Harri hosted a webinar called Hospitality’s Engagement SOS: Retain Your Young Talent To Boost Profitability which focuses on strategies for retaining Gen Z employees in the hospitality industry and explains the generation’s impact on business profitability. The webinar, hosted by Leigh Anne Zinsmeister, managing editor of The Restaurant & Food Group at Informa Connect, features insights from Shayla Johnson, people development coordinator with Kruwis Restaurant Management for Jersey Mike’s, and Jason Berry, founder and principal of KNEAD Hospitality and Design.
Key points include understanding that Gen Z values experiences and personal time, an attitude influenced in part by the COVID-19 pandemic, which highlighted the importance of work-life balance. The speakers note that traditional loyalty to a single employer has decreased, with younger employees more loyal to their skillset than to the company itself.
The webinar highlights the role of technology in recruitment and retention, stressing the need for updated systems to streamline operations and make work easier for employees. Additionally, mentorship and leadership development are identified as crucial for keeping young workers engaged. With high employee turnover rates in the restaurant and hospitality sectors and those implications on profitability and the customer experience, the concept of “stickiness,” or making it difficult for employees to want to leave, is emphasized. The focus, in the end, is about creating a positive workplace culture where employees feel valued and supported.
The importance of providing the right tools and a conducive work environment also directly affects employee morale and retention. By fostering a supportive, well-managed workplace, businesses can improve retention rates, reduce turnover and ultimately boost profitability.
In order to retain young talent, businesses must also focus on accountability and mentorship. Accountability is crucial, particularly in guiding and coaching new managers. Systems need to be put in place to monitor performance and accountability, ensuring that mentorship is effective.
It is also important to create a work environment that fosters human connection, which is highly valued by Gen Z employees. By setting and enforcing clear boundaries, companies aim to cultivate a culture where employees feel connected, supported, and committed.
Younger generations are placing a higher value on benefits offered to full-time employees than previous generations; Johnson advises putting benefits at the top of your priority list for this reason. Offerings such as health insurance, dental, vision and a Health Savings Account (HSA) are top priorities for young workers. The importance of flexibility and a bonus structure that aligns with the health of the business is a huge motivator for young talent as well.
Berry advises on the ideal approach to benefits, as well, noting that they are more robust for salaried employees within his company. These benefits include standard offerings like paid time off (PTO), insurance and dining allowances. He has also introduced a “Life and Style” benefits program, which supports employees with non-work-related expenses such as parking, rideshare, clothing, gym memberships and child care. This program is designed to foster a more balanced life for employees and to increase retention by making the workplace more attractive.
When discussing social impact, Berry notes that while his company avoids overt political stances, it prides itself on being a diverse and inclusive workplace. As the largest gay-owned and operated restaurant group in the U.S., his company focuses on creating a welcoming environment for all employees and guests without letting politics interfere with their experience. Johnson echoed the importance of focusing on the business and customer experience while also providing a safe space for employees and ensuring that personal beliefs do not interfere with work.
Another major focus in retaining young talent is altering communication to suit Gen Z employees’ preferences. Group chats, FaceTime and up-to-date software help to maintain clear communication. Employees, in turn, need to feel heard and be kept informed, even if they are not in management. Tools like logbooks, pre-shift notes and repeated reminders ensure all employees are on the same page.
To watch the full webinar, click here.
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