• Announcing Our $10M Series A Funding Click here to learn more.

Operations

Two restaurant employees and text reading "Employee Referral Programs: Templates and Tips to Improve Your Recruitment Process"

Employee Referral Programs: Templates and Tips to Improve Your Recruitment Process

Employee Referral Programs: Templates and Tips to Improve Your Recruitment Process 1016 528 Sprockets

If you’re struggling to find high-quality applicants, you need to stop relying on external recruitment efforts and tap into an often-overlooked resource: your current employees. They often know someone who would be an excellent fit for a role you have to fill, and all you need to do is ask! Employee referral programs reduce recruitment costs, save time, and often help bring in better candidates than traditional methods. Plus, they help improve company culture and teamwork since employees recommend people they already get along with.

Find out how to begin your employee referral program with the suggestions below. Just don’t forget to check out The Essential Guide to Attracting Hourly Workers. This free guide outlines even more proven strategies to amplify your sourcing efforts with ease.

How to Create an Employee Referral Program That Works

Be Transparent About Hiring Needs

First and foremost, you have to be comfortable sharing your hiring needs with the current staff members. There’s usually no need to pick and choose who you tell — it’s typically best to establish communication with everyone at the company. That way, you maximize your reach and potential to get great applicants. You never know who has someone in their network that would be a fantastic fit for your company. A restaurant manager might have a friend looking for work as a chef and vice-versa. 

While being transparent about the position you need to fill, make sure you also clearly communicate its specific requirements. You don’t want your employees suggesting a bunch of candidates who don’t have enough experience or lack the skills necessary to perform the job, especially in technical roles. You’ll end up wasting everyone’s time — including yours. Consider drafting the job description ahead of time and sharing it internally before posting online to better inform your employees in their search.

Offer an Incentive With Clear Requirements

While many employees would simply be happy to work with one of their friends or someone they get along with well, others need an extra incentive to help with your recruitment efforts. 92% of employers with a referral program offer a monetary incentive, and the majority of them consist of a $500 bonus. Just keep the timing of the bonus in mind — not just the amount. Only 27% of those employers give the employee the bonus immediately upon hiring the applicant they referred. We recommend awarding the bonus after the new hire has been there and proven their reliability for at least 90 days.

Tip: Make the requirements as straightforward as possible for employees to earn the referral incentive. The last thing you want is one of your best employees (and the friend they referred) to complain and get disgruntled over a misunderstanding of the program.

Make the Referral Process as Simple as Possible

Also, make sure you don’t hinder referral efforts by making it a long, complex process. Nobody likes having to fill out piles of paperwork or read through extensive stipulations, especially in addition to their regular work. Try sending an email to employees with a brief overview of the job and incentive with a link to a convenient Google Form they can use to submit contact information about who they think would be a good fit. You can even make it as simple as replying to the email.

Maintain Communication With Employee

Remember to stay in contact with your current employee about how the hiring process is going, especially regarding the person they recommended. It’s not a good feeling to be left in the dark after trying to help the company and a friend. It can be as detailed as you feel comfortable with, but just make sure you let them know as soon as possible if their friend is just not a good fit for the role (but that you’re highly appreciative of your suggestion). 

Employee Referral Program Email Template

Here’s an example of an email you can send out to the company when you want to begin your employee referral program:

Hi [Employee Name],

We’re looking to expand our team, and we’d love your help finding the right person for the job. You’re an important member of the staff here at [Company], making your opinion extremely valuable to us. You’ll even get a $500 bonus if the person you refer gets hired and stays for 90 days!

Here’s the role we need to fill:

  • [Job Title]
  • [Requirements]

Please take a moment to fill out this Google Form so we can get to know the person you recommend and hopefully get you on the way to earning an extra $500!

Thank you for your help,

[Your Name]

Tip: Be sure to mention the incentive bonus in the subject line to increase the open rate!

