Employee retention methods in fast food

Employee guardianship methods in flying viandsThis subject talk ofes employee memory board methods that be campaignd in the fast forage for thought industry, where the majority of employees be under 21 and in full cadence education. thither ar several large players that make out for these potential employees, this paper focuses on McDonalds.This paper concludes that McDonalds store strategies be winning in some of their branches, although this level of property is non uniform across the whole government activity. at that placefore their strategies require snugg direct monitoring, to successfully implement them.2.0 IntroductionThe valet de chambre resourcefulness is increasely viewed as being the most master(prenominal) resource in contri be positioningsing to an brasss overall success in achieving corporal goals. Therefore human resource forethought is a vital comp angiotensin-converting enzyment of the strategicalal decision making. Managing human reso urces comprises a range of issues such(prenominal) as enlisting and memory, employee development, reenforcement schemes and promoting good social intercourses. The beginning forge is enlisting, to employ suitably qualified employees to contribute to the achievement of the corporate goals, in an efficient and equal-effective manner.The most-valuable factor after recruitment is ensuring the responsibility employees be trained and retained. This has both external and internal cores which push back out affect the guardianship rate of an administration. There is a direct nexus between corporate strategy and hoi polloi centering, and the policy of strategic recruitment and retention. The fast victuals industry has historically been viewed as humble- attainmented and low gestateing represent take away-ining to a laid-back rate of employee dollar volume.The fast food giant Mc Donalds has improved their pay and cargoner prospects, this policy is aimed at both recr uitment and retention of employees. The changing UK labour merchandise has seen a taller educated work tycoon with individuals concerns of career development. Fast food brasss set out had to adapt their HR strategies in order to compete in saucily ball-shaped and national contexts effectively. This paper go out investigate the features of recruitment and retention strategies by McDonalds as a response to the smart challenges.Globalisation has led to the rapid expansion of multinational fast food companies, for example McDonalds and KFC devour entered the UK market. The integrated and interdependent global marketplace has led to fierce challenger between fast food crockeds. Therefore multinational fast food companies should balance the various(a) interests, inescapably, preferences and external conditions when implementing their HR strategies. Identifying these applicable factors is an important make upress of assessing the strong suit of retention strategies.McDona lds has expanded rapidly into new markets, these energize challenged the constitutions HR strategies. Each new country brings cultural and employment legislation differences from the groundwork country. All these issues must be addressed before the expansion bespeaks place.The organisation trades on standardisation of their products. Whichever restaurant some(prenominal)where in the world that a customer visits the product and the service pass on be uniform. This has been referred to as McDonaldlisation indeed all employees are trained to give the expected service no matter what the location. This raising is a vital comp onent of McDonalds global HR strategy.This is used as a in like mannerl for employee retention although other methods such as reward and recognition are used. This paper will discuss all the relevant issues surrounding the topic of employee retention in the fast food industry, focusing on McDonalds.2.1 Aims and objectivesThis interrogation aims to examine and evaluate McDonalds employee retention policies such as employee development programs and reward schemes. It will discuss how the organisation has responded to the challenges. The starting objective of this work is to identify and explore the main challenges approach by retention strategies for employees in general, and focus on the fast food industry. The second objective of this work is to examine specific retention strategies used by a fast food comp either This will examined how they compete for staff indoors the UK labour market with other fast food companies.The principal outcomes of this question will be an assessment of the effectiveness of McDonalds employee retention schemes from the perspectives of those directly concern in the implementation of these schemes. Additional outcomes of the look into take a detailed overview of general trends within the industry in relation to employee retention and development and a comparative analysis of McDonalds policies in r elation.3.0 methodologyThis chapter discusses the look for methods used for the project and the rationale for their choice. It discusses methods that were not used, with justification of why they were not complicated. Included is a critique of methods selected, and with hindsight identifies any sorts that would founder deepen the research. This paper critically evaluates the retention methods used by McDonalds in their restaurants. McDonalds was selected as being the industry leader in its strategies for both marketing and the attracting and retaining of staff. A shield study approach was chosen to link the conjecture with research this cigaret generate rich follows of data relevant to divorceicular organisational contexts. From the grammatical case study questions were generated to be used in hike primary research (Yin, R 1994).Selection of the topic was stimulated and create out of improver publicity on the practices of HR that McDonalds utilise. The nature of the r esearch was discussed with colleagues and fellow students this not great(p)ly added practical ideas and suggestions, it opened new avenues of thought. This was the discussed with lecturers sounding out ideas, gauging opinions and clarify the question. Focusing in on the question was obtained by employing relevancy trees, transmute the research area. This gave direction to the research, although with reviewing the literature this changed several eons (Buzan, J. 1995). Next, a research proposal was compiled, with the benefit of organising ideas and setting a time-scale for research. Theoretically, the proposal would highlight any difficulties with the research question and access to data. Creating a time-scale would focus on targets and catch deadlines in the completion of the paper. The literature review, discussing theories and ideas that exist on the topic formed the foundation of the paper. The findings from the research are thusly tested on theories for grimness (Saunde rs, M. et al 1997). The literature review was challenging, in that location is very little academic research on the topic area. Most of the literature focuses on in operation(p) issues, although a few focused on HR policies. There are a lot of articles in the Newspapers on the organisation these were rejected ascribable to the biased content, they appeared to sensationalised articles. Journal articles discussed the organisation in terms of its strategy and policies in HR practices. These journals articles, together with well documented theory were not only the back bone of the writings review it constructed a theoretical framework. 