Solutions for Labor Shortages

In a highly competitive job market with many positions left open, new thinking informs the hiring process. Enter the holistic H.R. approach that focuses on each individual.

TREND 6

Solutions for Labor Shortages

A PEOPLE-FIRST APPROACH TO HIRING HELPS FILL ROLES, BUILD TEAMS

What makes foodservice operators edgy these days? Food and gas prices gone crazy and the supply chain causing its own bit of disruptive chaos? Consumers still not entirely sure how restaurants fit into their lives as their dining behaviors continue to shift and change? No, no, and no again. Their biggest, most pressing concern is the labor market, specifically where to find potential hires, according to the National Restaurant Association. In a 2022 trends survey, nearly 75% of operators said they are experiencing a labor shortage, 22% of them describing it as significant. More than one-quarter admitted that 25% of positions are unfilled, a situation that can be improved with new approaches to hiring and a better understanding of what motivates team members.

Full-service restaurants are operating with 6.2 fewer kitchen employees.
_{^{Source: Bureau of Labor Statistics (2021)}}

WHOLE-PERSON HIRING

Holistic hiring may sound like New Age argle-bargle but it just may be a saving grace for an industry with an endless churn of workers and a nearly unprecedented number of open spots. Rather than viewing applicants and team members merely as head counts that fill job functions as has typically been the case, a holistic human relations approach emphasizes becoming their ally and looking at each person as an individual, so that communication, training, and interactions can be more closely aligned with their personality. It’s more work on the front end but experts say the payoff can be big with improved onboarding and integration, lower turnover, and higher degree of job satisfaction and success.

How to be an effective ally:

Listen closely to what team members and potential hires say; refraining from judgment, give them opportunity to express thoughts, feelings, and opinions
In exchanges, be fully present with all attention, eyes, and ears focused on them
Accept their language, especially as it relates to identity
Seek their input and feedback
Show genuine curiosity and interest in each person both as individuals and as part of a team
Ask questions so you can better understand them, their actions, and behaviors
Don’t default to the ‘that’s not how we do it here’ response
Provide comprehensive job descriptions for each position and ensure that, within reason, it is adhered to

Z FORCE

Gen Zs are set to play defining roles both as foodservice industry customers and as employees. According to the National Restaurant Association, they’re the key demographic for industry hires. A group who takes jobs and careers seriously, here’s a crash course in priorities and what they expect in the workplace.

Growth opportunities
Generous pay
The opportunity to make a positive impact
Job security
Benefits including healthcare, vacation, and sick days
Flexible work schedules
A manager who is honest and from whom they can learn and be mentored
Steady communication from supervisors and cohorts
Acceptance of diversity and a commitment to cultivating it
A company whose values align with theirs

^{Click here to read Gen Z and Other Disruptors}

90 days is the ‘magic’ length of time it takes new hires to connect with a company. If they last that long, chances of a long-term stay improve dramatically, according to human-resources specialists. “If you see someone hit the three-month mark, the reality is they’re going to be here for at least a year,” said Marissa Andrada, chief people officer at Chipotle Mexican Grill, Inc.

_{^{Source: Wall Street Journal (2022)}}

DIVERSIFIED FACTS

At 49%, almost half of foodservice and restaurant workers are from minority groups.

TOTAL U.S. LABOR FORCE

38% of all U.S. workers are from minority groups
25% are Hispanic
13% are Black/African American
7% are Asian
Each group is more strongly represented in foodservice than in the overall U.S. workforce

CHEFS AND COOKS

60% are minorities, the highest percentage in all occupation categories
Just one in five chefs and one in three cooks are female

MANAGER POSITIONS

40% are minorities
Almost 20% are Hispanic
10% are Black
9% are Asian

WAITSTAFF

58% are White
22% are Hispanic
8.7% are Black
Gender-wise, 70% of servers are female

BARTENDERS

At 73.5%, bartenders show similarly high representation of Whites
16.1% are Hispanic
4.3% are Black

_{^{Source: National Restaurant Association (2022)}}

RULES OF ATTRACTION

Getting job applicants used to be a fairly straightforward process of putting out the word and waiting for a lobby full of potential hires to show up. It has gotten scrappier and more competitive, the pool of available workers smaller. A game plan and a few smart strategies can help lessen the hiring crunch.

Employees have concerns about safe, healthy workplaces. Promote employee safety as a value and call out precautions that are in place—personal protection equipment, health monitoring, and, when applicable, paid sick time. Many companies have established protocols and processes for testing when COVID is suspected. Make sure these are communicated.

Incentives and perks sweeten nearly any deal and dovetail closely to holistic H.R. management, making employees feel they’re recognized and valued. Many restaurant chains and colleges have upped the game with beefier benefits packages that include signing and referral bonuses, health insurance, automatic raises, paid vacation, transportation costs, guaranteed hours, and even college tuition reimbursement.

Smaller businesses needn’t feel shut out amid all the bennies offered by corporations. Younger demographics value environments in which they can learn cross-functional skills, progress through the ranks, and have access to ongoing mentoring. Small companies can easily offer these programs.

$3.4 billion is spent annually by the fast-food segment for hiring and training new employees.
_{^{Source: Workstream (2021)}}

_{^{Sources: National Restaurant Association: Restaurants Continue to Struggle Filling Job Openings (2022); Business Insider/SquaredUp: Restaurants Still Can’t Find Enough Employees (2022); Robert Half: Gen Z Statistics (2022); National Restaurant Association: Restaurant Employee Demographics (2022).}}