Workplace culture

July 14, 2023by David Klemt David Klemt No Comments

Hospitality Mindset: Hotel Edition

Hospitality Mindset: Hotel Edition

by Jennifer Radkey

Mindset can dictate one’s level of happiness but what some people don’t realize is that it also impacts their business and everyone in it.

Moods like happiness or hostility. Growth or fixed worldviews. Positivity versus negativity. For operators and leadership team members, mindset doesn’t exist in a vacuum. Rather, one’s attitude affects and influences staff, guests, and others.

So what is mindset exactly?

Simply stated, mindset is an individual’s usual attitude or mental state. It reflects someone’s way of thinking and motivates their actions. So, why is it important to be aware of your mindset?

Well, if your mindset dictates how you show up in your life each and every day, it will influence all parts of your life.

Your thoughts about yourself, others, your business, your opportunities and your challenges… All influenced by your mindset. Your mindset can either hinder or promote your overall well-being and success in life.

The interesting thing about mindset is that it has the ability to change—if you want. It can also be influenced by your environment and those around you. These facts led me to question if the different sectors of the hospitality industry face unique mindset challenges.

To find answers and gain further insight I decided to turn to our team at KRG Hospitality for their thoughts. In turn, I’ve written a series of hospitality mindset articles. To read the first entry in this series, the Bar Edition, please click here.

In this article I’ll explore the hotel industry, with thoughts from hospitality consultant Kim Richardson. Follow the series as I explore mindset in restaurants, hotels, bars, and start-up operations.

Let’s dive in!

The Hotel Industry

The hotel industry is vast and can be segmented into different sectors. These sectors include: lodging and accommodation, food and beverage, travel and tourism, entertainment and recreation, and timeshare and meetings.

Not only is the industry vast in its sectors, there are an array of categories. There are motels, inns and resorts, and independent, boutique and global brands. Budget, midscale, and luxury properties, and everything in between.

Different types of hotels will vary slightly in their management styles and success challenges, but most will share common mindset themes.

Successful Operators

Operating a successful hotel takes a certain mindset. You need to be organized, open-minded to growth strategies, mindful of your sectors and how they interact with each other, and responsive to the needs of your teams.

Curious about what makes one hotel stand above another, I asked Kim what contributes to a successful operator. She responded with the perspective of a general manager of a large hotel, and then from the perspective of an owner of a small boutique hotel.

“One thing that really sets the hotel world aside from the rest of the hospitality industry is the multiple facets of the different departments,” says Kim. “You’re essentially running several businesses inside of one business. All of these different departments’ successes and failures impact the other departments. I think it’s important for operators and general managers to truly have a pulse on what’s going on throughout the building and, more importantly, when a department has a success or failure, how the other departments contributed to that.”

When it comes to smaller boutique hotels or inns, Kim believes that “the ability to wear many hats and jump in as needed” is a crucial success skill for owners as they often work with a much smaller team and may need to be more hands on. Hand in hand with the ability to multi-task and wear many hats is having excellent time management skills.

Whether you are the GM of a large hotel or an owner of a small boutique hotel, it is essential to constantly “have a pulse on the business coming in the door.”

Operator Challenges

Operators need a positive, strategic, growth mindset to be successful in the hotel industry. This is a mindset that needs to be consistently cultivated, as there are challenges that will affect your daily thoughts, beliefs, and attitudes.

When asked what specific challenges hotel operators face that may affect their mindset, Kim shared her thoughts, again from the perspectives of a large hotel GM and that of a smaller boutique hotel owner.

Accountability

Being responsible for and held accountable to all levels of positions in your establishment can be exhausting, stressful, and frustrating.

“A general manager of a hotel has a lot of people to answer to. They have people above them in corporate making demands of them on a daily basis (budgets, goals, etc.). They have staff that they employ and need to keep happy. They have guests they need to keep happy,” Kim says. “With this many responsibilities, time management alone can be stressful. Finding a happy medium is close to impossible. Not every decision you make is going to please all three parties. This position can suffer from burnout just as much as the rest of their team.”

Overwhelm

Operators of boutique hotels and inns fall into danger of taking on too much themselves while feeling the success of their venue lies entirely on their shoulders.

Burnout, fear, and exhaustion are all possibilities in this situation.

