Hiring Costs in Food Service

In recent months, turnover has been high in the food service industry and employers have been struggling to both find and retain employees. Costs can add up fast when you are constantly scrambling to fill positions. On average, hiring costs anywhere from $1,000 to $5,000.

A new hire should be seen as a long-term investment, so making the right decision from the get-go will keep your costs down long term. You can also avoid having employees walk during the hiring and training process by streamlining operations.

Below, we will provide three ways to keep your hiring costs low and keep valued employees around long term.

#1. Make Your Positions Desirable  

The longer it takes you to hire an employee, the more expensive the process will be. Tapping into what food service employees want in a job will help you start off the hiring process with a large pool of qualified applicants. Many food service companies are currently raising their hourly wages but still struggling to attract candidates. While a pay raise is a good first step, it is only one component of creating a desirable job.

In addition to raising wages, think about what other opportunities you can offer employees. The majority of food industry workers are now Gen Z and Millenials. In a recent poll conducted by Pricewaterhouse Company, this group ranked “training and development” as their number one incentive to stay in a job. Can you offer ways for your employees to build their skillset at work? This can include culinary training, opportunities to advance to management positions, and merit-based promotions and financial incentives.

Work and life balance is also becoming increasingly important as workers reevaluate their priorities post-COVID-19. Often, those in the food industry have little say in their schedules and find themselves on-call during their days off. Offering guaranteed time off and a flexible schedule can help attract applicants.

The more perks you offer, the more applicants you will attract. While it may seem like you are spending more money, the truth is that you will hire faster and lose less workers long term – both of which will cut down on costs significantly.

#2 Revamp Your Training Process

An estimated 28% of employees quit within the first 90 to 120 days of a new position due to lack of training and support. A clunky  training process increases the likelihood of a good candidate walking out on your position – leaving you spending more money trying to find a suitable replacement.

Take a long, hard look at your current training proces and see where there is room for improvement. Start by taking a look at the goals and objectives of training – that is, what is most important for your staff to learn to do their jobs properly?

From there, make sure every step of your training process genuinely gets you closer to the end goal. Extraneous courses and busy work lead to employee frustration, potentially losing you new hires. Continuous training is also important. In six months, most staff members forget 90% of training, so be sure to do refresher training regularly.

Training also feeds into some of the points made earlier. A solid training program means employees feel there is opportunity for growth and career advancement at your company, making them more likely to stay long term.

#3 Speed Up Background Checks

Right now, even the most successful food industry companies are facing fierce competition when hiring. If your background check process drags on too long, there’s a good chance a quality candidate will simply take another job. This means you will end up starting the hiring process from scratch, spending even more money.

A quick and efficient background check that doesn’t cut corners is key to saving money in hiring. Working on streamlining your background check process means you’ll move from offer to hire faster, securing quality workers quicker and more cost-effectively.

At PeopleG2, our background checks combine automated systems with a human touch where and when it is needed to provide clients with accurate, relevant information quickly. If you are interested in speeding up your background check process, reach out here to get started.

The Bottom Line

The food industry is currently undergoing a sea change, which is making hiring more costly for many employers. Right now, there are more jobs available than workers willing to fill them, meaning companies need to make substantial adjustments to attract and retain top talent.

The combination of a desirable job and an efficient hiring and training process is key to reducing hiring costs in the food industry. While revamping your business model will take some work, it will both save you money long term and ensure you hire the best possible employees.

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