The F&B sector has been facing a labour shortage for years, and the COVID-19 pandemic only made it worse. Many workers left the industry, and few want to return to low-paying and demanding jobs.

You might have tried to lure them back with higher salaries and incentives, but that didn’t work well. You can’t afford to pay them much more, because your profit margins are already thin. You’re stuck between a rock and a hard place. So, what can you do to survive and thrive in this challenging situation? Here are some possible solutions:

Ways to Overcome the F&B Labour Crisis

Embrace technology

Have you seen those robots that deliver food to your table? They’re not just a novelty; they’re a way to save on labour costs and improve efficiency. Depending on your customers’ preferences, you can use technology to automate some or all of your service, from ordering to payment. This can free up your staff to focus on other tasks, or reduce the number of staff you need.

Adapt to policy changes

The government is trying to raise the wages of lower-paid workers through the Progressive Wage Model (PWM). This means you’ll have to pay your staff more, but you’ll also get some subsidies and support. However, this also means you’ll have to cut down on working hours to balance your costs, which means you’ll need more staff, which means more expenses. It’s a tricky trade-off. You might have to raise your menu prices to cover the extra costs, but will your customers be willing to pay more? Will dining out become a luxury?

Explore new business models

Cloud kitchens sound like a great idea, right? You can operate multiple brands from one location, without having to worry about rent, decor, or service. You can just focus on making delicious food and delivering it to your customers. But there’s a catch: the rent for cloud kitchens is sky-high, and the competition is fierce. And the profit margin is still tiny. Is it worth it?

Invest in your workforce

This is the most important solution, in my opinion. As an HR professional, I believe that the key to overcoming the labour crisis is to invest in your people. Instead of just raising their wages, you should also provide them with training and development opportunities to enhance their skills and productivity. By empowering them with the tools they need to excel in their roles, you can create a more efficient and motivated workforce. You should also foster a positive work culture and provide career advancement paths to retain your staff and reduce turnover. By investing in your people, you can build a stronger and more resilient F&B industry that benefits both employers and employees.

Conclusion

Being in the F&B industry is tough. You have to deal with demanding customers, fierce competitors, and thin profit margins. However, we believe that you have a passion for making great food and serving your community. You don’t have to give up on your dream; you just have to adapt to the changing times.

By embracing technology, adapting to policy changes, exploring new business models, and investing in your workforce, you can overcome the labour crisis and thrive in the F&B sector. Let’s work together to make it happen.

Reference Source

https://www.channelnewsasia.com/commentary/singapore-restaurant-food-beverage-manpower-shortage-raise-salary-cost-4141651?cid=linkedin_traffic_social_10082018_cna.

Career cushioning is an informal term for the practice of lining up future job opportunities while still employed at one’s current job. It is a way of creating a backup plan for potential unemployment or career change by taking proactive steps such as developing new skills, browsing job listings, and applying for new jobs. Career cushioning can help employees prepare for the future, boost their confidence, and increase their chances of finding their dream job.

You may have noticed that some of your employees are looking for other opportunities, or even applying for jobs elsewhere.

Don’t panic, though.

There are some things you can do to keep your employees happy and loyal, and prevent them from leaving you for greener pastures.

Get to know your employees.

Find out what drives them, what they want, and what they’re worried about. Maybe they’re feeling uncertain about the future, or they want more flexibility and freedom, or they’re afraid of being left behind by new technologies. Whatever it is, listen to them and show them that you care.

Make them feel valued and appreciated.

Nothing kills motivation faster than feeling unrecognised or unappreciated. So make sure you acknowledge and reward your employees for their hard work and achievements.

Also, create a culture of trust, transparency, and feedback, and let your employees have a say in the decisions and plans that affect them.

Pay them well and offer them perks.

Let’s face it, money matters. And so do benefits. If your employees feel that they’re underpaid or overworked, they’ll be tempted to look for better deals elsewhere.

So make sure you pay them fairly and competitively, and offer them options for remote work, flexible hours, or work-life balance.

Share your vision and goals.

