Staffing

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Controlling Labor Costs

The best time to control labor cost is in advance. The key to advance control lies in efficient scheduling, and efficient scheduling requires an understanding of the quantitative and qualitative aspects of each job category and the forecasted level of business activity. One cannot forecast without knowledge of what transpired in the past and the conditions, which impacted sales activity. Once labor cost has been incurred, it cannot be lowered or recovered. If you were overstaffed yesterday, you cannot recover the cost by under staffing tomorrow. Therefore, you must schedule only the amount of labor hours needed for the forecasted volume of business activity. "Pre-controlled" implies advanced planning compared with "after the fact" corrective action. Using a forecasting tool to plan your labor costs which is tied to a budget and proper documentation of business history, will aid dramatically in proper planning of labor needs.

Employee Evaluations
1.) Know the employee’s job description thoroughly.
2.) Always conduct the evaluation in private, with no interruptions.
3.) Don’t let one incident or trait, positive or negative, dominate the evaluation.
4.) Evaluations should be balanced between positive and negative attributes, never one sided.
5.) Review past evaluations but don’t dwell on them.
6.) Always back up your thoughts and appraisals with specific examples.
7.) Don’t cover too much material or expect the employee to make drastic changes overnight.
8.) Begin the evaluation with some positive points.
9.) Certain personality traits and deficiencies may not always be changeable.
10.) Finish the evaluation on a positive note.
11.) After the evaluation, make certain that you follow up on the thoughts, ideas, and recommendations that were brought out during the evaluation.
12.) Evaluations are confidential.

Tips For Reducing Turnover

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Make mangers accountable for retention

Often times, restaurant owners are concerned about financial results at the expense of employee turnover. What they fail to realize is that constant turnover is crippling their operation. High turnover leads to poor service and low employee moral. Do you want unhappy employees to service your customers?

Train managers to establish and develop retention skills instead of simply following policies and procedures

So often we see restaurant operators enforcing policies that encourage employee turnover.

Improve hiring and selection

By improving the selection process you increase your chances of finding the right employee for the job. This can dramatically reduce turnover.

Increase efforts to retain top talent

You have a lot of money and time invested in your top employees. Take the time to do all you can to retain them.

Re-energize and refocus retention programs

Good companies have great mangers. Good front-line managers improve employee retention. Managers must gain retention skills, which are distinct from general manager competencies. Managers must be retention monitors, trust builders, "empowers", and experts in demonstrating and promoting flexibility.

Make turnover reduction part of your organization's culture

Not just a short-term campaign.

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