{"id":4374,"date":"2022-04-14T12:09:23","date_gmt":"2022-04-14T16:09:23","guid":{"rendered":"https:\/\/lgcassocprod.wpengine.com\/?p=4374"},"modified":"2024-03-07T15:31:17","modified_gmt":"2024-03-07T20:31:17","slug":"increased-pay-rates-reduced-turnover","status":"publish","type":"post","link":"https:\/\/lgcassociates.com\/es\/increased-pay-rates-reduced-turnover\/","title":{"rendered":"Hospitality in the News | Does Increasing Pay Rates Equal Reduced Turnover?"},"content":{"rendered":"

Every week we comb through the news to find employment trends affecting the hospitality industry so you don\u2019t have to. This week\u2019s hospitality in the news topic: do increased pay rates equal reduced turnover?<\/span><\/p>\n

Turnover in the hospitality industry<\/span><\/b>\u00a0<\/span><\/h5>\n

Throughout the years, one of the biggest challenges facing the hospitality industry has been high turnover. The restaurant industry experiences <\/span>1.5x<\/span><\/a> higher turnover than other sectors, with an average churn of 73%. According to Business.com, companies should aim for an average turnover of 10-12% in order not to have a huge impact on their bottom line. Here\u2019s a formula for calculating your business\u2019 turnover rate:<\/span>\u00a0<\/span><\/p>\n

\"\"<\/p>\n

When a business experiences high turnover, it shows that employees aren\u2019t satisfied with their workplace. This could be for reasons such as pay, scheduling, or management (and a variety of others). If a restaurant has a high turnover, it means that they\u2019ll have increased hiring needs to account for the employees that are quitting. And considering the current hiring climate we\u2019re in, more pressure to hire will add unwelcome pressure to your staffing plan \u2013 which is why reduced turnover should be a top priority.<\/span><\/p>\n

Do increased pay rates equal reduced turnover?<\/span><\/b>\u00a0<\/span><\/h5>\n

When a business wants to reduce their turnover, one of the first ways they may think to do so is by increasing pay rates. But do increased pay rates equal reduced turnover?\u00a0<\/span>\u00a0<\/span><\/p>\n

Unfortunately, the answer is a bit unclear. <\/span>Studies<\/span><\/a> show that paying employees more <\/span>does<\/span><\/i> lower your turnover rate. Plus, it can increase productivity which positively impacts on your bottom line. But this method is only effective until a certain point. Once employees are making above $25\/hour, \u201cadditional compensation results in only a slightly lower turnover rate.\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n

Another <\/span>study<\/span><\/a> shows that, \u201cAn analysis of tens of thousands of small businesses reveals that the employee turnover rate is more than double the national average when employees are paid the federal minimum wage of $7.25\/hour.\u201d<\/span>\u00a0<\/span><\/p>\n

With these points considered, we can extrapolate that restaurant managers will likely see lower turnover if they increase their hourly workers\u2019 pay rates. For managers and other high-level positions, reducing turnover isn\u2019t as simple.\u00a0<\/span>\u00a0<\/span><\/p>\n

An additional aspect to consider is whether you\u2019re offering competitive pay. How do you stack up against your direct competitors? Do you offer any benefits? Are tipped employees making enough tips during their shift? Knowing this <\/span>information<\/span><\/a> can help you make more informed decisions surrounding pay.<\/span><\/p>\n

Alternate options to improve turnover rates<\/strong>\u00a0<\/span>\u00a0<\/span><\/h5>\n

When looking to improve turnover rates, increasing pay\u00a0isn\u2019t the only option. The fact of the matter is that another business will always pay $1 more or $1 less.\u00a0And as we discussed, there\u2019s only a positive impact on turnover up to a certain dollar amount. Ultimately, the culture within the restaurant itself will better establish <\/span>loyalty<\/span><\/a> amongst your team and limit turnover. <\/span>\u00a0<\/span><\/p>\n

In addition to workplace culture, providing things like flexible scheduling, constructive feedback, and upskilling opportunities are great ways to improve turnover rates and staff loyalty. <\/span>\u00a0<\/span><\/p>\n

When considering reduced turnover methods, it\u2019s crucial to think about what employees want from their workplace. Putting a band aid on the situation by bumping up pay isn\u2019t the end all be all answer. Find ways to help workers feel engaged and respected which will improve turnover rates in the long run. <\/span><\/p>","protected":false},"excerpt":{"rendered":"

