COMP NEWS – Restaurants, hotels, and entertainment venues across America have rolled a bevy of new compensation tactics to fill in vacant slots that have opened up sooner than expected.
Some employers have turned towards sign-on bonuses and referral bonuses in order to attract workers, with some incentives sometimes reaching up to $2000.
KNEAD Hospitality + Design is offering $1,000 bonuses to new team members, paid after they average 30 hours per week during the 90-day training period. Employees also can receive a $2,000 referral bonus if they refer managers or chefs, with the bonus paid out 90 days from the new employee’s start date[…]
“We are having issues in select front-of-house positions in most restaurants, namely server, maitre d’ and bartender,” he said. “Everything else is OK, but these positions are the tough ones to fill.”
Some employers have said that post-pandemic employment must meet new standards of compensation that weren’t typical before COVID.
Richard Hollocou, president of Lafayette Hospitality in New York City, said providing workers with a competitive wage, medical insurance and a 401(k) plan is now a minimum expectation, which is prompting employers to look for something extra to woo workers. For example, “wine that is no longer on the [wine] list can be gifted [to staff] and written off,” he said.
In addition to new benefits, salaries have been pushed wider across the board, especially for managerial positions.
David Staller, CEO of DAS Staffing in Newnan, Ga., has many job orders for fast-casual dining positions that he can’t fill, which is pushing starting salaries higher.
“Right now, unfortunately, employers are having to pay much more for average talent,” he said. “Jobs that were paying $55K last year are paying $65K to $70K [now]. Hourly positions in the south Atlanta area that were $10 an hour last year are up to as high as $14. Very few of the larger restaurants have enough staff to actually open 100 percent, even though the law allows 100 percent capacity,” he said.
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