The Use of Higher Wages in the Foodservice Industry to Motivate and Retain Hourly Employees

Abstract

One of the most critical problems facing management in the foodservice industry is maintaining adequate staffing levels during the labor shortage. This is a study of hiring employees at premium wages to reduce the effects of the labor shortage. It will attempt to show that higher wages produce an increase in productivity and a reduction in turnover. The methodology will include visiting and interviewing the management of a fast food style restaurant in operation that used higher wages as a method to increase productivity and reduce turnover. The study includes financial data pertaining to wages, sales, and profit. The ability to maintain and recruit staff will be monitored by tracking labor turnover, absenteeism, and tardiness. The wage rate differences and staffing ability of the establishment and its competitors will also be monitored.