Category: Hiring Staff

Managing Millennial Employees In The Hospitality Industry

15/8/2015

Effective management of Millennial employees in the hospitality industry is becoming increasingly important as they continue to grow as a percentage of the workforce. The task for managers is to motivate Millennials as well as reshape policies and processes to ensure they get the most out of this generation of workers.

Millennials are defined as being those born between 1976 and 2001. They have grown up in a world of great technological change. They are often negatively stereotyped as being entitled and nassistic. On the flipside they are seen as optimistic, energetic and tech-savvy.

Whatever the stereotypes, Millennials are entering the workplace with a set of different set of expectations to previous generations with implications for the hospitality industry.

Flexibility

One of the most important factors for Millennials when it comes to employment is work-life balance and the desire for flexibility. The hospitality industry is well known for its flexible work options, with employees able to work early mornings, during the day or late at night. Managers should use this feature of the industry as a selling point in their recruiting efforts.

Context

Millennials want to feel as though they are contributing to the greater good. During the initial hiring stage ensure you talk about the bigger picture and how you see them as part of that. Outline the business vision and its values. Be clear in setting expectations and the needs of the business.

Job Hopping

Hospitality managers need to acknowledge that job-hopping is a regular occurrence for Millennials and that they need to have plans in place to keep them engaged.

During the recruitment process be upfront and set expectations around advancement within the business as well as your businesses culture.

Once hired, you improve your chances of retaining Millennial employees by encouraging their input. Seek their thoughts on ways to improve processes and grow your business. Millennials come into a business with new ideas and ways of seeing things. Harness their different perspectives and leverage their insights.

Not all employees will stay. It is therefore prudent in certain circumstances to have confidentiality agreements in place in the event that they decide to work for the competition.

If you keep take the input of Millennials seriously and keep them engaged then you maximise the chance that you will keep them for the longer term.

Education and Training

One strategy to keep Millennials engaged is through workplace education and training. This can be in the form of formal courses, on the job training or peer mentoring. You should engage Millennials in your business with stimulating and challenging projects. Millennials are lifelong learners and will cherish the chance to up-skill and take on responsibility.

Job Security

Despite their propensity to change jobs at regular intervals, Millennials still have expectations of job security. Managers should ensure that they are clear at the outset that any employee agreement is based on performance.

Collaboration

Millennials grew up participating in teams and many enjoy working as part of a group. Set up forums that allow Millennials to share their ideas for the business with colleagues. Trust them with the responsibility to go and implement any innovative ideas they might come up with.

Social Media Policies

Millennials have grown up in an era of social media and are frequent user of social media platforms. It is therefore important for organisations to implement clear and specific policies related to its use. Any attempt by an organisation to restrict what employees can write on social media could be seen to restrict the right to freedom of speech.

Feedback

Millennials are comfortable with being assessed and value regular feedback from their managers. Millennials are often ambitious and want to be promoted quickly. Be upfront about how performance will be measure and ensure that you don’t make promises that will be hard to keep down the track. Ensure you have regular discussions about career goals and are providing regular feedback on their performance. Provide generous praise for a job well done and constructively outline any areas for improvement.

The Way Forward

As Millennials become an increasing part of the workplace the challenge for hospitality business owners will be to adjust their approach to accommodate a new generation of workers who are creative, innovative, energetic, optimistic and tech savvy but at the same time have their own set of demands. Hospitality owners that are able to provide a workplace environment conducive to how Millennials like to work stand to unlock new ways to grow their business.

Budget 2015: How your hospitality business stands to benefit.

26/5/2015

In our last post we outlined what the 2015 budget meant for small business owners of cafes and restaurants. We specifically took a look at the instant asset write off and why it could be time to invest in a new POS. Today we take a further look at the range of other small business incentives announced in the 2015 budget and how your hospitality business can benefit.

Tax cuts

The instant asset write off wasn't the only tax concession announced in the 2015 budget. If you are restaurant and cafe owner and your business has an annual turnover of less than $2 million then you will receive a tax cut from next financial year.

If your restaurant or cafe is registered in a company structure then from July 1, 2015 your tax rate will reduce from 30% to 28.5%.

If you're an unincorporated business then you will receive a 5% tax discount from July 1, 2015. This means that any income you earn from your cafe or restaurant is eligible for a 5% discount on your tax bill. This concession is capped at $1,000.

Reducing red tape

The government also announced a range of measure in the 2015 budget aimed at reducing red tape for small business.