“In a small boutique hotel, the owner and operator wears many hats,” says Kim. “They are often having to jump in and run many departments. If you’re short staffed in one area, you’re going to have to jump in. This can create a situation where you’re spending so much time working in the business that you struggle to work on growing the business. The overall stress of the success of the business is much more when you own your own hotel. Competing against big hotels with larger marketing budgets and known names can be a challenge.”

Employee Challenges

Your team also experiences their own unique set of challenges that can affect their well-being and mindset.

Being aware of these challenges is important if you hope to create a culture of respect, collaboration, and trust.

When asked what specific challenges hotel staff face, Kim had some insights.

On Demand

It’s no secret that the hotels operate in a 24-hour industry. No matter what time of day or night, a hotel never truly “sleeps.” This on-demand atmosphere can be stressful for your team.

“Since the building is open 24 hours, guests tend to think you are also available 24 hours,” Kim says. “There is always the possibility that you could get a call at any time when you’re not working. Not only does the guest perceive you as always available, some managers expect the same from you, too.”

Broken Telephone

Working in a 24-hour environment means that you may not always be working with the same people every shift. In establishments with several departments, you may never have direct interaction with a lot of your team.

This can all lead toward miscommunication, frustration, and blame.

“Communication can fall short,” explains Kim. “There can be people who work in other departments that you are never in the building with at the same time. There are typically many procedures in place to communicate between departments, but things still get missed.”

Harmful Beliefs in the Hotel Industry

How you feel about the people you work with and/or work for can have major impacts on your overall mindset.

If your daily thoughts regarding your team are negative, it suddenly becomes very challenging to create a successful hotel. Why would they be excited to come to work and proud of your hotel if their efforts are only ever met with negativity?

The hotel industry has a few specific, common harmful beliefs that are prevalent in many establishments. Being aware and knowing how to acknowledge and combat these beliefs is crucial to creating a more positive work environment.

Assumptions

When I asked Kim what one of the most prevalent harmful beliefs operators harbor about their teams, she discussed the assumptions that are often made.

“I think proprietors sometimes think that what they’re asking is easy and doable,” posits Kim. “When a business is not doing well they tend to look at the quality of their staff versus quality of the processes.”

Assumptions without clarity or reason can be extremely harmful to your workplace culture. Not only are operators holding assumptions about their team, but their team holds assumptions about leadership.

Staff often feel that operators and members of the leadership team are out of touch with the reality of their market, and that they place unrealistic expectations on them. There are assumptions made that leadership does not want them to succeed personally.

“Revenue goals are increased just because they want more money but haven’t put thought into whether or not it’s attainable to make the money,” says Kim. “Operators don’t want to see people get bonuses, so in turn they raise goals. Doing well one year will only hurt you in the next year because all goals will be raised. Staff feel overworked and underpaid, leading them to believe that ownership is cheap and always giving a two-person job to one person.”

Toxic Culture

The last thing that any hospitality business needs is a toxic culture. A toxic workplace culture encourages and breeds negative mindsets on all levels.

How can you be successful if your team dreads coming in for their daily shift?

I asked Kim what can create toxic culture in a hotel, and she shared her thoughts and experiences.

“One of the biggest challenges that I always felt in hotels is the divide amongst departments. It’s very similar to the front-of-house, back-of-house animosity that often exists in restaurants,” shares Kim. “One department always feels that another department was not mindful of how their decisions impact their department. What I came to realize is sometimes that’s true and sometimes it’s not. There’s always going to be that person who decided to make the decision that was best for their day or made them look good in accomplishing their own job.”

“However, I don’t think that is the intention of most people,” continues Kim. “With so many different types of roles in a hotel, you will never understand all of the inner workings of another department. Each department has to make the decision that best accomplishes their goal for the guest and their department. When the communication breaks down between departments and there is no understanding of how they impact each other, animosity is created.”

Moving Forward

Understanding the challenges that operators and staff are currently facing and acknowledging the importance of a growth mindset and the need for change, what positive changes have been occurring in the industry as a whole?

“Some hotels have increased wages. Some have been more open to hybrid positions of remote and on-property work since the pandemic,” Kim says. “However, there are some that are now trying to do away with those. Also, there are only a few departments in the hotel that can benefit from this as many of them need to be on property to do their jobs.”

“Overall, I haven’t seen a ton of change. There are still so many people struggling with work-life balance in the hospitality industry,” Kim continues. “I just talked to a friend the other day who has told me for years that she’s a lifer in hotels and she’s never going anywhere. She is the last person I thought I’d hear this from, but she’s feeling burnout and is not sure how much longer she can last. This is someone who is excellent at their job. Really understands the business, is a hard worker, team player, willing to go the extra mile. How many people do we find like that, that we are throwing away by putting unachievable standards on?”

