HUMAN RESOURCES
AND THE NEW ENTREPRENEUR
By The Canadian Tourism Human Resource Council
Friday, February 6, 2009
Opening a new restaurant or food service establishment can be a daunting undertaking.
According to Statistics Canada, only 60 per cent of new food service operations survive beyond their second year and only 22 per cent are still in business beyond the eight year mark.
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Canadian Restaurant and Foodservices Association survey also noted the average annual turnover rate for quick-service or casual/family dining is 67 per cent.
An entrepreneur can avoid becoming one of these statistics by focusing more time on strategic planning. One area often overlooked as a key contributor to the success of a new enterprise is its people and the human resources strategy the business has in place.
While many entrepreneurs are great at delivering their product or service and coming up with new ideas, they often readily admit managing people doesn’t come naturally. As an entrepreneur, if you have people working for you, you need an effective “people strategy.”
THINK STRATEGICALLY
A strategy should encompass developing, communicating and enforcing a set of policies and practices that reflect your standards of acceptable behaviour. It should reflect the company’s core values, mission and personal vision. And it should provide staff with the right tools to respond to specific questions. For example, does your business have an employee handbook or a policy guide? What about regular training in company policies and practices or easy to use forms to guide staff on particular issues?
THE EFFECTS OF HUMAN RESOURCE ISSUES
Without specific human resource guidelines in place, entrepreneurs and management may spend unproductive hours dealing with people issues instead of moving the business forward. As well, companies are at greater risk for litigation as employees will test limits and make up their own creative answers to different workplace situations.
Connect the dots:
- Connect your people plan with your business strategy. If you run a restaurant and plan on opening three more establishments (your business plan) but have experienced some hiring problems for cooks, then you might want to consider hiring some apprentice cooks (people plan).
- How will your business mission and values align with your hiring process? For example, if excellent customer service is a value you hold dear, how will you recruit people who have demonstrated this value in the past?
- Policy development is essential if others are to interpret your vision on your behalf. Be consistent.
Reward and recognize:
- Reward and recognition programs must be coordinated. If productivity and efficiency are hallmarks of your business competitiveness, how will your R&R system recognize and reward behaviours that align to this aspect of your business?
- Your performance management system might need a tune-up. If you have identified safety as a key component for your business success, what training will you provide employees so that they are properly equipped to work safely?
DEFINE CULTURE
Culture can be defined as the culmination of day to day behaviours of people. As your business functions on a daily basis, a culture will be created. At some point you will need to ask yourself, “Is this the culture I want?”
Plan effectively and recognize your personal role as a leader to shape the culture you’d like.
LEARN TO DELEGATE
Entrepreneurs sometimes have a hard time letting go of tasks and responsibilities. As your business grows, learning to delegate will allow both you and your employees to use time effectively and focus your efforts appropriately.
OBLIGATONS
There are certain inherent human resource practices that all new businesses must undertake:
- Know and understand your legal obligations; and
- Have accurate and up to date job descriptions, application forms, health and safety forms and procedures and performance review forms.
