Edge: Training and Retaining: Providing a Developmental Infrastructure

This Management Connection CE article appeared in the 2025 January/February issue of Nutrition & Foodservice Edge magazine. To view a PDF of this article click HERE.

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Training and Retaining; Providing a Developmental Infrastructure

By: Michael Kopec, CDM, CFPP

THE FOOD AND BEVERAGE INDUSTRY is known for its high employee turnover rate. In fact, the U.S. Bureau of Labor Statistics concludes that turnover in the hospitality industry hovers around 70-80 percent annually. Yikes!

However, there is hope. Studies across a variety of industries indicate that professional training increases employee retention while keeping an eye on your bottom-line. So, if you’re a manager in the food industry interested in retaining good employees, it may be time to take a closer look at your training efforts.

According to SmallBizGenius.net, a restaurant employee’s average job tenure was only one month and 26 days in 2021.  Toast, Inc., a company that produces point of sales systems for restaurants, conducted an online blinded survey between February 27, 2023-March 19, 2023 of 1,011 restaurant employees and discovered that 30 percent of restaurant workers plan to leave the industry in less than two years.

Estimates vary widely by industry and position, but replacing an employee can cost upwards of 25 percent of the departing employee’s salary and benefits.

Considering this figure, if you have several positions that become vacant each year, your turnover expenditures can quickly run into the tens of thousands of dollars. Clearly, an investment in training is by far the better value.

The National Restaurant Association estimates that the average restaurant loses $150,000 yearly in just staff turnover. According to the Center for Hospitality Research at Cornell University, losing a front-line employee costs an employer on average $5,864. That includes:

• $176 in pre-departure costs
• $1,173 in recruiting costs
• $645 on selection costs
• $821 on orientation and recruiting costs
• $3,049 on lost productivity while a position is unstaffed

Multiply that cost by the number of employees your establishment turns over annually, and you’ll have a better idea of what your turnover rate is costing you and it can be scary. There’s a strong financial argument to be made for keeping your employees.

Employees are an appreciating asset—they become more valuable with time. This is why it’s smarter, and more cost effective, to invest in upskilling existing talent rather than sourcing new talent.

You may be tempted to think that employee training is just too costly, but avoid this trap because as you’ve just read, the truth is that turnover can cost you much, much more.

HOW MUCH DOES IT COST TO TRAIN AN EMPLOYEE?

According to the Association for Talent Development, organizations spend an average of $1,280 per employee on training and development initiatives.

Though this figure is a useful starting point to help give an insight into potential spend on employee training, it’s just an average. EduMe Software, a leading mobile training platform company, stated in a recent online blog post that the amount you will spend training a new employee will vary depending on factors such as these:

Company Size

• The larger the company, the lower the cost of training per employee.
• The smaller the company, the higher the cost. When there are fewer people, training is more disruptive to operations.

Employee’s Skill Set

• The amount of training an individual needs is entirely dependent on their existing knowledge and skill set, which will inevitably vary from employee to employee.
• Even if two employees start at the same knowledge level and with a similar set of skills, some people are faster learners than others. Upskilling two people to the same level can therefore cost different amounts.
• Those who learn slower or have a greater skills gap to bridge in the first instance will require more of a time investment, which translates to greater cost.

Type of Training

• Different training types have different associated costs.
• Do you primarily train your employees using traditional in-person classroom-style training? If so, an external training provider delivers learning. This involves a labor cost—the cost of the instructor who you are paying to upskill employees. Your employees may also have to travel to a center to receive their training.

“Training should be regarded as an investment rather than a cost—there should be a clear ROI expectation set at the start, so it’s known that the benefit of the return outweighs the initial investment,” says Shaun Thomson, CEO, Sandler Training.

WHAT IS AN EMPLOYEE TRAINING AND DEVELOPMENT PROGRAM?

An employee training and development program is a series of educational activities designed to improve employees’ knowledge and skills.

There is an art and science to developing training programs. Whether you’re a foodservice worker looking for career growth opportunities, or a manager considering training for your team, you can choose the best learning provider by looking for programs that incorporate certain key features.

The most obvious type of employee training is technical training—teaching them their job duties, the company’s processes and systems, and the organization’s overarching mission and mandate. But training can also cover soft skills, such as people management and upskilling beyond an employee’s current role to prepare them for a promotion.

Employee training can take many different forms, such as group workshops, one-on-one sessions, formal education (e.g., college or university), job shadowing, mentorship, seminars, or job sharing.

While the types of employee training and development programs can be as varied as your employees themselves, Claire Hastwell, Content Program Manager at Great Place to Work, has identified that all training plans will typically fall into one of four categories:

1. Formal education—The formal training and practical requirements for a given role, such as a specific degree, license, or certification.
2. Assessment — The employee performance reviews, one-on-ones, and any other efforts used to measure strengths and weaknesses and find ways for employees to improve.
3. Job experience — The day-to-day, hands-on learning employees do as they master their role, take on new challenges, and grow within the organization.
4. Interpersonal relationships — The coaching, mentorships, and any soft skills or interpersonal training employees may complete, such as customer service training, diversity and inclusion training, mental health education, or conflict resolution training.

WHY IT’S IMPORTANT TO TRAIN AND DEVELOP YOUR EMPLOYEES 

Training and developing employees is crucial because it significantly boosts employee engagement, productivity, and retention by providing staff with the necessary skills and knowledge to perform their jobs effectively, leading to improved company performance, a better work culture, and a positive impact on the bottom line.

Employee training and development is important for ensuring that staff are prepared for their role; that they feel supported, valued, and capable; and that they have upward movement.

According to Hastwell, “engaged employees want to grow, and they want to be challenged. They aren’t looking to simply work at a job; they are looking to further their careers.”

When companies don’t invest in training and development and create paths for growth (beyond pay increases), employees will start looking for jobs elsewhere.

“Give a person a fish and you feed them for a day; teach a person to fish and you feed them for a lifetime.” It’s an old Chinese proverb we’ve all heard before, so common it’s become cliché. But clichés come from truth. Having a solid and unique training and development program can give employees a sense of ownership in their role and a future vision with the organization.

SUMMARY

Training and retaining employees in food service is considered a key aspect of workforce development, as it focuses on actively developing the skills and capabilities of the workforce within the foodservice industry, aiming to keep them employed and engaged within the company through ongoing training and career progression opportunities.

The foodservice industry often faces high employee turnover, making retention a critical element of workforce development. By providing comprehensive training programs, employers can equip employees with the necessary skills to perform their roles effectively, increasing job satisfaction and retention.

Lastly, remember that offering training demonstrates how much your employees matter to you and that they are a worthwhile investment. In fact, your employees are your most important asset and training them well should enhance their value, loyalty, and your company’s reputation in the market.

About the Author

Michael Kopec, CDM, CFPP

Michael Kopec is the Food Service Specialist at the Waukesha County Mental Health Center in Waukesha, Wisc., and has been a CDM, CFPP since 2001.  Kopec holds a B.S. in Business Management & Leadership and an M.A. in Leadership & Innovation from Wisconsin Lutheran College. He also serves as an advisory board member for the dietetic technician/dietary manager program at Milwaukee Area Technical College.