Makes a bigger dent than you might think
Turnover rates in the restaurant industry are among the highest in any industry. In 2017 the employee turnover rate in the US restaurant industry edged over 70%. The estimated turnover rate for front-line staff like servers and waiters came in even worse at 110%.
The Center for Hospitality Research at Cornell University estimated the average cost to a restaurant of a turned-over employee is $5864. This works out to employee turnover costing an average full-service restaurant $146,000 every year. In a low margin business like a restaurant this can’t afford to go unchecked.
The cost of employee turnover goes beyond the recruiting, hiring and training of a replacement. This accounts for around 50% of the total cost. The balance is made up of a host of hidden costs that accompany employee turnover that don’t necessarily show up on the balance sheet.
Let’s delve into these hidden costs and what restaurant can do to mitigate them.
Loss of Institutional Knowledge
There’s a famous saying “it takes a village to raise a child,” and this same idea applies to business.
Every time you lose an employee whether it be a waitress, server or cook, you lose important knowledge regardless of whether that employee was working for your business for a year or ten years. When an employee leaves, they take the history and knowledge they accumulated at your company with them as well.
To make matters worse, you need to pay to re-train the replacement employee, and sometimes you can’t teach all the knowledge that was lost. Although it’s difficult to measure the cost of knowledge, you can be assured that time and energy will definitely be wasted with every employee turnover.
It should go without saying that employee turnover strikes at the heart of the morale of your entire workforce.
When an employee leaves, other employees must pick up the slack to account for this void while you search for a replacement. This creates for some unhappy people. Employees can begin to feel resentful if they are taking on more responsibilities with no pay raise or benefits. They might even start considering leaving themselves.
Thus, losing one employee could easily turn into losing a few more throughout the year. It can lead to something like a domino effect where your productivity declines long after the initial employee leaves.
The health of a company is closely tied to the employee turnover rate — so stay keen on keeping your employee morale high if turnovers ever do occur.
Your assistant manager and shift manager will have to dedicate a good portion of their time to replacing lost employees. These new responsibilities could easily come at the expense of other crucial functions in your company.
Effectively, you will be paying your employees top-dollar salaries for recruiting employees when they could instead be focusing on actual business strategies and expansion. Your business suffers as its primary responsibilities are stalled while your management searches for an employee replacement.
A business usually relies on its best people to recruit new employees. However, with them now busy finding and training new employees, your entire business suffers. The ones with the best business practices and the most know-how in management will distracted looking for an employee replacement. This is always a net drain on your business.
Loss of Credibility
In an environment of excessive employee turnover, management can easily get hit with a serious loss to their credibility.
For example, if any media begins to report on losses to your employee staff, then it could easily cause a snowball effect. Bad publicity over employee turnover and management could easily cause a downward spiral you would be smart to avoid.
A loss of credibility could affect public perceptions of your business, but this could also trickle into a real decline in sales.
For example, if a lost employee affects customer satisfaction, you can begin to see serious consequences: the company will begin to lose its most important customers. With high turnovers, customers could easily get frustrated and begin to turn away from your business.
It should be clear now that there are plenty of hidden costs associated with employee turnover, which begs the question: What can you do to stop it?
Create an Inviting and Fulfilling Work Environment
You can lessen demoralization of your staff when an employee leaves by demonstrating that they are a crucial part of your business. This begins with your work environment and how you conduct yourself as a business. Employees will be far less likely to follow suit and leave if they feel they are respected at work. By encouraging a community environment for your staff where they feel welcome, you can retain employees and keep them loyal. Of course, how you choose to go about creating a fulfilling work environment is dependent on the ins and outs of your company. There is no one-size-fits-all solution.
Ask yourself: Would I want to work in this environment as an employee myself? Put yourself in the shoes of your staff and work from there. Make them feel appreciated and let them know they are important to the workings of your business.
Stay Up-to-Date on Compensation and Benefits
A business that stalls on compensating its workers is a recipe for disaster, even if it happens just once. If employees cannot be certain they’ll be paid on time, they’re more likely going to head to the door if such negligence continues.
An efficient business strategy, however, is one that keeps track of how employees are developing and their rising worth, paying them accordingly for better work. This keeps employees satisfied and makes them feel as though they are adding real value to the company (and being rewarded for it!).
