The Main Ingredient B (Tips 9- 14)

Many restaurateurs want to provide security for their employees by helping them save and plan for their future. To do this, some organize savings and retirement plans-usually 401(k)'s or IRA's. Both provide a simple way for employees to save automatically via payroll deductions. Often employers contribute, usually in the form of matching a percentage of the employees' contributions. There are even plans available for businesses of all sizes, even those with only one or two employees.

Some things to consider:
-Talk to your accountant or financial advisor about which plan is best for you and your employees. There are subtle differences between 401(k)'s and IRA's- including the amount that employees and employers can contribute annually and whether or not the employee can occasionally take out money. Some plans are specifically designed for small businesses (fewer than 100 employees) and others have no restrictions.
-Research the best way to administer the plan- through your acountant, a financial consultant, payroll company, etc. Be sure to ask about annual administrative fees.
-Consider adding to employees savings/retirement funds by sharing after-tax profits. You can designate a percentage of profits to be automatically added to each employee's account.
-Encourage employees who have 401(k)'s or IRA's to follow the progress of their savings. Often these employees become the biggest advocates, showing other employees how contributing a small amount from each paycheck can grow to a meaningful amount. Some 401(k) plans allow employees to manage their own funds individually (i.e., via stock portfolio) on the Internet.

Tip #10- Profit Sharing
Sharing profits is a powerful reward and retention tool. It allows employees to participate in the financial success of the company and work together towards that goal ever day. Many restaurateurs find it is a good way to give employees more money without having to commit to salary increases.

Some thoughts:
-Most restaurateurs who share profits do so after employees have been on staff for one year or have worked 1,000 hours annually.
-Profit sharing is usually paid out annually, however some restaurateurs feel sharing profits more frequently is an excellent motivator and morale booster.

Tip #11- Flexible Scheduling
According to the Industry of Choice Report, a flexible schedule is one of the principle reasons why employees stay; conversely, they leave for better schedules.

When developing a strategy for flexible employee scheduling, remember:
-Make sure you have backup. Failure to schedule enough staff to handle the work load is a primary driver of dissatisfaction and one of the main reasons employees quit a job.
-Cross-training is the key. Ideally employees should know each other's jobs- day to evening shifts are interchangeable; a bartender can work the floor or vice-versa- so when someone asks to switch, you're covered.
-Being tuned in to employees enough to see if someone is especially tired or has had a bad day and then covering for them sends a powerful message and has a strong impact on their loyalty to you.

Tip #12- Preferred Scheduling
Many restaurants encourage long-term staffing or improved performance by rewarding employees with their preferred schedules- the most lucrative or attractive shifts, better or more tables and/or the first chance at private parties or catered events. Some employees choose to work when they can make more money; others choose shifts that let them spend more time with their families. Rewarding better servers with better tables has an added plus: good customers benefit because they have servers who consistently provide excellent service, which translates into more money for everyone.

Some tips:
-Make your policy clear- you are rewarding seniority or performance- and be consistent, so when staff sees someone getting the best shifts and/or the best tables, it motivates them. If they don't see the potential to move into those shifts, you may lose them.
-To avoid the appearance of favoritism when rewarding employees with schedule preferences, be as objective as possible. Some restaurants use feedback from customers, sales reports, or rating systems.

Tip #13- Paid Time Off
Being given the gift of a paid day off or earning it as a reward is something that is meaningful to all employees and can have a powerful impact on their morale. Even small restaurants sat they stay competetive for hourly employees by offering paid vacations as part of their package.

Some things to consider:
-Some restaurants let employees earn days off for good performance, i.e.: being on time, not missing work. Because paid time off is such a strong incentive, it can be used as a powerful currency in the workplace.
-Other restaurants give paid days off (or an extra day's pay) for employee birthdays, which not only show appreciation of employees' personal lives, but also has the advantage of not impacting the payroll all at one time.

Tip #14- Public Praise
Many restaurants make a point of thanking employees in front of their peers and/or posting comments from customers for all to see. Some take it a step further by recognizing staff in newspaper ads, on bulletin boards, and on their Web sites. Spreading the word about good employees not only shows employees that you value them, it also sends a powerful message to the public- including potential customers and prospective employees- about your work environment.

Some things to consider when posting customer comments:
-If comment cards mention specific staff, try to rotate them to include everyones name over time- don't always post the same names. Be especially conscious of new employees- seeing positive feedback about new hires builds morale and conidence in them.
-If a comment card is negative, either camouflage the employee's name and post it so everyone can learn from it, or omit the card, and talk with the employee privately.

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