INTRODUCTION
According to a recent Bureau of Labor Statistics report, 4.5 million Americans quit their jobs in November 2021 during the peak of what’s known as the Great Resignation. Close to 6.5% of those individuals worked in the accommodation and food services sector, and 4.6% were in retail.
While these numbers are starting to plateau, hotels, restaurants and retail shops have some of the highest quit rates in the country, leaving many of those businesses short-staffed and unable to meet consumer demand.
Experts often cite opportunities for better pay, flexible hours and entrepreneurship as reasons why people are quitting; however, there is another reason that’s not often discussed–overhiring and lack of hours.
CONSEQUENCES OF OVERHIRING
Even before the pandemic, hospitality and restaurant businesses were struggling to find quality candidates and often overhired to give themselves a cushion for staffing. However, COVID-19 took a precarious situation and made it worse. In fact, some businesses are overhiring by as much as 40% according to John Gulnac, vice president at Adecco USA Inc.
As a business owner or manager, this practice makes sense logistically. You need to cover shifts to make it through busy times, and having more people seemingly reduces the risk of being short-staffed due to external factors like illness, scheduling mishaps or no-shows.
On the other hand, overhiring can be frustrating for employees, as it ultimately means there are fewer hours to go around. It also can turn away quality employees, as they may feel underappreciated or deceived because they are not getting the hours they expected. This can give them a bad impression of your brand and its culture, which can damage your reputation and make it harder for you to staff in the future.
What’s more, your customers are likely to suffer, as constant turnover prevents your brand from offering the quality service you get when you have a seasoned staff.
HOW TO BALANCE STAFFING NEEDS WITH EMPLOYEE EXPECTATIONS
While there is no magic formula for hiring and retention, especially in these unprecedented times, there are some things you can do to balance your needs with the needs of your employees.
First, communicate with your current staff to see what they are able to take on. You may find that you are able to tap into your existing employee pool to fill vacant shifts or cross-train individuals to take on other roles. In addition, you may learn that you have part-time employees who would like to move into full-time positions, thus reducing your need to hire new staff.
Next, be as transparent as possible in your recruitment and onboarding efforts. Paint an honest picture of what new hires can expect and avoid making promises you can’t keep. If you don’t have full-time hours available, for instance, communicate that upfront and provide an accurate timeline of when they could become available.
Develop an incentive program to encourage employees to stay. Signing bonuses and high starting wages have been popular tactics for recruiting new employees, but they don’t guarantee longevity. Instead, try creating milestone-based incentives that encourage people to stay with your brand for the long haul. For example, offer quarterly raises, bonuses or perks to employees who meet certain standards.
Over time, these efforts should help you develop a qualified and motivated staff, which will help you reduce turnover and provide your customers with an optimal experience.