How To Reduce Bar Staff Turnover

Staffing challenges are one of the biggest headaches for bar owners and managers. If you're constantly hiring and training new team members, it's time to take a closer look at why they’re leaving in the first place. In this blog, we’ll share helpful tips on how to reduce bar staff turnover and keep your best employees.

Bar Turnover Statistics

The Bureau of Labor Statistics reports that 73% of employees in restaurants and bars leave their jobs each year. That means roughly three out of four workers will leave and be replaced within a year. Turnover is a part of every industry. When compared to the average turnover rate for all industries, this rate is far higher.

Fast food restaurants have it even worse, with a 123% turnover rate. That number may seem impossible, but what it means is that more employees leave each year than the total number of workers in the restaurant at any given time. For example, if a restaurant typically employs 25 people, they may end up hiring 31 replacements in a year.

These numbers mean that, on average, bar and restaurant employees only stay at their jobs for about one month and 26 days. Compared to other workers in the U.S., restaurant employees quit 27 times more often.

The Top Reasons for Bar Staff Turnover

Turnover is a concern for all industries, but jobs in bars and restaurants are among the highest. It can be hard when workers leave a company or when there is a shortage of qualified personnel.

Although there are many possible causes for a high turnover rate, the following are the most prevalent ones in the restaurant sector. Bars frequently experience high staff turnover for a number of reasons, such as:

• Poor Pay and Irregular Hours: One of the main causes of high employee turnover in restaurants is problems with hours and pay. Working too few hours can lead to job loss, but working too many hours can cause dissatisfaction. Employees who receive low starting pay may also find it difficult to make ends meet.
• Dependence on Tips: Many bars pay minimum wage, with the idea that employees will generate a large percentage of their income through tips, which might change based on client traffic and the night of the week.
• Limited Opportunities for Career Advancement: There is sometimes little opportunity for advancement in the restaurant business, and staff members look for other alternatives. They might look for a position that better recognizes their abilities if they don't see any room for growth, which could result in lower production and a chance for greater compensation.
• Fast-paced Work Environment: Tight deadlines, fast-paced service, and drunk customers can all contribute to a stressful work atmosphere. Burnout can quickly result from this, particularly when combined with subpar management techniques.

To put it simply, many people view bartending as a temporary job rather than a long-term career decision.

Why Reducing Turnover Matters

It is naive to think that turnover isn't a big deal. You may be tempted to think, "If they quit, fine. I'll just hire someone else." But these numbers will stop those thoughts in their tracks. The average cost of employee turnover in the hospitality sector is about $5,900.

Hiring takes time away from management and staff. Time that can be used for other purposes, such as concentrating on the expansion of the company or improving the customer experience.

Recruitment expenses include the salary of the person in charge of executing hiring operations, such as preparing a job description and filtering through applications, as well as the costs of posting and promoting a job.

Restaurants invest a lot of money, around $645, into background checks, reference calls, and interviews during the selection process. Training and onboarding are also costly and time-consuming, involving paperwork, access to technology, training procedures, and shadowing.

While $5,900 may not seem like much money in the big picture of restaurant operations, it can add up to how many times you hire throughout a year. Some quick math puts things in perspective: if you lost a server every two months, you’d have to find a replacement six times in a year. That means you’d be paying a little over $35,000 for a revolving door of employees. There are countless things that money could easily go towards.

Compared to back-of-house roles, customer-facing roles have greater turnover rates. A restaurant's service degrades when there is a server shortage. Not to mention, you will have to overschedule your team if you cannot hire new staff members fast enough to replace the departing ones. Employees who are overscheduled are worn out, anxious, and unable to give their best work.

Service is negatively impacted in both cases. Customers will notice and either visit your restaurant less frequently or leave negative internet reviews when the service is subpar.

When workers are unhappy at work, they quit their jobs, and they typically share their unhappiness with their coworkers. Employees who are resentful of their workplace are less inclined to put in their best effort and may even consider quitting.

A positive team culture is hampered by unhappy employees. Additionally, building a community is impossible when workers are leaving in droves or spreading negativity.

The Best Ways to Keep Bar Staff

Although a high employee turnover rate is common in the hospitality sector, there are things your bar or restaurant can do to bolster staff retention. The following suggestions should help you better retain your bar employees:

Focus on Personality, Not Just Skills

Working in the service industry is pointless if the candidate isn't someone who is willing to learn and help others. A person may not be the best hire just because they are an expert on beer or have a knack for mixing cocktails.

Personality-based recruiting is often disregarded in the hospitality industry, but it may just be your saving grace. Look for people who will mix well with your staff and team culture. 

Create Opportunities for Growth and Advancement

There are plenty of employees that love their jobs and are engaged in the restaurant industry, but there are also a lot of seasonal workers and students who are already out the door. However, if those employees are learning on the job and see a clear path to professional advancement and greater responsibility, they are more likely to remain loyal to your brand. Make use of those seasoned employees and give your younger staff members the opportunity for mentorship.

Embrace Transparency

Building trust and loyalty with employees also requires being open and honest with them. Take bar staff into your confidence. Utilize quarterly meetings as a way to develop trust between our owners and employees.

A paycheck not only provides necessary funds but also reflects a restaurant's value to its employees, as underpayment can lead bartenders to seek better opportunities elsewhere.

Don't be afraid to give top performers the compensation they merit. Small acts of kindness, like hosting a party for the employees or giving them more breaks, can boost morale and foster a happy workplace. Employees may like going to work each day as a result.

Request Feedback

Learning from your mistakes is something you should not be afraid to do. Make sure to interview departing employees to learn why they decided to quit your restaurant. Keep a record of the information you collect and look for patterns. You can learn a lot about areas for improvement as an employer from the information and comments you gather from departing employees.

Checking in with employees on a regular basis to see what ideas they have for bettering the workplace is also a smart idea. They might come up with some great ideas, and implementing them will make them feel more invested in the business.

How Can I Reduce Turnover?

There will always be a lot of employee turnover in the restaurant business, but you can promote loyalty by trying to reward good work and being open to making adjustments when you see opportunities for improvement.

Enrolling in a recognized alcohol server training course is crucial for another way to show to servers, staff, and the community that you care. TIPS provides online courses for serving and selling alcohol in various jurisdictions. These courses are entirely online, allowing you to complete them at your own pace. Check out our catalog for more information.