By Lisa  Jennings

Email Print

DALLAS (Nov. 17, 2009) More than one-quarter of quick-service employers plan to add jobs in the fourth quarter, but most in the segment have put hiring on hold until economic conditions improve, according to the latest People Report Workforce Index.

The survey of about 70 restaurant companies, which is conducted each quarter by Dallas-based People Report to track leading employment measures, found that the quick-service segment was the only one to add jobs in the third quarter. It was the first time the segment had done so in 12 months.

The Workforce Index measures operators’ personnel expectations in five areas: employment levels, recruiting difficulty, job vacancies, turnover and employment expectations. A rating of 50 or more indicates strong growth, or pressure to fill vacancies, recruit and increase staff, for example. A reading of 50 or below denotes a slowing down of growth.

The data also looks at employment measures by segment, including quick service, fine dining and upscale casual, casual dining, and fast casual/family.

In the fourth-quarter report, the quick-service segment stood out as the only one with an employment levels rating that reached 50.8 — indicating growth for that component — while all other segments had employment levels well under 50.

According to the report, 27 percent of employers in the quick-service segment said they plan to add hourly workers in the fourth quarter, while only 7 percent said they plan to cut jobs. Another 27 percent said they plan to add managerial staff, while none of those surveyed said they plan to eliminate manager positions.

“That’s a big change from earlier in the year, when a huge number were planning reductions and none were talking about adding jobs,” said Michael Harms, human capital analyst for People Report.

Of course, that also means just under three-quarters of those surveyed in the fourth-quarter report are holding steady.

“We’re really not seeing much growth overall,” said Harms. “Everyone is in a holding pattern right now.”

During the third quarter, 31 percent of quick-service operators surveyed said they added hourly jobs, up from 19 percent in the second quarter.

About 25 percent said they hired managers during the third quarter, an improvement over the 13 percent that hired managerial staff in the second quarter, according to the survey.

Overall, however, the Workforce Index rating for the quick-service segment was 47.6. Though it rose three points over the third quarter, the under-50 value indicates that the job market continues to be very soft, the report said.

Factors such as job vacancies and recruitment difficulty continued to be negative, the report found.

The upside for the industry is low turnover, which Harms said is at its lowest level since People Report began tracking such metrics roughly 14 years ago.

For the quick-service segment, the turnover rate has dropped 23 percent over the past year, the index said.

Of those surveyed, 75 percent said turnover rates declined in the third quarter at the hourly level, and 63 percent said they experienced declines in turnover at the managerial level.

While low turnover can offer cost-saving benefits to employers, as they will have lower recruiting and hiring expenses, it also has a downside.

“Star employees will not have trouble finding another job, even in this economy,” said Harms. “It’s the less-than-stellar employees who stay.”

Contact Lisa Jennings at ljenning@nrn.com

Click Here to get more in-depth analysis. Subscribe to Nation’s Restaurant News Today!