Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved CHAPTER 8 Advertising and Recruiting

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved INTRODUCTION I encourage restaurants to employ single moms; they have plenty of energy. Compared to what some of them do as a single parent, working in a restaurant is considered a "break" one glad mom told me. - Maren Hickton, Restaurant Industry Consultant, Pittsburgh, PA - Maren Hickton, Restaurant Industry Consultant, Pittsburgh, PA

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved TALES FROM THE FIELD Churn and burn takes its toll…  What does the employee mean by “jump start my cultural education”?  How do high employee turnover rates impact employee morale and productivity?  When should a job applicant’s inability to speak English fluently prevent him from being hired?

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved CHAPTER OVERVIEW  Identifying the labor market and labor pool  How labor market and labor pool affect management’s ability to recruit qualified workers  The Internet and how it has expanded the labor market  Direct and indirect costs of employee turnover  Internal and external sources of labor  Recruiting strategies  Awareness of cultural diversity

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved THE LABOR MARKET The labor market is the geographical area in which the hospitality business focuses its recruiting efforts

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved THE LABOR POOL The labor pool is made up of individuals who live within the labor market and who possess the skills, attitudes, knowledge, and abilities that the hospitality operation requires

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved LOCATION  Educational levels  Personality types  Unemployment rates  Competitor recruiting practices  Median age of the population  Diversity levels Factors such as the hospitality operation’s location will influence such things as: Operations that are located in or near major metropolitan areas normally have more local recruiting opportunities than those operations that are located 50 miles or more from the nearest major city

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved WEB-BASED JOB SITES  They expand the geographical area in which organizations can now successfully recruit qualified employees  Most useful when locating top talent to fill middle and upper-level management positions Such sites have little to no impact when a restaurant needs to hire a dishwasher or when a hotel needs to increase its housekeeping staff

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved HOSPITALITY WEB-BASED JOB SITES         Large hospitality chain operations maintain a separate human resources area as part of their own corporate websites so potential applicants can view job openings and apply for jobs online

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved EMPLOYEE TURNOVER Voluntary and involuntary separations of employment from within a given operation Voluntary and involuntary separations of employment from within a given operation

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved EMPLOYEE TURNOVER RATES 32 employee separations 26 employees = 123% turnover rate Turnover rates are calculated by dividing the number of employees who have left the company, or separated, by the number of employees within the organization Turnover rates can be calculated monthly, quarterly, on a semi- annual, and on an annual basis if desired

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved COSTS OF EMPLOYEE TURNOVER The direct and the indirect costs can be substantial The direct and the indirect costs can be substantial A 1998 survey estimates the costs at between $3,000 and $10,000 per employee* A 1998 survey estimates the costs at between $3,000 and $10,000 per employee* *Turnover and Diversity in the Lodging Industry, American Hotel Foundation, 1998

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved DIRECT AND INDIRECT TURNOVER COSTS  Recruiting costs including advertising  Selection costs including time spent interviewing and pre-screening applicants  Pre-screening tests  Employee uniform costs  Training and orientation costs  Lowered employee morale leading to decreased productivity  Customer complaints  Lowered food and service quality  Lost revenues due to poor customer satisfaction and mistakes  Negative word-of-mouth Direct costs include: Indirect costs include:

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved INTERNAL RECRUITING  Solicit employee referrals  Post job openings internally  Promote and transfer from within  Solicit referrals from vendors  Solicit referrals from former employees When a hospitality operation that is seeking to fill available positions looks for candidates within the company

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved EXTERNAL RECRUITING  Hospitality and culinary programs at local schools and universities  Trade associations  Labor organizations  Churches and synagogues  Temp agencies  Competitors  Advertising When a hospitality operation that is seeking to fill available positions looks for candidates outside the company

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved INTERNAL STRATEGIES $200 BONUS IS YOURS $200 BONUS IS YOURS EMPLOYEE REFERRAL BONUS PLAN EMPLOYEE REFERRAL BONUS PLAN Do you have a friend, relative, neighbor, classmate or other known associate who you feel would like to join our XYZ Restaurant family? If so, you can earn a $200 one-time cash bonus if your recommendation works out. Do you have a friend, relative, neighbor, classmate or other known associate who you feel would like to join our XYZ Restaurant family? If so, you can earn a $200 one-time cash bonus if your recommendation works out. Employee referrals and referral bonus

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved EXTERNAL STRATEGIES  Job fairs  Serving on advisory boards  Attending trade association meetings  Churches and synagogues  Temporary agencies  Welcome walk-in applicants

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved TARGET ADVERTISING Advertising should be carefully targeted to ensure that the operation is reaching potential and qualified applicants Advertising should be carefully targeted to ensure that the operation is reaching potential and qualified applicants

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved RECRUITMENT STRATEGIES The most successful operations generally focus their efforts both internally and externally in order to attract a diversified and qualified pool of job applicants The most successful operations generally focus their efforts both internally and externally in order to attract a diversified and qualified pool of job applicants

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved CULTURAL DIVERSITY  Recent immigrants  Retirees  Single parents  Displaced homemakers  Career changers Use hot buttons – key items such as services or benefits – that will most appeal to your target audience

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved SUMMARY  Identifying the labor market and labor pool  How labor market and labor pool affect management’s ability to recruit qualified workers  The Internet and how it has expanded the labor market  Direct and indirect costs of employee turnover  Internal and external sources of labor  Recruiting strategies  Awareness of cultural diversity