I realize that minimum wages vary substantially - but Im curious for some input on this…
Where we are minimum wage is $11
I currently pay my training pizza cooks $12
my highest paid cook (been with us 1.5 years) is making $13
Recently theres been a fair bit of talk about wanting raises, working too hard (they are not - it’s slow season) etc. normal employee BS.
My husband (now removed from the business operations as he purchased another business so he could have his own ;)) told me I should develop a “pay scale”.
We run two restaurants from one building - and pay them more when they can do more than one role as they are worth more to us. I’m just struggling with this and can’t stand the thought of all of them insisting on training a new role (when they haven’t mastered their current role). I can’t really afford to give a bunch of raises out and Alberta is “supposed” to be going up to $15 per hour minimum wage within the next few years, this obviously would require me to increase prices which I am opposed to doing as the economy is so fragile.
Any thoughts or insight?
I proposed a food credit (they get 1/2 price currently) but the Hubs said it was too complicated.
How do your wages compare to other similar employers in your area?
I have always believed that paying $1 more than most other places around me will get and keep better employees.
Treating employees with respect is also very valuable in keeping employees.
Last, consider a bonus for key employees. The ones that have an impact on your costs. Empower the employees: “If we can run lower food and labor costs I can pay you more. Simple as that. You have a significant impact on our ability to hit our targets and if we can hit them, you will share in the benefit of doing so.” There is not more money in the pot just because we wish it, so if employees want to make more money they need to help make that possible.
I pay bonuses to three key employees on every pay period. The most important variable right now (it changes from time to time as I want to highlight different aspects of the business) is labor hours. I went back over three years of pay periods and looked at how many hours were worked in comparison to sales and determined what the best revenue per hour worked was for several different sales levels. If the crew exceeds that best value the key players all get an extra $1 per hour. I found that there was quite a range as we have not always been focused enough on this key expense area.
For example if our history shows that in weeks where our sales were between $8,000 - $10,000 that we typically have $35 revenue per hour worked but we have a couple of times been as high as $38 I might set the goal for that bracket at $38. Then if our sales for a two week period came in at $18,000 and we have less than 474 hours total labor the key employees get the $1 per hour. (18,000/38=474). With a revenue forecast it is possible to review the hours planned and see if they line up with those goals. It is also possible to look at sales by the day or any group of days and divide by the hours worked and see where we stand.
Do they deserve more money? Are there other places in your area that would hire them for more? Are you competitive in your wages?
Or, do they just feel entitled to more money even though their performance and attendance does not reflect them deserving more money?
How difficult would it be for you to replace your current staff?
I am actually considering going to a “No Tipping Allowed” environment and going up significantly in employee pay, we are already the top paying restaurant in my area, and we give 2 consecutive days off per week, but I am still shorthanded due to so many people simply choosing to not work and them living comfortably off different government mandated programs that allow them to do this.
My local competitors gladly pay a dishwasher cash daily just to get someone in to work, I refuse to perpetuate this load of crap by doing the same even though it has been tempting.
So I am seriously considering emulating the payscale program used by “Delta Diner” to be able to pay obnoxious salaries that are so over the top just to attract some more talented help.
Here’s a link to the program >> http://www.deltadiner.com/follow-up-on-comments-regarding-no-tip-policy/
Aint it a bitch employing the “Entitlement Generation” I wonder when I will need to provide government mandated 'Safe Spaces" free of trigger words for these special little flowers.
I just console myself in the thought that, they never apply. Hence the need to find employee’s …
Currently, I am working for a hospitality service and technical security product provider company. They pay $8 per hrs.