Why Do Employees Resign from Cafes and Shops? Hint: It's not the salary!

You receive hundreds of CVs, go through them one by one, then you call and interview a few (or maybe a lot) until one of them stands out. Finally, after several weeks or months, you find the perfect candidate for the job. The employee shows up on the first day with a big smile on their face. They start learning their responsibilities, and they even excel at their role!

You sit back and relax knowing that you can focus on other parts of your business until…suddenly, your employee resigns with or without notice. At first, you are surprised and frustrated, but then you realize that this happens so often that it really should not be surprising anymore.

Jobs in the retail and service industries such as cashiers, sales representatives, and hosts, fall within the same pay range. Yet, it is common for someone to resign just to get hired elsewhere for a similar job. So why do your employees resign and what can you do to avoid that?

Unprofessional Manager or Supervisor

“People leave managers, not companies”

Marcus Buckingham

Gallup surveyed more than a million employees to find out why they resigned. They’ve found out that 75% of employees resign because of their supervisor or manager. An employee whose supervisor is harsh and constantly threatens and picks on them is more likely to quit than one with a positive and motivating supervisor. That employee would rather jump at any other work opportunity than stay in a toxic environment.

Meanwhile, the supervisor will continue to drive away other new hires. Eventually, the company will end up in a recurring hiring process wasting a lot of time, money, effort, and good talent. So what can the company do?

Alfasialiah Group has implemented a two-way feedback system where employees can give feedback to management and receive a rating from management. This has enabled the company to identify problems early and prevent major issues from arising. In addition, employees were able to receive constructive feedback that helped them grow personally and professionally. As a result, Alfasaliah Group has been able to foster a positive and motivating work environment where employees can flourish which resulted in a much higher-than-average retention rate.

Inflexible Work Schedule

Retail and service sector employees find it particularly difficult to strike a good work/life balance. The weekend is a time of relaxation for most employees in other industries. However, in this industry, peak demand and stress are during this very time. Many know that their employees would like to enjoy their lives outside of work and they also have obligations with family and friends, but few act on this.

Therefore, it is recommended that you at least share the schedule with your employees beforehand. That way, they can plan ahead with their families and friends to relax and chill as needed. Then they can come back to work happier and refreshed!

Their happiness is actually beneficial to the business beyond reducing resignations! According to a study by Forbes magazine, happy employees increase their companies’ sales by up to 37%.

Happy employees 😊 = better performance & fewer resignations

We also recommend taking advantage of flexible staffing services to reduce your employees’ overtime burden. With flexible staffing, you can hire vetted staff and pay based on hours worked. This way, you can keep your employees energized and even reduce the cost of overtime for you.

There are five reasons why companies in the retail and service industry use flexible staffing

Delay in Payroll Time  

Each employee has their own financial commitments and obligations. They highly anticipate their payroll time to fulfill these needs & any delay in their paychecks affects their sense of security. With a low sense of security, employees eventually lose loyalty to the company and resign for the next better opportunity. In addition, delays in salary payments prevent them from qualifying for bank financing services. This affects their ability to achieve their goals, such as buying their dream car or a place to live.

“There are several reasons why employees resign and one of them is the failure to stick to a fixed payroll date or sometimes even delaying salaries by a month or two. In this case, It is expected that there will be more resignations than usual because there are plenty of other similar job opportunities that have a more predictable payroll schedule.”

– Founya Alharbi, HR Consultant that hired more than 700 employee in the retail and hospitality industries.

Bad Work environment

Investing in a good work environment is not a luxury as some business owners may still think. It’s a necessity. Human Resource Specialist Abdulaziz Alqahtani reiterates the importance of creating a suitable work environment for employees by saying, “The average employee spends about 8 hours a day at work. The workplace must be designed to meet the basic needs of the employee. This includes comfortable chairs, a prayer area, air conditioning, good ventilation, refreshments, and many other things that enhance the environment. These may look simple, but they can actually have a huge impact on employee productivity and satisfaction in the workplace.”

Another way to create a good work environment is to recognize employees’ hard work and celebrate their accomplishments. Otherwise, how would an employee know if they’re performing well or not? After all, if all employees are paid the same salary, why should one work harder than the rest? and why should they invest so much in being cheerful and proactive? For some employees, this comes naturally, but others need the motivation to do it.

There are plenty of ways to motivate employees without breaking the bank. At Sabbar, for example, we send a monthly email newsletter for the flexible work staff in our platform where we highlight key employee achievements and stories. Oftentimes we also run competitions with cash prizes and gift vouchers. The engagement and enthusiasm of the staff are truly heartwarming! You can read a summary of this newsletter we shared on Twitter.

False Promises

Some managers and supervisors are quick to promise promotions to outstanding employees. They are meant to motivate them or give them a reason to hold on to the job until they get their reward. This may initially motivate some employees and get them to increase their productivity. But as time goes by and the longer they wait, the employee’s patience and motivation will gradually fade. The employee who was once a superstar becomes frustrated and begins to lose faith in a bright future, and eventually plans to resign.

Do not rush into giving promises if there are no plans or decisions made specifically to promote those employees. You probably have good intentions, but there are other ways to motivate employees that are less likely to backfire. Showing appreciation for employees, giving words of encouragement, and helping them develop their skills through giving them new responsibilities all contribute to their job satisfaction. This is exactly how the Saudi cafe & restaurant “Chunk” has managed to maintain trust between employees and management and have a 1% turnover rate!

So what can you do to avoid frequent employees resignations?

1. Talk to employees who resign in an exit interview to first identify any underlying issues.
2. Evaluate and train supervisors and managers regularly. Be sure to include their peers and employees who they supervise in the evaluation.
3. Prepare employee schedules and share them before the start of the week/month.
4. Let employees participate in scheduling their vacation and “off” days. This would mean extra work for your company, but it will definitely help them feel more comfortable at their work.
5. Utilize your bank’s tech services or digital platforms to help you meet payroll deadlines.
6. Know how to have fun! Plan frequent activities to break the routine and lift up the mood. This can be anything from a company dinner to a simple game night.
7. Show gratitude and reward employees that excel with certificates and vouchers.
8. Avoid giving employees false promises and empty hope for a raise or promotion. Instead, give words of affirmations and mentorship opportunities to develop their skill set.

Finally, there are many things besides salary that affect employee satisfaction. From mean supervisors to late paychecks to work schedule and environment. It is expected that every hardworking employee likes to be recognized and appreciated. They also desire to receive their pay on time as one of their most basic rights. And if they know their schedule in advance, they can better balance their work and life. All of this ultimately helps employees become happier and more productive and less likely to resign.

Do you need help in hiring? Sabbar helps businesses in the retail and service industries hire better through flexible staffing. Contact our team and they will be happy to help!

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