Article contributed by Emily Gaston, Stanton Law
Hospitality businesses’ success depends largely on their employees. Recruiting, hiring, and retaining (RHR) the right candidates and the best employees should be a top priority. As an employer, how can you improve your RHR?
Start by determining which area of RHR is most in need of improvement. Consider the systems, short term worker policies, and culture designed to facilitate each.
Recruiting
Recruiting is an ongoing effort that requires dedicated time and budget. To remain competitive, regularly reevaluate your company’s brand and culture to better promote what you have to offer. A company’s brand is more than words, and the most effective brand identities start with honest internal reflection.
Finding the right candidates is never easy, but a clear and accurate description of the job goes a long way toward attracting the right candidates. Ultimately, no one likes to be lied to, and not everyone wants the same thing.
It’s crucial to highlight information that sets your company apart from the competition. Not every distinguishing characteristic will matter to every candidate, but collectively, they give an impression of the company’s values and culture. Providing realistic job previews help to hire and retain the right employees.
Hiring
In addition to competitive pay rates, workers are looking for total compensation when selecting an employer, including quality health benefits, perks, work/life balance, growth opportunities, among others. Be clear about what is offered from the outset, as well as goals and expectations, to better increase the chances of long-term success.
Retention
Assessing past relationships can provide a lot of clarity as you consider employee retention. Of all your former employees eligible for rehire, why did they leave? If the answer is unclear or unknown, consider reaching out to them. They may share insights you couldn’t get from any other source. Their responses should be useful in crafting your strategy going forward.
Most importantly, focus your efforts on employees who are performing well. Celebrate great work, because everyone wants to feel appreciated and to know that their work makes a difference.
Benefits
Because overall compensation is important to most employees, offering benefits will increase the likelihood of longer-term retention. While not traditional benefits, predictive scheduling and abolishing the clopen schedule could go a long way to improving the employment relationship.
It’s important to remember that formalized benefits (health insurance, paid leave, 401k, EAP) are subject to strict legal requirements under state and federal laws. Relying on the company’s payroll provider to ensure compliance is insufficient because PEOs generally disclaim liability. This puts the onus on owners or managers to supervise and coordinate complex, highly regulated, benefit programs. Regardless of your company’s size, consider hiring outside or part time benefits coordinators, HR support, and/or legal counsel. The investment can pay for itself by avoiding costly mistakes, preempting complaints, and increasing retention of good employees.
Don’t let the market dictate employment practices
Even though the employment market is tight, don’t fall for the idea that “a pulse” qualifies someone for employment. It is a self-destructive mindset. Finding quality employees is a worthwhile investment in the company’s long term health.
If it becomes clear that an employee is not a good fit, help them along to their next opportunity sooner rather than later. The longer a poor performer hangs around, the more issues they create. This applies equally, if not more so, to management level employees. Letting a bad fit or poor performer linger will negatively impact the morale of their co-workers, risks damaging the company’s reputation, and may open the company up to legal claims.
This does not mean terminating an employee for one bad day or not giving an employee a chance to improve. Rather, it means that once it’s clear someone is not a good fit, initiate the process to find a better candidate ASAP.
Comply with other obligations
Don’t allow yourself to get so caught up in the competition for talent that you neglect to follow employment laws governing non-discrimination, wage and hour, worker’s compensation, I-9 compliance, and unemployment insurance. Recognize that these laws are not intended to make it easier or more efficient to run a business. Rather, they exist for the protection of the employees, and can be costly to the business if not followed. As stated earlier, consider HR and/or legal support to help minimize the risk of non-compliance.
Don’t Despair
Despite doing everything you can to improve in the RHR arena, you may still have retention issues and problem employees—those who enjoy their hiring bonus and promptly move on, those who abuse flexible policies, and those who feign all types of injury. Don’t despair. These folks are outliers who don’t deserve your limited mental and emotional bandwidth, and they shouldn’t mess things up for other employees.
As you move forward with RHR, here are a few key reminders:
- Embrace employee-friendly policies and do so with eyes wide open.
- Get HR support and employment law advice (such as that offered by Stanton Law, LLC) at the outset.
- Make sure your policies and programs are compliant and deal with problems as they arise. Remember, most people try to do the right thing.
Ultimately, keep doing what you can to recruit, hire, and take care of your good employees. At the end of the day, intentionality in all areas is always worth it.
Emily Gaston is an associate attorney at Stanton Law LLC practicing corporate transactional law and employment defense. Stanton Law, a non-traditional, entrepreneurial law firm, prioritizes practical and business-oriented solutions to minimize legal issues so that business owners can focus on what really matters: building their business. To learn more and schedule a consultation, visit stantonlawllc.com.
