Training and Turnover
Those of you who have attended our ServSafeŽ Food Safety
Programs know how much stock we put in training. We think that every business
should take the time to orient their employees to the business and train them
in the correct and proper way to do their jobs. We also believe in
"cross-training", training employees to perform tasks that they don't usually
do, but which interact with their tasks.
In the 15 years we've been in business we have heard many
excuses as to why restaurants and other businesses don't train their
staffs. Here are just a few:
They
don't stay long enough to train!
It
takes too much time to train them.
It
costs too much to train them.
They
did the same job somewhere else and should know how to do it.
They
can read the manual and if they can't do the job . . .
And our all time favorite:
- If I
train them, they'll just go to work for my competition.
We'd like to turn that last one around:
- If you don't train them, your customers
will go to your competition!
Study after study in all types of businesses shows that one
of the main reasons employees leave is because they don't get trained. An
untrained employee:
- Is
more likely to believe that their job is unimportant and they are expendable.
- Is
less likely to follow standard operating procedures.
- Is
less likely to know the efficient way to do their job.
- Is
less likely to know the safe way to do their job.
- Is
more likely to make mistakes that cost the business money.
- Is
more likely to make mistakes that result in them having negative interactions
with customers, coworkers, and supervisors.
- Is
likely to be given fewer hours or shifts where they earn less.
- Is
less likely to receive support and assistance from coworkers.
All these factors increase the stress on the employee and
disconnect the employee from the company, the job, their coworkers, and the
customers. It is easy for
stressed, disconnected employees to leave, with little or no notice, and to
seek alternate employment, but before they do they'll have damaged the
employer's business and reputation with both customers and other employees.
An effective training program can break the cycle of high
turnover, low sales, unhappy staff, and unhappy customers and result in
increased sales and profits for the business that trains its employees.
To be effective, training has to address the needs of all
concerned: the employee, the customer, coworkers, and the business.
An effective training program provides the participant with
information and skills that they can use in their jobs or lives every day. It
gives them the chance to practice these skills in a "safe" environment and
proves them with coaching so they can improve their skills. Effective training is repeated time
after time until the participant becomes both comfortable and proficient at the
skill. Yes, it is time consuming
and costly, but the benefits outweigh the costs, let's just look at how
training affects turnover costs.
You probably don't have a line on your profit and loss statement
for the cost of employee turnover. Actually it would be difficult to list all
the costs of loss of productivity, recruiting, hiring, training, etc., etc.,
etc. on a single line. We recently
found a summary of 15 studies that were done to determine what it costs to turn
over an $8.00 an hour employee. The cost ranged from a low of $3,500.00 for
truck stop employees to more than $25,000.00 for hourly corrections officers.
Averaging the ten lowest reported costs, which included frontline retail and hospitality
employees, resulted in an average turnover cost of $5,505.00! If you turnover 10 employees, you have
more than $50,000 in hidden costs. Better hiring, orientation, and training can
reduce turnover and reduce this cost.
During our search for the studies just referenced we came
across a report that stated that the average US firm experiences a 12% rate of
employee turnover. Take the total
number of employees you turned over (whose employment you terminated, or who
resigned) last year and divide that by the average number of employees you had
on the payroll to find out your turnover percentage. How did you compare with the national average of 12%?
Most, if not all, hospitality businesses experience higher
than "typical" employee turnover rates. While it may not be possible to bring
our turnover rates down as low as other businesses, in part because of the
seasonality of our business and the fact that many young people start their
employment in our industry, it should be possible to improve on your own past
performance. We believe that
training your staff is an important factor in reducing staff turnover and its
associated cost.
Training is an investment, not an expense.
If you're ready to invest in your business, by investing in
your employees, call us to have us develop a customized training program for
your business.