Engage Your Employees
You should never siphon off your employees to one section of your business and only interact with them when discussing compensation. Don’t ever limit your employee engagement to just surveys and pay: build a culture of engagement from the top of the company all the way to the bottom.
Everyone needs to be on the same page for a business to be its most successful. If you engage with your employees beyond just what’s absolutely necessary, you’ll be more in tune with the work they’re producing — and your employees will be definitely be appreciative of it.
With these helpful words of advice, you can start limiting the chances of employee turnover and create a vibrant, productive work environment for your business. All of this begins with recognizing your employees as crucial to your business. So, try cultivating a work culture of generosity and gratitude in your own business: you’ll be surprised how far it goes in retaining a productive workforce.
The healthcare industry has seen a rise in the tech available to them in the last couple of years. The industry is benefiting greatly from all of the new tech that they can now use to diagnose and keep better patient records. You might be wondering how tech is doing this for the healthcare industry, and you’re not alone. In this article, we are going to be looking at some of the benefits that tech has brought to this industry in recent years.
One of the biggest benefits is that efficiency has been improved, and is still improving. Items like portable ultrasound machines make it possible to move the equipment instead of the patient which can save a lot of time. You know if you have been in a hospital how busy it is, and how manic it can get. This is why improving efficiency is always a goal, and one that tech happily obliged to.
Using tablets instead of or alongside paper records has made keeping patients data safe much more manageable. Now, people can’t just come in and pick up a medical history without having the proper authority. As well as this, it is far easier to lose paper copies of patient files than it is to lose that which is on a tablet. Having all the tablets linked means that any doctor or nurse can access a patient file without having to dig through mountains of paperwork.
With tech evolving all the time, getting the results from a test can be a lot quicker. This means that patient care can be given faster, which in some cases could save a life. Anybody who knows about the medical profession knows that it can be a case of seconds between life and death. With improved speeds of getting medical test results, patients can be treated more quickly, and given the best chance possible.
The more advanced the equipment, the better the imaging. This the case with items such as a portable ultrasound machine. With crystal clear imaging, it can be easier for doctors to see, and therefore diagnose what the issue is with the patient. Previously, it had been known to happen that something that looked like an issue could have been a spot on the machine, but with new tech coming in to play, the room for error here is significantly reduced.
Growing Medical Practices
Thanks to a lot of new medical equipment being available, it is a lot easier for doctors to grow their medical practices. This means that they can see and treat more patients, as the equipment is readily available to do so. By doing this, patients no longer have to go out of their way to go to a medical practice, because the one closest to them is full.
We hope that you have found this article useful, and now know some of the ways in which tech has been benefiting the healthcare industry. These are just a few of the benefits, if you want to know more, you can find these online.
All businesses need to keep their sale numbers up as high as possible to ensure that they are bringing in enough money each month to ensure they can cover all costs and still have enough money left over to make a profit. However, sometimes this isn’t always possible. Even though you might think that everything has been going well with your company’s operations and marketing strategies, there could still be periods during which your sales seem to tail off.
Even though you might not think that there is an obvious reason why your sales are dwindling, there probably is a cause for these poor sales. Sometimes, you just need to look a bit closer at your business to determine what that cause is. Here are a few common reasons why a company’s sales might dip every so often. Thankfully, most of them are simple enough to recover from.
Shake-Up At Management Level
Any issues at the management level of a business can create a trickle-down effect, and the consequences can often be felt throughout the organization. Even something that shouldn’t be too problematic, such as a manager resigning and a new professional taking their place, you might be surprised to find just how disruptive these changes can be. They can also affect areas of your business that they aren’t necessarily linked to, including sales. It’s just unfortunate that the trickle-down effect will disrupt most departments, so your sales won’t be immune to any changes at management level.
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Ideally, your company’s marketing needs to be consistent at all times. There always needs to be a current strategy or campaign that your marketing department are implementing to ensure that your company is always visible to the public. If your business’s marketing efforts ever dip at any time, then you might notice that the quality of your marketing gets slightly worse. This will lead to fewer sales as it won’t be tempting any consumers to come and try out your brand. If you feel that your marketing campaigns need a bit of a revamp, you might want to invite an external marketing agency to come and collaborate with your in-house team.
