NJ Private Disability Insurance Makes a Difference in Restaurant Recruiting
The labor situation has been changing rapidly in the restaurant and hospitality industry since the beginning of the pandemic last year. If you’re a restaurant owner, you might be struggling to keep up, attract competent workers, and maintain profit margins – while at the same time facing supply chain issues that create shortages of many popular foods. You may not think of NJ private disability insurance as one of the solutions to your many challenges but offering this important benefit can help you recruit employees in this tight labor market.
One of the first industries to suffer job losses, the restaurant job market rebounded rapidly with the addition of 336,600 jobs in February 2021, but stalled in August 2021 after a 7-month period of growth, according to a report from Restaurant.org. Now, as college students who often make up the bulk of restaurant servers return to college for the first time since last March, restaurant owners are again facing a labor shortage.
Owners of independent restaurants and franchises, alike, are increasing wages to reduce quit rates and recruit workers. Chipotle and McDonald’s are amongst the chains who increased hourly wages, CNBC.com reported.
But that’s not necessarily enough for workers – especially when the increases fail to keep up with inflation rates. Having robust employee benefits, on the other hand, can help recruit and retain quality employees, from front-line waitstaff to management.
Restaurant Turnover Rates on the Rise
Even before the pandemic, turnover rates in the restaurant industry had risen as high as 75% in 2019. Low wages, long hours, and hard work have always been part of the restaurant industry. During the pandemic, sacrifices of working in food service grew to include health risks. Considering that only 31% of restaurants provide health insurance to workers, according to Restaurant.org, there is plenty of room for improvement.
If your restaurant is suffering from the labor shortage, benefits beyond health insurance, including NJ private disability insurance can go a long way in recruiting and retaining employees. Consider these important employee benefits to recruit and retain workers in the restaurant industry.
As of 2019, only 21% of restaurants offered their employees dental coverage. But affordable preventative dental care, which is included with most dental insurance programs, can actually help you reduce absenteeism and have healthier employees, overall.
Only 18% of restaurants offer vision coverage to their employees, according to a report from On The Line. Often, you can bundle dental and vision coverage as part of a voluntary ancillary benefits package. These benefits can be employee-funded, which means it won’t cost you any money, but can entice employees to choose your restaurant instead of the one down the street that’s not offering any employee benefits.
Family Leave Insurance
The state of New Jersey mandates family leave insurance for all full-time employees. But many workers aren’t aware of this important benefit that can provide time off to bond with a newborn, newly adopted or foster child within the first year, care for disabled or ill family members, or to take care of the household while a military spouse is deployed.
For restaurant owners with establishments bordering New York or Pennsylvania, it’s important to point out this important benefit to prospective employees when they are deciding where to work.
NJ Private Disability Insurance
New Jersey mandates temporary disability insurance to be provided by employers for all full-time New Jersey workers. But you can offer your employees better benefits at the same or lower premium rates with NJ private disability insurance underwritten by a private carrier. It’s never been easier to switch to NJ private disability insurance, with no signature requirements and an easy sign-up process.
EZTDB can help you save money and provide better benefits to your restaurant employees. Reach out to us today.