The Effect of High Turnover on QuickServe Restaurants Essay Example

up to one year. These factors directly contribute to turnover ratios within fast service companies. Another issue relates to the definition of McJobs, which are characterized by low wages and limited career development prospects leading to high turnover rates. The term McJobs not only affects McDonald's restaurants but also encompasses the entire global fast service industry, making it a universal problem that impacts various countries and regions. There are several negative factors associated with McJobs, including limited opportunities for advancement and career growth in jobs within the quick service industry like QuickServe Restaurants. This significantly impacts individuals' willingness to work in these roles.The training system's lack of development hampers future growth and career advancement, especially for those who complete training at McDonald's. This limits their options for finding unrelated employment and negatively impacts candidate selection due to the low skill and experience requirements of these jobs. However, undergraduate students find it easier to secure positions in this industry because of lower wage demands and easy training. Nevertheless, recruiting and training new staff comes with significant costs. Therefore, changing the perception and definition of McJobs would benefit the speedy service industry. Recruitment is another challenge faced by this industry, involving identifying and hiring qualified candidates timely and cost-effectively for job vacancies within or outside an organization according to Business Dictionary (2010). Despite the mentioned negative aspects, McJobs do have some positive aspects as they provided many job opportunities during the recession period even though they did not offer great rewards or career advancement. In July 2001, BBC News reported that McDonald's restaurants in the USA employed young children aged 14 to 16; however, US law restricts

them to work a maximum of 12 hours per week while being registered with the local education authority (BBC, 2001).When child employment officers visited restaurants in January, they discovered that none of the young individuals working there had work licenses. It is the responsibility of employers in the quick service industry to comply with this law. Researchers have developed a strategy to improve this industry and potentially redefine McJobs, which would directly impact human resource management and companies. The campaign aims to address issues that are damaging the reputation of these popular restaurants, specifically related to how customers and employees perceive these jobs. This has resulted in a high turnover rate for QuickServe Restaurants. The objective of this campaign is to enhance the reputation of QuickServe Restaurants by reducing turnover rate and redefining what it means to have a "McJob". Various themes will be implemented in QuickServe Restaurants as part of this campaign and strategic plan for the future. The company's main concern is the high turnover ratio. In 2008, it was above 145% for hourly employees and 42% for management, resulting in a $22 billion loss.Employee turnover measures the comparison between the total number of employees recruited to replace those who have resigned within a given period and the average total number of employees.The goal of this campaign is to decrease turnover rate while improving brand image among both employees and customers.The campaign for QuickServe Restaurants focuses on key themes such as Corporate Social Responsibility (CSR), Recruitment & Selection, Training & Development, Appraisal, and Benefits. CSR involves businesses contributing to the economy, environment, and social sustainability with support from stakeholders. It is crucial for

restaurants to address these issues by implementing CSR practices to have a positive impact on their brand image and fulfill their responsibilities towards society. To attract candidates who align with company values, effective strategies for recruitment & selection should be developed. Providing training & development opportunities allows employees to improve skills and promotes loyalty towards the organization. Fair performance evaluation methods through appraisal ensure recognition of employee contributions and provide feedback on areas that need improvement. Additionally, offering attractive benefits like competitive salaries or flexible work arrangements helps retain talented individuals. By implementing the recommendations from each theme mentioned above, QuickServe Restaurants can effectively reduce turnover rates while enhancing their reputation amongst both employees and customers alike.The text highlights the significance of Corporate Social Responsibility (CSR) in a company's existence and identifies key influencers of CSR such as government, NGOs, local communities, unions, employees, shareholders, customers, and financial analysts. The accompanying diagram demonstrates how these influencers impact a company's CSR efforts. Focusing on CSR is vital as it can greatly enhance various aspects of a company. By addressing employee needs and motivating them to work for the company, CSR can effectively reduce employee turnover. QuickServe Restaurants can incorporate environmental and social sustainability practices to attract and retain employees. To tackle their high waste generation rate, the company should purchase recycle bins and educate employees about recycling benefits. Engaging in environmentally friendly activities like beach clean-ups and tree planting not only motivates employees but also garners attention from the local community while creating employment opportunities. One specific activity that QuickServe Restaurants can participate in is community service where they provide meals to those less fortunate. Successfully

