keeping existing employees can ease the
need to fill openings. Retention strategies might include taking
a personal interest in workers; making sure they have the tools
and knowledge to do their jobs well; encouraging communication
in order to resolve issues quickly and recognizing performance
to demonstrate that staff efforts are valued.
3
The prime restaurant labor pool is shrinking.
Traditionally,
16- to 24-year-olds have been a prime demographic in the
restaurant industry workforce, but that may change within the
next decade as labor force participation by this age group is
rapidly declining. Currently, about four in 10 restaurant industry
employees are 16- to 24-year-olds, so operators will likely need
to find new labor pool options in the years ahead.
Leaders who are able to “think outside the box” might
discover unconventional but effective sources of talent. Marnie
Swedberg, owner of Solutions Over Coffee Espresso Cafe and
M&K Takeouts in Warroad, Minn., says she loves to hire people
returning to the workforce after years of raising kids. “Talk about
awesome in a restaurant! Multitasking mavens responsible for
everybody and everything, compassionate, willing to work long
and hard without big expectations or rewards… I mean, moms
are the best.”
4
The workforce is aging.
The demographics of the U.S.
population are changing as are the demographics of the labor
force. While overall population growth is slowing, growth in the
older adult demographic is speeding up, and those individuals
are also staying in the workforce longer.
That growing 55-and-older segment might be the solution to
many hiring dilemmas in the restaurant industry. Not only will
the sheer number of potential employees in this age range
be impressive, these seasoned workers often bring much to
the table. As noted by Claire Raines and her co-authors of
“Generations at Work,” baby boomers on the job typically are
service-oriented, driven, good team players, eager to please,
good at relationships and willing to go the extra mile.
5
Restaurant operators are ramping up training.
More than
half of restaurant operators plan to devote more resources to
employee training this year, especially quickservice operators.
The benefits are two-fold in that it can be a way to enhance
productivity in the operations as well as a retention tool to
develop the workforce internally.
While it’s true some employees might take the skills they
develop to other establishments or industries, your investment
in their education can promote confidence in their potential
and commitment to long-term employment. Taking time to
explore learning opportunities, such as the NRA’s ManageFirst
Program, can lead to better employee performance now and
fewer turnover issues in the future.
This content was provided for reprint to the Ohio Restaurant
Association (ORA) by ORA Strategic Partner CareerBuilder.
Plan Carefully When Considering These Five Workforce Trends
Monitor these patterns when examining your operational needs
