The post-pandemic restaurant employee: Who wants to work and why August 2021 - Black Box ...
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The restaurant industry has been on an unpredictable ride over the past year and a half—and we’ve been adjusting to every high and low in real-time. We’re now facing the biggest Some experts point to enhanced challenge to date—a labor shortage unemployment benefits as a and retention crisis. deterrent for employees returning to work (although recent evidence To put it simply, it’s a job candidate’s shows that cutting those benefits market and many are rethinking doesn’t significantly reduce when, how and where they work. the labor shortage). A recent study conducted by Black Box The Bureau of Labor Statistics Intelligence™ revealed that 71% of (BLS) reported that job openings operators believe higher pay through had increased to a series high unemployment or even higher pay in of 10.1 million by July with the another industry is the main driver accommodations and food services behind the industry’s labor shortage. sector accounting for a large portion of the increases. According to Black Box Workforce Intelligence™, There are approximately the current staffing challenges have full service restaurants operating 70% more job vacancies with 6.2 less employees in the back than pre-pandemic levels of the house and 2.8 employees less across all industries in the front of the house than they and 10% fewer people did in 2019. looking for work—that’s the greatest gap in recorded history. Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021 2
Adding to the issue, turnover rates have spiked and voluntary quits are at an all-time high— leaving restaurants scrambling to retain the staff they have. Hourly turnover in restaurants is high— surpassing pre-pandemic levels Limited Service Full-Service 2019 June 2021 2019 June 2021 135% 144% 102% 106% Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021 3
There are 4 driving factors contributing to the restaurant staffing shortage. 1 Wages and benefits. For the first time in decades, the American hourly worker has the upper hand in compensation conversations. In response, restaurants are offering higher Opportunities in wages and unique incentives 3 to attract employees. Black Box other industries. Workforce Intelligence data reported When restaurants closed early that in Q2 2021, limited-service in the pandemic, 51% of workers hourly wage increased by 10% cited higher pay or the need for year over year, the highest increase consistent schedules and income the industry has seen in years. as their top reasons for switching industries. 2 Childcare. Concerns about mental 4 In the second half of April a US and physical health. census survey found that nearly The nature of restaurants 1 million households had at least creates an environment ripe for one adult who could not look physical transmission of illness and emotionally taxing social for work because they needed interactions—on top of already to look after their children. Restaurant workers with children challenging work. In May 78% often rely on affordable childcare of workers said their mental options like daycares, which are health had been negatively limited due to the pandemic. impacted in the past 12 months. Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021 4
To further understand these labor shortage factors, we surveyed 4,700 former, current and hopeful restaurant workers. Here’s who’s working in restaurants. 69% 47% 14% 27% 13% 22% 3% 4% 1% 1% 16-24 25-34 35-54 55-64 65+ By age Limited-Service Full-Service Restaurants Restaurants Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021 5
Current or recent position: 27% 22% 11% 9% Cashier Cook/ Waiter/ Manager Kitchen staff waitress Time working in restaurants: 26% 19% 19% 14% 21%
Here’s who is looking to work in restaurants: 17% 39% first-time employed job seekers but looking for a new job Here’s where they’re searching for jobs: 36% Online job search Restaurants located 33% close to their home Restaurants they 16% enjoy dining at 9% Places their friends work 6% Social media Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021 7
Wages and Benefits One of the primary sticking points for restaurant workers is wages and benefits, including benefits. 5 most important Incentives that are most things restaurant workers attractive to workers applying look for in a new job for restaurant jobs right now Starting Cash bonus 1 hourly wage 1 if hired Promotion Cash bonus 2 opportunities 2 for interviewing Flexible Retention bonus 3 schedules 3 (if they’re still with the company after a certain period of time) Health benefits and Free meal at 4 paid time off policies 4 the interview Company culture/ 5 work environment Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021 8
87% of respondents would rather have a set livable wage than tips Wages and Benefits Actions you can take: 1 2 Ensure you advertise any of the If you’re offering hiring incentives, benefits or perks your business make them clear to applicants. offers in the job posting. Whether it’s financial, cultural or even free food—workers appreciate the recognition. Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021 9
Childcare According to the McDonald’s The COVID-19 has created even EVP and Chief Global Impact Officer, bigger childcare shortages and problems for hourly workers. With “This is the most schools and daycares closed or difficult hiring operating at limited capacity, many workers have been forced to take environment in their matters into their own hands. 66 year history, and According to Snagajob data, the lack of care is the top reason our 35% employees are citing.” of current hourly McDonald’s already offered paid workers and job parental leave, and recently seekers are parents reported adding emergency child care and other benefits to attract more workers. 18% of unemployed hourly workers had to leave their job to take care of family or children Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021 10