Room for Improvement

Although some operators are becoming more aware of the well-being of those working in this industry, there are still many changes that need to happen. Kim believes that there are three simple changes that need to happen.

“We need to stop losing people that want to be lifers over things like burnout and lack of work-life balance. Genuine gratitude and respect from superiors goes a long way. Better communication and accountability are a must,” says Kim.

Final Thoughts

Hotels are a complex entity with many moving parts. It takes a strategic and positive mindset to ensure success and a happy work environment.

The reality is that there will always be challenges that will affect your thoughts and behaviors. You will have bad days but that is all they are: bad days.

It is the leader who can recognize these setbacks as temporary and use them to fuel their mindset towards making positive change who will come out on top.

I’ll leave you with a few last words of wisdom from KRG Hospitality hotel and restaurant consultant Kim Richardson.

“When guests come to stay at a hotel, it is their home for the duration they are there. They are there much longer than grabbing a cup of coffee or a night out to dinner. They can feel the demeanor of the staff,” says Kim. “Positive work environments exude happiness for the guests. When the employees are unhappy, the guests leave unhappy. Mindset can be contagious, and while the internal feelings trickle down to the guests, it starts way before that. If a positive energy is being given off from the leaders in the building, it can have a great impact on the staff, which then impacts the guests.

Cheers to personal and professional well-being!

Image: Marten Bjork on Unsplash

April 18, 2023by David Klemt David Klemt No Comments

Sticking to Your Standards

The Importance of Sticking to Your Standards

by David Klemt

One crucial task for all restaurant, bar, nightclub, and hotel operators is to set the acceptable standards and commit to maintaining them.

Hospitality operations are subject to an interesting paradox. We’re all told to prepare for things to go sideways during any given shift. We’re also told that adhering to our standards of service will help us weather a storm of challenges. Oftentimes, however, the first thing to slip at the first sign of trouble is: our standards.

When a client signs on with KRG Hospitality, they are given the task of identifying their core values. There’s an exercise for this key development step; it’s part of our standards.

Your core values inform your standards (and so much more): leadership team standards; front- and back-of-house team member standards; and standards of service. Additionally, you should spell out these standards during the onboarding process, utilizing an employee manual—which new hires must sign and date—and practical training.

It’s absolutely crucial that you and your team commit to your standards fully. They’re inviolable, what both KRG president Doug Radkey and Chef Brian Duffy call your “non-negotiables” during speaking engagements and when working with clients.

Are people going to make mistakes, including you? Yes. On occasion, a standard is going to slip. The key is understanding that maintaining standards helps reduce these occasions; panicking and allowing them to slip just drops us deeper into quicksand.

Someone on the team is going to miss a service step. Something will occur during a shift that’s not up to standards. What’s important in those moments is the ability for the team to recognize the slip quickly and correct course immediately.

Setting Standards

There are different ways for operators to select their standards. The example I provide at the top of this article is one approach KRG implements.

Michael Tipps, co-founder of Invictus Hospitality and friend of KRG Hospitality, has an intriguing approach of his own. He shared this during the 2023 Bar & Restaurant Expo in Las Vegas.

“Standards separate operators and their teams,” says Tipps. While he doesn’t encourage operators to look at every other operator in their market as competition, he does advocate for differentiation.

Tipps shared a three-step approach to standards. (Step two, by the way, is the one I find intriguing.)

Create your standards. Again, there are different approaches.
Pick your committee. I’m going to explain this further.
Set standards against the grandest vision of your venue.

So, what does it mean to “pick your committee”? Well, it means surrounding yourself with people you respect…real or imagined. As Tipps explained during BRE, he has people in his life that he considers his committee. The real-life members of this committee are a sounding board for any number of ideas, questions, challenges, and even mistakes.

And yes, his committee also includes “imaginary” members, such as Michael Jordan and Phil Jackson. These are people that he doesn’t know personally but are known to have incredibly high standards. They’re high achievers and, of course, many have biographies and we can know their standards. Tipps has “asked” these committee members, “How should I handle X?”

This creative approach isn’t for everyone but every operator should at least give it a shot. When we step that far out of our comfort zones the results can be incredible.