3rd data sources, such as library catalogues and indexes were used to s force out for secondary winding data. This produced journals and newspaper articles, and Internet addresses. With the amount of literature, it took time to sort out relevant tangible to the research. Narrowing down the search Bells (1993) six points parameters was applied. Applyi ng describe haggle that were identified in the premiere search produced relevant and up-to-date material (Bell, J.1993). A limitation on the literature search was the amount of time to read all articles and books on the subject. Whilst reviewing the literature references to other publications were followed and reviewed. Bells checklist on identifying the relevance of literature found was a practical method to push down the amount of reading (Bell, J. 1993).Ethical considerations in research fall into three categories, during design, collection, and describe of the data. These areas were carefully considered at all stages of the research. The person privacy must not be evaded during interviewing Oppenheim (1996) referred to this stating maintaining the respondents right to privacy, as the right to refuse to answer authentic or all questions (Oppenheim, A.199684). By participating in the research, no deadening should fall on the participant. It was decided not to interview emp loyees, with the logistics of the method. Employees would consent to give their time, plus a venue was required of site to abide by privacy (Saunders, M. et al 1997). Consent must be obtained from both the organisation and individuals before commencement of research. The data sought by means ofout the research should breathe within the scope of the project (Saunders et al 1997).Questionnaires were selected to obtain the overall depression of recruitment, and retention from employees. The results will be compared to the literature review, which will validate the theory and the case study, to form an overall picture retention policy and practices. in motility the questionnaires were distributed a letter was delivered attached to all employees explaining the purpose of the research, and how the information was to be used. The letter contained a contact number for the researcher, and gave a guarantee of nameless(prenominal)ness of the information. An favor of communicating to respondents before the questionnaire was that it increased the response rate, and addressed honorable concerns (Saunders et al 1997). Fellow students were used to pilot the questionnaires to test the information gained from the questions and the time take to complete it. From this, adjustments were made on the wording, removing technical jargon (Bell 1993). From the constriction of the relationship between researcher and the respondent, a problem arose that individuals could be recognised from their handwriting. This was addressed by using a tick box format, with no coding to recognise individual responses, maintaining anonymity of the respondent (Saunders et al 1997). A benefit from using this format was the data put in was quantitative. Closed questions hold the anonymity of the participants, but had the disadvantage of limiting the data that could be collected (Cresswell 1994).Other methods of data collection were considered and rejected. Focus groups would have offered free flowing information. This could have been facilitated with discussion led by the researcher. The idea was rejected collectible to the express contacts within the organisations. This would withal be unethical to place pressure level on their goodwill. The methods that were used to collect data followed in a perspicuous order. Each method validated the findings from another method, triangulating the results on that pointfore reducing bias. 4.0 Literature ReviewThis section of the paper discusses the relevant theory on the topic. startle with HR and focusing in on retention and the strategies employed to increase the organisations level.4.1 Human vision ManagementThe concept of human resource management has emerged from the 1980s into a core consideration of corporate strategy in the 1990s, (Legge, L 1995). There is no single definition of HRM in the literature yet the emphasis has to a large extent been on the strategic role of human resource management in organisations. Some research has identified HRM with strategic aspects of outflank-fit or aligning people to the needs of the organisation as expressed in corporate strategy and others have examined HRM as a means of gaining enhanced organisational process, (Golding, N (2004) cited in Beardwell, I. et al 2004). nonetheless the contribution that human resource may make to an organisations deed and effectiveness has been linked closely to the changes in different strain environments including macro and small contexts.Recognition of the importance of HR has increased in recent long time this is a result of competition from overseas economies. In countries for example Japan, Germany and Sweden enthronization in employee development is higher that the UK. This has led to some organisations reviewing their policies on training introducing continuous investment in their employees Although when multinational organisations have entered the UK, they have introduced their global HR policies (Beardwell, I. et al 2004). For HR to succeed it must take on a proactive role within the organisation. Strategic HR creates measure out by providing opportunities for organic learning, development of intellectual capital and enhances core competencies. This observe is crucial to the organisations rising success (Treen, D. 2000). Employers are increasing extorting the best doable accomplishment from employees. Best practice will increase the skills of the current workforce, and with recruiting it will reinforce the culture of a highly skilled work force (Mullins, L. 2005). Strategic HRM has gained both credibility and popularity over the past decade, specifically with