However, offering health benefits can help reduce employee turnover in an industry where restaurant employees work an average of 26 days. Only 31 percent of restaurants offer health insurance to their workers, making restaurant employees one of the least insured groups of workers. The economy of the restaurant industry makes it difficult for this low salary to increase significantly; there is a limit to what diners pay for food and drink and, as a result, margins are as thin and fragile as the perfect pie in puff pastry dough. With fewer than 50 full-time employees or their full-time equivalent, they are not required to provide health insurance to restaurant employees.
Knowing how important medical care is, most restaurant owners are likely to choose to offer health benefits if they could afford it. The restaurant industry has a notoriously high turnover rate, and many owners find it worth covering, at least partially, the costs of these benefits. Whether you're required to or not, offering a group health plan can help increase retention and loyalty by letting your employees know that you care about their long-term well-being. Choosing the best health plan for your restaurant employees will involve talking to your staff to find out what their medical needs and preferences are.
In particular, the main problem is that restaurants tend to be high-turnover businesses, which can create work problems for employers due to the frequent need to find and train new staff. Because of the unique nature of the restaurant industry, restaurant owners have faced significant challenges that often prevent them from offering health insurance benefits to their employees. If you can't afford to increase salaries, one of the most important retention strategies in the restaurant industry today is to offer health insurance to restaurant employees. It also creates unity among staff, as everyone works together to achieve the common goal of making your restaurant successful.
While restaurant positions may seem temporary because of the industry's high turnover rate, 7shift found that employees really want long-term career prospects. On the one hand, state or federal laws don't require restaurant owners to pay their employees' health benefits; on the other hand, it may be worth offering at least health insurance to some of their most loyal and valuable employees. Confusion reigns over the types of health coverage that should be offered to full- and part-time restaurant employees. At the same time, it's important to check the laws of your respective states to see if you should provide health insurance.
If you decide to offer paid time off (PTO) or volunteer days as part of your employee compensation package, be sure to include it in your restaurant's employment contract as well.