By Guy Pittman, Goliath Consulting Group Intern
Extensive employee training is a critical component to the success of any business. This is especially true in restaurant industry due to the fast-paced environment, being labor intensive and direct customer engagement. Unfortunately, managers are spending less time training employees properly and instead, leaving the new hire to figure it out themselves. The employee training is often limited by managers so they can meet labor budgets. In the long term, this has the opposite effect, driving up inefficiencies and leading to lower quality products and service impacting sales growth.
Statistics from the National Restaurant Association state annual employee turnover is 72.9 percent—making this the second consecutive year it has topped 70 percent. Lack of proper employee training is a major contributing factor to the restaurant industry’s staggeringly high turnover rates. I can attest to this personally. It was not long before I left my first college job at the local sandwich shop due to a lack of training. This sandwich shop decided that adequately training its employees was not worth the time or money. As a result, myself and the other employees were left uninformed regarding multiple restaurant policies, procedures, and standards. Within my first month of employment, four fellow employees resigned. This organization’s first and most significant mistake was their belief that proper employee training was not important enough to use company time and resources. Lack of training led to frustration, which in turn led to the preventable loss of four hardworking employees—not to mention the incredibly high replacement costs associated with losing four employees at once.
According to the Center for American Progress, hourly workers earning less than $50,000 annually—which covers three-quarters of all workers in the United States—show a typical cost of turnover of 20 percent of their salary. With proper training, these costs are partially absorbed by a proper training program and the rest fall to the bottom line. Proper training leads to higher employee satisfaction, fewer costly mistakes, lower turnover rates, and ultimately thousands of dollars saved. The results are more efficient and fluid restaurant operations and higher revenue. When employees are trained properly they become confident, competent, and content in their work environment.