One third of all U.S. In 2020 alone, women employees have left a globally lost more than job during their career 64 million jobs, in order to manage which equals 5% of the total caregiving responsibilities. jobs held by women. A majority left the workforce to stay home and provide child care. Childcare Actions you can take: 1 2 Highlight any flexibility that Talk to your staff, find ways you offer that would be to support them if they are helpful to working parents struggling to juggle childcare in your job description. responsibilities and work. It may be as simple as adjusting their hours. Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021 11
Opportunities in other industries Many hourly restaurant workers have not left the workforce, just the industry, in the past 18 months. Voluntary turnover is higher than ever. Top 5 reasons workers have left the industry: 28% 16% Higher pay in other industries Work hours (late nights, weekends, holidays) 23% Needed consistent 15% schedule/income Work environment/ company culture 17% Lack of professional development & promotion Of surveyed employed hourly opportunities workers, 15% have changed industries in the last year and another 33% want to. Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021 12
When restaurants closed early in the pandemic, many workers turned to other thriving sectors, those with a high demand for labor created by shifting consumer behaviors. According to Snagajob data: Warehouse and logistics On demand jobs are up 278% jobs are up 183% compared to compared to pre-pandemic norms pre-pandemic norms Opportunities in other industries Actions you can take: 1 2 Focus on retention. Talk to your staff before it’s too Build a culture that workers want late. If there are things being to be part of and meet their offered by other employers that needs so that they will stay. have them looking, maybe you can offer that to your team too. Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021 13
Concerns about mental and physical health It’s no secret that restaurant workers Restaurant workers juggle a lot of responsibilities in their put up with a lot. day-to-day work; adding the stress of personal responsibilities and working through a pandemic has only 62% compounded the issue. Many hourly emotional abuse/ workers are picking up extra hours or disrespect from customers responsibilities and it’s taking a toll on their mental health. 49% 66% of workers emotional abuse from managers would return to the restaurant 15% industry if the right sexual harassment from customers conditions were met 15% sexual harassment from managers/co-workers Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021 14
The nature of the restaurant environment makes it easy to transmit illness. Despite many governments and businesses implementing mask and vaccine mandates, the reality is that diners can’t wear masks while they eat, and many workers simply don’t feel safe coming to work. 65% 83% of hourly workers want plan to wear a mask while businesses to keep mask working to keep themselves mandates for customers safe regardless of business/ state requirements. Mental and physical health Actions you can take: 1 2 If you are asking workers Create an open dialogue to enforce mask or vaccine between staff and managers to mandates, provide support get ahead of any potential issues and ensure they are comfortable that could hurt retention. with taking on this, sometimes uncomfortable, responsibility at work. Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021 15
Conclusion The restaurant industry isn’t for everyone, but that’s ok! 17% of restaurant workers chose the industry because it was a career choice; they want to be in the industry long-term. Recently, restaurants have been hit with higher than usual turnover and this is a moment for restaurant owners and managers to take a look at how they do things and what their staff is up against. By creating a positive work environment and meeting workers’ needs, restaurants can reduce turnover and hire top talent in the tightest labor market we’ve ever seen. Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021 16
About us Black Box Snagajob Intelligence Snagajob, the country’s largest marketplace for hourly jobs and Black Box Intelligence™ is shifts, connects more than 47 the leading data and insights million hourly job seekers with provider of workforce, guest, employment opportunities at consumer and financial 470,000 employer locations performance benchmarks in the US. Snagajob’s mission for the restaurant industry. is to put people in the right- With the recent acquisition fit positions so they can of MillerPulse, Black Box maximize their potential Intelligence is home to the and live more fulfilling lives. largest and most reliable Through Snagajob, workers set of real restaurant data gain the flexibility of working in the marketplace. Black when and where they choose Box Intelligence is also the while employers are assured producer of The Best Practices every shift stays filled. For Conference held annually in more information, visit www. Dallas, Texas. snagajob.com or connect with us on LinkedIn, Instagram, Facebook and Twitter. Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021 17
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