PeopleMatter partner, HotSchedules, shares how to stop the tailspin of high turnover and greater labor costs amid a growing workforce.

1. The War for Talent

2. TURNOVER IS INCREASING
2011 2012 2013 2014
40
60
80
100
120
140
Turnover%Rate
Quick Service Fast Casual/Family Dining Casual Dining Upscale Casual/Fine Dining
+13%
+13%
+10%
+21%

3. LABOR COSTS ARE ACCELERATING

4. HOURS WORKED
ARE SHRINKING
Papa John’s CEO John Schnatter said in November that “it’s common sense” for
business owners to cut workers’ hours to avoid the health care requirement.”
The owner of several Wendy’s franchises said in January that he planned to cut
hundreds of workers’ schedules to 28 hours per week in an aim to sidestep the
health care coverage requirement.
"To tell somebody that you've got to decrease their hours because of a law
passed in Washington is very frustrating to me," said Loren Goodridge, who owns
21 Subway franchises. "I know the impact I'm having on some of my employees."
Source: HuffPost Business, Obamacare Not Actually Causing Companies To Cut Worker Hours: Survey
Source; CNBC, Businesses claim Obamacare has forced them to cut employee hours

5. 2016
14.4 M
2026
16.1 M
2006
12.3 M
THE WORKFORCE
IS GROWING
“Restaurant job growth is projected to outpace the overall economy in
2016, and the industry will add more than 300,000 jobs for the sixth
consecutive calendar year ...”
- Bruce Grindy, NRA Chief Economist

6. HOW BAD IS IT?
WE DID THE MATH
$3,328
Per
Employee
Productivity Loss Recruiting & Interviewing Orientation and TrainingPre-departure
$4.7Billion
Industry
Spend

7. THE WAR FOR TALENT IS OVER &
THE MILLENNIALS WON
Tech-savvy
WHO THEY ARE WHAT THEY WANT
Multi-tasker
Connected
Work/life balance
Transparency
Collaboration

8. ARE YOU PREPARED TO WIN IT?

9. THEIR IMPACT
WILL BE PROFOUND
Supply Chain Marketing Workforce Mobile First Design
is

10. THE PEOPLE MODEL
IS CHANGING
25% of employees
leave their job due to
poor on-boarding and
lack of training
opportunities
It costs approximately
$3,328 to find, hire and
train a replacement for
a $10/hour retail
employee
In 2016, 15 states will
have $9 minimum wage
rates and many will rise
to at least $10.
AND IT’S IMPACTING YOUR MARGIN

11. HOW DO YOU STOP THE TAILSPIN?

12. Retain the
best people.
1

13. Support a work life balance.
Give feedback and ask for it in return.
Provide continuous opportunities for
education and training.
Tell your team what you are measuring
and how so they can participate.
BUT HOW?

14. WORKFORCE
EMPOWERMENT
GIVES YOU A
COMPETITIVE
EDGE
74%
want tech
in the workplace
40%
of all hires
are referrals
7out of 10
workers are
not engaged
ENGAGEMENT
RETENTION
RECRUIT
TECHNOLOGY

15. Hire Differently.
2

16. TIME SPENT HIRING IS NOT SUSTAINABLE
Between recruiting, hiring, retaining and training, managers have
little time left for anything else.
66%
27%
74%
71%
74% of restaurant
operators are very or
extremely concerned
about recruitment
71% of restaurant operators
are very or extremely
concerned about turnover
and retention.
27% of hourly restaurant
workers are terminated in
the first 3 months
66% of people are
employed for less
than 1 year
Source: TDN2K

17. HOTSCHEDULES
RECRUIT Best
Candidates
Best
Reach
Pay for
Performance
● Single platform with access
to 100’s of job boards
● Social recruiting
● Leverage the HS Network
● Pay per candidate
● Pay referral bonuses
● Proactive Candidate
Search
● Screening Questions
● Rich Profiles
● Verified Work History
● Followers
● Referrals

18. Support a
flexible
workforce.
3

19. WITH MULTIPLE JOB TYPESFull time, part-time, shared, on-demand
Share of U.S. adults earning income in a given month via online
platforms, often referred to as the gig or sharing economy.
Labor platform (such as Uber,
TaskRabbit)
Capital platform (such as, Airbnb,
eBay)

20. SHARED EMPLOYEES
HotSchedules Recruit can build your bench

21. How We Help
4

22. 6,500,000 Communication in your restaurant is critical. Have you given your managers
the tools they need to be successful in tracking shift notes, staff
performance, feedback, maintenance issues,food safety, and beyond?
Did we mention how important communication is? Not just between
managers, but to teams by job code, to the entire staff, to each other.19,000,000
510,000Because when you need a few extra bucks, you take every
shift you can get.
MADESENT
Logbook Entries
Messages
920,000Because schedule flexibility is not just a nice to have, especially with
Millennials. It's expected. Are you winning?
PICKED UP
Shifts
SWAPPED
Shifts
5,000,000Online Courses Delivered
because this generation wants to learn fast, on any device from
anywhere so they can start working on-demand.
2,000,000Restaurant-focused job seekers
As well as 60,000,000 job searches each month.
In 2015 alone, HotSchedules customers...

23. A PROVEN RECIPE FOR
PEOPLE MANAGEMENT
75% of QSR
80% of the top chains,
70% of the top 10
restaurants and
hospitality brands.
When I get up I check
Facebook, Twitter,
and HotSchedules.

24. HOTSCHEDULES
#1 downloaded
scheduling app
on iTunes
2M users
60M monthly logins
PEOPLE
PRODUCTIVITY
PLATFORM
Recruit - Train - Schedule - Engage
Print and Digital Logbooks - Inventory - BI
Aggregate - Analyze - Build
THE RESTAURANT MANAGEMENT PLATFORM

25. YOUR
QUESTIONS