It's Never Easy
Letting an employee go is never an easy task for a manager or business owner. You could hire an amazing person, but the role may not be a good fit, or there might not be enough work for them. It’s important to be direct, clear and yet sensitive as this can be a life changing event for the employee. Sometimes your business has to come first, and sometimes an employee just doesn’t work out. But what are some of the hidden costs of firing an employee for your pub, restaurant or café?
Filling the Vacancy
If you run a busy pub, restaurant or café, losing a staff member can have a huge knock-on effect. Changes to the roster can be disruptive for both employees and the business, often resulting in paying overtime to make up for the extra shifts. Not only does this put pressure on your current staff, it can impact your customers too, especially if the person who is leaving had a special rapport with regular customers.
Tip: have you come across Get The Shifts? They supply experienced hospitality staff for irregular shifts with only 3 hours’ notice!
There’s always a learning curve for new employees, even if they have previous experience in the field. They will probably have to learn your menu, table and ordering system. On top of this, your current employees must take time out from their own work to help the new hire or to train them. Not only does this lead to a loss in productivity, but the supervision required for a new employee during the on-boarding process means you are essentially paying two people to do the same job.
Paperwork, Administration and Time
Firing an employee means giving official notice to the employee, placing an advert for a replacement or using a recruitment company (which is costly), going through numerous CVs , making calls, holding interviews, etc. The importance of time is even more obvious when you've just lost an employee, because you are probably also short-staffed; so extra paperwork is the last thing you want.
Some of the above costs are hard to estimate but can impact your business in a significant way. It is estimated that losing an entry-level employee can cost your business up to 50% of their annual salary. A small injection of cash may be a good idea for your business, as it should counter any knock-on effect losing an employee may have. A good option is a cash advance, as it is short-term finance option. This works with your business by taking the pressure off your cash flow as repayments are made daily using a portion of your card sales.