Hire the Best Applicants Every Time

Even with an employee referral program in place, the hiring process still involves plenty of human error. If you’d like to make sure you hire the best applicants every time with pinpoint precision, there’s no better solution than Sprockets. It’s proven to predict success without you having to waste time reading resumes or conducting interviews. You’re up money even if it saves you from one bad hire — what do you have to lose?

Schedule your free, 15-minute demo today to start hiring with the platform that top brands trust.

A circle with personality traits and "9.1: Top Match"
A hotel receptionist and text reading "This Simple Strategy Helps Hotels Compete With Airbnb"

This Simple Strategy Helps Hotels Compete With Airbnb

This Simple Strategy Helps Hotels Compete With Airbnb 1016 528 Sprockets

Airbnb has drastically changed the landscape of the lodging industry since 2008. It now boasts over five million listings (more rooms for rent than any hotel chain), with hosts attracting over 500 million guests annually. The rental company shows no sign of slowing down, worrying hotel owners and managers around the globe. However, there’s nothing wrong with some competition. It can be a catalyst for positive change, and we’ll gladly guide you through it. Discover how hotels can compete with Airbnb by following the strategies outlined below.

Of course, any successful business needs a foundation of fantastic employees. The first thing you should do to compete with Airbnb is to hire more applicants like your current top performers. It’s easy with Sprockets, a hiring platform that top brands trust to build a strong, cohesive staff that stays long-term. It’s proven to boost employee retention by 43%!

How Can Hotels Compete With Airbnb?

Understand Airbnb’s Impact on the Hotel Industry

Aside from the sheer number of lodging options available to potential guests now, Airbnb has had a profound impact on the hotel industry and travel trends. It has made unique experiences just a few clicks away. People can stay in anything from a treehouse in Alabama to an igloo in Alaska with stunning views of the Northern Lights. This trend is compounded by the fact that younger generations, including Millennials and Gen-Zers, value memorable experiences more than ever before. Ultimately, Airbnb has become their preferred choice when it comes to travel.

Hotels vs. Airbnb: Play to Your Strengths

While travelers choose Airbnb for its unique properties at reasonable prices, hotels have their own advantages. For instance, many business travelers still prefer to stay at hotels, especially those with their desired amenities and a convenient location near restaurants and convention centers. Hotel guests also enjoy daily housekeeping, complimentary breakfast, room service, workout facilities, and more. They may even get access to spa services, depending on your hotel. 

Set Yourself Apart With Top-Tier Service

According to a report by Deloitte, “Hoteliers need to turbocharge the guest experience and tune into their needs to drive loyalty and increase repeat business.” Take advantage of the fact that you can offer guests amenities and services that Airbnb properties lack. Do this by promoting them on your website, OTAs, and especially your Airbnb listing if you choose to advertise on their platform. Just make sure you deliver on the value you promise guests. A positive guest experience often makes the difference between a repeat booking and a negative review that could damage your reputation.

Maximize Your Chance of Success With Sprockets

Hotels have that “human element” that sets them apart from Airbnb rentals, but you need a staff full of five-star employees to deliver a five-star experience. It’s easier than you think. Simply hire more applicants like your current top performers using Sprockets’ hiring platform. It predicts success with pinpoint precision, enabling you to make the best hiring decisions and provide incredible guest experiences that will turn visitors into repeat customers — and inspire them to leave glowing reviews online!

Get a free, 15-minute demo to start hiring the best hotel staff so you can compete with Airbnb.

A hotel worker and a list of personality traits
Hotel workers and guests with text reading "Quickly Learn How to Improve Hotel Revenue"

Quickly Learn How to Improve Hotel Revenue

Quickly Learn How to Improve Hotel Revenue 1016 528 Sprockets

It’s no secret that hospitality is one of the industries that was hit hardest by the COVID-19 pandemic. Thousands of people lost their jobs, and many businesses were forced to close their doors. Travel is also not expected to return to pre-pandemic levels until 2024, according to a report by the American Hotel & Lodging Association. However, it’s still possible to stay afloat — even thrive — despite the pandemic and labor crisis. This simple guide on how to improve hotel revenue will help you fill those empty rooms and find success during challenging times.