The Cheat Code

On the specific topic of service standards, Tipps has a cheat code for operators: hotels. “The hotel mindset is a hospitality cheat code,” says Tipps.

How so? It’s quite enlightening.

Think about your restaurant. Now, think about it as the first-floor cornerstone of an upscale hotel. Imagine that there are 250 incredible boutique hotel rooms above your restaurant. These rooms command rates of several hundred dollars per night. Now think about how you would treat each guest in these expensive rooms if they ask for a straw.

“Make the effort to care like nobody else can,” says Tipps.

Always bear in mind that hospitality is how you make people feel. Your mission should be for each and every guest to feel relevant.

Generally speaking, most people don’t want to be alone. They’re not just coming to your restaurant because they’re hungry, to your bar because they’re thirsty. In reality, as Tipps would tell you, they’re coming to be around other people. They’re using your F&B as a reason to be around other people and feel relevant.

Your mission is to ensure people feel relevant when they spend time at your venue with your team. The package you send to accomplish this mission is your standards of service.

“Self-inflicted mediocrity is the result of laziness and lack of accountability,” Tipps says.

Hold everyone accountable for enforcing your standards—including yourself—and you’ll level up in every facet.

Image: Owen Michael Grech on Unsplash

March 24, 2023by David Klemt David Klemt No Comments

Addressing Employee Theft

Addressing Employee Theft

by David Klemt

Recent posts about employee theft in the hospitality industry throughout Canada and the US have the KRG Hospitality team talking.

Indeed, the statistics are startling. For instance, there’s the claim that a staggering 75 percent of employees admit to stealing from their employers “at least once.”

A few years back, the Retail Council of Canada reported that while “customers” stole $175 on average, employees stole $2,500 before being caught.

Then there’s the incredible economic impact. Multiple sources claim employee theft in the US costs businesses $50 billion annually. In Canada, theft costs businesses more than $1 billion per year. Both numbers are shocking.

Looking at US restaurants specifically, the number ranges from $3 billion to $6 billion in losses due to employee theft. According to Business.com, employee theft affects four percent of a restaurant’s sales and accounts for 75 percent of shortages in inventory.

At this point, you’re probably Googling security cameras. But hold on for a moment.

Disclaimer

Before proceeding, know this: I’m going to make a few points that will seem like victim blaming. In part, this perception will be the result of my addressing recruiting, hiring, onboarding, training, the leadership team, and workplace culture.

Let me be clear: I’m not excusing employee theft. I don’t think there’s any justification for it.

Despite what a (hopefully) small number of loud voices claim on various social media platforms and forums, I don’t think it’s acceptable to steal from a corporation or business owner. No, theft isn’t a justifiable response to feeling slighted by ownership or leadership. And no, it’s not “okay” because a company generates “so much” revenue, has insurance, and can “write it off.”

With that out of the way, let’s proceed.

People are Going to Steal

Here’s one immutable fact: You’re going to hire someone who’s going to steal from your business.

Is your business up and running and serving guests? You employ someone right now who has either stolen from you already or is going to steal.

So, you can run your business under a cloud of suspicion and distrust. Or, you can improve your odds of reducing theft and ferreting out thieves before they do too much damage.

Again, you can install security cameras and place them above each POS terminal and every cash drawer. You can ensure you have clear, cutting-edge CCTV coverage of the entire bar and dining areas. Walk-ins and storage areas can have clear, high-resolution camera coverage.

Honestly, you should have that type of coverage. That type of security can improve employee and guest safety, and your insurance carrier will likely be happy about it.

But you don’t need to impose an atmosphere of suspicion, fear, and intimidation along with the cameras. If you were an employee, would you want to work somewhere that makes it clear you’re always under suspicion? Would you want to work alongside a leadership team whose default setting is that all employees are thieves unworthy of trust?

You’re never going to have a theft-free business, period. That’s another reason to not “lead” with fear, anger, and suspicion.

Truly, all that style of leadership will do is drive good, honest employees out. So, the approach should be attracting honest workers. You build a strong, trustworthy team through respect and empowerment.

Yes, there will be employees who take advantage of that respect. They were going to behave that way and steal or otherwise disrespect you, your business, and the team regardless.

Putting in the work to reflect on your leadership style and that of your leadership team pays dividends. It aids in recruitment and fosters an atmosphere of respect and honesty.

Become known for a healthy, positive workplace and you’ll attract the best workers. Nurture that culture and the team will police itself; they won’t tolerate anyone harming the business.

