Moving Beyond Hourly Wages Toward Supporting Employees as Whole Individuals

Staffing and retention is often cited as a main pain point by restaurant operators. So what can they do to compete for talent, hire effectively and retain staff in the long-term? One industry insiders says pay increases are just part of the package as operators are increasingly leveraging benefits to differentiate themselves.

"Our compensation data indicates a shift towards more comprehensive benefits and total compensation packages, moving beyond traditional hourly wages and annual salaries," Alice Cheng, CEO and founder of Culinary Agents, told Modern Restaurant Management (MRM) magazine. "This trend emphasizes the importance of supporting employees as whole individuals in today's competitive job market."

Cheng advises that to create a culture where the hospitality industry is viewed as a legitimate career, operators can take the following key steps:

• Build a positive company culture. Actively foster a supportive work environment and openly share its benefits to attract and retain talent.
• Put systems in place to ensure operational efficiency and clarity for your team.
• Structure ongoing training to encourage individual learning and development.
• Invest in technology. Prioritize investments in technology platforms based on their potential impact on both team satisfaction and overall business success.

Culinary Agents, which has processed more than 10 million job applications for open roles YoY, a 53-percent increase from the previous year, recently launched Hospitalitycareerpaths.com, a platform that cultivates the company's extensive data points to gain a better understanding of the total salary and compensation picture in hospitality. As users contribute, the platform will evolve, providing a dynamic and up-to-date resource for the hospitality industry. Future plans for the site include career mapping and skills features, designed to advance professional growth and career planning in hospitality.

"As the hiring landscape has evolved over the past few years, we found that job seekers and employers have often been relying on misinformation as well as outdated compensation data," Cheng said. "To address these discrepancies, we created an accessible platform aimed at uplifting the hospitality industry through inspiration, advice, and valuable insights. Our primary focus is on workforce development, recognizing hospitality as a vital feeder for the broader labor market."

Why was salary transparency not readily apparent in the hospitality industry? 

"Compensation data for the hospitality industry has never been aggregated for public consumption, mostly due to the complexities and nuances of the different pay structures for various roles," Cheng noted, adding a number of examples such as:

• Independent restaurants often struggle with accessible and segmented information, making it difficult to establish consistent salary standards.
• Tipped positions introduce complexities in estimating wages and setting clear expectations, as income can fluctuate significantly based on a variety of factors. 
• The wide range of skills and experience within specific job titles adds another layer of subjectivity, complicating the establishment of salary benchmarks.

What hiring trends should operators plan for as we head into a new year?

Cheng said notable hiring trends in the hospitality industry include:

• Skills-based hiring with an increasing emphasis on soft skills over technical abilities, is shaping hiring practices. 
• Upskilling and cross-training are driving employee development to enhance versatility and adaptability within their teams.
• The well-being of employees continues to be a more concerted effort through supportive work environments that prioritize mental and emotional health.
• Streamlining operations with technology to allow teams more time for other areas of the business.