Your employees need to know where you’re headed and how they fit in. So communicate your vision and goals clearly and frequently, and show them how their work contributes to the success of the SME. Also, share the achievements and challenges of the SME, and celebrate the milestones and wins together.

These are some of the ways you can cope with career cushioning and retain your talent.

If you need a professional HR consultation, start from Day One.

Progressive Wage Model (PWM) is a wage structure that incorporates a career ladder, designed to link wages to an employee’s commitment to upskilling, thereby improving their wage and skills beyond a fixed minimum wage. Essentially, Progressive Wage refers to the “minimum wage” employees expected to receive for their level of skills and productivity. The training requirement is to support employees advancing their careers by unlocking their potential, and eventually address the issue of stagnant wages. 

What is the effect of PWM?

Balancing Interest

PWM offers employees a transparent career progression that aligns with skill development and enhancements in productivity and industry standards. Simultaneously, enhanced productivity leads to increased profits for employers from improved standards and overall quality. However, it might not always be as straightforward in actual practice. So the question arises: How can businesses ensure compliance with PWM requirements without straining their resources?

Social Equity 

PWM mitigates income inequality. Through guaranteeing, it elevates the living standards of low-income workers, thus fostering a more equitable society as a whole. This represents a societal responsibility effort aimed at addressing income inequality concerns within Singapore.

Workforce Motivation

PWM serves as an incentive for employees to continually elevate their skill sets and invest in their professional growth. It establishes a direct correlation between skill enhancement and higher wages, which, in turn, fosters increased motivation and dedication among workers. This, in essence, propels them up the career ladder and ensures they receive the earnings they rightfully deserve.

PWM Mark: Recognition as a Progressive Employer

Progressive Wage (PW) Mark stands as an accreditation program designed to recognise eligible companies which pay PWs to lower-wage workers. In order to be qualified for PW Mark, businesses must pay progressive wages to their workers under Sectoral and Occupational PW, AND all other local workers at least the local qualifying salary.

Employers with PW Mark are profiled as socially responsible businesses that prioritize their workforce’s well-being. This can result in greater visibility and respect in the community and improved talent attraction and retention. Employers also need to possess this PW Mark in order to qualify for government procurement.

Conclusion: What do you think about PWM?

It essentially sets out a structured framework for a more equitable work environment, where employee’s wage is tied to their skills and performance, while businesses rely on the productivity and standards upheld by their employee.

PWM works hand in hand with Local Qualifying Salary (LQS) to regulate the hiring of foreign workers. However, achieving compliance can often be complex, and the benefits of improved business performance driven by increased productivity, may not always be immediate. Businesses require efforts in adopting a strategic and cost-efficient approach in workforce planning to optimize labour costs, while maintaining company competitiveness and operational standards. 

Lazada recently retrenched their staff and it was a PR disaster.

Let’s be real: All businesses need to survive, that’s why retrenchment exercises exist. Employees leave organisations for all reasons so it’s not a wrong thing to conduct a retrenchment exercise.

However, many organisations go about it in the wrong way.

Here are some tips to make sure you do it right if you’re planning to cut down on your manpower

Understand the difference between retrenchment and termination of employment relationship.

| Retrenchment Vs. Termination. Did you know the difference?

Retrenchment is the termination of employees because of redundancy or reorganisation of the employer’s profession, business, trade or work. An employee is presumed to have been retrenched if the employer cannot show a plan to fill the vacancy any time soon.

Termination is the termination of an employment relationship which includes retrenchment but also on other grounds such as poor performance or misconduct. It can also be done with or without notice.

What if more than 10 people are being laid off?

You can inform MOM HERE.

The notification must be submitted within 5 working days after your employee is notified about their retrenchment.

What if you are terminating a female professional?

Get a witness to sit in with you during termination process

1) in case the lady accuses you of molestation when you served her the notice
2) In case the female professional refuses to sign termination, the witness will sign and confirm that notice is served even if the female professional is not willing to sign.

This protects you and your company from unnecessary issues from disgruntled employees who were terminated.

For more information, check out this in-depth resource HERE or just speak to us directly.