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CHAPTER FOUR: THE EMPLOYEE EQUATION
Building Morale in a Down Economy

There is no shortage of research showing that employees’ happiness – feelings of confidence, engagement, purpose – has a direct impact on customer service and sales. But it’s not necessarily an easy time to feel optimistic and happy. Restaurant traffic and tips are down, and many employees are worried about the companies they work for, their own employment, and the future.

Of the measures that operators can take to boost morale and keep their workforce focused, open communication is one of the most important. According to Roberta Matuson, pres., Human Resource Solutions, “It’s time to kick communication with employees up a notch. A lot of employees are waiting for the other shoe to drop, especially with all of the buzz on social networking sites about which restaurants are about to close. Employees don’t know what’s real.” She advises letting employees know how you’re doing financially and being as transparent as possible.

Mathew Glazier, pres., The Glazier Group, says that, “Talking with employees at meetings and one on one – having open, honest conversations about the economy and the company – is very important. I talk with them about where I think the economy is going and how our restaurants are doing.” Kurt Knowles, vp, The Manor, West Orange, NJ (DiRoNa member) agrees. “At our daily meetings, we talk about the economic situation, and our staff shares what they’re hearing and seeing in their own lives. It’s good to talk about it when we’re all together.”

When it comes to keeping employees focused and productive, Frank Rowe, vp, PeopleMetrics, says employee engagement is not primarily tied to pay and benefits, but more to emotional factors, such as recognition of a job well done and trust in leadership, especially nowadays. “If employees believe the company is going in the right direction, that what they’re hearing and seeing is consistent, they are more likely to remain engaged,” explains Frank. “And, engagement matters because engaged workforces outperform disengaged workforces by a lot.” The power of positive leaders is also important. G.J. Hart, pres./ceo, Texas Roadhouse, says, “During tough economic times, it is far too easy to let external issues become an excuse for poor operations or to cause a company to lose focus on what made them successful. That is why it is so important to stay positive and focus on the things you can control.”

Frank also underscores the benefit of employees feeling a sense of purpose and empowerment. “We communicate to our employees the importance their individual jobs play in our guests’ experiences; that they have an important role keeping our business going,” explains Patrick Yearout, dir. of training, Ivar’s, Seattle, WA. “It’s important they feel that their jobs mean more than working at one particular station; that they understand they are part of creating memorable experiences.”

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