Losing Candidates?

How to fix the leaks in your

hospitality recruiting pipeline

Custom content for AllianceHCM by studioID

The labor market is tight – especially for businesses hiring
hospitality employees for restaurant and hotel positions. And even
when you find a promising candidate, they may drop out of the
recruiting process before a hiring decision can be made. It’s as if
the recruiting pipeline that brings candidates from attraction to
onboarding leaks at critical points.

Sometimes candidates will drop out because they've received a

better offer or decided the opportunity wasn't a fit. But other times,
they leave because the recruiting, interviewing, and onboarding
process didn't encourage them to follow through. According to
Cornell's Center for Hospitality Research, it costs restaurants
$5,864 for each employee turnover.1 The final cost is more since
the longer a job stays open, the more a restaurant spends on
advertising and recruiting.

Although many industries are short-staffed, the hospitality industry

has been hit especially hard. Nearly two million service jobs remain
open.2 And, with prospective and current industry workers leaving
hospitality jobs for other, more stable careers, those job openings
are not likely to be filled soon.

That's why hospitality businesses must ensure prospective

candidates remain in the recruiting process until a hiring decision is
made. To increase this likelihood, companies must assess how they
recruit, interview, and hire and fix any vulnerabilities or leaks in
their recruiting pipeline.

2
The cycle of chronic understaffing
Restaurant and hotel leaders have always faced high employee
turnover, but the last few years have been extremely taxing. Sixty-

66
six percent of restaurants say they are short-staffed.3 Eighty-seven
%
percent of hotels say they are, too, with 36% saying they are
of restaurants say
severely understaffed.4 they are short-staffed

An understaffed restaurant has longer wait times and fewer menu

items. This affects customer experience, satisfaction, and loyalty.
And increasingly, when customers aren't happy, they take their

87
dissatisfaction out on the staff.5
%
This trickle-down effect creates an unhappy environment for of hotels say
already overworked employees, who are likely to quit. When that they are, too
vicious cycle starts again, it’s hard for restaurant leaders to catch
up, much less move the business forward, explained Chris Murphy,
Human Capital Management Expert for the Hospitality Market,
AllianceHCM.

66
"General managers and people that do the hiring are spending
%
of hotels say they are
more time in the front of house or back of house than if they were
severely understaffed.
fully staffed and could spend that time on recruiting and training,"
Murphy said. "This is a big opportunity to efficiently bring new
crew and talent into the team."

3
Identifying leaks in the recruiting
and hiring process
Hiring becomes an even greater challenge when a seemingly
qualified candidate doesn't make it to the finish line, where the
company can extend an offer. The breakdown can happen at any
point along the way. Candidates may start filling out an application
but not finish. They may not set up an interview. They may get
hired but not show up for the first day of work. "Years ago, you
could have six interviews scheduled, and all six candidates would
show up," said Leslie Baty, Restaurant Operations Recruiter, Patton
Wings, Inc., which does business as Buffalo Wild Wings. "Today,
Years ago, you could have six
you could have six interviews scheduled, and you're lucky if one or interviews scheduled, and all
two show." six candidates would show
up. Today, you could have
What Baty experienced isn't unusual. A recent survey found that
six interviews scheduled, and
nearly 70% of candidates considered dropping out of the hiring
process or actually dropped out.6
you're lucky if one or two show.
-LESLIE BATY,
To become fully staffed, businesses need to understand why RESTAURANT OPERATIONS RECRUITER,
PATTON WINGS, INC.
candidates lose interest in the job. They must identify points in
their recruiting process where applicants are more likely to drop
out and then figure out how to plug those leaks.

4
Why candidates drop out
of the recruiting process
The application process is too complicated. Nearly 70% of
1
people apply for jobs on their mobile devices.7 With that in mind,
applicants want a simple process, such as a one-click application.8
Candidates want to avoid uploading resumes and still having to
retype or copy and paste information into a form.

2 The interview process takes too long. In a global survey, 78%

of respondents said they would drop out of a lengthy recruitment
process.9 Candidates often interview for multiple companies
simultaneously, said Baty. If a candidate gets an acceptable
offer, they’re likely to accept it and abandon any other
interviews scheduled.