First, ask yourself is whether or not your current challenges stem from staffing struggles. If the answer is yes, you can skip this whole guide and quickly solve the issue with Sprockets. Our hiring platform reveals which applicants are the right fit for your hotel, making it easy to improve the guest experience, loyalty, reputation, and bookings.

How to Improve Hotel Revenue — Simplified

Track Key Metrics

You won’t be able to identify areas for improvement if you don’t keep track of hotel revenue metrics. Here are a few of the numbers you should keep a close eye on:

  • Occupancy Rate
  • Average Daily Rate
  • Average Length of Stay
  • Revenue per Available Room

The last one, commonly referred to as RevPAR, is arguable the most important indicator of success. There are two ways to measure this: divide room revenue by the total number of available rooms or multiply your average room rate by the occupancy rate.

Also, calculating hotel profit margin can be easily accomplished by dividing net profit (total revenue after subtracting expenses) by total revenue. This should give you a decimal value that you can multiply by 100 to find your profit margin as a percentage.

Promote Direct Bookings

It’s a common practice to promote your hotel via online travel agencies (OTAs), like Expedia and TripAdvisor, but fees from advertisements and commissions can cut into your revenue. While we’re not suggesting you abandon all OTAs, it’s a good idea to try driving more direct bookings. 

You can do this by getting the word out to potential guests about the value they get from booking directly on your website. Often, hoteliers advertise how visitors get the most up-to-date information on availability, access to exclusive specials and add-ons, and even the benefit of establishing direct communication for enhanced service. 

Of course, make sure your direct booking process is user-friendly and convenient since that’s one of the main reasons why so many people use OTAs to book trips.

Hire the Best Applicants

It can cost upwards of $5,000 to replace a single staff member, according to a study by Cornell University’s Center for Hospitality Research. That’s why you must keep an eye on your hotel labor costs. Specifically, make sure you hire the right applicants every time to avoid costly employee turnover. It’s not only possible — it’s easy with Sprockets’ hiring platform that’s proven to improve 90-day employee retention by 43%, on average.

Staff Smarter With Sprockets

One sure-fire way to reduce hotel operating costs and improve your profit margin is by hiring applicants who will succeed and stay long-term. Sprockets helps you do this by revealing which potential hires share personality traits with your current top performers. The user-friendly dashboard even assigns all incoming applicants with “fit scores” from one to ten, making it simple to select the ideal candidate. You’ll build a strong, cohesive staff that will stay long-term and provide the top-notch guest experience that drives loyalty and additional revenue.

Get a free, 15-minute demo now to start building a high-performance hotel staff.

A hotel worker and a list of personality traits
People putting their hands together and text reading "4 of the Best Ideas for Improving Employee Engagement"

4 of the Best Ideas for Improving Employee Engagement

4 of the Best Ideas for Improving Employee Engagement 1016 528 Sprockets

Companies that implement employee engagement ideas often see better worker satisfaction. Plus, having great employee engagement strategies will fuel loyalty to your business, ultimately reducing costly employee turnover. However, not all attempts to increase employee engagement work as well as others. You need to know the best ways to do so. Below, we’ll get into how to improve employee engagement so you and your workers can reap the benefits. 

You can also check out our free guide, 4 Steps to Reduce Your Reliance on Applicant Flow, for more tips and tricks that strengthen your workforce.

Ideas to Improve Employee Engagement

1. Prioritize the Well-Being of Your Workers

If you want to improve employee engagement, you need to know what workers want out of their jobs. If you don’t, you might struggle to keep people on staff because they’ll always be tempted to look for other jobs that offer them better benefits, advancement opportunities, or a more positive workplace. So, conduct worker surveys. You can also meet with people one-on-one to discuss how to make your company a better place to work. The more you know about your employees, the better your employee engagement strategies will be. 

This also involves getting to know why the average worker applies to a position at your business. For example, since many people work in hourly positions as their first job and are saving up for school, fast food restaurant employers can improve employee engagement by offering scholarship opportunities. This builds loyalty and shows people that you care about their future and see them as more than just employees. 

