Study Finds Restaurants Making Strides to Stem Turnover

Oasis, a Paychex® Company recently surveyed 130 U.S. small business owners and managers who operate in the restaurant industry. This new research found that restaurant owners are making positive strides to stem the tide of what has historically been known as a high turnover industry. Seventeen percent of restaurant owners reported that they “have little/no turnover with employees,” a further 28% believe their turnover “is lower than the industry average,” and 39% consider their turnover to be “about average for our industry.” The research suggests that restaurant owners are now, more than ever, realizing the impact that lower turnover can have on profitability and viability.


The restaurant industry is known for extremely high annual turnover rates. Workers often struggle with low pay, long hours, lack of appreciation, and no sense of career direction. Yet these are the very people who are the first point of contact with your customers. Investing in their development, as well as offering competitive compensation and robust benefits packages, will go a long way in attracting and retaining quality staff. It appears our survey respondents are on the right track as 69% told us they “have an effective recruiting process in place to bring the right talent into their restaurants.”

Other key findings that support restaurant owners investing in their people:

  • As many as 71% said they support the development of employees’ skills with company-hosted training, and others also provide access to an online learning library, educational/tuition benefit programs, and reimbursements for outside training.


What training options do you provide to develop the skills of your employees?

  • Company-hosted training – 71%
  • Online/on-demand learning library – 22%
  • No company-provided training – 16%
  • Educational/tuition benefit program – 10% 
  • Reimbursement for outside training – 9%

Forty percent reported they “provide continuous communication and feedback on employee performance.”

How often do managers provide employees performance feedback?

  • We provide continuous communication and documentation of feedback – 40%
  • We don’t have a formal process in place to communicate and document performance feedback – 22%
  • Quarterly – 18%
  • Biannually – 13%
  • Less than once a year – 7%

Twenty percent said they have “higher employee benefit contributions than at other companies,” and an additional 34% said they “contribute about the same as similar companies.”

Forty-six percent of respondents provide employee safety training “at the time of hire and annually,” and a further 43% said the last time the updated their employee safety manual was “less than a year ago.”


It’s encouraging to see that restaurant owners are investing in their people.


Call Oasis today for a no obligation, free consultation at (866) 314-8333 or visit Download a complimentary copy of the complete survey results here.


About the Study
This survey was conducted with 130 U.S. small business owners and managers who operate in the restaurant industry and who employ between 10 and 99 employees. Fifty-two percent of the respondents were male and 48% were female. Eighty-nine percent of the businesses were privately owned, and 58% operated from one location. Most companies were well-established with 36% operating for over 20 years and a further 25% of respondents said they had been in operation for 11 to 20 years. Interviewing took place online, between March 26 and April 9, 2019, using a National Web Panel by SSRS, an independent market research company located in Glen Mills, PA.


Professional employer organization (PEO) services provided by Oasis Outsourcing, Inc. (Florida employee leasing license GL42) and its affiliates, which are licensed or registered to provide PEO services where required by law.

New Research: How Will These Workforce Challenges Impact Your Business?

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