The candidate doesn’t get enough communication about

3
the process. Hiring managers contact applicants when they
need information or when they have news. However, keeping
candidates updated on the recruiting progress is also critical. For
example, background checks for managerial positions can take
days or weeks to complete. If the candidate doesn't know what's
happening, they may assume they're being "ghosted" and move on
to other opportunities.

5
Where to check for–
and fix–leaks
Once a candidate shows interest in a job by starting an
application, there are several points where that initial
enthusiasm can wane: completing the application,
interviewing, getting the job offer, and onboarding.

1 The application process

A lengthy application process frustrates candidates,
especially when they must enter information
repeatedly or cut and paste–which is harder to do on
a mobile device. Potential candidates may work in a
deskless environment or not have a laptop. Companies
should ensure the application process is easy, simple,
mobile-device friendly–and fit for the job.

6
Checking for leaks:
Once a candidate has started an application, do they complete it? Your company's applicant tracking system (ATS) can highlight this information.
If you find candidates who were initially interested but dropped out, look at the initial process.
If you think the application process has leaks, consider these fixes:
Go through the application as a "candidate" to determine
any sticking points. Is the website slow? Do all of the
links work? How long does it take to complete the form?
Does it ask for information that is not readily available?
Are there confusing questions?
Make the application easy to access. Baty said Patton
Wings uses QR codes linking to the application site's URL.
"It's been a huge help because, especially in our industry,
people are constantly on their phones. They're sitting at
a table at Buffalo Wild Wings to eat. If there's a QR code
on the table that says join our team, they can scan it and
complete the application while dining." Baty said the
company also puts the QR code on takeout bags and uses
it at job fairs.
Minimize the number of questions on the form, focusing
on the critical information needed to decide whether
to bring a candidate in for an interview. Murphy added
that the job requirements stated in the application are
the ones required. "If you’re hiring someone for front of
the house, do you need four years of education? Make
sure the questions are to the point.”
Consider if a background check is necessary. This step
is critical for some positions but not every one. Just
asking for permission to conduct a check can dissuade
some candidates from completing the application. Baty
said that while her company does background checks
for managerial positions, it doesn't perform them for
hourly ones.
Once you’ve updated the application, check the data to
see if the completion rate has improved.
7
2 The interview
When a candidate applies for a position, it's vital to respond
quickly to bring them in for an interview. "Many candidates,
whether for a salaried or hourly position, are applying to
multiple jobs simultaneously," said Baty. "Often, they go
with the first organization that contacts them." Baty added
that hospitality businesses compete for workers outside the
industry–such as those in customer service and, increasingly,
gig workers. If a candidate has shown interest by applying,
it is vital to screen them and, if they seem to be qualified,
bring them in as soon as possible.
“If you see an application come through, take five minutes
to review it. If they’re a qualified candidate, contact them
and get them in for an interview that day,” Baty said. “You
don’t want to schedule an interview for four days out.
They’ll have three more interviews within that time.”
Checking for leaks:
Recruiting data provides essential information to indicate
a leak. Did an applicant fill out the application, but not
respond to an invitation for an interview? Did they confirm
the interview but not show up? Or did they interview
and not respond after that? Are there specific locations
or interviewers with a higher or lower success rate than
others? Check the time from application to interview to see
if a lag contributes to the drop off.
Find out what's working–or not working–in those locations.
Breaking down the aspects of the recruiting disconnect will
indicate the areas to shore up and those to replicate.
8
Interviewing is more complex than applying, and more can go wrong. However, here are some possible fixes:

Use multiple ways to contact the candidate. Some Ensure the interviewer is prepared. Interviews can be
application platforms offer an automated way to reach conversational but should elicit the job-related details
them. Consider texting, calling, and emailing to ensure managers need to make an informed decision. They
your messages get through. Recruiters say that should also know what questions NOT to ask, such as
candidates open recruiting texts at a rate of 98% queries about family, age, or current salary, that can
versus 20% for emails.10 be perceived as discriminatory.11 Murphy said that
interviewers may have moved up quickly to fill urgent
manager openings and might need more experience.
Set expectations for candidates on when they'll get a
"They might need additional support and can lean on
response. That might be as simple as having an applicant
applicant tracking systems to provide structure to the
tracking system send the candidate an immediate text
recruiting process."
acknowledging receipt and confirming when someone
will contact them. Be realistic in that estimation and
have multiple managers who can respond quickly to a Be flexible in scheduling an interview time that meets
candidate, Murphy added. the candidate's needs. If a candidate works the second
or third shift, schedule a time that accommodates
them. Consider an online interview if the open position
Before the interview, give the candidate clear interview
doesn’t require an in-person interview. Once in the
details: what position, shift, and pay range the interview
interview, prioritize that time with the candidate and
is for, where to go for the interview (in person or online),
resist being interrupted during the meeting.
who will be interviewing, what their role is, how long
the interview will take, and what the next steps in the
process will be. When setting up the interview, ask what
questions or concerns the candidate has so they can be as
comfortable as possible approaching the interview.

