Restaurant labor shortage: Hiring challenges and solutions

Finding a good team of food service workers has always been a challenge, but if it’s feeling harder than ever, know that you’re not alone. The restaurant labor shortage has been felt industry-wide over the past few months. This struggle to find employees is partially due to the global pandemic, which has caused many to leave the industry for different careers.

The pandemic exposed weaknesses in how the industry handles its employees, and much of it comes down to their compensation packages. Let’s look at some of the issues in the foodservice industry and how restaurant owners can better retain and attract workers.

Health concerns coupled with lack of healthcare options

One key contributor to the restaurant labor shortage is the concern over health and safety. For starters, the kitchens are close quarters, and many cooks are working shoulder to shoulder, not to mention the front of the house is now working with patrons who are often not wearing masks. The increased risk of exposure to COVID-19 or any other illness is scary to many workers.

The nature of the restaurant cannot be changed, but there are steps employers can make to increase retention. Start by adding more safety measures, such as having servers wear masks, spreading tables apart, and increasing ventilation. In addition, offering affordable health benefits gives employees a sense of security (and appreciation). They now know if they get sick, they have access to affordable healthcare. Creating a total compensation package that includes health benefits will go a long way to attracting and retaining employees. A WillisTowersWatson survey shows that 78% of employees are more likely to stay with an employer because of the benefits program.

Work schedules that meet employee needs

With many schools in remote or hybrid modes, not to mention the inconsistent availability of childcare, workers with young children are in a bind. Women workers, in particular, feel this impact, with a staggering 2.3 million women leaving their jobs within the first ten months of the pandemic. 

How can foodservice employers help in this situation? Start with an open dialogue with employees, and potential hires, to get a better understanding of their scheduling challenges. You might find that some workers prefer evenings and weekends, while others would like more day shifts. Also, keep in mind, these preferences might change as time goes on, so keep the conversation going. 

Bottom line: offering flexible work hours in your total compensation package will go a long way to building employee loyalty and keeping your schedule full.

Care about your employees and their careers

 There are many other ways restaurant owners can show up for their employees. Offering sign-on and retention bonuses are good ways to show your appreciation. Work with your employees on a career path, so you can understand where they want to go within the industry, and they can see promotional opportunities that lie ahead. Give your employees goals and motivation to continue working at your restaurant. Employee compensation packages should include a career growth path, showing your employees that you are with them for the long run.

Are you feeling the pinch of the restaurant labor shortage? At Compensation Works, we have helped many foodservice companies create compensation packages that not only draw in new employees but help retain current workers. Contact us today to learn more and schedule a consultation.