Congratulations— You’re Hiring!
But Where Are The Workers?
For foodservice & hospitality operators, the pains of recruiting & hiring have been all too real— both before the pandemic took hold, and even more so so today. In the war for talent, the available labor pool has become drastically smaller, with a up to 3 Million workers no longer in the industry. Of those that remain, many are jaded about working in foodservice & hospitality in general, with contention surrounding compensation, lack of benefits, and toxic cultures. The teen labor force participation rate was stagnant entering 2020, and all signs point to a continuation in 2021 and beyond as they seek other avenues to generate money.
And competition for workers in this industry is not just from other foodservice and hospitality operators— it’s coming from Amazon, FedEx, Kroger, Target, Walmart, the Gig-Economy (Instacart, AirBnB, Amazon Flex, Wag!, Shipt, DoorDash, Uber/Lyft, Bird/Lime, SnapShyft 😉), the Creator-Economy (OnlyFans, YouTube, Fiverr, Upwork, Etsy, Twitch, GumRoad, SubStack, Clubhouse, Patreon), and the US Government (to a degree).
The True Cost Of Turnover And Being Understaffed
Pre-pandemic, the National Restaurant Associate estimated the average turnover for the total restaurant industry was between 60-70%, however remove staff positions at chain operators and managers where the turnover is far lower and the turnover rate balloons to over 100%!
Labor Costs are not just what an owner-operator spends to employ someone in the food & beverage and hospitality industry. It should include all costs associated with turnover such as job postings, interviews, hiring, training, and take into account the time spent by management on each task.
But it goes well beyond this, whether that be a restaurant or bar, hotel or banquet facility, catering operation, and so forth. To calculate the actual cost of turnover one must take into account the cost of being short-staffed— with $146,000 annually, per location on average in the US. This is a truly staggering sum for the average operator with razor thin margins to account for. Here is the cost breakdown (compliments of Cornell University Center for Hospitality Research), and this is PER EMPLOYEE:
‣ Pre-Departure— $176
‣ Recruiting— $1,173
‣ Selection— $645
‣ Orientation— $821
‣ Lost Productivity— $3,049
💰 Average Cost: $5,864/ per employee 💸
But no matter the foodservice or hospitality business-type or the myriad position(s) understaffed, the cycle that transpires has become an industry standard chain of events that goes something like this:
‣ Restaurant is short-staffed ⤵️
‣ Employee(s) working the shift pick up the slack ⤵️
‣ Employee(s) working the shift become fatigued ⤵️
‣ Restaurant is again short-staffed ⤵️
‣ Employee(s) working pick up the slack again (more fatigue) ⤵️
‣ Employee(s) are building up strong resentment towards management ⤵️
‣ Restaurant is once more short-staffed ⤵️
‣ Employee(s) working the shift are frustrated, easily agitated, and fully resentful of the situation and so… burnout strikes, and turnover occurs ⤵️
‣ Cycle is quickly repeated, because turnover is causing strains on the remaining employees, driving further resentment and further employee burnout, front to back of house 🔄
The consequences continue to stack up with your valued patrons being on the receiving end of poor service. Table turn-times have decreased, so revenue per table per hour takes a hit. It basically takes longer to do everything, from being seated to drinks to food, to getting the check, et al, and ultimately the patron’s experience is reduced to something well below their expectations leading to personal frustration and most likely poor Yelp reviews. (sigh)
Because 97% of US Consumers state the “perceived customer experience” as the deciding factor in whether they spend their hard earned dollars at a particular business, and with nearly limitless choices most will likely never patronize your business again, at least not by choice. One-third of your revenue is tied to repeat clientele, so a drop in customer transactions leads to more turnover, and further reduces your talent pool.
The business is saturated. If you get growth, it can only come from an existing provider. You will have to work harder than ever to get customers in your door and any success could be fleeting — Jonathan Maze, Executive Editor, Restaurant Business
From Shift-to-Shift To Permanent Employee
Our solution— rather than relying on referrals, Facebook posts, job applications, resumes, scheduling interviews with applicants and hoping they show up, let alone showing up for Day One on the job— we encourage SnapShyft Business Users to utilize the power of the platform as a “test drive recruiting solution”. In other words, SnapShyft offers a real-world chance for operators to see firsthand how a given worker performs on the job, and functions within your venue & with your existing staff. Proof is in the pudding as they say, and a SnapShyft “test-drive” is a proven way for restaurants, bars, hotels, catering & event operations, food trucks, ghost kitchens, USDA/FDA facilities, and other foodservice businesses to find ideal fits and get them on the payroll— by first bringing them in on a shift-to-shift basis.
The short of it— As you get workers in the door AND working your open shifts you can identify the SnapShyft workers you might wish to hire as employees. The SnapShyft Connect Team will then work with you to establish mutual interest, and help facilitate an employer-employee union. As with any successful talent acquisition strategy there are some costs associated, however we have structured our fees to ensure we achieve the following goals for both workers and businesses on the platform:
⭐️ Protect the integrity of the SnapShyft Labor Marketplace ✔︎
⭐️ Inject accountability into the hiring & retention process ✔︎
⭐️ Improve employee turnover ✔︎
View Business Pricing Tiers
To learn more about how to leverage our labor marketplace to go from shift-to-shift fulfillment to hiring employees, take 60 seconds and watch or listen to the video below for a 3-stage walkthrough of how to put the power of SnapShyft to work for your direct hire needs.