Forgetting To Follow Up
Most of your sales team will be busy every day with contacting potential clients and cold-pitching to the public. This is hard work and I’m sure that most of the team will have a seemingly never-ending list of leads to contact. However, just contacting everyone once isn’t enough and this will rarely lead to any sales. Your sales team need to always remember to follow up on any leads that they have made contact with. This will then remind the lead about your company and can encourage them to go through with a purchase.
At the start of every year, you should be making a few different business forecasts, including a projection of your potential future sales. It’s also important that these projections are regularly updated to reflect current data and figures.However, if you use bad data or make some mistakes while creating these projections, you could end up with some incorrect forecasts. If these overestimate how many sales you are estimated to make through the year, then there is no way your real sales figures will live up to the forecasts. This could reflect very badly on your company. So, it’s a good idea to use a sales management CRM to help you manage your current sales figures and turn them into a reliable forecast. These kinds of CRM can also give you other useful insights, such as how you can go about increasing your annual revenues.
Can you remember when the last time you offered training to your sales team was? If it was a few years ago, or you can’t even remember when you last trained the department, it’s a good idea to organize a course or one-off training day for them. It’s important that you stay on top of all your staff’s training so that they are continually at the top of their game. If you let training slip, then so will the standard of their work too. Ideally, you need to offer your sales staff at least one day of training each year so that they are always up to date with the current trends and best practices that are dominating the world of sales.
Bad Online Visibility
It’s also a good idea to try to stay on top of your company website’s SEO. Many entrepreneurs think that they only have to work on the site’s SEO when they are in the process of creating the website. Unfortunately, though, that isn’t the case. Ideally, you need to keep on working on the SEO throughout the entire lifespan of the website. Good websites should be regularly maintained or else their SEO will become useless. So, if you haven’t’ worked on your site in a while then there is a good chance that your company aren’t as visible online. Fewer people will be stumbling across the site because it won’t be ranking high in search engine results. And that means fewer people will be buying your products or services.
Aiming At The Wrong Target Market
Every single product or service on the market will have a set target audience. These are the people you need to sell to. If you aren’t 100% sure who is in your target audience, then you can carry out some market research to find out. Once you know, you then need to start aiming all of your marketing at them. If you end up targeting the wrong kind of people, then your marketing won’t be having a positive effect at all. You’ll just be pushing your product or service onto people who aren’t that interested in it at all.
As you can see, there are quite a few reasons why your sales might start to dwindle. Hopefully, you’ll be able to turn things right around before it’s too late for your business’s revenues!
Across the globe, 85% of employees are either not engaged or are disengaged at work, according to Gallop’s State of the Global Workplace report, which estimates approximately $7 trillion in lost productivity.
Companies around the world are not performing as well as they could. They are leaving money on the table. But the problem is not with financial capital — it’s human capital, where too many companies are missing a key component of the growth equation.
In my experience, looking at an additional, little-understood “horizontal” approach can deliver huge returns. Research supports what I have experienced personally. It starts with the understanding that any employee can impact the engagement of every employee in a group.
A foundational study by James Fowler and Nicholas Christakis out of the University of California and Harvard, respectively, demonstrated that cooperation spreads from person to person. Significantly, and to the surprise of many, they found that positive emotions actually spread further — from person to person to person to person — up to three degrees of separation, even among people who are not acquainted.
But it’s the breakthrough work of another researcher who proved that positive emotions spread from person to person in a work environment. Specifically, Yale researcher Sigal Barsade authored the study that linked the spread of positive emotion with improved cooperation, decreased conflict, and increased task performance in the workplace.
When you understand that viral engagement is possible — and that it happens when you shift your focus from top-down to side-to side — you have the power to fill in the missing piece and unleash a whole new paradigm in your organization.
Companies would be well-served to consider these 10 opportunities to create the conditions for viral engagement, with the understanding that engagement is contagious and can start from anyone, anywhere in an organization:
Selection: Do you hire good team players and hold the expectation that every addition to your team can have an immediate impact on the engagement of current employees?
Education: Does your company invest in the soft skills that will enable your employees to be more effective in engaging others?
