The recently released People Report Workforce Index for casual dining registered at 56.2 overall, the lowest index for any segment. The downward trend was driven by lower employment expectations for the fourth quarter and dramatically lower management turnover.
Sixty-six percent of the reporting casual chains saw a decrease in hourly turnover, while 31.8 percent experienced a drop in management turnover. Clearly more managers and employees are holding onto their positions in hopes of riding out the current economic storm.
The Employment Expectations component of the casual dining index showed some optimism for growth in the fourth quarter, but the figure is the lowest number recorded since the inception of the Workforce over two years ago. The index was 61.0, compared with indices of 77.5 and 77.2 for the third and second quarters, respectively.
Due to the slowed turnover and lowered employment expectations, difficulty in recruiting managers has also lessened. Less than 20 percent of participating casual-dining companies indicated that reruiting difficulties increased, and 69 percent said the difficulty had remained the same. A record high of 24 percent said the difficulty of recruiting managers has decreased.
These trends from the Workforce Index for Casual Dining are evident of the economic challenges faced by the sector. Workforce pressures have eased temporarily as unit growth has decelerated in the sector due to flagging comparable-store sales and outright unit failures.
This situation presents operators with a challenge: Holding on to talented employees who may look elsewhere for career development and promotional opportunities. It is also a prime opportunity to increase efforts to improve overall workplace practices of recruitment and retention — without the staffing pressures of the last few years.