implementing corporate social responsibility (CSR) allows eateries to enhance their brand image and gain recognition from the government which could potentially lead to tax exemptions. Additionally, efficient recruitment and selection processes are crucial for minimizing employee turnover.
Recruitment and selection are important processes in QuickServe Restaurants, particularly for attracting students and young individuals (McJobs). It is crucial to focus on university recruitment to target the Y Generation, who are seeking quick money and easy employment opportunities. To ensure a steady pool of potential employees, QuickServe Restaurants can actively recruit students from college campuses. However, it is vital not to solely prioritize recruiting students willing to work for low wages; instead, the emphasis should be on selecting candidates with growth potential who can contribute to the company's success. The Y Generation is known for their willingness to work for quick money and tendency to frequently switch jobs compared to other generations. Understanding why students choose to work at a QuickServe Restaurant is essential since there may be only a small number of them. However, some individuals have the potential to go beyond being tellers or servers and become future managers. Now let's discuss training and development – which involves increasing knowledge, enhancing skills, and shaping positive attitudes and behaviors among employees (Compare Infobase Limited, 2007). After hiring and selecting the right employees, providing proper training is essential for their success in your company.Despite its excellent training program, McDonald's is not included in Fortune500's top 100 employers of choice. In contrast, Starbucks holds the 93rd position according to Fortune500's rankings in 2010 (Fortune500, 2010). McDonald's struggles to attract and retain employees who want growth within the company because

it primarily focuses on its own interests instead of considering employee needs. It is important for McDonald's to recognize that most of their employees are university students and that the training only benefits them in their work, not academically. To decrease turnover costs in the long term, QuickServe companies like McDonald's should prioritize a training program that emphasizes managerial skills such as communication, presentation, and leadership. While there may be an initial cost for this training, it ultimately proves beneficial. Implementing a Performance Management System (PMS) is necessary to ensure fairness and impartiality in the development process. PMS aims to ensure employees perform at their best and have opportunities for personal growth within the company (Heathfield). PMS plays a crucial role in reducing company turnover. One suggestion for improving PMS is conducting annual online employee tests. Another recommendation involves implementing customer satisfaction cards and boxes.The Appraisal and Benefits topic is the focus of the campaign. Assessment evaluates an employee's worth or quality within the organization while benefits provide additional assistance or support beyond wages and rewards. Both factors greatly impact employee turnover. QuickServe Restaurant does not prioritize assessment but only addresses employee issues when they arise due to low error rates from automated processes replacing tasks typically done by chefs. However, it's important to note that assessment still plays a role in this service-oriented administration. It is crucial for directors to conduct assessments once a year in order to evaluate employee performance and identify areas for improvement, as the satisfaction of clients is essential. Moreover, assessments have a positive impact on employee motivation as they appreciate the involvement and efforts made by their directors towards

their development.

QuickServe Restaurants like McDonald's, Burger King, and Hardees offer various benefits to their employees including medical, dental, vision, and disability coverage, as well as life insurance and travel accident insurance (2010). In terms of compensation and rewards, McDonald's provides base pay, incentive pay, long term incentives, recognition programs,and a company car program.Burger King offers a 401(K) savings plan with a 6% match.Hardee's Food Systems IncMcDonald's offers holiday pay, paid vacation time, sick leave with pay, an employee meal discount, and direct deposit/pay card options. They also invest in the future of their employees through net income sharing and savings plans such as the Mc$ave program, MCDirect Shares, and credit union access. Additionally, they provide professional financial planning services.

Hardee's provides on-the-job training for promotion opportunities and an employee stock purchase plan.

Both McDonald's and Burger King are QuickServe restaurants that offer a range of benefits to promote work-life balance for their employees. McDonald's provides perks such as vacation time, holidays off, anniversary celebrations, a sabbatical program, shorter Fridays, leave of absence options, alternative work approaches, adoption assistance, child care services educational assistance ,a matching gift program employee resource connections access to an international fitness club network auto and home insurance program,and support beyond work.On the other hand Hardee's offers education reimbursement as one of its benefits.
According to a table provided showcasing the various benefits offered by QuickServe restaurants to their employees.McDonald’s stands out with the highest number of benefits making them role model for other establishments.Enhancing employee benefits can greatly benefit companies by reducing turnover rate and enhancing brand image, while also redefining job opportunities. To effectively communicate company messages, it is crucial to determine the

most suitable methods, such as utilizing the company website, social media platforms, recruitment events, and word-of-mouth/brochures. These different methods have varying impacts on areas like Corporate Social Responsibility (CSR), Recruitment & Selection, Training & Development, and Appraisal & Performance Evaluation.

The table below provides a comprehensive breakdown of how different methods impact various subjects using terms like "excellent," "good," and "bad." It underscores the significance of comprehending and utilizing diverse factors such as internet presence, social networking platforms, and offline promotion techniques to effectively attract potential employees.

Overall Message: Companies can benefit from enhancing employee benefits to reduce turnover rate and enhance brand image while redefining job opportunities. Effective communication requires determining suitable methods like the company website, social media platforms, recruitment events, and word-of-mouth/brochures. The table breaks down how these methods impact subjects like CSR, Recruitment & Selection etc., emphasizing the need for understanding diverse factors to attract potential employees.

Website Impact: The website has a positive influence on multiple subjects. While not the most effective means for attracting new employees,it inspires current employees by showcasing efforts for their benefit.

