Workplace Realities: Recruiting When Your Staff Turnover Exceeds 100%

I’ve lived, worked and managed HR in industries where turnover for certain positions and/or departments exceeded 100%. It’s not fun.

I recently read this article (“Panera losing nearly all workers in fast-food turnover crisis”) about the increasing challenges in the restaurant industry related to turnover and, I must admit, it induced numerous stress-inducing flashbacks.

While the article discusses automation – kiosks for customers and robots back-of-house – the highlights for me were related to the human impact:

  • “The job no one really wants– Experts who have studied the restaurant business for decades and work with national chains are divided over the extent to which fast-food jobs can be made better. Some do not believe there is no formula combining pay, benefits, training and culture that can save the human worker in this sector.”
  • “There are no other job segments in the U.S. that have higher turnover than the fast-food and fast-casual segments of the restaurant industry, according to DiPietro at the University of South Carolina’s School of Hotel, Restaurant and Tourism Management. “Not even retail.””
  • “…the fast-food industry, which faces steep price competition, is handicapped by the inability to raise wages much, as well as its limited career advancement opportunities. It also has little history of offering competitive benefits. Only 14% of all fast-food restaurants offer sick leave, and only 16% offer paid time off.”
  • “She (Rosemary Battchair of HR Studies and International & Comparative Labor at the Cornell School of Industrial Labor Relations) said the labor problems can be solved by methods other than robots, such as chains putting more effort into hiring better managers and treating workers with more respect. That requires companies being willing to give workers more hours and more predictable scheduling. “That is not very costly for HR to invest in. It just takes managers to be frankly more competent and pay more attention to the issue. … Maybe they won’t optimize labor costs to the extent they want to, but it will pay off in lower turnover and more satisfies workers and better operations. That should not be hard problem to fix.””

And, as Batt also pointed out, “Because turnover is getting so serious and because chains have the ability to do the HR analytics, they can begin to cost out turnover and say, ‘This is not a cost we have taken seriously, because historically we were counting on high turnover model as acceptable.'”

All of it. Just all of it. 

A few of the realities I experienced:

  • A mindset that employees are as replaceable as the other supplies and materials used to run the restaurants.
  • The cost of high turnover is anticipated, expected and budgeted for much as the company budgets the cost of replacing xx.x% of the kitchen equipment each fiscal year.
  • Jobs are ALWAYS open and hiring is ONGOING. Of course, when squiring candidates through the recruiting process it’s impossible to discuss specific schedules because the shift, days and availability of hours will change, undoubtedly, before the person even reports for Day 1. This is based, of course, on how many people will either quit or start between now and, oh, two days from now.  
  • Benefits will be offered and touted (tuition reimbursement! flexible schedules!) because there are sufficient qualifiers in place to ensure a minimal number of employees will even get to take advantage of them. (i.e. “tuition reimbursement is available for full-time employees with at least 12 months of continuous service who are enrolled in a curriculum related to their job.”)
  • Annual wage increases of 1.5% – 3% (and on $9 per hour, a 3% increase equals 27 cents) ensure that the INSTANT a competitor starts paying an additional .50 per hour, the staff will practically leave mid-shift and sprint down the street to start a new job.

But…yet…sitting up in the corporate HQs somewhere far, far away from the day-to-day realities of life in the kitchen, HR teams devise catchy tag line and launch compelling CAREER sites even though, let’s face it, most job seekers are not viewing these gigs as ‘careers.’ While some folks may, in fact, start in a restaurant and ‘move up the ladder’ (and there are, certainly, people who work at corporate offices in ‘careers,’) these sites are promoting employment to candidates who are applying for jobs paying anywhere from $7.25 to (maybe, if they’re a ‘manager’ with 10 years experience) $12 per hour. 

So I decided to take a look at what the talent acquisition teams (and the multitudinous employer branding consultants) at limited service restaurants have put together on their various career sites. 

