Hiring NYC - Hiring challenges in New York City restaurants.Restaurant owners have a difficult time recruiting staff despite the fact that more people are applying for jobs. Some use employee referral programs to bring in new workers and encourage them to remain.
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The city's economy has rebounded, yet restaurants and bars still require assistance to thrive. Many key workers left the city during the pandemic, while others may have simply sought better paying jobs elsewhere.
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New York City restaurants can be a difficult place to work. Employees frequently work late nights and early mornings - which can be exhausting - in addition to competing against one another for shifts. As a result, many restaurants find it challenging to retain staff as well as recruit new ones.
Restaurants have long been at the center of worker shortage complaints, with unfilled job vacancies numbering in the millions--particularly within the service industry. Some owners still struggle to hire even after increasing wages and offering bonuses to employees as incentives.
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Restaurant owners were able to hire more staff and increase employee hours after COVID-19 restrictions ended. Unfortunately, however, progress has been hindered by lingering effects of the pandemic and ongoing challenges facing both workers and owners - such as below-cost-of-living pay, tip inequities, limited or no benefits, race/gender disparities and job instability.
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Samantha DiStefano, of Brooklyn, must close Mama Fox Restaurant & Bar on Sunday evening through Monday because she cannot find enough staff. Susan Povich, of Red Hook, must reduce the number of tables at her Lobster Pound Restaurant to avoid customers being turned away. These owners believe that some workers have simply left the industry and are now working in other fields.
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But New York City workers face added pressures from working in one of the world's most work-oriented cities: professionalism is expected and long hours are commonplace, particularly for junior employees in finance, consulting, law and tech fields. Commuters spend most of their weekday time in offices; giving restaurants and bars just a small window of opportunity for customer acquisition during weekdays.
Due to a three-day work week, many restaurants have implemented shift schedules and launched campaigns aimed at drawing in customers on Mondays and Fridays - typically the busiest days for restaurants and hotels.
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New York restaurants permit split shifts, but if an employee works over 10 hours in a day, they are entitled to differentiated pay. An extra hour's minimum wage must be added to their base hourly rate. Restaurants can pay their staff on a biweekly, weekly or monthly basis. They must inform employees when their wages are due.
NYC workers enjoy a wide range of benefits in this city. Ranging from professional development opportunities to health insurance plans, NYC has much to offer its workers.
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New York City restaurants are an integral component of cultural diversity and an economic driver. The industry is not without its challenges, both for employees and owners. Employees are faced with low minimum wages, tips and inequities regarding race/gender, job instability, and thin profit margins. Owners also face issues such as reliance on third-party delivery services, high operating costs, competition, soaring rents, rising labor regulations, among others.
But restaurant hiring's slow pace reflects larger issues in the labor economy. Many workers cling to weekly federal unemployment benefits that will expire this September while others opt out entirely of service industry jobs altogether, explaining why restaurants seem to face worker shortages even while unemployment levels overall decline.
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Contrary to many industries, most restaurant employees do not receive health insurance or paid sick leave, nor rest breaks from their employers. If a host works from 11 a.m. to 3 p.m. before taking two hour break before returning at 5 pm for five more hours until 10 pm then resumes working from five pm until ten pm then the restaurant owes nine hours plus one minimum wage even though they only worked ten total hours!
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Restaurants rely heavily on workers, yet often don't provide them with enough wages and hours to support themselves and their families. This was true both before and during COVID-19; today, restaurant workers continue experiencing wages and tips below the cost of living, as well inadequate (or no), benefits, race/gender bias, and job instability. Restaurant owners are also facing thin profit margins, rising costs, competition from third-party delivery services, and a growing need for digital innovation.
Restaurant careers are notoriously competitive for newcomers. Experienced servers who look to increase income or advance in their careers often face fierce competition when trying to break in as servers themselves.
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Many restaurateurs report having difficulty recruiting employees due to low pay compared to other industries in their area, and finding young talent who prefer living at home with their parents and are resistant to moving into cities.
Most New York City restaurants fail to pay enough wages on minimum wage or below to support families on an income of the minimum wage or below. Employers also often skirt health insurance obligations by scheduling workers to only 28-29 hours each week as close as possible to full-time eligibility - an indicator of how poorly many restaurants place value on their employees.