One of these was a change to the Fringe Benefits Tax (FBT). For businesses whose annual turnover is less than $2 million then any portable electronic device you provide to employees from July 1, 2016 will no longer attract FBT. A portable electronic device covers things such as mobile phones, laptops and tablets.

Another measure announced in the budget was Capital Gains Tax (CGT) relief for small businesses who decide to change legal structure and incorporate their business.

Currently CGT relief is only available for individuals who decide to incorporate, its is not available to businesses in any other structure, for example a partnership or trust. The new rules apply from July 1, 2016 and are aimed at small business who decide that their initial business structure may no longer be appropriate once they have begun operating and are more established.

Help to hire staff

The third aspect of the governments small business package that is set to benefit the hospitality industry in particular is assistance when hiring employees. There are three ways operators of cafes and restaurants could benefit:

Under a new National Work Experience Programme, the government will provide opportunities for employers to offer work experience for unemployed job seekers. This will come into effect from January 2016
Flexible wage subsidies will be available to employers under the Restart, Youth and Long Term Unemployed wage subsidies program.
Changes to the Restart Programme from January 2016 will make it easier to get government support when small business hire older workers.

Make the Budget work for your restaurant or cafe

Small business were a big focus of the 2015 budget and we have outlined three areas where owners of cafes and restaurants can benefit. The tax cuts, in combination with the instant asset write off, cuts to red tape and employer incentives gives the hospitality industry an incentive to invest in productive assets for their business and look to hire new workers.

3 Tips When Interviewing Hospitality Staff

17/2/2015

The hospitality industry is notorious for it's high staff turnover. Reasons for this include:

Unsociable working hours
Physically demanding work
Temporary nature of many employment contracts

However another factor is a poor process when interviewing hospitality staff.

A recent study by Griffith University found that Australian hotels have more than a 50% staff turnover rate. The study put the figure to replace those staff to be on average $770,000.

What the study makes clear is that the financial cost of high turnover directly effects your business bottom line.

Hospitality businesses operate with very tight profit margins. So it makes sense to get your hiring right. You stand to improve your profitability if you do.

Here are 3 tips you should focus on when interviewing hospitality staff to ensure you hire candidates that are going to stick around.

1. Watch Body Language

A candidates body language during an interview can give you great insight into their personality.

Here are some of the things you should be on the look-out for:

Posture: poor posture can be a sign that the candidate is disinterested. If they're not engaged now it's unlikely that's going to change on the job.
Eye-contact: if a candidate can't look you in the eye during an interview this can be a worrying sign. Sometimes people are nervous or shy but if the candidate can't hold eye-contact at crucial stages of the interview it could be that they are not telling the truth. If they hold eye-contact too much it could be a sign of aggression which is a dangerous also.
Fidgeting: someone who is constantly fidgeting is often impatient or frustrated. In the often highly stressful hospitality industry this is unlikely to be the candidate you are looking for.
Hand gestures: relaxed, easy-flowing hand gestures are a good sign. Be on the look out for sharp, over the top gestures that can indicate aggressiveness.
Arms: a good posture with relaxed arms and legs is what you should look for. If the candidate has crossed arms and legs this is usually a sign of defensiveness.

2. Ensure staff are a good fit with your business

When interviewing staff for your hospitality business one of your goals should be to determine whether the candidate will make a good fit with your business. Think about the personality of the brand, the customers you serve and your existing staff. Do you see this candidate fitting in?

Some questions you can ask to uncover whether the person you are hiring is a good fit for your business include:

Why do you want to work here?

You want the candidate you are hiring to be enthusiastic and keen to join your team.

What are your greatest strengths?

By asking this question you can determine whether the candidate is a good fit for the role you are hiring. You can also match their strengths against the rest of your staff. Does this candidate fill a gap that you might need?

Where do you like to go out to drink and eat?

A candidates personal interest is a good way to discover their personality. You are then in a better position to assess their fit with other members of you team and other business stakeholders.

3. Interviewing is a Team Process

When interviewing hospitality staff for your business determine ways to involve more people in the process. Existing staff who will be in regular contact with a new employee are prime candidates to have input into the hiring of a new staff member. This is one way to ensure that when someone new is hired they are readily accepted, fit in and can make an impact straight away. It also promotes open communication, a good team atmosphere and culture which is critical in the hospitality industry.

Once the new staff is hired have a mentor system in place whereby they shadow an existing staff member. They will get a better insight into the processes and procedures of your business and will learn their role as well as those of others.

Via: Hospitality Magazine, Frontline Hospitality, HR News Daily, Open For Business

We'd love to hear your thoughts. What have you found to be a critical part of your hiring process to ensure that your hire the best staff for your hospitality business?

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