Am I suggesting you view your business through rose-colored lenses? Absolutely not. Install security cameras. Maintain the right insurance coverage. Conduct regular inventory checks. Review comps and voids for irregularities. Limit access to cash. Outline what constitutes theft—including time theft—and make consequences clear.

And here’s a crucial item: Prove you respect and care about your workers. Not say it, prove it.

You don’t need to know their life stories and everything going on in their lives. But you can let it be known that if they’re struggling with something, you and your leadership team are there to listen and help how they’re able.

Nothing you do will eradicate employee theft completely. You can, however, reduce it and learn to quickly stamp it out. And you can do that while maintaining a happy, healthy workplace.

Image: Tobias Tullius on Unsplash

September 20, 2022by David Klemt David Klemt No Comments

Addressing Substance Abuse in the Industry

Restaurant Business Articles Address Substance Abuse

by David Klemt

Two revealing Restaurant Business articles paint a startling picture of the industry’s struggles with drug and alcohol abuse.

Unfortunately, the subject of substance abuse in restaurants and bars isn’t new. This has long been a pervasive, prevalent issue in the hospitality industry.

There are, as Restaurant Business authors point out, several reasons our industry continues to grapple with substance abuse.

Since we’re nearing Sober October, this topic’s importance seems particularly poignant. Of course, the health of hospitality industry professionals should always be a paramount operator concern every day. It shouldn’t take a specific month for us to address this issue, just to forget about it after 31 days of consideration.

Hospitality workers should feel supported by the business owners and operators for whom they work. Additionally, they should feel safe among the leadership team and their fellow team members. In part, this feeling of security and safety should manifest in being comfortable speaking about substance abuse in the workplace.

A significant element of creating a supportive, safe, and healthy culture is removing the stigma of struggling with substance abuse that persists today. How can operators, leadership, and team members help one another if they make peers feel shame for struggling with drugs or alcohol?

A crucial step toward addressing the issue of substance abuse is fostering a culture of respect, support, and safety. If anyone in any role—from ownership and leadership to front of house and back of house—feels as though they can’t speak with someone safely about their struggles, we can’t address this topic effectively. And if we can’t address it in a meaningful way, we can never effect real change that can improve and save lives.

Pervasive Struggles

A Restaurant Business article from last week addresses substance abuse and culture. “How Restaurants Feed a Culture of Substance Abuse” reveals disturbing statistics.

At the start of their article, editors Peter Romeo, Heather Lalley and Joe Guszkowski share a horrific story. In February of this year, Colorado law enforcement found six adults and a toddler in an apartment. The six adults had all overdosed on fentanyl-laced cocaine; five had died. All six adults worked in chain or independent restaurants.

Four years ago, Delaware officials investigated the state’s opioid crisis. They found 10 percent of Delaware residents who died due to opioid overdoses were foodservice workers. According to Restaurant Business, state officials concluded that foodservice experienced a higher rate of opioid deaths than any other industry.

Among the most-shocking revelations in the Restaurant Business article pertains to the US workforce as a whole. Frustratingly, the US government hasn’t researched illicit drug use in the workforce since 2015. So, for all we know, the numbers I’m about to share have either increased or decreased.

In a typical month in 2015, 8.6 percent of the US workforce was using illicit drugs. However, that number pales in comparison to the rate of illicit drug use among restaurant and hotel workers: 19.1 percent.

Examining Substance Use Disease (SUD), a term encompassing drug and alcohol abuse, the numbers expose the weight of our industry’s struggle. In 2015, 9.5 percent of the US workforce suffered from SUD. For restaurants and hotels? That number was nearly double: 16.9 percent, higher than any other industry.

Fentanyl Deaths

Restaurant Business Editor-in-Chief Jonathan Maze reveals how “restaurants are ground zero” for fentanyl overdoses.

Fentanyl is cheap to produce and transport. It doesn’t take much to be deadly. And most people who have the misfortune of consuming it do so unwittingly. As it turns out, drug dealers lace all manner of other drugs with it because it’s so powerful. So, cutting drugs with fentanyl is more “cost effective” for drug dealers.

This particular excerpt from Maze’s “As Fentanyl Deaths Soar, Restaurants Are Ground Zero” is startling: “Throughout the country, restaurants and bars are such common places for overdose deaths among customers that advocates are training bartenders and servers to administer Narcan, a medication used to treat opioid overdoses. They are also becoming sources for fentanyl test strips so customers can see if the drugs they’re taking are laced with the powerful drug.”

