The post-pandemic restaurant employee: Who wants to work and why August 2021 - Black Box ...

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The post-pandemic restaurant employee: Who wants to work and why August 2021 - Black Box ...
The post-pandemic
restaurant employee:
Who wants to work and why

August 2021
The post-pandemic restaurant employee: Who wants to work and why August 2021 - Black Box ...
The restaurant industry has been on an unpredictable ride
over the past year and a half—and we’ve been adjusting
to every high and low in real-time.

We’re now facing the biggest                      Some experts point to enhanced
challenge to date—a labor shortage                unemployment benefits as a
and retention crisis.                             deterrent for employees returning
                                                  to work (although recent evidence
To put it simply, it’s a job candidate’s          shows that cutting those benefits
market and many are rethinking                    doesn’t significantly reduce
when, how and where they work.                    the labor shortage). A recent
                                                  study conducted by Black Box
The Bureau of Labor Statistics                    Intelligence™ revealed that 71% of
(BLS) reported that job openings                  operators believe higher pay through
had increased to a series high                    unemployment or even higher pay in
of 10.1 million by July with the                  another industry is the main driver
accommodations and food services                  behind the industry’s labor shortage.
sector accounting for a large portion
of the increases. According to
Black Box Workforce Intelligence™,
                                                       There are approximately
the current staffing challenges have
full service restaurants operating                     70% more job vacancies
with 6.2 less employees in the back                    than pre-pandemic levels
of the house and 2.8 employees less                    across all industries
in the front of the house than they                    and 10% fewer people
did in 2019.
                                                       looking for work—that’s
                                                       the greatest gap in
                                                       recorded history.

                                     Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021   2
The post-pandemic restaurant employee: Who wants to work and why August 2021 - Black Box ...
Adding to the issue, turnover rates have spiked
and voluntary quits are at an all-time high—
leaving restaurants scrambling to retain the staff they have.

Hourly turnover
in restaurants is high—
surpassing
pre-pandemic levels

Limited Service                           Full-Service

 2019            June 2021                   2019                              June 2021
 135%            144%                        102%                              106%

                             Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021   3
The post-pandemic restaurant employee: Who wants to work and why August 2021 - Black Box ...
There are 4 driving factors contributing
to the restaurant staffing shortage.

 1    Wages and benefits.
For the first time in decades,
the American hourly worker has
the upper hand in compensation
conversations. In response,
restaurants are offering higher                            Opportunities in
wages and unique incentives                        3
to attract employees. Black Box
                                                           other industries.
Workforce Intelligence data reported            When restaurants closed early
that in Q2 2021, limited-service                in the pandemic, 51% of workers
hourly wage increased by 10%                    cited higher pay or the need for
year over year, the highest increase            consistent schedules and income
the industry has seen in years.                 as their top reasons for
                                                switching industries.

 2 Childcare.                                              Concerns about mental
                                                   4
In the second half of April a US                           and physical health.
census survey found that nearly                 The nature of restaurants
1 million households had at least               creates an environment ripe for
one adult who could not look                    physical transmission of illness
                                                and emotionally taxing social
for work because they needed
                                                interactions—on top of already
to look after their children.
Restaurant workers with children                challenging work. In May 78%
often rely on affordable childcare              of workers said their mental
options like daycares, which are                health had been negatively
limited due to the pandemic.                    impacted in the past 12 months.

                                     Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021   4
The post-pandemic restaurant employee: Who wants to work and why August 2021 - Black Box ...
To further understand these labor shortage
factors, we surveyed 4,700 former,
current and hopeful restaurant workers.

Here’s who’s working
in restaurants.

69% 47%      14% 27%      13% 22%                     3%         4%               1%          1%

 16-24        25-34        35-54                      55-64                          65+

By age             Limited-Service                               Full-Service
                   Restaurants                                   Restaurants

                          Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021   5
The post-pandemic restaurant employee: Who wants to work and why August 2021 - Black Box ...
Current or recent position:

 27%             22%                        11%                                9%
 Cashier         Cook/                      Waiter/                            Manager
                 Kitchen staff              waitress

Time working in restaurants:

   26%          19%              19%                         14%                         21%
Here’s who is looking
to work in restaurants:

 17%              39%
 first-time       employed
 job seekers      but looking
                  for a new job

Here’s where they’re
searching for jobs:

 36%   Online job search

       Restaurants located
 33%
       close to their home

       Restaurants they
 16%
       enjoy dining at

 9%    Places their friends work
 6%    Social media

                                   Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021   7
Wages and Benefits

One of the primary sticking points for restaurant
workers is wages and benefits, including benefits.

5 most important                            Incentives that are most
things restaurant workers                   attractive to workers applying
look for in a new job                       for restaurant jobs right now

      Starting                                            Cash bonus
 1    hourly wage
                                                1         if hired

      Promotion                                           Cash bonus
 2    opportunities
                                               2          for interviewing

      Flexible                                            Retention bonus
 3    schedules
                                               3          (if they’re still with the company
                                                          after a certain period of time)

      Health benefits and                                 Free meal at
 4    paid time off policies
                                               4          the interview

      Company culture/
 5    work environment

                               Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021   8
87% of respondents
would rather have a set
livable wage than tips

Wages and Benefits

Actions you can take:

   1                                                  2
 Ensure you advertise any of the                   If you’re offering hiring incentives,
 benefits or perks your business                   make them clear to applicants.
 offers in the job posting.
 Whether it’s financial, cultural
 or even free food—workers
 appreciate the recognition.

