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Prioritize Hiring internally
Workplace cohesiveness is a significant factor when considering your employee turnover rate. When the staff likes each other and has friends working together, employee turnover tends to go down quite dramatically. Having employees recommend new hires can be a great way to hire new people that will fit in right away.
Most people feel a good deal of pressure when recommending a friend to work at their restaurant because if the friend does a poor job, it can reflect negatively on the one who recommended him/her. Therefore, often times a recommendation from a current employee you trust can lead to an excellent new hire.
Promoting people from within the company is also a good way to increase employee satisfaction. Does your hostess want to be a server, does your server want to bartend, dishwasher to line cook, etc? Try to move people up the chain from within as often as possible. This demonstrates trust amongst your staff and keeps people working hard to gain a promotion. If a job feels like a dead-end, expect employees to move on to other jobs.