9
3 Onboarding
It's understandable to think that all is well once the hiring
manager makes the offer and the candidate accepts it.
Unfortunately, that's not always the case. Employees are
still vulnerable to dropping out of the recruiting process
between the offer and the start date. Moreover, that
vulnerability still exists after employees start work, as
research shows that 50% of hourly workers quit within
their first 120 days of work.12

An effective onboarding process improves retention by

82% and productivity by 70%.13 Businesses use onboarding
more often for salaried employees; however, the process
is frequently limited to completing payroll paperwork for
hourly workers. Hiring managers must consider how to help
new employees feel connected and appreciated quickly.

82
%
improvement in retention
because of an effective
onboarding process

70
% improvement in productivity
because of an effective
onboarding process

10
Checking for leaks:
Look at the retention rate for a worker's first six months. Are there any trends regarding retention? Also, look at their progress–is there any
correlation between retention, wage increases, or job promotions? Is there any trend based on the shifts assigned, or managers? Workers may
quit for various reasons, but businesses will have an advantage if they address those within their control.

Fixing leaks in onboarding requires ongoing effort:

Check in with the worker frequently during the first days Have flexible schedules and consider remote work
and weeks of employment and periodically after that. when possible. For many hospitality positions, this is
Consider assigning a buddy to teach the ropes. only possible sometimes. However, managers can look
at options for making positions as flexible as possible.

In addition to making the application process simple and

easy, make the employment process easy too. Automate Determine job/career development. Most workers want
services where employees can self-serve, like updating to develop their skills in any position. The onboarding
their own direct deposit information or easily request period is a time to create goals and support to help the
changes to their schedule. employee reach the next level.

Use automation to speed up employees' work and reduce

the chance of errors. For example, automating payroll
processes minimizes the possibility of errors. With 64% of
American workers living paycheck to paycheck, accuracy
on payday is essential. What's more, 24% of employees
will look for a new job after the first payroll mistake, and
25% will leave after the second one.14

11
Hospitality leaders try to improve their staffing numbers.
However, it's not enough to attract candidates. Businesses
must also ensure the candidates stay throughout the recruiting
process until the hiring manager makes a decision. That gives
businesses the largest candidate pool and the greatest chance
for staffing success. Hospitality leaders that examine areas
where candidates fall out of the process, use data to identify
leaks, and implement strategies to shorten the recruiting
process and reduce ongoing friction, will have the advantage
in getting and keeping staff.

12
Create a better recruiting
pipeline with a better platform
AllianceHCM has a robust talent acquisition and onboarding solution to help you recruit the
best employees and build your dream team.
• Use AI to generate job descriptions based on job titles or any other information you’d
like to provide, saving you valuable time in posting positions. You can edit and save the
job description directly to the position.
• Deploy unlimited job postings across multiple sites to your own custom branded online
applicant portal, and integrate with other job sites to widen your audience.
• For applicants that you add manually, create a link and send it to them to invite them to
finish their application online.
• Communicate with applicants via text and email, and easily video interview from within
the platform.
• Get integrated E-Verify and other background checks providers to verify hiring eligibility.
• Make first days a breeze for new hires with paperless onboarding.

