8 employee incentive scheme ideas to help restaurants reward and keep talent

As a hospitality operator, there are likely very few issues that keep you awake at night like staff retention. In an industry with an average of 35% staff turnover, the expense, stress, and pressure on your business of having to continuously recruit and train new staff is one you will be more than familiar with. It’s a challenge that can hurt your bottom line, and damage your business. So, how do you improve retention rates and keep your talented staff in the business for longer?

One option is to implement an effective incentive scheme for your staff. The right incentives can help you to boost staff morale, reduce turnover, and create a culture of support and respect. 

At Rotaready, we’re committed to helping businesses attract and retain top talent. In this article, we’ll share eight of our top incentive ideas that could transform your team. We’ll also look at how perks can go beyond staff discounts and bonuses – exploring how training and development,can play an important role in building loyalty and helping your business thrive.

Why do employee incentives matter in the restaurant industry? 

Long working hours, irregular shifts and high-stress situations are ever-present in hospitality, making burnout a common challenge. With turnover rates of 52% – the highest of any industry, effective employee incentives can be a game-changer – not just as “nice to have” perks, but as powerful tools that help retain top talent, motivate staff, and improve overall morale.

Research suggests that four in five (81%) employees feel more motivated when their efforts are acknowledged. And when employees feel valued, they’re more likely to provide exceptional customer service and create the kind of positive, welcoming atmosphere that keeps customers coming back.

8 creative and effective incentive ideas for restaurant employees

So, what incentives do hospitality employees love? Here are eight ideas to help get you started: 

1. Financial rewards – recognition that’s on the money

When it comes to motivating staff, financial rewards are often the first approach that springs to mind, and with good reason. Bonuses and cash rewards give a clear signal of appreciation, and when timed right, they can offer an immediate lift in morale. After all, who doesn’t appreciate a little extra for a job well done?

Financial incentives aren’t just limited to cash bonuses. A little bit of creative thinking can help you come up with new ideas to keep your staff smiling; rewards like gift cards, quality-of-life perks, or even an early finish can sometimes be a powerful way to reward and motivate your team. The goal here is to show them that their hard work is noticed and valued, in ways that feel meaningful to them.

2. Get social with team events 

Teams are made up of different skills, experiences and personalities and if they enjoy working together and have a keen sense of belonging, they’re more likely to be productive and motivated. Dial-in to what makes your team tick and arrange a team day out to build on that engagement. If they’re great at problem solving why not book an escape room experience where they can enjoy the buzz of figuring things out? If your team is a competitive bunch, you could channel this ambition into an action-packed session at an in-door kart track. Take winning celebrations a step further with trophies and certificates to commemorate the day.

3. Employee recognition

Acknowledging who has shown support, kindness and true team spirit through their actions is just as important as rewarding team members for reaching their sales targets. Showing appreciation for time spent cleaning up or covering for a colleague proves to your team that you notice and appreciate what they do. Digital shout-outs to celebrate “Employee of the Month” on internal communication platforms or social media can hold real meaning for employees. You could take this idea further with a nomination scheme where team members can put forward names and then vote on who they want to win. This will foster a sense of community within your restaurant business and encourage peer recognition.

4. Developing talent through training and leadership schemes

The hospitality industry employs many young people who are either subsidising their studies, or looking for experience to find their way in the world. In fact, research shows that 56% of school leavers view hospitality as an attractive career option so there are young people out there who, with some development, could be an asset to your business. Similarly, parents who have taken time out to have children may be working in hospitality to test out a new career path. Either way, there could be people working for you who need a chance to learn new skills and gain experience. One way to achieve this is through a training and leadership scheme. These schemes focus on up-skilling employees and developing them for future promotion opportunities which, in turn, improves staff retention and keeps talent working for you.

5. Staff discounts and meal benefits

A little gratitude goes a long way. Offering discounts on meals or complimentary items eases financial pressures and enhances overall work experience. Use this as an opportunity to link back to your brand and extend goodwill to employees’ friends and family, too with discount passports. These could be handed out at the beginning of a new year, for example, and will make meet-ups with friends and family treat days more affordable. It will also spread a positive message about your restaurant business to a wider audience of people who have the potential to become loyal customers or even valued future employees.

