Retention: Fleming's Survey Says...

Flemings Prime Steakhouse & Wine Bar takes what its employees say to heart.

By Margaret Littman, Contributing Editor -- Chain Leader, 4/1/2006

Of all the facts and figures a restaurant executive needs to know, there’s one that quickly rolls off the tongue of Jennifer Capler, director of training and development at Fleming’s Prime Steakhouse & Wine Bar: the cost of turnover. It costs the Newport Beach, Calif.-based concept $4,000 to replace an hourly employee and as much as one-half year’s salary to replace a manager. Everyone in the 4,000-person company knows these figures, too, she says, and as a result, works to increase retention and save money. Management turnover is 19 percent; turnover for hourlies is 67 percent.

Retention is high, thanks in part to Fleming’s 4-year-old survey process. Working with Colorado Springs, Colo.-based consulting firm CorVirtus, Fleming’s annually surveys its employees—in multiple languages—to assess their satisfaction and the degree to which the company lives up to its stated mission.

Rapid Response
The spring survey of more than 70 questions asks workers whether the company helps them develop skills, shows them that they make a difference and offers assistance in times of crisis.

Fleming’s reads, evaluates and acts upon the survey within 60 to 90 days of the results being tabulated. It analyzes the survey results in-house to identify patterns and ascertain whether a companywide initiative is required to address a particular issue or whether a problem exists only in one unit.

In 2004, for example, both hourly employees and managers reported that they wanted more company assistance in developing a career path with Fleming’s. Among other things, Fleming’s developed the Management Career Portfolio, where employees can log their accomplishments on the company intranet and take online courses to help them set and track career goals.

At the same time, the company started internship initiatives for employees who want to try the next step on the ladder. A year after the initial survey feedback, the chain had promoted 10 managers to partners and 20 hourly associates to managers.

Proof Positive
David Hyatt, CorVirtus president, says that because Fleming’s asks questions that are actionable, moves fast and schedules its survey-feedback discussion sessions in advance, it helps prove to employees that it is serious about acting on the feedback it will receive.

“It goes back to our culture,” Capler says of Fleming’s annual survey. “We want to make sure associates understand that one person can make a difference. [Management] does not have the most power. Those who have the most power are those who work with the guests.”

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