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How to Prevent Employee Turnover: The People Equity Model |

How to Prevent Employee Turnover: The People Equity Model |
How to Prevent Employee Turnover: The People Equity Model |

In 2011, 47% of restaurants faced higher turnover rates than they did the year prior. Turnover is a fact of life in the foodservice business. While finding new employees can be a headache, it can also affect the way your customers perceive your business.

With full-time work difficult to come by, jobseekers are searching for positions with reliable, sustainable companies. And if you can afford to grow, you will need a way to bring aboard reliable people to keep your business going. By utilizing the People Equity Model not only can you effectively hire and retain employees, you can also improve your customers’ experience and find yourself reaping the benefits.

What is the People Equity Model?

The People Equity Model was created by New Jersey-based Metrus Group in 1988. It encourages businesses to improve training and education to develop talent and to invest in their employees by bringing them more closely into the fold. The model has three major components for success: Alignment, Capabilities and Engagement or ACE.

How to Utilize ACE

Alignment entails helping your employees and new hires alike better understand your business strategy and goals. Examples are:

  • Instilling new hires with a sense of purpose. Don’t rely on corny, decades-old human resources videos or your reputation alone. Provide in-depth education of your brand.
  • Show your enthusiasm and make it contagious. Set the sights of new hires high. Encourage excitement by relaying what it means for you to have them on board.
  • Make your goals known. By relaying what you expect from them, new hires will know what to expect from you.

Capabilities involve creating an able and, well, capable workforce. The better your employees, the more you stand to gain. Examples are:

  • Investing in training. Training can take away from time and resources, but it pays off in the long run by building confidence in your employees and customers. » Learn more about what makes an effective server
  • Providing sufficient information. Learning on the fly happens often in the foodservice industry, but it doesn’t mean that it has to be the norm. Be as detailed as possible.
  • Allow for job shadowing. Allow new hires to study closely what it takes to be a great employee. Show customers how important it is to have properly-trained employees on the job.

Engagement is simply creating a sense of positive motivation, listening to your employees and rewarding a job well done. Examples are:

  • Offering constructive feedback. Find a way to impart confidence with struggling employees to lift them up and don’t be afraid to get your hands dirty when helping them out.
  • Giving employees an opportunity to invest themselves in the business. Help them climb the corporate ladder or provide employee discounts.
  • Having a little fun. Throw a company party or sponsor a fun company event every once in a while to show your appreciation, boost morale and allow co-workers to bond.

Gauging Success

In 2007, Metrus Group conducted a study with the American Society of Quality in which they graded the performance of over 2000 businesses who used the People Equity Model by measuring their ACE scores. The Metrus Group found that companies with high ACE scores were twice as likely to be at the top of their industry in financial performance. Not only that, but companies with high ACE scores averaged 40 percentage points higher than competing businesses on customer service ratings.

By making those three tactics the cornerstone of your business, you not only improve your ability to evaluate and recognize the right people for the job: you also increase communication within the workplace to better move your business forward. Giving your employees the proper education and incentive is crucial in order to stem the tide of turnover and to run as efficiently as possible. » Learn more about how to reduce turnover

Empowering your employees with the right tools keeps them happy and benefits your bottom line as well. All the while, you improve the experience for your customers and keep them coming back for more.

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