Every week we comb through the news to find trends affecting the hospitality industry so you don’t have to. This week’s topic: how to retain managerial staff.
Employee retainment is one of the most important parts of managing a team. With good retention rates, employers can lower hiring costs, maintain positive employee engagement, and foster a good brand image. Without a focus on retention, managers are at risk of losing great talent.
Most discussions surrounding retention are about hourly or entry-level staff, but it’s just as important to retain managers and other leadership positions. There are two key reasons why high retention rates are so valuable for leadership teams:
- The average exit costs for an employee is 33% of their annual salary. (Via EmployeeBenefitNews)
- Employees are 4x more likely to quit due to a lack of appropriate management skills. (Via TinyPulse)
Poor manager retention can lead to high exit costs because they make more money than the average employee, not to mention the domino effect it can have on employee satisfaction, raising turnover rates in return.
Experts are also wondering if (the famously low) restaurant retention rates will be affected by the pandemic, or if it will be more difficult to recruit because of the mass layoffs and business closures – both impacting the ability to hire.
LGC has almost two decades in the hiring and staffing landscape, so we understand the importance of building and maintaining a great leadership team that you can trust. One of the best ways to do so is by partnering with a recruiter that understands your needs and can help you accomplish your goals.
Why does working with a recruiter help with retention?
There are several reasons why working with a recruiter can meet your hiring needs and help with retention. To start, recruiters are employees whose main responsibility is to find candidates and fill open positions. That means they have the time and money needed to put in the effort it takes to be successful. For most smaller businesses who handle hiring in-house, managers are typically taken away from their main responsibilities to help with recruiting and interviewing and are often unable dedicate enough resources to growing their teams.
Another reason its’ beneficial to work with a recruiter is because they know how to screen someone to ensure they’re in the job for the long haul and won’t quit within the first 90 days. (20% of all employee turnover happens during those crucial three months.) Not only that, but they’ll make sure the candidate is the right culture fit and has the necessary soft skills to work well with your team.
One of the main functions of a recruiter is to build a network of candidates that way clients have access to a diverse talent pool. By using less traditional channels like social media or referrals to identify both passive and active job seekers, clients can tap into a pool of workers they may not normally interact with. This aids positive retention rates by providing more candidates to choose from; rather than hiring the first person you meet because there aren’t a ton of options available, recruiters can take their time to find the perfect fit for your business.
Perhaps the most compelling case for partnering with a recruiter is that most firms – at least in the case of LGC – provide at least a 30-day guarantee that you’ll be happy with your new hire and if not, will help you find a replacement. Plus, you only pay if you decide to bring them onboard, so you can interview as many candidates as you need.
Sean Hoover, Assistant General Manager of LGC’s permanent placement division, had this to say about the benefits of working with us to accomplish your hiring needs: “LGC has the upper hand in recruiting because we already have an extensive network of candidates nationwide, making our partnership an immediate success. Rather than relying on a job board, we can easily cast a net candidates who are searching for their next opportunity.”
If you want to elevate your hiring efforts and increase retention, consider partnering with a recruiting and staffing firm like LGC. Reach out to our team today to learn more.
LGC has a team of executive recruiters with expertise in conducting management level searches for GMs, AGMs, chefs, supervisors, entry-level food service staff and other hospitality workers. Let us help simplify the hiring process.