Employee turnover is a significant challenge in the restaurant industry, where the fast pace and demanding environment can often lead to burnout and dissatisfaction. Reducing turnover isn’t just about keeping employees longer; it’s about creating a workplace where they want to stay.

We have over three decades of experience managing teams in restaurants and other shift work industries. This guide is written by managers for managers to help you reduce turnover.

In many ways, turnover can be seen as the other side of the coin from employee engagement. When employees are engaged, they’re less likely to leave—but when engagement drops, turnover often follows. For a deeper dive into enhancing employee engagement, be sure to check out our comprehensive guide on [Employee Engagement Ideas for Restaurant Managers]. 

In this guide, we’ll focus on practical interventions, essential conversations, and effective retention strategies that can help restaurant managers build a stable, committed team.

1. Early Detection of Disengagement

How It Reduces Turnover:
Identifying disengagement early allows for timely intervention before an employee decides to leave.

How It Benefits the Restaurant:
Proactively addressing disengagement can prevent disruptions in operations and maintain high standards of service.

Steps to Implement:

1. Monitor Performance: Keep an eye on performance metrics such as punctuality, productivity, and quality of work.
2. Look for Behavioral Changes: Be alert to signs such as withdrawal from team activities, increased absenteeism, or a noticeable decline in enthusiasm.
3. Conduct Regular Check-ins: Schedule one-on-one meetings to discuss job satisfaction and any challenges employees may be facing.
4. Act on Feedback: If an employee expresses concerns, take immediate steps to address them.

2. Intervention Strategies for Disengaged Employees 

How It Reduces Turnover:
Targeted interventions can re-engage employees who are at risk of leaving, addressing their specific concerns.

How It Benefits the Restaurant:
Retaining experienced employees reduces the costs associated with hiring and training new staff.

Steps to Implement:

1. Identify At-Risk Employees: Use data from performance reviews and feedback sessions to identify employees who may be considering leaving.
2. Offer Tailored Support: Depending on the issue, provide support such as additional training, adjusted responsibilities, or more flexible scheduling.
3. Reassess Job Roles: If an employee feels stuck, consider offering them a new role or additional responsibilities that align with their strengths and interests.
4. Follow Up: Regularly check in with the employee to see if the intervention is helping and make adjustments as necessary.

3. Effective Conversations to Retain Employees

How It Reduces Turnover:
Open, honest conversations can address underlying issues and rebuild trust, encouraging employees to stay.

How It Benefits the Restaurant:
A transparent communication culture fosters a more committed and motivated workforce, leading to better service and efficiency.

Steps to Implement:

1. Prepare for the Conversation: Before the meeting, gather any relevant information and plan how to approach sensitive topics.
2. Create a Safe Space: Ensure the conversation takes place in a private, non-judgmental environment where the employee feels comfortable sharing their thoughts.
3. Listen Actively: Focus on understanding the employee’s perspective without interrupting or becoming defensive.
4. Collaborate on Solutions: Work with the employee to address their concerns and set clear follow-up plans.

4. Tackling the Root Causes of Turnover

How It Reduces Turnover:
By addressing the underlying causes of turnover, you can create a more satisfying and supportive work environment.

How It Benefits the Restaurant:
Reducing the root causes of turnover can have a positive impact on many areas of your restaurant. Often these are the things that slowly decline and tackling them now means a better work environment going forward.

Steps to Implement:

1. Conduct Exit Interviews: When employees do leave, conduct exit interviews to understand the reasons behind their decision.
2. Analyze Patterns: Look for common themes in feedback that might indicate systemic issues within the restaurant.
3. Implement Changes: Based on feedback, make necessary changes to work schedules, management practices, or workplace culture.
4. Communicate Changes: Keep your team informed about the changes being made in response to feedback, reinforcing that their opinions are valued. Use software like ShiftForce to ensure each employee has access to important communications.

5. Strengthening Onboarding and Training Programs

How It Reduces Turnover:
A strong onboarding program ensures new hires feel supported from the start, reducing the likelihood of early turnover.

How It Benefits the Restaurant:
Proper training leads to better-prepared employees, which can enhance service quality and operational efficiency.