Every week we comb through the news to find employment […]<\/p>\n","protected":false},"author":67,"featured_media":312849,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[106],"tags":[406,579],"class_list":["post-4374","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-hospitality-in-the-news","tag-reduced-turnover"],"yoast_head":"\nDo Increased Pay Rates Equal Reduced Turnover?<\/title>\n<meta name=\"description\" content=\"All the industry trends you need to know. This week's Hospitality in the News topic: do increased pay rates equal reduced turnover?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lgcassociates.com\/es\/increased-pay-rates-reduced-turnover\/\" \/>\n<meta property=\"og:locale\" content=\"es_MX\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Do Increased Pay Rates Equal Reduced Turnover?\" \/>\n<meta property=\"og:description\" content=\"All the industry trends you need to know. This week's Hospitality in the News topic: do increased pay rates equal reduced turnover?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/lgcassociates.com\/es\/increased-pay-rates-reduced-turnover\/\" \/>\n<meta property=\"og:site_name\" content=\"LGC\" \/>\n<meta property=\"article:published_time\" content=\"2022-04-14T16:09:23+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-07T20:31:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/lgcassociates.com\/wp-content\/uploads\/2022\/04\/hitn-graphics-3.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Cat Duguay\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Cat Duguay\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutos\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/lgcassociates.com\\\/increased-pay-rates-reduced-turnover\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/lgcassociates.com\\\/increased-pay-rates-reduced-turnover\\\/\"},\"author\":{\"name\":\"Cat Duguay\",\"@id\":\"https:\\\/\\\/lgcassociates.com\\\/#\\\/schema\\\/person\\\/fd336a58320956443d8ad7c46fac7941\"},\"headline\":\"Hospitality in the News | Does Increasing Pay Rates Equal Reduced Turnover?\",\"datePublished\":\"2022-04-14T16:09:23+00:00\",\"dateModified\":\"2024-03-07T20:31:17+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/lgcassociates.com\\\/increased-pay-rates-reduced-turnover\\\/\"},\"wordCount\":566,\"image\":{\"@id\":\"https:\\\/\\\/lgcassociates.com\\\/increased-pay-rates-reduced-turnover\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/lgcassociates.com\\\/wp-content\\\/uploads\\\/2022\\\/04\\\/hitn-graphics-3.png\",\"keywords\":[\"hospitality in the news\",\"reduced turnover\"],\"articleSection\":[\"News\"],\"inLanguage\":\"es\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/lgcassociates.com\\\/increased-pay-rates-reduced-turnover\\\/\",\"url\":\"https:\\\/\\\/lgcassociates.com\\\/increased-pay-rates-reduced-turnover\\\/\",\"name\":\"Do Increased Pay Rates Equal Reduced Turnover?\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/lgcassociates.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/lgcassociates.com\\\/increased-pay-rates-reduced-turnover\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/lgcassociates.com\\\/increased-pay-rates-reduced-turnover\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/lgcassociates.com\\\/wp-content\\\/uploads\\\/2022\\\/04\\\/hitn-graphics-3.png\",\"datePublished\":\"2022-04-14T16:09:23+00:00\",\"dateModified\":\"2024-03-07T20:31:17+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/lgcassociates.com\\\/#\\\/schema\\\/person\\\/fd336a58320956443d8ad7c46fac7941\"},\"description\":\"All the industry trends you need to know. This week's Hospitality in the News topic: do increased pay rates equal reduced turnover?