You should also demonstrate a commitment to respecting your employees. Encourage your managers to recognize hard work and respect workers’ time off. Lack of recognition and working strenuous hours can both lead to lower engagement and, ultimately, employee turnover.

2. Keep Communication Open

As a business leader, make yourself available to your managers and crew members as much as possible. Your employees will have a better experience working for your company if you keep communication open. Set up a process through which employees can voice their concerns and feel heard. This can be done by scheduling regular check-ins. Make sure you pay attention to any complaints and address them as soon as possible. Your workers will know you value their feedback and contributions. And, you’ll be well on your way toward improving employee engagement and fostering a more positive work environment.

3. Make Time for Team-Building Activities

A smart business manager allows their workers to have fun while encouraging productivity. People want to enjoy their work atmosphere. So, conducting fun team-building activities has a good chance of increasing employee engagement. You could bring in a complimentary lunch platter brought for the team, host a happy hour at a local hotspot, or even take a half-day to decorate the workplace for the holidays together. The options are endless and will encourage teammates to form strong bonds, ultimately boosting camaraderie and collaboration. 

Tip: If you don’t know what kind of different employee engagement activities to schedule, have your employees offer suggestions. They might come up with ideas you never thought of!

4. Identify Applicants Who Will Mesh With the Team

If you could somehow see which applicants would succeed before hiring them, it would make it significantly easier to improve employee engagement. Well, you can with Sprockets! Our hiring platform reveals who will perform like your best workers based on shared personality traits. It empowers you to make the best hiring decisions every time and build a superstar team. Did we mention that it’s trusted by numerous top brands like Chick-fil-A?

Start hiring the best applicants for your business with a free demo of Sprockets!

Pictures of applicants alongside scores from 1 to 10
A clipboard with graphs and text reading "5 Key Employee Engagement Statistics"

5 Key Employee Engagement Statistics

5 Key Employee Engagement Statistics 1016 528 Sprockets

The employee engagement software industry grew by $150 million in 2020, and it’s expected to grow by an additional $370 million by 2026, according to a Zion Market Research study. However, despite this trend, 85% of employees don’t feel engaged in their workplace. Is your business suffering from low engagement? If you haven’t implemented initiatives to engage your workers by now, then these shocking employee engagement statistics might change your mind. 

Gallup research shows that companies with highly engaged workers see less absenteeism, less turnover, and better productivity. That’s only the beginning. Read on to see more workplace engagement statistics and check out our AI-powered platform that reveals which applicants will be engaged from the start!

Employee Engagement Statistics You Need to Know

1. Most Employees Are Not Engaged in the Workplace

One of the most surprising statistics on employee engagement is that most employees are not engaged in the workplace, and the numbers have been declining since 2019. In 2020, employee engagement reached a low of 20% and has declined to 15% globally since then.

2. Engaged Employees to Are Better Workers

Almost 80% of employees say that a strongly engaged culture helps them do their best work. Other employee engagement productivity statistics include: 76% of workers believe efficiency and productivity stem from an engaged culture, and 74% think that working for a company with an engaging culture allows them to deliver better customer service.

3. Employee Engagement Leads to Higher Profits

Perhaps one of the most intriguing employee engagement facts and figures is that a high level of employee engagement can increase business profits by 21%. An engaged staff experiences better customer loyalty and, therefore, an increase in overall revenue. So, you might see a significant ROI from investing in employee engagement strategies.

4. Employee Recognition Boosts Productivity

The statistics on employee engagement and productivity don’t stop there. In fact, 37% of employees consider recognition to be the most important factor for their success. This means managers and members of leadership teams should do what they can to recognize employees, therefore bolstering their sense of pride, motivation, and self-confidence.

5. Engaged Employees Are Less Likely to Leave

Engaged employees are 87% less likely to leave a company than those who are not engaged. In other words, unengaged employees are five times more likely to leave their current workplace. That means having to deal with costly employee turnover and a time-consuming hiring process. (Wouldn’t it be easier to just implement good employee engagement practices?)

