copyright © 2008 by john wiley & sons, inc. all rights reserved chapter 8 advertising and...

Copyright © 2008 by John Wiley Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved& Sons, Inc. All rights reserved

CHAPTER 8CHAPTER 8

Advertising and RecruitingAdvertising and Recruiting


INTRODUCTIONINTRODUCTION

I encourage restaurants to employ single moms; they I encourage restaurants to employ single moms; they have plenty of energy. Compared to what some of have plenty of energy. Compared to what some of them do as a single parent, working in a restaurant is them do as a single parent, working in a restaurant is considered a "break" one glad mom told me.considered a "break" one glad mom told me.

- - Maren Hickton, Restaurant Industry Consultant, Pittsburgh, PAMaren Hickton, Restaurant Industry Consultant, Pittsburgh, PA


TALES FROM THE FIELDTALES FROM THE FIELDChurn and burn takes its toll…Churn and burn takes its toll…

What does the employee mean by “jump What does the employee mean by “jump start my cultural education”?start my cultural education”?

How do high employee turnover rates How do high employee turnover rates impact employee morale and productivity?impact employee morale and productivity?

When should a job applicant’s inability to When should a job applicant’s inability to speak English fluently prevent him from speak English fluently prevent him from being hired?being hired?


CHAPTER OVERVIEWCHAPTER OVERVIEW

Identifying the labor market and labor poolIdentifying the labor market and labor pool How labor market and labor pool affect How labor market and labor pool affect

management’s ability to recruit qualified workersmanagement’s ability to recruit qualified workers The Internet and how it has expanded the labor The Internet and how it has expanded the labor

marketmarket Direct and indirect costs of employee turnoverDirect and indirect costs of employee turnover Internal and external sources of laborInternal and external sources of labor Recruiting strategiesRecruiting strategies Awareness of cultural diversityAwareness of cultural diversity


THE LABOR MARKETTHE LABOR MARKET

The labor market is the geographical area in which the hospitality business focuses its recruiting efforts


THE LABOR POOLTHE LABOR POOL

The labor pool is made up of individuals who live within the labor market and who possess the skills, attitudes, knowledge, and abilities that the hospitality operation requires


LOCATIONLOCATION

Educational levelsEducational levels Personality typesPersonality types Unemployment ratesUnemployment rates Competitor recruiting practicesCompetitor recruiting practices Median age of the populationMedian age of the population Diversity levelsDiversity levels

Factors such as the hospitality operation’s location will influence such things as:

Operations that are located in or near major metropolitan areas normally havemore local recruiting opportunities than those operations that are located 50miles or more from the nearest major city


WEB-BASED JOB SITESWEB-BASED JOB SITES

They expand the They expand the geographical area in geographical area in which organizations can which organizations can now successfully recruit now successfully recruit qualified employeesqualified employees

Most useful when locating Most useful when locating top talent to fill middle top talent to fill middle and upper-level and upper-level management positionsmanagement positions

Such sites have little to no impact when a restaurant needs to hire adishwasher or when a hotel needs to increase its housekeeping staff


HOSPITALITY WEB-BASED JOB SITESHOSPITALITY WEB-BASED JOB SITES

www.hcareers.comwww.hcareers.com www.hotelcareers.comwww.hotelcareers.com www.hoteljobsnetwork.comwww.hoteljobsnetwork.com www.hoteljobresource.comwww.hoteljobresource.com www.winecountryjobs.comwww.winecountryjobs.com www.chef2chef.netwww.chef2chef.net www.starchefsjobfinder.comwww.starchefsjobfinder.com www.finediningjobs.comwww.finediningjobs.com

Large hospitality chain operations maintain a separate human resources areaas part of their own corporate websites so potential applicants can view jobopenings and apply for jobs online


EMPLOYEE TURNOVEREMPLOYEE TURNOVER

Voluntary and involuntary Voluntary and involuntary separations of separations of employment from within a employment from within a given operationgiven operation


EMPLOYEE TURNOVER RATESEMPLOYEE TURNOVER RATES

32 employee separations32 employee separations26 employees = 123% turnover rate26 employees = 123% turnover rate

Turnover rates are calculated by dividing the number of employees who have left the company, or separated, by the number of employees within the organization

Turnover rates can be calculated monthly, quarterly, on a semi- annual,and on an annual basis if desired


COSTS OF EMPLOYEE COSTS OF EMPLOYEE TURNOVERTURNOVER

The direct and the The direct and the indirect costs can be indirect costs can be substantialsubstantial