\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/lgcassociates.com\\\/increased-pay-rates-reduced-turnover\\\/#breadcrumb\"},\"inLanguage\":\"es\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/lgcassociates.com\\\/increased-pay-rates-reduced-turnover\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"es\",\"@id\":\"https:\\\/\\\/lgcassociates.com\\\/increased-pay-rates-reduced-turnover\\\/#primaryimage\",\"url\":\"https:\\\/\\\/lgcassociates.com\\\/wp-content\\\/uploads\\\/2022\\\/04\\\/hitn-graphics-3.png\",\"contentUrl\":\"https:\\\/\\\/lgcassociates.com\\\/wp-content\\\/uploads\\\/2022\\\/04\\\/hitn-graphics-3.png\",\"width\":1000,\"height\":600,\"caption\":\"candidates back to hospitality\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/lgcassociates.com\\\/increased-pay-rates-reduced-turnover\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/lgcassociates.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Hospitality in the News | Does Increasing Pay Rates Equal Reduced Turnover?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/lgcassociates.com\\\/#website\",\"url\":\"https:\\\/\\\/lgcassociates.com\\\/\",\"name\":\"LGC\",\"description\":\"Hospitality Recruitment Agencies | Hotel & Restaurant Recruitment\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/lgcassociates.com\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"es\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/lgcassociates.com\\\/#\\\/schema\\\/person\\\/fd336a58320956443d8ad7c46fac7941\",\"name\":\"Cat Duguay\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"es\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4191fcb9ef8ce73b1e15bac9c4c9c98ba056923d2f1b53cffdad96a404d591f7?s=96&d=https%3A%2F%2Feyecix.com%2Fplugins%2Fjobsearch%2Fwp-content%2Fplugins%2Fwp-jobsearch%2Fimages%2Fno-image.jpg&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4191fcb9ef8ce73b1e15bac9c4c9c98ba056923d2f1b53cffdad96a404d591f7?s=96&d=https%3A%2F%2Feyecix.com%2Fplugins%2Fjobsearch%2Fwp-content%2Fplugins%2Fwp-jobsearch%2Fimages%2Fno-image.jpg&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4191fcb9ef8ce73b1e15bac9c4c9c98ba056923d2f1b53cffdad96a404d591f7?s=96&d=https%3A%2F%2Feyecix.com%2Fplugins%2Fjobsearch%2Fwp-content%2Fplugins%2Fwp-jobsearch%2Fimages%2Fno-image.jpg&r=g\",\"caption\":\"Cat Duguay\"},\"url\":\"https:\\\/\\\/lgcassociates.com\\\/es\\\/author\\\/catd\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Do Increased Pay Rates Equal Reduced Turnover?","description":"All the industry trends you need to know. This week's Hospitality in the News topic: do increased pay rates equal reduced turnover?","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/lgcassociates.com\/es\/increased-pay-rates-reduced-turnover\/","og_locale":"es_MX","og_type":"article","og_title":"Do Increased Pay Rates Equal Reduced Turnover?","og_description":"All the industry trends you need to know. This week's Hospitality in the News topic: do increased pay rates equal reduced turnover?","og_url":"https:\/\/lgcassociates.com\/es\/increased-pay-rates-reduced-turnover\/","og_site_name":"LGC","article_published_time":"2022-04-14T16:09:23+00:00","article_modified_time":"2024-03-07T20:31:17+00:00","og_image":[{"width":1000,"height":600,"url":"https:\/\/lgcassociates.com\/wp-content\/uploads\/2022\/04\/hitn-graphics-3.png","type":"image\/png"}],"author":"Cat Duguay","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Cat Duguay","Est. reading time":"3 minutos"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/lgcassociates.com\/increased-pay-rates-reduced-turnover\/#article","isPartOf":{"@id":"https:\/\/lgcassociates.com\/increased-pay-rates-reduced-turnover\/"},"author":{"name":"Cat Duguay","@id":"https:\/\/lgcassociates.com\/#\/schema\/person\/fd336a58320956443d8ad7c46fac7941"},"headline":"Hospitality in the News | Does Increasing Pay Rates Equal Reduced Turnover?","datePublished":"2022-04-14T16:09:23+00:00","dateModified":"2024-03-07T20:31:17+00:00","mainEntityOfPage":{"@id":"https:\/\/lgcassociates.com\/increased-pay-rates-reduced-turnover\/"},"wordCount":566,"image":{"@id":"https:\/\/lgcassociates.com\/increased-pay-rates-reduced-turnover\/#primaryimage"},"thumbnailUrl":"https:\/\/lgcassociates.com\/wp-content\/uploads\/2022\/04\/hitn-graphics-3.png","keywords":["hospitality in the news","reduced turnover"],"articleSection":["News"],"inLanguage":"es"},{"@type":"WebPage","@id":"https:\/\/lgcassociates.com\/increased-pay-rates-reduced-turnover\/","url":"https:\/\/lgcassociates.com\/increased-pay-rates-reduced-turnover\/","name":"Do Increased Pay Rates Equal Reduced Turnover?","isPartOf":{"@id":"https:\/\/lgcassociates.