Aligning expectations with real-world experiences: a talent management study on the restaurant industry in Finland
| Date | 22 December 2023 |
| Pages | 1-20 |
| DOI | https://doi.org/10.1108/ER-07-2023-0347 |
| Published date | 22 December 2023 |
| Subject Matter | HR & organizational behaviour,Industrial/labour relations,Employment law |
| Author | Niko Cajander,Arto Reiman |
Aligning expectations with
real-world experiences: a talent
management study on the
restaurant industry in Finland
Niko Cajander and Arto Reiman
Department of Industrial Engineering and Management, University of Oulu,
Oulu, Finland
Abstract
Purpose –Skilled workers are crucial for an organization’s success, and managing, retaining and attracting
them is vital in long-term. This study aims to explore talent management practices in the Finnish restaurant
industry and to align workers’expectations with the real-world experiences of their work to reduce turnover
and enhance job satisfaction.
Design/methodology/approach –The study adopts a mixed methods approach, including a survey and
interviews with workers and managers to gain insights into their expectations and experiences of work. The
study considers themes for designing and implementing effective talent management procedures.
Findings –This study highlights the importance of employees’experiences of their work conditions,
leveraging positive emotions and fair utilization of temporary agency work (TAW). Understanding the
different work preferences of generational cohorts and addressing the challenges associated with owner
disengagement and TAW can also contribute to attracting and retaining talent in the restaurant industry.
Originality/value –Skilled workers have often been portrayed as targets that need to be managed, with
insufficient consideration given to their preferences, needs and expectations. With the findings of this study,
companies can establish mutual understanding with their employees and attract diverse talent.
Keywords Talent management, Employee retention, Restaurants, Employee attraction
Paper type Research paper
Introduction
Skilled workers are widely recognized as an organi zation’s most valuable resource, and it is
reasonable to suggest that companies with the best-skilled workforce will succeed in the long run
(Pandita and Ray, 2018). Managing, retaining, attracting, and investing in employees who
possess the necessary skills is imperative for companies willing to maintain and develop their
competitiveness (Armstrong, 2006;Bufquin et al., 2018;Cajander and Reiman, 2019;Jogaratnam,
2016,2017 Ott et al., 2018;Pandita and Ray, 2018). The shortage of skilled workers is causing
ever-increasing negative economic impacts worldwide (Ott et al., 2018). According to Hansen
et al. (2011), employee turnover can cost organizations 50–200% of the annual salaries of
redundant workers. Despite these high costs, little research has been done on strategic or
operational actions that organizations could make to prevent worker turnover (Carnahan et al.,
2017). Employee turnover can often be attributed to a misalignment between employees’
Restaurant
industry in
Finland
1
© Niko Cajander and Arto Reiman. Published by Emerald Publishing Limited. This article is published
under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute,
translate and create derivative works of this article (for both commercial and non-commercial purposes),
subject to full attribution to the original publication and authors. The full terms of this licence may be
seen at http://creativecommons.org/licences/by/4.0/legalcode
The authors thank Raimo Hoikkala from the Service Union of Finland (PAM) for arranging the group
interviews.
Funding: The study was funded by the Finnish Work Environment Fund (No: 220372).
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/0142-5455.htm
Received 12 July 2023
Revised 3 November 2023
5 December 2023
Accepted 5 December 2023
Employee Relations: The
International Journal
Vol. 46 No. 9, 2024
pp. 1-20
Emerald Publishing Limited
0142-5455
DOI 10.1108/ER-07-2023-0347
expectations and their actual work experiences. Addressing this misalignment effectively
requires organizations to gain a deep understanding about their employees’needs, provide the
necessary resources and support for optimal job performance, an d ensure that employees’
expectations match the realities of the workenvironment. By takingthese steps, companies can
create a positive workplace, boost job satisfaction, reduce the desire to leave, and ultimately
cultivatea more stable and productive workforce (Cicognani et al., 2016;Pleitz et al., 2015).
Finnish restaurant industry and labor challenges
In Finland, a country known for its relatively stable and secure labor market, good working
conditions, strong labor unions and good wages, the restaurant industry faces staffing
challengesdespite these advantages(Kangas a nd Kvist, 2018;Rasmussen et al., 2019). Over the
past three decades,the accommodation and restaurantsector has seen a significantincrease in
its workforce,with employment numbersrising by up to 50% between 1995 and2008 (Service
Sector Employers, 2022). In 2019, as many as 95,200 people were employed in the industry
(Service Sector Employers, 2022). The COVID-19 pandemic, however, caused a significant
declinein the number of employees,with the industry employing78,700 people in 2020 (Service
Sector Employers,2022). Figures for 2022were predicted to have an evenworse decline, which
have beenreported by Service SectorEmployers (2022). While thenumber of job applicants has
decreased, the number of restaurants has at the same time increased in Finland. In the last
decade alone, up to a thousand new restaurants have opened, making recruiting and talent
retention even more challenging (Service Sector Employers, 2022). A record-breaking 73%of
Finnish restaurants reported thatthe availability of skilledlabor was a major obstacle to their
growth (Service Sector Employers, 2022). The primary reasons for the service industry’s
recruitmentdifficulties arethe lack of job seekers (53%)and the mismatch betweenjob seekers’
skillsand the industry’s needs (48%)(Service Sector Employers,2022). Furthermore,during the
COVID-19pandemic, the Finnish HospitalityAssociation (2023) estimatedthat between 10,000
and 20,000 professionals in the restaurant industry switched their careers to other sectors.
Consideringthe evident need for recruiting new talentsin the restaurant sector, it is crucialfor
the restaurants to recognize the importance of sustainable talent management strategies
(Gjerald et al., 2021;Podgorodnichenko et al., 2022). By doing so, companies can establish
mutually beneficial relationships with their employees and attract diverse talent to create a
competitive edgein the market.
Prior research and research objectives
Nordic hospitality research distinguishes itself by centralizing on hospitality providers,
particularly focusing on managerial aspects (Gjerald et al., 2021). This earlier research spans
recruitment, socialization, training, retention, work environment, working conditions, work-
family dynamics,and emotional considerations (Gjeraldet al., 2021). This emphasis alignswith
Nordic management traditions, work regulations, and the established discipline of service
theory and research in the Nordic context (Gjerald et al., 2021). In the broader non-Nordic
literature on talent management, there’s been a predominant focus on organizational and
supervisory perspectives, with limited exploration of employees’experiences and viewpoints
(Pandita and Ray, 2018;Richards, 2020). Additionally, skilled workers have often been
portrayed as targets that need to be managed, with insufficient consideration given to their
preferences, needs and expectations (Kolivand, 2018;Richards, 2020). In their exploration of
expectations, Andreassen et al.(2021), extended the concept by incorporating various
expectationtypes to it, of whichthis study uses predictiveand normative types ofexpectations.
The objective of this study is to explore talent management practices in the restaurant industry
and methods to align expectations with workers’real-world experiences, aiming to improve
employee retention and job satisfaction. The study’s originality lies in its comprehensive
ER
46,9
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