Here’s what I found: 

Panera“Fresh, food, fun work”

Taco Bell Careers“Start with us…stay with us”

McDonald’s Careers“Where you want to be” 

Subway“Careers on the rise” 

Chipotle“The difference is real. Work with the food you love.” 

Burger King“Bring it @ BKC” 

Dunkin’ Donuts“Here today – here to stay” 

Chick-fil-a“Growing together, prospering together” 

Wendy’s“Are you a Wendy’s kind of person?” (“we love to have fun, and hopefully you do too”)

Whataburger“Do work that makes you proud” 

Raising Cane’s“We make fun of work” 

Sonic“This is how we Sonic” (“we encourage and attract wildly creative people”) 

KFC“Join our KFC Family” 

Dairy Queen“Create unbelievable moments in everyday lives” 

Popeyes“You belong at Popeyes” 

Qdoba – “Craveable food. Raveable careers.”

Well…if nothing else, I’ve now got a hankering for some good old-fashioned carbs and sodium delivered in a paper bag. 

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People, Culture and Inclusion: #CultureFirst19

I’m spending a few days in San Francisco at Culture Amp’s #CultureFirst19 event. The conversations (which I love!) are centered around building and nurturing company cultures that are competitive advantages.

The attendees at this event are super engaged and “get it” – these are people who are passionate about transforming work. One aspect I find particularly inspiring is the folks I’ve run into who are relatively “new” to the People/HR profession and are here – purposefully! – because they have both a desire and an ability to create (from the ground up in some cases) workplaces that are people-centered from the get-go. Oh sure, there are conversations occurring in every nook-and-cranny in the hall about linking employee insights/feedback and performance data (sounds very HR, I know). But the dynamic of these chats is not “traditional HR” – yeah…I think you know what I mean. There’s energy. There’s positivity. There’s talk about “what’s possible” and the future is viewed not with fright or skepticism but with eagerness.

Culture Amp (the company) is an employee feedback and analytics platform well-known for providing insight (and actionable advise) to its customers using engagement and performance data. I’ve been a fan for a number of years as I’ve watched the company grow and expand while remaining true to their mission and focus. Solidifying this for me, yesterday, was the fact that Didier Elzinga (CEO/Founder) opened the conference with a wonderful (and very human and personal) session.

There are numerous exciting things coming out of this event (stay tuned for what I learned about Foresight Engine!) but there’s one thing I jumped on immediately: Culture Amp’s Diversity and Inclusion Starter Kit.

This is a free (yes) tool available to anyone: small orgs, large orgs, Culture Amp customers and non-customers alike.

Using this starter kit will provide you with access to:

  • a research backed D& I survey
  • advanced analytics
  • clarity and understanding (stuff like heatmap visualization and embedded NLP tech)
  • insights based on your specific org’s survey results
  • recommendations (and inspiration) to start driving change

If diversity, equity and inclusion are top-of-mind for you — check it out. Here’s where you can sign up.

#culturefirst

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Global Human Capital Trends Report – 2019

Last week Deloitte released the 2019 Global Human Capital Trends report. It’s always a must read for me and I strongly encourage other HR leaders and those involved in the talent/people space to take a look. Last year, Deloitte described the rise of the social enterprise and this year’s report outlines how the factors and pressures that have driven the social enterprise not only continue but are growing more acute.

A few tidbits from this year’s report:

  • 86% of respondents believe they must reinvent their ability to learn
  • 84% of respondents reports they need to rethink their workforce experience to improve productivity, and
  • 80% believe they must develop leaders in a different fashion

Deloitte outlined a set of five principles to frame the “human focus” for the social enterprise; describing them as benchmarks against one can measure actions and business decisions that could affect people:

  • Purpose and meaning
  • Ethics and Fairness
  • Growth and passion
  • Collaboration and personal relationships
  • Transparency and openness

These five design principles define the “why” of reinvention and the 2019 Human Capital Trends, listed below, are divided into 3 categories:

Future of the workforce

  • The alternative workforce
  • From jobs to superjobs
  • Leadership for the 21st century

Future of the organization

  • From employee experience to human experience
  • Organizational performance
  • Rewards

Future of HR

  • Accessing talent
  • Learning in the flow of life
  • Talent mobility
  • HR cloud

This is a great resource for HR and organizational leaders; you can download the report here.