What You Can Do to Improve Employee Engagement

There are several employee engagement strategies that are easy to implement and will pay off in the long run. You can schedule team-building activities, schedule routine check-ins, offer career development opportunities, and so much more that we outline in our free e-book, 4 Steps to Reduce Your Reliance on Applicant Flow

Plus, you can get a free demo of Sprockets’ AI-powered platform that reveals the ideal applicants based on shared personality traits with your current top performers. You’ll know who will succeed and mesh well with the team even before spending time on interviews!

A sales rep with personality traits
Someone pointing to a sign that reads "2022 GOALS" and text reading "New Year’s Resolution for Businesses: Hire Smarter in 2022"

New Year’s Resolution for Businesses: Hire Smarter in 2022

New Year’s Resolution for Businesses: Hire Smarter in 2022 1016 528 Sprockets

To all the owners and operators who struggled with staffing in 2021: It’s time to turn over a new leaf by reducing employee turnover in 2022. Don’t worry — it’s easier than you might think. Simply follow the steps below to hire applicants who will succeed and stay long-term. Numerous other businesses have thrived despite the labor shortage by listening to our advice, so what do you have to lose besides the headaches caused by a stressful hiring process? (We doubt you’ll miss those, though.)

3 Steps to Stabilize Staffing Levels in the New Year

1. Save Time by Implementing Hiring Tech

If it feels like there’s not enough time in the day to focus on the hiring process with everything else you need to worry about, you might want to look into tech solutions. Recent advancements have enabled numerous businesses to thrive despite the labor crisis, and technology is only becoming more necessary as time goes on. 

Stay ahead of hiring trends and save valuable time by checking out some of the options we outline in our guide to must-have hiring tech. You’ll discover proven solutions to optimize every step of your process, from screening to scheduling employees.

2. Boost Applicant Flow by Optimizing Job Postings

It’s more important than ever to make your employment opportunities stand out from the millions of other businesses desperate to hire workers. One of the best ways to accomplish this is by creating job postings that resonate with your target audience, shine a light on your company’s differentiating factors, and even contain the right keywords for search engine optimization. It’s also crucial to be selective about the job boards for your advertisement. 

These often-overlooked details could mean the difference between having high-quality candidates to choose from or feeling forced to hire anyone who submits an application. View our free guide on crafting effective job postings to ensure you maintain healthy staffing levels in 2022.

3. Improve Employee Retention by Focusing on Fit

The final and most important step to boosting employee retention in the new year is to focus on fit. For those of you who are unfamiliar with this, fit refers to how well a potential hire would perform in a given role and mesh with the current team. Finding the right fit, as opposed to traditional recruiting methods, involves identifying applicants’ soft skills, like communication and collaboration. A candidate’s mental makeup often proves to be more important than industry experience, essentially putting the relevance of resumes into question with the modern hiring process. 

It’s possible to hire for fit even with a shallow applicant pool. You just need to know what to look for in candidates — or have Sprockets’ AI-powered platform do the work for you. Learn all about it in our guide on how to reduce costly employee turnover.

Achieve All Three With One Proven Solution

Here at Sprockets, our New Year’s resolution is to help you achieve yours! Our hiring platform enables you to accomplish all of the above goals and so much more. Sprockets’ Applicant Matching System reveals which applicants will perform like your top-performing employees, helping you make more informed hiring decisions and improve employee retention. We even have Virtual Recruiters that can review and optimize your job postings to give you a better chance of attracting the right candidates for your business. 

If it sounds too good to be true, feel free to check out the testimonials and success stories from some of our many happy customers. And, make sure you get a free demo of our platform to see for yourself!