Further, this troubling excerpt: “The fentanyl epidemic is particularly troublesome in the restaurant industry given the generally high rate of drug use among workers. Restaurant work is notoriously intense. The hours are long and late, and employees are on their feet all day. They often get hurt on the job and can turn to painkillers, legal or otherwise.”

When I say that we need to address substance abuse in our industry to save lives, I’m not employing hyperbole. I mean it quite literally.

Please take the time to read these two Restaurant Business articles in their entirety. We need to take action today.

Image: cottonbro via Pexels

September 5, 2022by David Klemt David Klemt No Comments

5 Books to Read this Month: September 2022

5 Books to Read this Month: September 2022

by David Klemt

This month’s engaging and informative book selections will help you develop next-level leadership skills and dial in your drink menu.

To review August’s book recommendations, click here.

Let’s jump in!

Your Restaurant Culture Sucks!: Stop surviving. Start thriving. Escape mediocrity

Donald Burns, the Restaurant Coach and friend of KRG Hospitality, completes his Your Restaurant Sucks! trilogy. For the third book in the self-improvement and hospitality industry leadership series, Burns tackles culture.

In Your Restaurant Culture Sucks!, Burns helps owners, operators, and leadership team members understand the importance of workplace and company culture. Instead of complaining that “nobody wants to work anymore,” look inside and find out why perhaps nobody wants to work for you. That kind of honesty helps implement real change, change that sets you apart and improves recruitment, hiring, and retention.

“All restaurants can buy from the same vendors and hire from the same labor pool. What separates the good, from the great to the outstanding is culture!”

Subtract

Sometimes changing our outlook and improving our leadership skills is about streamlining.

“We pile on ‘to-dos’ but don’t consider ‘stop-doings.’ We create incentives for good behavior, but don’t get rid of obstacles to it. We collect new-and-improved ideas, but don’t prune the outdated ones. Every day, across challenges big and small, we neglect a basic way to make things better: we don’t subtract.”

With Subtract, Leidy Klotz explains how changing how we approach solutions can be life changing. Maybe we need to stop adding and start subtracting to improve our strategies.

Cure: New Orleans Drinks and How to Mix ’Em from the Award-Winning Bar

If you travel to New Orleans and you’re in this industry, you probably make sure to include Cure on your itinerary. For more than a decade this 2018 James Beard Award winner (Outstanding Bar Program) has been integral to the city’s craft cocktail scene.

Whether you’re after a deceptively simple beer and shot or a cocktail made with a rare, allocated bourbon, Cure is there to elevate your French Quarter visit. And soon you’ll be able to bring Cure home with you, and to your restaurant or bar as well. Available now for preorder, Cure includes 100 cocktail recipes that tell the tale of NOLA from past, present, and future.

Craft Beer Design: The Design, Illustration and Branding of Contemporary Breweries

Anyone who pauses to consider beer can design knows that it’s becoming nearly as important as the liquid. With thousands of breweries all over the US alone, how does a brewer stand out? How does a small, independent craft brewer grab a potential new customer’s attention in a sea of options? In part, through their can designs. Of course the beer itself is crucial and the most important element. However, a consumer has to be motivated to try a beer before they learn how good it tastes.

Craft Beer Design dives deep into craft beer design, featuring real-world examples and interviews with the designers themselves.

Think Again: The Power of Knowing What You Don’t Know

Curiosity keeps us learning. The pursuit of knowledge keeps us sharp. Learning helps us improve ourselves, our leadership, and our operations. The belief that we’ve learned all there is to know, however, prevents us from learning to our own detriment.

Much like Subtract teaches us how to remove rather than add, Think Again proposes a new approach: unlearning and rethinking. Why do we get defensive when we’re wrong? Why are we so afraid of challenges to long-held beliefs? Admitting when we’re wrong and seeking facts is a strength, not a weakness.

Image: Mikołaj on Unsplash

April 15, 2022by David Klemt David Klemt No Comments

The Uber Effect: Recruit and Retain

The Uber Effect: Recruit and Retain

by David Klemt

To better understand how to recruit and retain top talent these days we can simply look at what’s known as the Uber Effect.

We just got back from the Restaurant Leadership Conference in Scottsdale, Arizona. The education was top-notch, featuring a wide range of restaurant industry experts.

One outstanding session illustrates the need for operators—chain and independent—to change their approach to recruiting and retaining staff.