Steps to Implement:

1. Develop a Comprehensive Onboarding Plan: Include training on restaurant operations, customer service, and your restaurant’s culture and values.
2. Assign Mentors: Pair new hires with experienced employees who can provide guidance and support during their first few weeks.
3. Set Clear Expectations: Ensure new employees understand their roles, responsibilities, and the standards they are expected to meet.
4. Continuous Training: Offer ongoing training opportunities to help employees grow and stay engaged in their roles.

6. Offering Competitive Compensation and Benefits

How It Reduces Turnover:
Competitive pay and benefits can prevent employees from seeking opportunities elsewhere.

How It Benefits the Restaurant:
Attracting and retaining top talent with better compensation packages can lead to a more experienced and motivated team.

Steps to Implement:

1. Benchmark Salaries: Research industry standards and adjust your pay scales to be competitive within your market.
2. Offer Benefits: If possible, provide additional benefits such as health insurance, paid time off, or performance bonuses. If you can’t afford these in your budget, even small bonuses like gift cards can make a difference.
3. Regularly Review Compensation: Periodically review and adjust compensation packages to reflect the cost of living and industry trends.
4. Communicate Value: Clearly communicate the full value of the compensation package to employees, including any less obvious benefits.

7. Promoting a Healthy Work-Life Balance

How It Reduces Turnover:
Employees who feel they have a good work-life balance are less likely to experience burnout and more likely to stay.

How It Benefits the Restaurant:
A balanced work-life schedule can lead to happier employees, better customer interactions, and fewer unscheduled absences.

Steps to Implement:

1. Flexible Scheduling: Offer flexible scheduling options where possible, allowing employees to manage their personal lives more effectively. Software like ShiftForce can make it easy to design schedules that fit your employees’ lives.
2. Encourage Time Off: Ensure employees take their entitled days off to recharge and avoid burnout.
3. Monitor Workloads: Regularly assess employees' workloads to ensure they are manageable and adjust as needed.
4. Promote Work-Life Balance: Lead by example by respecting boundaries and encouraging employees to disconnect when off duty.

8. Building a Positive Workplace Culture

How It Reduces Turnover:
A positive workplace culture fosters loyalty and makes employees more likely to stay with the restaurant long-term.

How It Benefits the Restaurant:
A cohesive, positive culture can enhance teamwork, improve customer service, and create a more enjoyable work environment.

Steps to Implement:

1. Define Your Culture: Clearly articulate the values and behaviors that define your restaurant’s culture.
2. Involve Employees: Encourage employees to participate in creating and maintaining the workplace culture through regular input and feedback.
3. Lead by Example: Ensure that management models the values and behaviors expected in the workplace.
4. Celebrate Successes: Regularly recognize and celebrate both individual and team achievements to reinforce a positive culture.

9. Recognizing and Rewarding Employee Contributions

How It Reduces Turnover:
Employees who feel valued and recognized are more likely to remain committed to their jobs.

How It Benefits the Restaurant:
Consistent recognition can improve morale, increase productivity, and reduce the likelihood of turnover.

Steps to Implement:

1. Set Up a Recognition Program: Establish a formal program to regularly recognize and reward employee achievements.
2. Personalize Recognition: Tailor recognition efforts to the individual preferences of employees, whether through public acknowledgment or private rewards.
3. Offer Meaningful Rewards: Provide rewards that are meaningful to employees, such as extra time off, or professional development opportunities.
4. Consistent Recognition: Make recognition a regular part of your management routine, rather than an occasional effort.

10. Creating Personalized Retention Plans

How It Reduces Turnover:
Personalized retention plans address individual employee needs and career goals, making them more likely to stay.

How It Benefits the Restaurant:
Customized retention strategies can help retain top talent and reduce the costs associated with turnover.

Steps to Implement:

1. Identify Key Employees: Determine which employees are most valuable to the restaurant and most at risk of leaving.
2. Discuss Career Goals: Have open conversations with these employees about their career aspirations and how the restaurant can help them achieve those goals.
3. Develop a Plan: Create a personalized retention plan that includes specific steps for career development, training, and recognition.
4. Monitor and Adjust: Regularly review the retention plan and make adjustments based on the employee’s feedback and progress.

Conclusion

Reducing employee turnover is a multifaceted challenge, but with the right strategies, it’s possible to create a restaurant environment where employees are happy, engaged, and committed to staying long-term. By focusing on early detection, effective interventions, and fostering open communication, restaurant managers can build a team that not only stays but thrives.