                                    Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021   9
Childcare

According to the McDonald’s                     The COVID-19 has created even
EVP and Chief Global Impact Officer,            bigger childcare shortages and
                                                problems for hourly workers. With
“This is the most                               schools and daycares closed or
difficult hiring                                operating at limited capacity, many
                                                workers have been forced to take
environment in their                            matters into their own hands.
66 year history, and
                                                According to Snagajob data,
the lack of care is
the top reason our                              35%
employees are citing.”                          of current hourly
McDonald’s already offered paid
                                                workers and job
parental leave, and recently                    seekers are parents
reported adding emergency
child care and other benefits to
attract more workers.
                                                18%
                                                of unemployed hourly
                                                workers had to leave
                                                their job to take care
                                                of family or children

                                   Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021   10
One third of all U.S.                         In 2020 alone, women
employees have left a                         globally lost more than
job during their career                       64 million jobs,
in order to manage                            which equals 5% of the total
caregiving responsibilities.                  jobs held by women. A majority
                                              left the workforce to stay home
                                              and provide child care.

Childcare

Actions you can take:

    1                                                2
  Highlight any flexibility that                  Talk to your staff, find ways
  you offer that would be                         to support them if they are
  helpful to working parents                      struggling to juggle childcare
  in your job description.                        responsibilities and work.
                                                  It may be as simple as
                                                  adjusting their hours.

                                   Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021   11
Opportunities
in other industries
Many hourly restaurant workers have not left the
workforce, just the industry, in the past 18 months.
Voluntary turnover is higher than ever.

Top 5 reasons workers have left the industry:

 28%                                     16%
 Higher pay in other industries          Work hours
                                         (late nights, weekends, holidays)

 23%
 Needed consistent                       15%
 schedule/income                         Work environment/
                                         company culture

 17%
 Lack of professional
 development & promotion
                                             Of surveyed employed hourly
 opportunities                               workers, 15% have changed
                                             industries in the last year and
                                             another 33% want to.

                                  Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021   12
When restaurants closed early in the pandemic, many
workers turned to other thriving sectors, those with a high
demand for labor created by shifting consumer behaviors.

According to Snagajob data:

    Warehouse and logistics                         On demand
    jobs are up 278%                                jobs are up 183%
    compared to                                     compared to
    pre-pandemic norms                              pre-pandemic norms

Opportunities in other industries

Actions you can take:

    1                                               2
  Focus on retention.                            Talk to your staff before it’s too
  Build a culture that workers want              late. If there are things being
  to be part of and meet their                   offered by other employers that
  needs so that they will stay.                  have them looking, maybe you
                                                 can offer that to your team too.

                                  Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021   13
Concerns about mental
and physical health
It’s no secret that restaurant workers             Restaurant workers
juggle a lot of responsibilities in their
                                                   put up with a lot.
day-to-day work; adding the stress
of personal responsibilities and
working through a pandemic has only                   62%
compounded the issue. Many hourly                     emotional abuse/
workers are picking up extra hours or                 disrespect from customers
responsibilities and it’s taking a toll
on their mental health.
                                                      49%
66% of workers                                        emotional abuse
                                                      from managers
would return to
the restaurant                                        15%
industry if the right                                 sexual harassment
                                                      from customers
conditions were met

                                                      15%
                                                      sexual harassment from
                                                      managers/co-workers

                                      Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021   14
The nature of the restaurant environment makes it easy to transmit illness.
Despite many governments and businesses implementing mask and vaccine
mandates, the reality is that diners can’t wear masks while they eat,
and many workers simply don’t feel safe coming to work.

    65%                                             83%
    of hourly workers want                          plan to wear a mask while
    businesses to keep mask                         working to keep themselves
    mandates for customers                          safe regardless of business/
                                                    state requirements.

Mental and physical health

Actions you can take:

    1                                               2
  If you are asking workers                      Create an open dialogue
  to enforce mask or vaccine                     between staff and managers to
  mandates, provide support                      get ahead of any potential issues
  and ensure they are comfortable                that could hurt retention.
  with taking on this, sometimes
  uncomfortable, responsibility
  at work.

                                  Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021   15
Conclusion

The restaurant industry isn’t for everyone,
but that’s ok! 17% of restaurant workers chose
the industry because it was a career choice;
they want to be in the industry long-term.

Recently, restaurants have been
hit with higher than usual turnover
and this is a moment for restaurant
owners and managers to take a look
at how they do things and what
their staff is up against. By creating
a positive work environment and
meeting workers’ needs, restaurants
can reduce turnover and hire top
talent in the tightest labor market
we’ve ever seen.

                                     Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021   16
About us

 Black Box                                Snagajob
 Intelligence                             Snagajob, the country’s largest
                                          marketplace for hourly jobs and
 Black Box Intelligence™ is
                                          shifts, connects more than 47
 the leading data and insights
                                          million hourly job seekers with
 provider of workforce, guest,
                                          employment opportunities at
 consumer and financial
                                          470,000 employer locations
 performance benchmarks
                                          in the US. Snagajob’s mission
 for the restaurant industry.
                                          is to put people in the right-
 With the recent acquisition
                                          fit positions so they can
 of MillerPulse, Black Box
                                          maximize their potential
 Intelligence is home to the
                                          and live more fulfilling lives.
 largest and most reliable
                                          Through Snagajob, workers
 set of real restaurant data
                                          gain the flexibility of working
 in the marketplace. Black
                                          when and where they choose
 Box Intelligence is also the
                                          while employers are assured
 producer of The Best Practices
                                          every shift stays filled. For
 Conference held annually in
                                          more information, visit www.
 Dallas, Texas.
                                          snagajob.com or connect with
                                          us on LinkedIn, Instagram,
                                          Facebook and Twitter.

                             Black Box Intelligence + Snagajob: The post-pandemic restaurant employee 2021   17
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