“The reality today is you have to find a way to put golden handcuffs on a chef in some fashion…Typically that involves giving them some sweat equity.”

So says Michael Bonadies, formerly of Myriad Restaurant Group.  He and a few other industry pros were recently interviewed for a Pittsburgh Business Times article about chef turnover.

Turnover rates are notoriously high in the foodservice industry and employee retention is consistently ranked as a leading concern among restaurant operators, as well it should be.  Employee turnover is an expensive ordeal; just try out the employee turnover cost calculator mentioned in an AllBusiness.com article.  And while the costs may be evident, the solution to the problem is less obvious.  How can restaurateurs overcome the perception of bad pay and worse hours to appeal to highly qualified and dedicated applicants?  Perhaps more importantly, how does a restaurateur go about keeping those well qualified workers?

The Pittsburgh Business Times article suggests offering chefs a “stake” in the restaurant, some “ownership.”  At first blush, this seems like a pretty good idea—a chef may be less likely to leave if she or he feels integral to the continued success of the restaurant—and if she or he is fairly compensated for ensuring that success.  But does it work?  What are the complications of this approach?

An NRN article today highlights other ways to motivate and retain restaurant employees.  One restaurant mentioned in the article feeds their employees for free.  Another holds recipe creation competitions.  One of the larger chains holds conference calls between their store managers and company execs.  Recognition of good work seems to be a common theme, and one that I think anyone can appreciate—even if we sometimes forget its importance.

So what are your tips to retain your best employees?  How do you motivate them to give their best every day?