Understanding employee longevity in independent fine dining restaurants

Abstract

Purpose This paper aims to investigate talent management (TM) practices of independent fine dining restaurant (FDR) organizations and explores why employee retention rates in FDRs are higher than other restaurants. This research adds to the TM literature by surfacing attitudes and influences that lead to employee retention. Design/methodology/approach The present study collects data using McCracken’s (1988) long interview method to provide insights into value similarities and differences between employees and independent restaurant managers. Fourteen interviews at two independent FDRs inform the results. This study employs a grounded theory approach. Findings Study results show that people take pride in working for the restaurants and the culture within the restaurant inspires a higher level of self-esteem. This independent, family-owned environment helps employees and managers achieve higher work performance and satisfy overall lifestyle needs. Respondents report their employment helps them to do things that bring out the best in them and allows them to accomplish other things that they want in life. The study also suggests that a shared value system between employees and managers creates a more stable workforce and longer tenure. Research limitations/implications The current study examines only two independent family-owned FDRs, so generalization is limited. The current study uses grounded theory to expand on research in the TM literature. Practical implications If owners and managers of FDR focus on addressing employees’ higher-order motivational needs, they have a better chance of retaining employees. Losing productive employees has high direct and indirect costs, and the restaurant industry is plagued with high turnover. Independent restaurants also need to evaluate their new employee orientations because unstructured training contributes to an environment of uncertainty. Developing a positive culture in an FDR is possible with a focused, family-oriented business. This work culture takes time to develop. Recruiting and selection methods to ensure a fit with the culture and values are a cost-effective method to ensure the continuation of this culture. The consistent values between employees and managers in this study demonstrate that hiring for personal values and not necessarily for skills already developed helps with positive TM in FDR. Originality/value The current study extends the knowledge in TM, ecological systems theory and motivational needs-based theory through detailed interviews and value analyses. Long interviews and triangulation of the data surface conscious and nonconscious memories from both employees and managers specifically relating to employee retention factors in FDR.