Care and learning opportunities are its top priorities for encouraging workers to stay.

The company pioneered the development of the 'casual restaurant' market in Japan, operating about 500 outlets. Its popularity inspired it to expand overseas.

Since 2001, 13 restaurants have opened in Hong Kong, employing a young workforce of about 500 full-time and 200 part-time staff.

'To retain staff you must first treat them as your clients and understand their needs,' said Sam Chiu, human resources and training manager for Watami.

'There are different ways of retaining staff, depending on the level of the job. When managing a young workforce one needs to adopt a completely different attitude.

'To these people, paying them more may not be the only way of holding on to them. Since most are still single, they do not have a family financial burden. What they are more concerned with is getting along with their colleagues and being happy during and after work,' Mr Chiu said.

Realising this, the management organises many activities, such as soccer and basketball games, singing contests or visits to Ocean Park to allow employees to relax and mix with their peers. In turn, this increases an employee's sense of belonging to the company.

The firm believes that only by offering quality training can it retain staff and create better career prospects. New frontline staff, known as 'crew' to the company, undergo a two-day orientation course, learning the corporate culture, some simple Japanese words and service procedures. After that, they will be taught by a trainer on a one-on-one basis for two weeks.

Within the three-month training period, one day is set aside to teach team building and how to handle people problems, and another to review mistakes made during the course. Promotion to the job of trainer depends on the employee's aggressiveness.

The company offers a comprehensive range of courses for staff selection. They include knowledge of the food and beverage field as well as language and supervisory skills.

A crew member must successfully complete all the courses required to qualify for advancement.

'Because of the long working hours, it is not possible for most staff to take courses after work. Therefore, many courses are held during their rest hours between 3pm and 6pm,' Mr Chiu said.

'The courses taught are voluntary and it is up to the staff to decide how many they want to attend. But the number of courses they complete is pegged to promotion.

'Young people care about their importance, so senior executives, including our chairman and general manager, always communicate with them to address their needs. When problems occur, we counsel them,' he said.

Mr Chiu said problems encountered by trainers were noted by management and considered for action during budget reviews. Seasonal meetings were also held for all staff to discuss company developments.

'All these policies help to retain staff and project a positive image for the company, strengthening our recruitment strategy and attracting more interested and ambitious people to join us,' he said.

Like any Japanese work culture, Watami does not classify employees according to ranks. They are all treated on the same level and work as a team.

Another distinct feature of the company's culture is its policy of rarely terminating staff for wrongdoing or incompetence. Instead, the employee will be retrained until the individual is up to the required standard.

How to retain staff

Treat employees as clients and service their needs

Organise activities for staff to relax and share fun with colleagues

Provide learning opportunities and solid training to enhance employee career development

Recognise staff's importance by arranging senior executives to directly communicate with them