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October 14, 1999
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efits for Fast-Food Workers = Lower Turnover Rates

Employee turnover rate is a huge problem in the fast food industry. According to a Purdue University study on wage and benefits some restaurants experience annual turnover rates between 133 percent and as high as 238 percent. The Purdue study found that restaurants that offered benefits to their part-time employees had lower turnover rates than those who did not.

Why offer benefits to part-time employees? "Customers expect consistent and efficient service when they purchase a burger and fries. If a restaurant is constantly hiring new employees to replace old ones, that may compromise its ability to deliver a satisfactory product every time," says Joseph La Lopa, assistant professor of restaurant, hotel, institutional and tourism management and co-author of the study. Experts agree that hiring part-time workers can keep labor costs down, but high turnover rates of these workers put a big dent in those savings. The study suggests that giving your employees benefits such as Health insurance, life insurance, or even perks such as Christmas bonuses or scholarships you can lower your turnover rate, increase sales, and gain customer and employee satisfaction.

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