Learn More

A robust human capital management system is the backbone of your company’s workforce,
and AllianceHCM provides a complete solution that is developed based on actual customer
needs. Managers, HR, and payroll professionals can rely on our technology to hire, pay, and
manage employees while also knowing that AllianceHCM offers stellar customer service.
We work daily to give our new customers the same unmatched level of service and support
as our founding customers got more than 30 years ago, before HR technology even existed.
Today, AllianceHCM products deliver a single, secure solution to integrate with the platforms
you already use and give you time back to focus on your own customers.
Find us at AllianceHCM.com
Sources
1. Workpulse. (2023). How much will employee turnover cost QSR franchisees in
2021? Workpulse. https://www.workpulse.com/qsr-employee-turnover-cost-
in-2021/
2. Bhattarai, A., & Penman, M. (2023, February 3). Restaurants can’t find
workers because they’ve found better jobs. Washington Post. https://www.
washingtonpost.com/business/2023/02/03/worker-shortage-restaurants-hotels-
economy/#:~:text=Nearly%202%20million%20hospitality%20and,shift%20
in%20the%20labor%20market&text=After%20losing%20her%20longtime%20
restaurant,to%20find%20a%20backup%20plan.
3. Restaurant job growth slowed significantly in August. (n.d.). NRA. https://restaurant.
org/research-and-media/research/economists-notebook/analysis-commentary/
restaurant-job-growth-slowed-significantly-in-august/#:~:text=2%20in%203%20
restaurants%20are%20understaffed&text=In%20a%20National%20Restaurant%2-
0Association,support%20its%20existing%20customer%20demand.
4. 87% OF SURVEYED HOTELS REPORT STAFFING SHORTAGES | AHLA. (n.d.). https://
www.ahla.com/news/87-surveyed-hotels-report-staffing-shortages
5. No Rights, Low Wages, No Service. (2021). One Fair Wage. https://onefairwage.site/
wp-content/uploads/2021/09/OFW_NationalWageTheft.pdf
6. Walters, J. (2022). 70% of candidates considered dropping out of their last
hiring process. HRD New Zealand. https://www.hcamag.com/nz/specialisation/
recruitment/70-of-candidates-considered-dropping-out-of-their-last-hiring-
process/416253
7. RecruitingDaily. (2022, March 4). Almost 70% of 2021 Job Applications Were Made
from Mobile Devices - RecruitingDaily. https://recruitingdaily.com/news/almost-70-
of-2021-job-applications-were-made-from-mobile-devices/#:~:text=Almost%20
70%25%20of%202021%20Job%20Applications%20Were%20Made%20from%20-
Mobile%20Devices,-News%20Recruiting%20Solomon&text=More%20job%20
seekers%20in%20the,to%20a%20report%20by%20Appcast.
8. 5 reasons job seekers abandon the hiring process. (n.d.-b). 5 Reasons Job Seekers
Abandon the Hiring Process. https://resources.careerbuilder.com/recruiting-
solutions/5-reasons-job-seekers-abandon-the-hiring-process
9. Brown, J. (2022b, August 5). Three-quarters of jobseekers would drop out of
lengthy recruitment processes, survey reveals. People Management. https://www.
peoplemanagement.co.uk/article/1795091/three-quarters-jobseekers-drop-lengthy-
recruitment-processes-survey-reveals
10. Jobvite. (2023, February 2). Automate the Recruiting Process with Candidate Texting
| Jobvite. Jobvite | Recruiting Software - Applicant Tracking. https://www.jobvite.
com/blog/recruiting-process/automate-the-recruiting-process-with-candidate-
texting/
11. www.recruiter.com. (n.d.). Top 7 Questions Not to Ask Candidates During a Job
Interview. Recruiter.com. https://www.recruiter.com/recruiting/top-7-questions-not-
to-ask-candidates-during-a-job-interview/
12. Fard, A. (n.d.). Your Employee Onboarding Process is Failing - Here is Why and Best
Practices. www.linkedin.com. https://www.linkedin.com/pulse/your-employee-
onboarding-process-failing-here-why-best-amin-fard/
13. Business Process Incubator. (2021). Improve Employee Retention by 82% With
These 16 Onboarding Best Practices. BPI - the Destination for Everything Process
Related. https://www.businessprocessincubator.com/content/improve-employee-
retention-by-82-with-these-16-onboarding-best-practices/
14. Mastrandrea, A. (n.d.). The Real Cost of Payroll Errors in the US. https://www.
thepayrolledge.com/blog/the-real-cost-of-payroll-errors-in-the-us
14
studioID is Industry Dive’s global content studio offering brands
an ROI rich tool kit: Deep industry expertise, first-party audience
insights, an editorial approach to brand storytelling, and targeted
distribution capabilities. Our trusted in-house content marketers
help brands power insights-fueled content programs that nurture
prospects and customers from discovery through to purchase,
connecting brand to demand.

LEARN MORE