Abstract
Competition among all industries to recruit and retain the same talented employees is fierce. Thus, prospective and current employees have gained leverage in securing jobs and may be expected to demand better working conditions and compensation packages than in the past. The restaurant industry has responded by enhancing its compensation and benefits packages for existing unit-level GMs and those being recruited. Attraction and retention of managers were the highest-rated reasons for making changes to managerial compensation and incentive packages. Forty-two of this study's 49 firms had modified their GM compensation and incentive packages within the past five years—chiefly through enhanced salary packages. Signing bonuses were not prevalent and few firms offered new GMs a choice among geographic locations in which to work. Even fewer firms made any changes regarding the daily hours, weekly schedules, or vacation days for their GMs, or regarding retirement-savings plans.
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