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/lgcassociates.com\/increased-pay-rates-reduced-turnover\/#primaryimage"},"image":{"@id":"https:\/\/lgcassociates.com\/increased-pay-rates-reduced-turnover\/#primaryimage"},"thumbnailUrl":"https:\/\/lgcassociates.com\/wp-content\/uploads\/2022\/04\/hitn-graphics-3.png","datePublished":"2022-04-14T16:09:23+00:00","dateModified":"2024-03-07T20:31:17+00:00","author":{"@id":"https:\/\/lgcassociates.com\/#\/schema\/person\/fd336a58320956443d8ad7c46fac7941"},"description":"All the industry trends you need to know. This week's Hospitality in the News topic: do increased pay rates equal reduced turnover?","breadcrumb":{"@id":"https:\/\/lgcassociates.com\/increased-pay-rates-reduced-turnover\/#breadcrumb"},"inLanguage":"es","potentialAction":[{"@type":"ReadAction","target":["https:\/\/lgcassociates.com\/increased-pay-rates-reduced-turnover\/"]}]},{"@type":"ImageObject","inLanguage":"es","@id":"https:\/\/lgcassociates.com\/increased-pay-rates-reduced-turnover\/#primaryimage","url":"https:\/\/lgcassociates.com\/wp-content\/uploads\/2022\/04\/hitn-graphics-3.png","contentUrl":"https:\/\/lgcassociates.com\/wp-content\/uploads\/2022\/04\/hitn-graphics-3.png","width":1000,"height":600,"caption":"candidates back to hospitality"},{"@type":"BreadcrumbList","@id":"https:\/\/lgcassociates.com\/increased-pay-rates-reduced-turnover\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/lgcassociates.com\/"},{"@type":"ListItem","position":2,"name":"Hospitality in the News | Does Increasing Pay Rates Equal Reduced Turnover?"}]},{"@type":"WebSite","@id":"https:\/\/lgcassociates.com\/#website","url":"https:\/\/lgcassociates.com\/","name":"LGC","description":"Hospitality Recruitment Agencies | Hotel & Restaurant Recruitment","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/lgcassociates.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"es"},{"@type":"Person","@id":"https:\/\/lgcassociates.com\/#\/schema\/person\/fd336a58320956443d8ad7c46fac7941","name":"Cat Duguay","image":{"@type":"ImageObject","inLanguage":"es","@id":"https:\/\/secure.gravatar.com\/avatar\/4191fcb9ef8ce73b1e15bac9c4c9c98ba056923d2f1b53cffdad96a404d591f7?s=96&d=https%3A%2F%2Feyecix.com%2Fplugins%2Fjobsearch%2Fwp-content%2Fplugins%2Fwp-jobsearch%2Fimages%2Fno-image.jpg&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/4191fcb9ef8ce73b1e15bac9c4c9c98ba056923d2f1b53cffdad96a404d591f7?s=96&d=https%3A%2F%2Feyecix.com%2Fplugins%2Fjobsearch%2Fwp-content%2Fplugins%2Fwp-jobsearch%2Fimages%2Fno-image.jpg&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/4191fcb9ef8ce73b1e15bac9c4c9c98ba056923d2f1b53cffdad96a404d591f7?s=96&d=https%3A%2F%2Feyecix.com%2Fplugins%2Fjobsearch%2Fwp-content%2Fplugins%2Fwp-jobsearch%2Fimages%2Fno-image.jpg&r=g","caption":"Cat Duguay"},"url":"https:\/\/lgcassociates.com\/es\/author\/catd\/"}]}},"_links":{"self":[{"href":"https:\/\/lgcassociates.com\/es\/wp-json\/wp\/v2\/posts\/4374","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lgcassociates.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lgcassociates.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lgcassociates.com\/es\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/lgcassociates.com\/es\/wp-json\/wp\/v2\/comments?post=4374"}],"version-history":[{"count":0,"href":"https:\/\/lgcassociates.com\/es\/wp-json\/wp\/v2\/posts\/4374\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lgcassociates.com\/es\/wp-json\/wp\/v2\/media\/312849"}],"wp:attachment":[{"href":"https:\/\/lgcassociates.com\/es\/wp-json\/wp\/v2\/media?parent=4374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lgcassociates.com\/es\/wp-json\/wp\/v2\/categories?post=4374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lgcassociates.com\/es\/wp-json\/wp\/v2\/tags?post=4374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}