Retention Factors of Tipped Hourly Employees in the Casual Dining Restaurant Segment: Exploratory Research in Central Florida

ABSTRACT

Hourly employee retention has been a major area of concern for casual dining restaurant operators. The current exploratory research employed a self-administered questionnaire asking 96 tipped casual dining restaurant hourly employees from 12 different restaurants in the Central Florida region of the United States to rate the importance of 21 employment characteristics of their job and their actual experience with these employment characteristics. The findings revealed that the most important employment characteristics were: flexible working hours, consistent working hours, and nice people to work with. These findings differed from a similar previous study done in 2004 with quick service restaurant employees who rated nice people to work with, humane approach to employees, and hourly wages as the most important employment characteristics. The current study showed statistically significant differences between the level of importance and actual experience attached to 18 of the 21 employment characteristics, which could explain some potential areas of misperception between hourly employees and managers in the industry. These variations can consequently help to explain the high turnover and low retention of employees in the tipped positions in the casual dining restaurant industry. Implications for management are discussed.