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Watching this year over year as I do?  Here are Deloitte’s Human Capital Trends from the last 3 years:  

Deloitte Human Capital Trends Report2018

  1. The Symphonic C-Suite: Teams Leading Teams
  2. The Workforce Ecosystem: Managing Beyond the Enterprise
  3. New Rewards: Personalized, Agile and Holistic
  4. From Careers to Experiences: New Pathways
  5. The Longevity Dividend: Work in an Era of 100-Year Lives
  6. Citizenship and Social Impact: Society Holds the Mirror
  7. Well-Being: A Strategy and a Responsibility
  8. AI, Robotics, and Automation: Put Humans in the Loop
  9. The Hyper-Connected Workplace: Will Productivity Reign?
  10. People Data: How Far is Too Far?

Deloitte Human Capital Trends Report2017

  1. The organization of the future
  2. Careers and learning
  3. Talent acquisition
  4. The employee experience
  5. Performance management
  6. Leadership disrupted
  7. Digital HR
  8. People analytics
  9. Diversity & inclusion
  10. The future of work

Deloitte Human Capital Trends Report2016 Organizational design

  1. Organizational design
  2. Leadership
  3. Culture
  4. Engagement
  5. Learning
  6. Design Thinking
  7. Changing the skills of the HR organization
  8. People Analytics
  9. Digital HR
  10. Workforce management

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Hiring Henchmen, Underlings, and Evil Minions

Hello? Have I reached the Recruiting Department?

The other week, without much else going on, Mr. S. and I settled down on the couch and watched a marathon of James Bond movies. (editorial note: I never liked Pierce Brosnan in the role and, IMO, Roger Moore was the absolute worst.)

As always, when watching any movie that features some evil-doer (ED) focused on disaster, mayhem, and taking over the world, I gave lots of attention to the ED’s side-kicks. Inevitably I began to wonder…

  • How did this guy/gal casually participating in nefarious activities decide this was the career path they wanted to follow?
  • Does one prepare a resume and create a LinkedIn profile in the hope that recruiters reach out?
  • Is there a job board for “Evil Underlings?”
  • Who is the head of TA for the evil organization? 
  • What about recruitment marketing? What sort of messaging is required? 
  • Is the recruiting team working diligently to eliminate bias when creating an applicant pool?
  • Does Susie Recruiter conduct phone screens? Skype? Scheduled/recorded video interviews?
  • What are the competencies and behavioral attributes against which she is hiring?
  • Has Susie Recruiter executed an SLA with the ED? How do those regular check-in meetings go?
  • Are there any skills tests or assessments utilized during the screening process?
  • Who extends the job offer?
  • What does the compensation package look like?
  • Is there a head of HR? A policy manual? An employee handbook?
  • Do evil minions get PTO? Full medical/dental/vision? What about Life Insurance and AD&D?
  • Can you even imagine the premiums for workers comp coverage? 
  • What, exactly, is the projected and actual turnover rate in the organization?
  • If a henchman resigns, who conducts the exit interview?
  • CAN a henchman resign?
  • Does the organization provide letters of reference for an ex-employee’s next gig?

I thought my time in the hospitality/gaming industry presented mad-paced recruiting, sufficiently high turnover and challenging employee relations issues. 

Probably a cake-walk compared to that which is faced by the CHRO of Evil Empire, LLC.

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mage: Lady Penelope Peasoup; Batman 

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Company Values: Not the Same as It Ever Was

I have, over the course of time, participated in and/or facilitated numerous activities designed to create, define and encapsulate company “Mission, Vision & Values.” 