A 1998 survey estimates A 1998 survey estimates the costs at between the costs at between $3,000 and $10,000 per $3,000 and $10,000 per employeeemployee**

*Turnover and Diversity in the Lodging Industry, American Hotel Foundation, 1998


DIRECT AND INDIRECT TURNOVER COSTSDIRECT AND INDIRECT TURNOVER COSTS

Recruiting costs including Recruiting costs including advertisingadvertising

Selection costs including Selection costs including time spent interviewing time spent interviewing and pre-screening and pre-screening applicantsapplicants

Pre-screening testsPre-screening tests Employee uniform costsEmployee uniform costs Training and orientation Training and orientation

costscosts

Lowered employee Lowered employee morale leading to morale leading to decreased productivitydecreased productivity

Customer complaintsCustomer complaints Lowered food and service Lowered food and service

qualityquality Lost revenues due to Lost revenues due to

poor customer poor customer satisfaction and mistakessatisfaction and mistakes

Negative word-of-mouthNegative word-of-mouth

Direct costs include: Indirect costs include:


INTERNAL RECRUITINGINTERNAL RECRUITING

Solicit employee referralsSolicit employee referrals Post job openings internallyPost job openings internally Promote and transfer from withinPromote and transfer from within Solicit referrals from vendorsSolicit referrals from vendors Solicit referrals from former employeesSolicit referrals from former employees

When a hospitality operation that is seeking to fill availablepositions looks for candidates within the company


EXTERNAL RECRUITINGEXTERNAL RECRUITING

Hospitality and culinary programs at local Hospitality and culinary programs at local schools and universitiesschools and universities

Trade associationsTrade associations Labor organizationsLabor organizations Churches and synagoguesChurches and synagogues Temp agenciesTemp agencies CompetitorsCompetitors AdvertisingAdvertising

When a hospitality operation that is seeking to fill availablepositions looks for candidates outside the company


INTERNAL STRATEGIESINTERNAL STRATEGIES

$200 BONUS IS YOURS$200 BONUS IS YOURS EMPLOYEE REFERRAL BONUS PLANEMPLOYEE REFERRAL BONUS PLAN Do you have a friend, relative, neighbor, Do you have a friend, relative, neighbor,

classmate or other known associate who classmate or other known associate who you feel would like to join our XYZ you feel would like to join our XYZ Restaurant family? If so, you can earn a Restaurant family? If so, you can earn a $200 one-time cash bonus if your $200 one-time cash bonus if your recommendation works out. recommendation works out.

Employee referrals and referral bonus


EXTERNAL STRATEGIESEXTERNAL STRATEGIES

Job fairsJob fairs Serving on advisory boardsServing on advisory boards Attending trade association meetingsAttending trade association meetings Churches and synagoguesChurches and synagogues Temporary agenciesTemporary agencies Welcome walk-in applicantsWelcome walk-in applicants


TARGET ADVERTISINGTARGET ADVERTISING

Advertising should be Advertising should be carefully targeted to carefully targeted to ensure that the ensure that the operation is reaching operation is reaching potential and qualified potential and qualified applicantsapplicants


RECRUITMENT STRATEGIESRECRUITMENT STRATEGIES

The most successful operations generally focus The most successful operations generally focus their efforts both internally and externally in their efforts both internally and externally in order to attract a diversified and qualified pool of order to attract a diversified and qualified pool of job applicantsjob applicants


CULTURAL DIVERSITYCULTURAL DIVERSITY

Recent immigrantsRecent immigrants RetireesRetirees Single parentsSingle parents Displaced homemakersDisplaced homemakers Career changersCareer changers

Use hot buttons – key items such as services or benefits – thatwill most appeal to your target audience


SUMMARYSUMMARY

Identifying the labor market and labor poolIdentifying the labor market and labor pool How labor market and labor pool affect How labor market and labor pool affect

management’s ability to recruit qualified workersmanagement’s ability to recruit qualified workers The Internet and how it has expanded the labor The Internet and how it has expanded the labor

marketmarket Direct and indirect costs of employee turnoverDirect and indirect costs of employee turnover Internal and external sources of laborInternal and external sources of labor Recruiting strategiesRecruiting strategies Awareness of cultural diversityAwareness of cultural diversity

copyright © 2008 by john wiley & sons, inc. all rights reserved chapter 8 advertising and...

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