A circle with personality traits and "9.1: Top Match"
Someone holding a clock and text reading "3 of the Best Employee Scheduling Tools to Boost Productivity"

3 of the Best Employee Scheduling Tools to Boost Productivity

3 of the Best Employee Scheduling Tools to Boost Productivity 1016 528 Sprockets

Do you know how much time per week you spend organizing schedules for your workers? If you’re not using an employee scheduling tool, then you’re likely wasting time on a tedious task instead of focusing on important daily operations. You might even be contributing to employee burnout and reduced morale due to inefficient practices. 

Make life easier for you and your team members by implementing one of the business scheduling tools listed below. Plus, check out our resources page to discover even more solutions to boost productivity, retention, and employee wellness.

It’s Time to Try These Employee Scheduling Tools

When I Work

Think about what you can do with an extra 15 hours per week. Then, consider making it a reality by implementing the time-saving employee scheduling app, When I Work. It allows you and your workers to manage PTO, swap shifts, and see availability directly from the app. When I Work even comes with an auto-scheduling feature that organizes shifts with a single click. Best of all, it’s proven to reduce the need for overtime, decreasing labor costs by an average of 20%.

Homebase

Homebase is one of the best scheduling tools for businesses that primarily hire hourly employees. It’s specifically designed to empower the hourly workforce with schedule templates, alerts to avoid overtime, and automatic text reminders for employees who have upcoming shifts. Over 100,000 employers trust the Homebase employee schedule maker, and it’s listed among the top 50 business apps for Apple devices. 

Shiftboard

Some of the top brands in the world, like Shell and Salesforce, use Shiftboard’s online employee scheduling tool. On average, Shiftboard users are able to make the scheduling process 30% more efficient and increase shift coverage rates by 88%. Plus, Shiftboard allows you to choose between two subscription options depending on whether you’re a production-centric or service-centric organization. There are plans for every industry, from manufacturing to health care.

Shift Your Attention to Employee Retention

43% boost in 90-day employee retentionWhile all of these online shift scheduling tools can help businesses boost productivity and streamline operations, there’s a crucial first step missing: hiring the best workers. Luckily, Sprockets’ Applicant Matching System predicts new-hire success with pinpoint precision. 

Our solution takes the guesswork out of the hiring process by revealing which applicants share key traits with your top-performing workers. Plus, the simple scoring system makes it easy to make the best decisions every time, drastically improving employee retention. We’ve helped numerous businesses maintain stable staffing levels despite the labor crisis, and we’d like to help you achieve the same level of success!

A phone with a QR code next to food and text reading "How Has Technology Changed Restaurants?"

How Has Technology Changed Restaurants?

How Has Technology Changed Restaurants? 1016 528 Sprockets

It’s easy to see how innovations like smartphones and social media platforms have changed the way we socialize, but what about the dining experience? How has technology changed restaurants? It’s crucial for owners and operators to explore this topic so they can learn lessons from the past, stay ahead of the latest trends, and implement the best solutions for their business. Find out everything you need to know about innovations in the restaurant industry and schedule a free demo of our hiring platform to discover how technology can boost your employee retention by 43%!

Restaurant Technology and Trends

1. Mobile Ordering

Looking back now, the world seemed entirely different just five or ten years ago. The idea of ordering food on a phone before going to the restaurant might have seemed absurd. Fast-food restaurants and technological advances have changed that.

The first major tests with mobile ordering began in 2014 when Taco Bell and Outback Steakhouse announced that customers would be able to order using an app so their food would be ready when they arrived at the restaurant. The popularity of mobile apps for restaurants caught on, and many companies have created their own apps since then.

The trend grew steadily over the next few years but skyrocketed since the COVID-19 pandemic created challenges for eating inside restaurants. Thanks to new technology in the foodservice industry, we could be looking at the future of restaurants and food delivery. Ten years from now, people might wonder why people ever waited to get to the restaurant before ordering at all.

2. Self-Service Kiosks

In addition to mobile ordering, many restaurants have implemented self-service kiosks. These can be free-standing displays at the front of QSR establishments or touch-screen devices at tables. These kiosks make it more convenient for customers to order food and pay their bills. It can also help speed up operations by saving time in the ordering process.

