1 Find and Train Candidates Early Shifts in demand for extra staff means your restaurant should EMPLOYEE TURNOVER RATE be looking for new employees roughly three to four months before the start of your busiest season. While, this might seem The costs to advertise for positions early, the extra time will allow you to better train your new hires and train new employees should and see if they can handle the high flux of traffic and fit in with not be disregarded. Calculate your your businesses. It’s important to train your entire staff at the restaurant’s employee turnover rate same time, across multiple sessions, to save time and money to know where you stand to see on training costs. where investments in training and employee retention can save you dollars. Calculate your Employee Turnover Rate in three steps: STEP ONE (Starting Number of Employees + Ending Number of Employees) / 2 = Average Number of Employees STEP TWO Lost Employees / Average Number of Employees = Employee Turnover STEP THREE In the summer of 2017, Employee Turnover x 100 there were 490K seasonal = Employee Turnover Rate restaurant jobs1 Putting the example to life, let’s say you want to calculate your turnover rate per month. At the beginning of AND MARKETING There are many ways to source candidates, including local September, you had 30 employees, ads, newspapers, job boards or even word of mouth. Toast but by the end of September, offers a Restaurant Hiring Kit including a job posting template, you’re down to 25. Your employee interview questionnaire and offer letter template for those who turnover rate would be 0.18, or TRAINING might want more help with conducting the search. 18%. Here’s why: You should also consider the cost – of time and money – it takes STEP ONE to hire new employees, especially if they leave your business (30 + 25) / 2 = 27.5 THE SEASON: quickly. Did you know that the average cost per hire in the STEP TWO hospitality industry comes in at just over $1,000? By measuring 5 / 27.5 = .18 your employee turnover rate, you’ll see just how much it costs STEP THREE you to refill positions and understand where investments in .18 * 100 = 18% ARING FOR training and employee retention can save you dollars. PREP 3 kabbage.com/restaurants