How artificial intelligence is changing the way restaurants hire and manage employees
By Daniel McCoy
The restaurant industry is known for its fast-paced environment, high turnover rates and being open to embracing new ideas.
In recent years, the adoption of Artificial Intelligence (AI) in human resources (HR) has brought about significant changes, streamlined processes, reduced workload for management and enhanced the overall employee experience. AI is revolutionizing HR in restaurants, from recruitment and training to employee engagement and retention.
I would argue the greatest improvement using AI has been in recruitment. Turnover has always been an issue in restaurants. With turnover, HR, or managers in some cases, must not only deal with employees leaving but must focus on recruiting, interviewing, hiring, onboarding and training new hires, keeping in mind all the policies, laws and regulations.
AI today is being used for several of these tasks. On the basic level, resume screening is probably the best known and most used. AI software can sort through resumes and applications to narrow down the search for properly qualified applicants.
We all know the “secret” of Keyword Search, where AI looks for certain key words in the resume or application. But AI is only as good as the information that is put in.
Most companies are looking to have inclusion and diversity, and many have adopted the AI platforms to avoid discrimination based on race, sex or age when hiring. There is a long-held belief that employers often hire people like themselves, and AI is meant to negate the preset prejudice we often have. AI should not have built-in prejudice, right?
Unfortunately, this is not always the case. AI is only as good as the information it has received. In August, the U.S. Equal Employment Opportunity Commission (EEOC) won a settlement of $365,000 against a Chinese company for age bias. The software was programmed to eliminate all applicants who were women over age 55 and men over age 60.
A more in-depth AI software will also perform predictive analytics. The AI will use algorithms to analyze past hiring data and employment history to predict the probability of candidates in a particular position. This data-driven analysis gives the hiring manager or HR the chance to make a better hiring decision and hopefully reduce turnover.
Another popular feature in AI is the beloved and often hated chatbots. We have all encountered chatbots in many roles: customer service, sales mining and now interviewing. One of the primary reasons companies use chatbots is to eliminate bias and potential discriminatory practices. They also can shrink the number of applicants that hiring managers would have to go through to find the best qualified person. Usually, the chatbot will ask a series of questions to determine qualifications and availability.
The remote working environment of the recent pandemic provided us with new tools when it comes to onboarding and training. We can collect a lot of the boring paperwork through online access and provide handbooks and legal requirements. AI can ensure that all required documentation has been gathered, signed and stored.
AI is now able to customize a training plan for new hires. It can personalize the training plan for each employee, taking into consideration their existing skills, strengths and weaknesses. The training plan can lead to more efficient and effective learning for the new employee.
One such AI software is Retorio (retorio.com), with features like automated recruiting, candidate screening, skills assessment and performance review for retention.
Another major player in the AI field is the technology solution provider Paradox (ptaradox.ai)
Paradox offers an applicant tracking system (ATS) called Olivia to help manage the hiring process. Already used by more than 40,000 quick-service restaurants actors the country, Olivia is designed to help restaurants manage different aspects of talent recruitment, including application submissions, candidate screening, evaluation, and talent engagement (communicating with applicant through the hiring process). It was recently selected No. 1 in recruiting AI by Select Software Reviews.
AI can provide immediate feedback to employees during training that will improve their performance faster. Such a quick response is crucial to help correct behavior.
What about after the employee is hired and working? AI can assist in employee retention and reduce turnover. New AI programs offer periodic employee surveys that can give management feedback. From these surveys, AI can analyze data to determine if there are recurring problems that need attention and areas of improvement.
AI can also use predictive analysis to focus on employees that are at risk of leaving based on their behavior and performance or lack thereof, which gives management time to address the situation with corrective strategies.
Also, AI can assist with scheduling, determining the best schedule based on company needs, employee availability and fair work schedules.
AI to many is a concern. Will AI replace me? I am reminded that the job market is ever- changing. In the early 1900s, every town had a blacksmith. We adapt and move on to other occupations as the need arises.
AI and automation have changed the restaurant industry already. It is here to stay; restaurateurs should take advantage of it. If AI can make the recruitment, hiring and training easier, do it. With so many other issues on your plate, delegating this to AI will allow you to keep your focus on your business.
Daniel McCoy joined the UGA-Small Business Development Center at Kennesaw State University as a business consultant in 2017 after a successful banking career and 10+ years in the retail industry. A Certified Professional for the Society for Human Resource Management (SHRM), he has won the Flewellen Award for Consulting Excellence for four consecutive years. Over the last five years, he has assisted in 140 business starts, raised $75 million in capital and logged over 4,000 consulting hours with more than 500 clients.
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