While this new technology in restaurants has been met with some concerns that it replaces human labor and eliminates jobs, this isn’t the case. It simply enhances the experience for employees and enables them to spend more time providing spectacular customer service. The technology will also prevent the staff from being overworked and lead to a better work-life balance.

3. QR Codes

While paying through a tablet or a phone app is a popular solution, some restaurants have chosen another route and created a payment method based on QR codes. Every restaurant does this their own way, with some of them putting the codes at every table and others having a few codes posted in specific locations at the restaurant.

These QR codes can be scanned from a phone and will open an interactive menu. After ordering, you can then easily pay for your food. They are a great way to save time and, much like a self-service kiosk, should help keep your workers from getting overwhelmed.

4. Scheduling Technology

Poor planning can turn a successful business into a disaster overnight. The good news is that we now have more technology to help with time management. Scheduling software is a great way to manage employees and decide what shifts they should work without spending hours staring at a computer document or calendar.

Much of this software can even be found in the form of phone apps, which makes it that much more convenient. Phone app or not, these types of software solutions often come with some very useful features, like a group messaging function that you can use to communicate with employees and an availability tracker to remind you which employees can and can’t work certain shifts.

5. Voice-Assisted Ordering

Ever since the creation of voice-assisted technologies, such as Siri or Amazon’s Alexa, people have been looking for new ways to incorporate voice technology into their lives. One interesting innovation in the restaurant industry has been voice-assisted food ordering.

This technology is convenient for customers and allows restaurant workers to track customer orders and note any dietary needs they might have. This allows the staff members to get their customers the foods they like as quickly and safely as possible. Some voice-assisted ordering solutions even suggest additional items that the customers might want to pair with their meal, creating a better customer experience and generating additional revenue for the restaurant.

6. Sprockets’ Predictive Hiring Platform

Someone on a laptop hiring hourly employees with SprocketsProductive employees are the gears that make your restaurant run as efficiently as possible, and Sprockets makes it easy to build these top-notch teams. Our AI-powered platform uses a brief, three-question survey to identify which applicants will succeed like your top performers. Then, you can simply look at the red-yellow-green scoring system to see who you should hire. It empowers you to make the best hiring decisions every time and improves employee retention by an average of 43%. Get your free demo today!

A man looking at his empty wallet with text reading, "The Importance of Investing in Your Employees' Financial Wellness"

The Importance of Investing in Your Employees’ Financial Wellness

The Importance of Investing in Your Employees’ Financial Wellness 1016 528 Sprockets

As much as you’d like your employees to leave personal issues at home and give 110% in the workplace, it’s easier said than done. This request becomes even more unrealistic when the two are linked, like problems with employee financial wellness. Employers who wish to improve their company culture, morale, and productivity must address these types of issues. And, it’s not as simple as telling workers to forget their worries. Discover the real, quantifiable effects of financial stress on employees and help ease concerns with the strategies below.

How Financial Wellness Affects Employees

Someone’s financial situation influences much more than their bank statement. Studies show that monetary issues cause severe stress, anxiety, and depression. It can even weaken your immune system and impair your decision-making. This is especially concerning when you consider that an estimated two-thirds of Americans experience financial stress. Employers must recognize this issue and reduce the negative impact on their employees’ physical and mental health.

How It Impacts Your Business

The COVID-19 pandemic prompted a comprehensive study by PwC that yielded some shocking statistics about employee financial wellness. For instance, 45% of workers dealing with financial challenges reported being distracted in the workplace, and 72% said they would leave their jobs for another company that cared more about their financial well-being. Plus, since the stress weakens their immune systems, it’s more likely for people to get sick and need to take time off unexpectedly. Improving the financial wellness of employees benefits your business by potentially boosting productivity, increasing retention, and avoiding the costs of turnover. It may even help with applicant flow if job seekers see that your company values its workers.

How to Fortify Their Finances

There are various employee financial wellness programs and initiatives that you should consider implementing at your company if you haven’t already done so. One idea is to raise wages for hourly workers like McDonald’s and other fast-food restaurants have done. You can also boost morale and put some extra money in people’s pockets when they need it most by giving workers holiday bonuses. Additional employee benefits can include financial education, access to financial advisors, and even tuition reimbursement. 