Communication: Do you reinforce verbal and written communication as equally important in engaging others?
Compensation: Could you pay a small team bonus for improving engagement scores?
Recognition: How could you recognize individuals and teams when new practices are adopted that are generated “bottoms up?”
Promotion: Do team members know that engagement success is part of the path to promotion?
Retention: When people do leave, do you ask about engagement in exit interviews?
Performance management: Is engagement a part of performance management discussions?
Values: Could engagement language be added to define your organization’s values?
Assessment: Do you assess for engagement skill sets?
The good news is, that those at the top of organizations are finally aligned around this most critical issue. In fact, in the annual Conference Board survey reported for the first time last year that culture and engagement was the top priority in every region in the world as ranked by over 1100 participating CEOs.
With increasing focus from the top-down, there is reason for optimism. But there is also a need to listen much more intently to those on the frontlines to better understand what it will take for them to fully engage. An investment in the horizontal approach takes time and energy, but the returns are “off the charts.”
About the Author
Rick Miller is an unconventional turnaround specialist, sought-after speaker, servant leader, and expert in driving sustainable growth. For over 30 years, he served as a successful senior executive in roles including President and/or CEO in Fortune 10, Fortune 30, nonprofit, and startup companies, including AT&T Global Services and Lucent Technologies. Throughout his career, he has been recruited from the outside to turn around poor performance in difficult times. His new book, Be Chief: It’s A Choice, Not A Title, helps leaders at all levels achieve their true potential. To learn more, visit BeingChief.com.
Owning and running a business is not a 9-5 role; it takes a highly committed, dedicated individual who will strive for success every hour of the day, whether that means working until 9pm on a Friday evening or waking up early to take a business call on a Sunday.
However, running a business is not a sole effort for the majority of the time. It takes an army, especially if the business owner lacks the necessary skills for marketing, web development, or even accounting.
When you need an additional skill set in your company which you currently do not have, outsourcing is your best option. This increasingly popular practice allows a business owner to receive the talent and workforce they need, but without requiring bringing a new member of staff into the business permanently.
As a business owner, if you currently lack a number of skills which could see your company grow and succeed, it can be daunting to begin the recruitment process. Plus, recruitment takes valuable time and valuable resources. You may end up spending a number of weeks trying to find a suitable candidate only for them to reject the job offer. In this event, it’s back to the beginning of the process.
An alternative path is to seek the assistance of a contractor or freelancer and outsource the role. This person will hold the qualifications and skill set you need to get the job done, except they won’t be hired for a full-time position. This way, once the task is complete, you have the option of working on another project together, or exchanging payment and thanking each other for their contributions.
When you choose to outsource, you reduce the risk of losing time, resources and money into a stressful recruitment period. Instead, you gain the experience and expertise your role requires with minimal fuss and effort.
What’s more, it’s a mutually beneficial arrangement — the business owner benefits by getting a project completed on time and within budget; the contractor benefits by earning a paycheck, boosting their experience and their reputation. After all, reputation within outsourcing is highly valuable.
What Should You Outsource?
Now you know why you should outsource, it’s time to learn what projects and roles you should outsource, including:
Digital marketing is a specialist skill on its own; you need to understand the many factors, such as SEO, PPC, copywriting, editing skills, social media, and so on. It’s also a rather time-consuming role, one which needs constant monitoring and measuring of which methods are successful, and which you need to change. Outsourcing digital marketing means you get the knowledge and expertise from a reputable marketer who can help drive your campaigns to success. For a fledgling business, it’s an essential role you cannot be without.
In the modern age, security is extremely crucial for all businesses. With so much private data being held on our systems, it’s critical that it’s protected at all costs. A data breach or ransom can be devastating for enterprises of all sizes, and even be the reason why a company fails. However, an experienced Chief Information Security Officer is an expensive role, something brand new businesses can’t always afford. Therefore, opting to outsource CISO is a cost-effective solution.
If you don’t have a website, you won’t get very far in today’s digital world. It’s your virtual storefront, and as such, it needs to be attractive and easy to navigate. Website development and coding is a specialist skill, but your website isn’t something to cut corners over. Choosing to outsource your web design needs means you receive a visually stunning and technically correct site from the experts without the high price tag.