Thursday, August 5, 2010

Untrained Employees Are Killing Your Restaurant

The Training Problem

In a Spherion study of more than 20,000 employees, 35% said they’d leave if there were no provisions for mentorship. In that same group, 41% said they’d quit within 12 months because of inadequate training. Today in the restaurant industry, employee turnover has become an exceedingly large problem. The industry is one of the largest employers in the United States. The food service work force is predominately young without secondary training or education. In an article by Michael Farr and Laurence Shatkin in JIST Publishing they estimate over 805,360 people are currently in the food service workforce. Of those individuals, 59% are under the age of 30 and another 66% holding only a high school diploma or less. Many individuals work seasonally, or see it as a temporary means of employment. This lack of training and formal job skills puts the burden on the employer to effectively train these individuals.

Validation

The training problem is exacerbated by the fact that during a recession many companies unwisely cut their training budgets, unwilling to recognize the hidden costs of employee training. Training “on the job” can be up to 150% of an individual’s annual salary according to Laura Harris, author of “Surrender to Win –Regain Sanity.” With the high turnover rate in the restaurant industry, this is a number that could put a company out of business. There are also opportunity costs, recruitment costs, selection costs, and payroll expenses, all associated with bringing on additional staff.

Putting effective training in your arsenal Training is especially essential during a recession. According to Utah CEO Magazine, the right approach is to maintain or accelerate training efforts to improve employee retention is the right recessional tactic. Many would assume that implementing a training program means higher costs, but in many cases if done effectively, a training program can increase productivity, decrease liability, and improve employee morale.

What does the solution look like?

Training creates knowledgeable employees who are more efficient and understand the mission, vision, and values of the company. In addition employees who receive training feel their employer is invested in their career and performance and therefore will be more motivated to perform. Training your employees thoroughly can also alleviate stress which will in turn improve your retention rate and return on investment.

1. Update your training

As the industry is constantly changing and reinventing itself, training regularly is not only beneficial to employees but to your business as well. If you’re not consistently reinventing yourself you run the risk of becoming obscure or losing out to your competition. While most restaurants use old fashioned techniques such as training manuals and/or shadowing other members of the staff, many restaurants are now finding benefit in using online training platforms to educate their workforce. These systems can often save you money in the costs of printing and developing training materials alone and are easily updated.

2. Invest in an official training program.

Make your training program part of your core business and part of your company’s set calendar. You don’t need an instructional designer to build training courses, you just need the time to sit down and put your company’s best practices and policies together.

An affordable option is to invest in a low cost online training system. Online training allows individuals to do training on their own time, and at their own pace. Many systems include test and certification components so you can easily track and certify the completion of training. Videos and handbooks can’t positively guarantee an individual has actually had a knowledge transfer take place, and traditional training can take anywhere from 2-3 weeks or more.

Organized training programs also allow you to cross train your staff easier creating a more “flexible” organization. For example, being able to work multiple production statements or pieces of equipment can be invaluable in a staffing crisis or during times of high demand.

3. Document your intellectual property in your training program

Have you ever had an employee who was the only person who knew how to run the cash register or billing system? Does your organization have a particular way of doing things that separate you from the competition? Is this information documented anywhere? The perfect place for this information is in your training program, not walking out the door with your employees as they leave you for greener pastures.

4. Validate Your Training

Don’t just make your employees watch a video or read a paper, but utilize exams and student tracking tools to make sure they retain the information. A pre-test assessment of their knowledge compared to a post training exam is an effective way to judge the effectiveness of your training program.

In Summary

A well-trained employee is more likely to become fulfilled in their position, be more productive, and stay with the restaurant long term. Long term, well trained employees are your company’s best asset. Protect them with the insurance of a great training program and you will recognize the return on investment.