Quite often, because some training facilitator settled on a way to approach this exercise in 1987, this process has involved a cross-section of employees and other stakeholders settling themselves into a room armed with flip charts, markers, and cartons of post-it notes. There may have been focus groups, assessments, surveys and iterative discussions prior to this day but THIS one-day event (with catered lunch!) has been the culmination of hours upon hours of work. I’ve seen some raw emotions too; at one organization a senior leader, not accustomed to a collaborative process, stormed out of the room flinging papers and markers in her wake.

Good times.

Certainly there are some people who think this is a colossal waste of time; fluff dreamed up by management consultants and HR folks. After all, thinks Mr./Ms. MoneyBags CEO, “our missionis to make money, our visionis to make MORE money, and our valuesare to make that money in whatever way we need to make it.”

I, however, have always believed that clarity around M/V/Vs not only aligns people across an organization but provides a guiding point – a lodestar if you will, for everyone to follow. 

We recently went through this exercise at my company and, let me say, it was GREAT! No conference rooms with post-it notes for us though; we’re 100% virtual so we worked through the process via Zoom calls and whiteboarding things out on Google Docs. There may or may not have been adult beverages involved.  

What I have determined, over the years, is that the mission and vision part is relatively easy; why we’re here and we’re going. Most every company can easily articulate this with just a modicum of prodding.

It’s the values part that leaves people flummoxed, confused and exasperated. It can be an arduous task for leaders to allow employees to not partake of some serious self-reflection but also to have the discussions around the “not so good things” about a company’s deeply-held beliefs. (Inverting the question and asking “what is our company NOT” or “what do similar organizations do that we would NEVER do?” can lead to some interesting discussions).

So because it’s hard, and then because it’s safe, these M/V/V teams end up just tossing word-salad up on the wall and calling it a day. This, my friends is why 99.9% of organizations have the same values: teamwork! communication! service! integrity! (blech). Watered down pabulum. 

But in our recent foray into encapsulating and defining our company values we didn’t settle for the mundane.  I’m telling you, not only was the process great but I so love what we came up with that I feel the need to share. Let me present, the Strio Consultingvalues:

  • No Doors and Open Windows Lots of companies talk about an “open door” culture but we embrace a culture with no doors and wide-open windows. We’re transparent and accessible to our clients and to each other. Got a question? Ask it. Need access to someone? You got it. Think something sucks? Bring it up.
  • Doing Things Right Means Doing the Right Thing We’re honorable and trustworthy in all our interactions; integrity is non-negotiable. We play it straight from the get-go and, if we screw up, we own it. The needs and interests of our clients are top of mind. Always. 
  • Embrace That Which is UnusualWe’re OK with being weird. Really. We consider it a badge of honor to be of strange or extraordinary character. Got humor? We like that too.
  • Unburdened by Tradition We’re not bound by the traditional walls of an office nor are we stuck in the typical nine-to-five grind. With a reverential nod to workplace customs that have served us well, we take great delight in consigning the soul-sucking, outdated ways of doing things to the trash heap of business practices as we focus on the future of work. We pride ourselves in the way we work; we’re creative, adaptable and fast-moving – and we help our clients work this way too.
  • Bold and Brainy We surround ourselves with people who exhibit insatiable curiosity; people who read, learn, explore and debate. We like people who ask “why?” and we love nothing more than answering that question.
  • Ubiquitous Uniqueness Our community – our company – is made up of human beings and we celebrate the individual. Be yourself. Be unique. Be special. Live your best life.

What we believe, how we operate and what’s important. These are ours and no one else’s; and most definitely NOT the same as it ever was. 

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Heading to WorkHuman? Join me for the panel Beyond Buzzwords: Real Talk on What it Takes to Create an Amazing Culture”with Michelle Prince, SVP, Global HR, Global Head Learning & Development, Randstad; John Baldino, President, Humareso; and Niamh Graham, VP of Global HR, WorkHuman.

Haven’t registered yet? Use code WH19INFRSC for a discount! 

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