6. Health and wellness initiatives

Working in restaurants can be tough on both body and mind, so taking care of your team’s wellbeing can go a long way in making them want to stick around. Why not implement a wellness programme, or set some fun fitness challenges to support staff health while building team spirit? Think about your team’s fitness levels, average age, and interests to come up with appropriate initiatives that will be applicable to the majority. 

Studies show that health-focused initiatives can improve staff morale and reduce absenteeism, and they’re a clear way of showing your team that their wellbeing matters to you. When staff feel good, they’re happier, more engaged, and ready to bring their best to every shift.

7. Flexible scheduling

One of the biggest challenges in the restaurant industry is maintaining a healthy work-life balance. Flexible scheduling can be a great way to show your staff that you are invested in helping them to achieve that balance. By giving your staff more control over their shifts, you’re helping them manage their time in a way that works best for them. But while the idea of flexible shifts sounds great, the reality of trying to give everyone the shifts they want, whilst maintaining the right level of staffing in your restaurant, can be a bit of a nightmare. With Rotaready, creating adaptable schedules is straightforward, allowing employees swap shifts with colleagues and adjust availability directly through the app.

8. Short term incentives 

While long-term rewards and perks can give your employees something to work towards, there are times when a quick boost in motivation can make a huge difference. Short-term incentives are great for tackling immediate goals – whether it’s reducing staff absences, boosting sales of a specific item, or hitting a service milestone. 

When we talk about short-term rewards, they can take many forms; from event tickets and gift vouchers to experiences like a staff night out or even a spontaneous extra break, there are lots of ways to motivate your team to help you hit short term goals. These kinds of rewards feel instantly gratifying, giving your team a lift right when it’s needed most. Offering short-term incentives can also bring some fun into the workplace, helping staff to stay engaged and motivated during really busy periods like the festive season.

Incentives like these can be even more effective when they’re unexpected, adding an element of surprise and making the reward feel extra special. Research shows that short-term rewards can strengthen morale and energise staff in a way that long-term goals alone can’t always be achieved, especially in industries with high turnover like hospitality.

How to measure the success of your incentive programs

Knowing which incentives work best for your team will help you tailor a meaningful rewards scheme that genuinely resonates with your staff. And when you show your commitment to actually rewarding them, rather than paying lip service to staff incentives, you’ll have a happier and more committed team.

Planning and measuring your incentives

• Gather employee input: Show your team that you actually care about what they want and what matters to them by asking them. Gather all the feedback via a survey and act on the results.
• Set clear goals: Whether it’s reducing turnover, increasing morale, or improving team performance, it’s important to know what you’re actually trying to achieve. You can’t measure the effectiveness of the program if you don’t have clear goals in mind.
• Establish a timeline: Give your program time to show results. Track key metrics like turnover rates and overall engagement before and after implementing the program. If you’re working across multiple sites, you may decide to trial different incentives in different locations to get a faster overview of what performs best.
• Check in and adjust: Regularly review your program’s effectiveness. Ask for feedback and be ready to tweak incentives based on what’s working and what’s not.

A well executed incentive program not only helps you to build a great culture and a place that people want to work, it offers measurable returns for the business.

Assessing reward effectiveness

If participation in your incentive program is low, it’s worth reassessing the rewards you’re offering. Remember, not every team is the same, and depending on a huge range of factors, including age of team members, and their family circumstances, you could find that different perks appeal to different people. Rather than trying to guess what they want, you can save time by simply asking them. 

We suggested that you carry out a survey at the beginning of the process, but over time people’s needs change, and the team itself will evolve as staff members come and go. That’s why it’s so important to continue asking for feedbac and send periodic surveys or polls to understand how preferences are shifting. 

Showing your dedication to offering relevant rewards can be a really powerful way to show your team you care.

Ready to motivate your team with a little help from Rotaready?

In this article, we’ve looked at why staff incentives matter, and shared some practical ideas to keep your team motivated and excited to come to work. When you can tap into what truly motivates your team, you’re not just creating incentives, you’re building a positive culture where people want to stay, collaborate, and grow.

At Rotaready, we’re all about making work-life balance easier. Our easy-to-use hospitality rota software keeps everyone on the same page, giving your teams full visibility of when they’re working and how their efforts contribute to the bigger picture.Traditional incentives are great for boosting team spirit, but giving your team more control over their schedules shows you genuinely value them, and you’re prepared to back that up by giving them more control over their working life. If you’re ready to see how Rotaready can make a difference in team engagement, get in touch or book a personalised demo.