Discover More Employee Retention Strategies

The Franchisees' guide to Employee TurnoverThere are several reasons why financial wellness is a must-have employee benefit, including the positive impact it can have on retention. That means less time and money spent on the hiring process. If you’d like to learn more ways to improve employee retention, then make sure you check out The Franchisees’ Guide to Employee Turnover! You’ll discover the hidden effects of turnover, common causes, and proven strategies to conquer this costly problem.

Restaurant workers with text reading, "Why You Need to Create Career Pathways for Hourly Workers"

3 Reasons Why You Need to Create Career Pathways for Hourly Workers

3 Reasons Why You Need to Create Career Pathways for Hourly Workers 1016 528 Sprockets

It might seem impossible to attract and retain high-quality hourly workers, but there are a few proven solutions you can implement to quickly stabilize staffing levels. In addition to using Sprockets’ Applicant Matching System to boost retention by 43%, we recommend creating career pathways for your employees.

While many business owners and operators have raised wages to attract job seekers, that’s only a piece of the puzzle. It has increased applicant flow in some cases, but it’s a short-term solution. Workers who aren’t engaged or don’t feel a sense of loyalty to your business are likely to leave once a competitor offers an even higher wage. Consider providing employee growth opportunities so workers see their role as less of a job and more of a long-term career.

The Importance of Creating Career Pathways for Employees

1. It Helps Attract Applicants

A company’s culture and core values can significantly influence a job seeker’s decision to apply for a position. When you promote the fact that hourly employees have access to career growth plans, it shows people that you value their individual success and well-being. Be sure to include this in your job postings, company website, and even social media profiles.

2. It Can Boost Retention

A study conducted by WorldatWork revealed that employers who do not invest in training and developing employees will ultimately lose them to competitors. So, you can either deal with costly turnover or boost productivity and engagement by offering career growth opportunities. The return on investment makes it incredibly worthwhile to simply outline career pathways and conduct a little extra training.

3. It Reduces Hiring Costs

The savings don’t stop with retention. It’s much more cost-effective to hire from within, and these loyal employees already know the ins and outs of the business. External hires actually tend to score worse on performance reviews and are 61% more likely to get fired despite having more industry experience. Save money by saving your current employees!

Tips for How to Create a Career Pathway Plan

Be Transparent

You don’t want to be that employer who makes empty promises. Clearly define the roles and steps to climb the ladder so you can accurately discuss the process with potential hires. And, if you can’t offer career growth opportunities, let them know. It’s better to be transparent than deal with disgruntled employees and negative reviews on job sites. 

Discuss the Employee’s Goals

These development opportunities and training programs should be mutually beneficial for both employers and employees. That’s why it’s crucial to meet with workers, particularly in a one-on-one setting, to talk about where they see themselves at the company. Have an open conversation and work together on a plan to help them achieve their goals.

Set up SMART Objectives

The career development plan that you create should include SMART objectives (Specific, Measurable, Achievable, Relevant, and Time-Bound). This ensures there’s no confusion about what the employee needs to accomplish to reach their ideal position with the company. It also keeps a record of what you’ve discussed, sets realistic expectations, and makes it easy to track progress.

Predict Applicant Success — Before the Interview

The Sprockets platformCreating career pathways can be a complete waste of time if you don’t hire the right applicants. Some job seekers are simply looking for a quick paycheck and will leave within a few months no matter what incentives you set up for them. Luckily, Sprockets’ AI-powered solution identifies which applicants will succeed and stay long-term. 

Sprockets eliminates wasted interview time, reduces costly turnover, and enables you to focus on daily operations. It’s proven to work and trusted by numerous businesses, like a Bojangles franchise group that achieved 95% employee retention in 90 days during the peak of the labor crisis!

See how Sprockets works and get all your questions answered with a free 15-minute demo!