Investment Rewards

While not specifically about restaurant companies, the following chart illustrates how the Top 10% of companies in the country compare with the Bottom 10% in recruiting, evaluating and training practices. The differences in the management practices of the business categories are significant.

Clearly integrated, strategic programs that are championed by senior management produce a bottom line benefit:

Practices	Bottom 10% (42 Firms)	Top 10% (43 Firms)
Percentage in a formal plan for recruitment, development and succession	4.79%	46.72%
Number of hours of training for new employees (less than one year)	35.02	116.87
Number of hours of training for experienced employees	13.40	72.00
Percentage of workforce who received performance feedback from multiple sources	3.90%	51.67%
Outcomes Scale: 1=not at all, 6=to a very great extent
Extent to which top management shows commitment to and leadership in knowledge sharing	2.99	4.05
Firm Performance
Employee turnover	34.09%	20.87%
Sales per employee	$158,101	$617,576

Source: Brian Becker, Mark Huselid and David Ulrich, The HR Scoreboard: Linking People, Strategy and Performance. Harvard University Press, 2000.