Flexibility in the Workplace

According to Jennifer Grimes, senior vice president of client services for Service Management Group, people in the labor pool are after three things when seeking employment.

Generally speaking, they want better pay, better benefits, and better scheduling. Gone are the days of people focusing only on their paychecks.

And per Jim Thompson, chief operating officer of Chicken Salad Chick, the Uber Effect is largely responsible for this shift in focus. The Uber Effect refers to people realizing they can be much more in control of their careers.

In simplest terms, Uber drivers are in control of their workdays. They can work as often as they want, whatever hours they want, and wear what they want while working.

Of course, it’s not complete anarchy. There are rules, there are expectations, there are standards. However, there’s also flexibility.

Along with more flexibility in scheduling, people want the following:

workload balance;
ability to trade shifts;
better communication; and
paid vacations.

Today’s modern scheduling platforms make it simple for operators and their leadership teams to meet these expectations. With these apps, operators and leadership can:

assign specific roles to individual team members;
communicate clearly with staff;
allow staff to trade, drop, and pick up shifts; and
fill available shifts.

One Size Doesn’t Fit All

Thompson has an interesting anecdote about availability.

A Chicken Salad Chick manager conducting interviews didn’t proceed with a candidate. Asked by Thompson why they wouldn’t be moving forward, the manager pointed to the candidate’s availability.

During the interview, the candidate provided only a single day and the manager felt that wasn’t enough. However, Thompson disagreed with the manager’s assessment.

What if, Thompson posited Thompson, their availability filled a currently open shift? At least there would be one less shift for leadership to worry about.

But it went deeper than just that point. Good operators and leaders know that job interviews aren’t one-way streets. Candidates are also interviewing their potential employer.

What if this candidate provided limited availability because they’re unsure about a particular employer? They may not know the brand all that well, they likely don’t know the leadership team, and they don’t yet understand the workplace’s culture.

As Thompson says, “One size fits all is over.” Operators and their leadership teams need to be flexible.

It’s highly possible that just a few shifts in, if the narrow-availability team member is a good fit and finds the job engaging, they’ll broaden they’re availability.

Developing the Culture

Of course, the above scenario comes down to culture. And Thompson has an interesting thought on that operational element.

If an operator isn’t constantly developing their culture, it will grow stagnant. Maintaining the current culture isn’t good enough.

Failing to do so will ultimately lead to a decline in guest satisfaction. When that happens, a decline in traffic comes along with it.

It’s really rather simple: How an operator and the leadership team treats employees trickles down to guests. Unhappy and unsatisfied staff provide poor service. How long are guests going to tolerate negative guest experiences?

And no, simply offering competitive compensation doesn’t automatically equate to treating staff well.

“Competitive pay, to me, is the cost of entry,” says Thompson.

To this point, the COO, also the self-appointed chief smile officer, addresses how the restaurant chain respects personal time.

Chicken Salad Chick, founded in 2008, is closed on Sundays. This isn’t due to any religious influence. Rather, the founders, per Thompson, were influenced by what they perceived as a high divorce rate in the restaurant space.

So, the brand wants employees to have family time. That’s also why there stores are also closed by 8:00 PM. In some cases, they close at 5:00 or 7:00 PM. Again, personal and family time.

Could they generate more revenue if they opened earlier and closed later? Probably. However, their culture is crucial to their success.

Takeaway

If operators want to begin the process of truly developing a positive workplace culture, there are several questions Thompson suggests operators and their leaders should ask.

Is the brand purpose driven? Does focus on fun, family, and culture?

How can the business offer incremental value to staff? Are the pay and benefits competitive? Is the workplace safe and are their opportunities for staff to advance?

What’s the community like within the four walls? How’s the energy within those walls?

Are the processes and practices in place helping or hindering recruitment and retention? How can the processes be simplified so employees learn what they need to know quickly?

How flexible is the business, honestly? What’s being done to truly help leadership create better relationships with the team?

Finally, I’ll end on something interesting from Grimes. Analyzing employee engagement, SMG has found that isn’t just about compensation.

In fact, when it comes to what makes most people perceive their job as fulfilling, the top influencer is working with people they like. Second is salary and benefits. Third, rewarding work.

Operators need to adapt to employee expectations, just as they need to focus on those of guests. Sitting down with their leadership teams to discuss Thompson’s questions is a great first step toward developing a culture that works and rewards.

Image: Priscilla Du Preez on Unsplash