Recognition Can Be Your Best Retention Tool

Employees’ pain points follow a theme that restaurant operators can actually work with to drive retention, according to a 7shifts report. 

When people were asked why they leave, low pay and difficult managers tied at the top at 44 percent with scheduling instability coming in at 20 percent, followed by lack of recognition at 16 percent. Wages are constrained by margins, so operators don’t always have room to tweak pay, but almost everything else on that list is a question of management and operations, explained 7shifts CEO Jordan Boesch.

“The workers who stayed were clear about what kept them there: a manageable workload, recognition when they earned it, and coworkers they liked showing up for. Those three don't require a huge investment. That's the reframe we want operators to make. Even small tweaks in your process can help with retention.”

Solving Staffing Stressors

Being short-staffed ranked first as an employee stressor, followed by difficult customers, peak-hour rushes, and poor management communication. Understaffing is a supply-and-demand problem, and operators need better visibility on both sides, said Boesch. 

“On the demand side, forecast shift-by-shift with sales data instead of realizing you're two people short on a Friday evening. On the supply side, keep the staff you have long enough that you're not always rebuilding the roster. These are connected, because last-minute scheduling is one of the fastest ways to lose people.”

Twenty percent of workers who quit cited scheduling instability and 28 percent of workers currently get their schedule only a few days out, while 86 percent actually want more notice than that, the data revealed.

Mike Bausch, who operates 12 Andolini's locations in Tulsa, maintains about 35 percent attrition annually, well below industry average, and one of the things he does is post the schedule 14 days out, Boesch cited as an example. While that's not the whole reason he retains people, it does remove one of the most common triggers for quitting and it costs them nothing.

“The other piece is shift swaps. Making it easy for workers to find their own coverage reduces callouts and gives them some control over their week.

Build a Connected Team

While 72 percent of respondents describe themselves as happy, 28 percent view themselves as neutral or unhappy.

“Twenty-eight percent is the number to watch,” said Boesch. “And the coworker dynamic works both ways. Sixteen percent of workers who quit said they didn't get along with coworkers. So a strong team is a retention asset, and a weak one accelerates turnover.”

Fifty six percent said their coworkers and team motivate them the most day-to-day, ahead of financial incentives and customer praise. That reframes how operators should think about hiring, Boesch said. 

“Every strong hire either strengthens or weakens the reason your other good people keep showing up. It makes each hire a retention decision, not just a staffing one, which means the stakes are higher than just scrambling to cover a Friday.”

Why Recognition Works

One of the key lever operators can pull for retention is public recognition, the data revealed. It doesn't have to be formal, Boesch said, offering suggestions including peer shoutouts in the group chat, a buddy system for new hires, or a family meal every couple of weeks.

“Operators can't manufacture great chemistry, but they can create the conditions where teamwork is rewarded and encouraged. Name what your best team players are already doing, out loud, in front of the team. The person who trained the new hire without being asked. The one who kept the line calm when the POS went down. The closer who never leaves side work for the next shift. When you name those behaviors, people repeat them.”

There are two main reasons operators aren't tapping into recognition as a retention driver: bandwidth and measurability, Boesch said. Managers aren’t stepping back to say "nice work" because they're plating on the pass and handling a callout at the same time. Additionally, recognition isn't tracked the way labor cost or food cost is. If it's not on the P&L, it's easy to let it slide.

But the data shows what that's costing operators, he noted. Recognition influences overall job satisfaction for 71 percent of workers, and 16 percent said a lack of recognition or feedback made them quit. 

“That turnover could have been prevented with a two-second interaction. A shoutout in the group chat or a note at the pre-shift is enough. Managers who build the habit can see its effects on retention within a few months.” 

Professionalizing Benefits

Offering more traditional benefits such as paid time off and sick days help workers feel valued and encourages them to view the industry as more of a professional career choice, the data revealed. 

While restaurant work has historically been framed as temporary, something people do between other things, one in four workers in the survey called themselves lifers. 

“That's a big portion of the workforce planning a career in restaurants, and the benefits infrastructure hasn't kept up,” Boesch said.

For example, 43 percent of workers put PTO in their top three desired benefits, yet only 37 percent are currently offered it. For paid sick days, 42 percent list it in the top three, and only 29 percent get it. 

“Those are the two biggest gaps in the whole benefits list. And workers aren't asking for anything exotic, employees in other industries have had these for decades. When an operator offers these, the message is: we think of you as an employee, not a shift-filler.”

Additionally, it changes who applies, he said, because the restaurants competing for the same labor pool are offering roughly the same wage. Benefits are what distinguish the most sought-after workplaces. 

“The restaurants that figure out even modest versions of PTO and paid sick leave will have a real hiring and retention edge.”

While the free meal is a practical perk that saves employees on food and is available to 72 percent of workers, only 24 percent listed it among their top three benefits so if an operator is treating free meals as their main retention play, they're overestimating its value.

Family meals are a different thing, Boesch said as they're less about the food and more about the pause. 

“It's 20 minutes where the team is together, off the clock, checking in on each other. That's where relationships get built, and our data shows relationships keep people around. So if we're ranking priorities, PTO and paid sick days are the benefits with the biggest gaps to close, and they should come first. Free meals are perks you likely already offer. Family meal is a practice that has a minimal cost and does real work.”