The business model involved in operating a restaurant may seem simple on the surface. Still, behind the scenes, it is a complex system with financial and operational mechanisms that require an efficient human resources team. As the business scales, the importance of human resources in the restaurant industry only gets more significant.
The Role of HR In Operating a Restaurant
Cash Management: Restaurants have a relatively constant, fluid cash flow, which means the HR team’s primary responsibility involves handling this cash and overseeing the payroll of several staff members, from cooks to waiters and more.
Law Compliance: HR is responsible for ensuring that the restaurant’s operations comply with government policies at a local, statewide and federal level.
Policy Making & Communication: HR is responsible for establishing and executing policies that benefit the employees within the business and the business as a whole. The second step in policymaking is communicating them effectively to the rest of the business, ensuring that employees understand new policies and receive them well.
Hiring Staff: Restaurants tend to have a relatively high employee turnover rate, meaning that hiring new staff is ongoing. In fact, it was reported that, the staff turnover rate reached a whopping 75% in 2019, the highest of any industry. Not to mention that this was the pre-covid era. So, it is the responsibility of the HR team to run background checks on potential new hires and ensure that they are qualified for the job.
Reinforcing Restaurant Culture: Every successful restaurant has a unique culture that influences how customers see them. While not precisely a ‘restaurant,’ perse, Chick Fil Ais one example of a fast-food chain with a very positively received culture, focused on politeness and hospitality toward customers. The HR team’s responsibility is to help propagate the business’s culture and ensure that employees don’t damage it.
How The HR Team Can Make a Restaurant Great
Operating a restaurant isn’t easy. The market is incredibly competitive, and one bad review can cripple even the most successful restaurant business. Here are a few tips any restaurant’s HR Team can implement to make a restaurant the best it can be. Each one perfectly highlights the importance of human resources in the restaurant industry.
Operate With Transparency
For employees to put their best foot forward, it’s vital that they feel like they can trust the business. To this end, the HR team must implement a culture of transparency across the entire business. By being transparent with the employees of the restaurant business, the HR team will be able to ensure that the rest of the staff communicate with them openly and sincerely and offer genuine feedback that can help the business get better.
As mentioned before, businesses in the restaurant industry have a high employee turnover rate. To foster a loyal and hardworking team of workers, HR teams should be careful about whom they hire. In fact, a report suggested that 53% of HR professionals believe that employee engagement increases with a better onboarding process. So, it’s essential that they take the time to ensure that each new hire will dedicate themselves to the company and fit into the existing culture and help improve it.
The restaurant business has immense potential for employees to achieve upward and lateral growth; this means improving one’s existing skillset while also learning new skills. For example, someone who starts working as a waiter can eventually learn management skills and advance to a managerial position within the restaurant. Furthermore, it also helps the restaurants to reduce their employee turnover rate. Did you know that 40% of the employees will leave organizations within their first year of employment due to lack of training? Giving employees a means of advancing their careers is the best way to encourage loyalty and dedication.
Create a Safe and Productive Work Environment
Perhaps the most important thing that an HR team can do for the rest of the business is to make employees feel safe in their work environment. Employees want to be rest assured that they can work without facing harassment, abuse, and prejudice from customers and coworkers. Furthermore, a report suggests that HR strategists also advocate regarding the employees’ performance. They devise strategies and prepare a benefit management plan to keep the employees retained throughout their tenure.
Hopefully, this blog helped provide some insightful information about the restaurant industry and the importance of human resources in the restaurant industry for steering a restaurant toward success and growth. Want to know more about the importance of HR in different industries, contact Accountants Now today!