The newsLINK Group - Training Millennials for the Restaurant Business
Editorial Library Category: Restaurants Topics: Training Millennials Title: Training Millennials for the Restaurant Business Author: newsLINK Staff Synopsis: When you hire someone, you want them to succeed. According to the National Restaurant Association (NRA), though, the average turnover rate for 2013 was 62.5 percent for restaurants and accommodations, compared with 41.5 percent for the private sector. Editorial: Training Millennials for the Restaurant Business 4064 South Highland Drive, Millcreek, Utah 84124 │ thenewslinkgroup.com │ (v) 801.676.9722 │ (tf) 855.747.4003 │ (f) 801.742.5803 Editorial Library | © The newsLINK Group LLC 1 When you hire someone, you want them to succeed. According to the National Restaurant Association (NRA), though, the average turnover rate for 2013 was 62.5 percent for restaurants and accommodations, compared with 41.5 percent for the private sector. In 2014, the NRA put the overall turnover rate at 66.3 percent. The turnover rate in the private sector for 2014 was 44.4 percent. Having a famous name is no protection; the turnover at Starbucks, for example, was found to be 65 percent in a case study conducted by Rossi Norman Dias. Some restaurants have it even worse, with a turnover rate that is as high as 150 to 400 percent. It’s to be expected that the turnover rate will be higher than the turnover rate in the private sector. Bruce Grindy of the NRA attributes this to higher percentages of students, teenagers, and part-time employees within the workforce, which automatically means higher turnover. That doesn’t mean you should be happy about it. High turnover is a problem for any restaurant because a high employee turnover rate is expensive: Productivity goes down because other employees have to do their own jobs plus the job of whoever left. The remaining employees often are overworked, making it more likely that they’ll look for a new job somewhere else. It’s hard to stay invested in a job where you are expected to do too much, and it’s also hard to maintain the same level of quality in the work you are expected to perform. Departing employees take their on-the-job experience with them. Experience is valuable in its own right, and sometimes it can’t be replaced once someone walks out the door for the last time. Finding new job candidates and interviewing them takes time that could have been spend doing something else … like helping your restaurant reach the next level of success. Just how expensive is job turnover? Although much of the cost is hidden and is hard to quantify from one restaurant to the next, some people have made the attempt to do just that. According to one blogger, the turnover cost per location each year is about $11,980. That calculation assumes a part-time employee working 20 hours each week and making $8 per hour. Others put the cost higher. When you look at the problem of a high turnover rate, it is important to realize that the people applying for jobs at your restaurant are probably going to be millennials. Do millennials make good employees? Yes. They have the potential to be great employees because they were raised to collaborate with other people, but that’s not the question you should be asking. The real question is whether you know how to train them. All people have a lot in common with each other, but each generation has its own specific cultural mindset that is a little different than the generations before and after. Unfortunately, that means methods and techniques that have worked well for other generations might not be effective with millennials. Eric Chester is a writer and speaker who has specialized in understanding millennials and teaching them the job skills they need. His clients are a who’s who of major corporations, including companies like Pizza Hut, 7 Eleven, and Ben & Jerry’s. Some of his other clients are companies like AT&T, Allstate, Blue Cross Blue Shield, Gold’s Gym, Harley Davidson Motor Company, Saks Fifth Avenue, and the U.S. Army. According to Eric Chester, a more accurate name for millennials would be Generation Why. Millennials are not a generation that understands unquestioning obedience. After all, millennials have had a voice in their lives since they were children. They’ve been encouraged to tell others their ideas and opinions and to ask questions. If they don’t like the answers you provide, there’s a good chance they simply won’t cooperate with you.
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