One of the most critical problems facing management in the foodservice
industry is maintaining adequate staffing levels during the labor shortage. This is a
study of hiring employees at premium wages to reduce the effects of the labor
shortage. It will attempt to show that higher wages produce an increase in
productivity and a reduction in turnover.
The methodology will include visiting and interviewing the management of a fast
food style restaurant in operation that used higher wages as a method to increase
productivity and reduce turnover. The study includes financial data pertaining to
wages, sales, and profit. The ability to maintain and recruit staff will be monitored
by tracking labor turnover, absenteeism, and tardiness. The wage rate differences
and staffing ability of the establishment and its competitors will also be monitored.