Social Networking Impact: Social networking can be used to highlight corporate social responsibility and allure potential employees. However,care must be taken when advertising training ,development or benefit schemes on these platforms due to potential misuse by competitors and users.
Creating an internal social networking site specifically for QuickServe Restaurants' employees and managers would be highly beneficial. This platform would address any issues they may face while also fulfilling the need for respect mentioned in Maslow's Hierarchy of Needs. The recruitment agency specializes in organizing CSR events with a significant impact, making it the perfect agency to attract potential employees

and inform them about the company's benefits and growth opportunities. These recruitment events serve multiple purposes, including featuring renowned celebrities like Bryan Adams, Jackie Chan, Sting, Mika, Yelle, Bob Sinclar, Eminem, Kobe Bryant etc., which would draw hundreds of thousands if not millions of attendees. Word of mouth remains a powerful method for advertising and sales; recent research shows that people trust others' opinions more than claims made by companies. Therefore, QuickServe companies must prioritize employee satisfaction and consider the working environment and company culture. It is also crucial to prioritize ethics since each culture may perceive a company differently. For example, McJobs in the U.S.A.and U.K are viewed as low-paying with limited advancement opportunities and minimal achievements. This perception has primarily spread through word of mouth resulting in widespread agreement on these job characteristics in both countries.In order to alter this perception, QuickServe companies can rely on their own employees to spread the word about what they offer. Word of mouth is a valuable tool for promoting corporate social responsibility (CSR) as well as for various aspects of employee management such as recruitment, selection training development and appraisal benefits. By utilizing existing employees, QuickServe companies can not only attract potential customers but also incentivize current employees by offering additional benefits like stock options and commission. This approach is cost-effective and serves to reduce turnover rates while keeping motivation high among staff members. These strategies effectively address the issue of turnover and McJobs, but it is crucial to implement them correctly in order to avoid any negative impact on the company's reputation or worsen the situation. To assess the success of these campaigns, analysts have

developed five measures which include using Mystery Shoppers who provide an unbiased consumer perspective for evaluating concerns, deliverables, and employee performance. This method also examines employee adherence to standards like customer greetings and appropriate language use, helping determine the effectiveness of Performance Management Systems (PMS) and Training and Development (T) at QuickServe Restaurants.
According to James L. Heskett's Service-Profit Chain theory, employee satisfaction and customer satisfaction are strongly linked. When employees are happy, it positively affects the level of service they provide to customers, thus impacting overall customer satisfaction.

One way to assess Performance Management Systems (PMS) and Training & Development (T&D) is through the Associate Opinion Survey (AOS), which all employees complete online once a year. The goal of QuickServe Restaurants is to measure employee satisfaction and gather suggestions for improving operations and job experiences. If a suggestion is accepted, all employees must take an annual online multiple-choice test.

This test evaluates their knowledge on specific job details such as identifying ingredients not found in a Big Mac or knowing the correct cooking time for French fries. Each employee has their own account number, but only sector managers can access the system with a PIN. Employees will take the test individually under their sector manager's supervision after their shift.

The test includes randomly selected questions about various positions within the restaurant, so employees need to be knowledgeable not only about their own job but also about other positions in QuickServe Restaurants. This knowledge helps identify potential future managers.

Casual meetings also play a role in employee development.There are two types of casual meetings within the company. The first type is shift training, which occurs before each shift and aims

to enhance training and development. The second type is monthly gatherings focused on Company Social Responsibility, which aim to increase employee motivation and retention.

During shift training meetings, both positive performance from the previous day and areas needing improvement are discussed. Decisions made in these meetings will result in the establishment of new daily goals, with employees receiving relevant training based on those goals. For example, if there were insufficient sales of set meals the previous day, employees will receive training on effectively promoting these meals. This practical training is believed to be more beneficial than theoretical training.

In addition to shift training meetings, QuickServe Restaurants can also arrange monthly gatherings as a means to motivate employees and foster team spirit. These gatherings provide an opportunity for supervisors to informally communicate with employees in order to gauge their job satisfaction and identify areas for improvement.

As part of their Performance Management System (PMS), each counter will have customer satisfaction cards available for feedback purposes. In addition, employees will be evaluated through "good" and "areas for improvement" boxes where customers can place plastic coins to assess overall service quality. At the end of each month, the employee with the most plastic coins may earn an additional weekly wage as recognition for their outstanding performance.
Motivated employees are more productive, resulting in better service quality and higher customer satisfaction (Chapman, 2010). The decision to prioritize QuickServe restaurants is based on their significant contribution to the economy. The success of these establishments is crucial for national success and employment growth, making it essential to reduce turnover rates. Major corporations like McDonald's, Burger King, Subway, Pizza Hut, and Starbucks must acknowledge this issue

within their operations and adapt to different work practices across countries and cultures. By being flexible and accommodating cultural differences, they can effectively decrease turnover rates. While QuickServe dining establishments have a promising future ahead, collaboration among multiple stakeholders is vital – especially with employees. Employees hold substantial influence within organizations, and their satisfaction directly impacts customer satisfaction which ultimately affects the success of the restaurants. Therefore, this campaign aims to support employees and improve their working conditions.