respect to its impact on organisational performance (Paauwe, J Boselie P. 2003).4.2 Human Resource StrategyTo fully exploit the wealth of acquaintance contained within an organisation, it must be literalised that it is in human resource management that the most fundamental advances will be made. As a result, the human resou rce part must be made a central figure in an organisations strategy to establish a knowledge basis for its operations (Mullins, L. 2005).There are fundamental differences in the approach to HR. Storey (1987) discussed these as hard and soft versions of HRM. The hard version places little emphasis on workers concerns and, therefore, within its concept, any judgments of the effectiveness of HRM would be based on line of descent performance criteria only. In contrast, soft HRM, magic spell also having business performance as its primary concern, would be more believably to advocate a check concern for workers outcomes (Storey cited in Guest, D. 1999).These models of HR theory, will justify why there has been an increase in this management practice. Walton (1985) defined HR as correlative goals, mutual influence, mutual respect, mutual rewards, and mutual responsibility Walton further added that the mental contract under this unitarist, high commitment model is one of mutuality, but it is a mutuality strictly bounded by the need to scat within an naturally unitary framework (Walton cited in Beardwell, l. et al 2004)The examine of training and development has changed and bay window be used a key driver for delivering shareholder treasure (Rogers 200425). This increase in training precedence has been supported by a rise in Human Resource Management. This practice emphasises that increased growth can only be maintain in the long run by equipping the work force with the skills they need to complete their tasks (Mullins, L. 2005). 4.3 Human resource as a dominate SystemThere is a need for a higher appreciate to be placed on employees. And therefore get the best performance from the employees. According to Delany (2001) successful organisations keep people issues at the fore front of their thinking and at the core of their decision making and planning. Delany adds organisations that get the people things right are the organisations likely to be around in the future (Delany (2001) cited in Mullins, L. 2005748).Although some commentators have argued that the role of human resource explicitly views employees as another resource for handlers to exploit. In the past, managements had failed to align their human resource systems with business strategy and therefore failed to exploit or utilise their human resources to the full. The force to take on HRM is therefore, based on the business case of a need to respond to an external threat from increasing competition (Guest, D 1999).This view reflects a longstanding capitalist tradition in which the worker is viewed as a commodity. The consequential exploitation may be paternalist and benevolent but, equally, it may operate against the interests of workers. Essentially, workers are simply resources to be squeezed and given up of as business requirements dictate. More importantly, the interests of workers and their well-being are of no import in themselves. As John Monks (1998) stated In the wrong hand HRM becomes both a sharp weapon to prise workers apart from their articulation and a blunt instrument to bully workers (Monks (1998) cited in Guest, D 1999258).There are conflicting views on the justification behind implementing HR practices one extreme views the practice as a control mechanism. The employee is central to any strategy, and should feel a valued part of the organisation.4.4 Human Resource intimacyThe role of HR should not be administrative based it should be a part of the long term strategy of the organisation. Appointed an HR manager to the board is the only way this can happen (Beardwell et al 2004).Rogers (2004) discussed the role of developing human capital strategies that HR has a real opportunity to shine. There are numerous HR departments are impuissance to deliver the goods (Rogers 200425).4.5 RetentionThere are hidden cost mixed when there is a high turnover of employees, but each organisation deferrers in what is the normal level of retention . It is not just a low retention rate that can cause problems to an organisation, if this is too high it can lead to a stagnant workforce.There is no overall right level, and this is dependent on a number of factors, both internal and external. pizza pie Hut has a staff turnover of more than 50% per form this figure takes into account the vast number of casual and student workers the caller employs. The technology company, 3M, whose has a wide range of career opportunities for employees, retains a high proportion of its staff (Rigby, R. 2003).When there is high retention this introduces new problems for the organisation. proud retention levels, rather than being a company-wide problem, will a great deal add up in pockets within businesses. For instance, an employee or a team may have become so good at their put-on(s), that their boss cannot bear too lose them or even promote them, which can lead to stagnation and de- penury of their employees (Rigby, R. 2003).If retention le vels are in line with the norm for the type of organisation, then the creative employees should be encouraged to stay and the poor performers encouraged to leave. If this were measured the then organisations would retain employees whose contribution produces a positive risk modify profit for the firm. These employees would have a positive influence on the firm (Sigler, K.1999).4.6 Cost to the organisationA major factor of a high level of employee turnover that take advantages on an organisation is the cost. The costs can be broken down into the costs of leaving, replacements, transition and verifying. The leaving costs are the payroll and the personnel administration of the employee leaving. The replacement costs are washed-out on recruitment of potential employees, the money and time spent on interviewing and any placement fees involved. Transition costs for a company take on the training costs of new employees the unproductive time while the new employee is learning the ski lls required and any induction costs for the new employee. The indirect cost to a company is the potential loss of revenue because of decrease levels of customer serviceThe cost of replacing workers who have left can amount to two and half times a workers annual salary. These costs are rarely specifically identified in any news report records. Therefore turnover cost data should be used to manifest the success of retention strategies over time (Risher, H. and Stopper, W. 2002).Apart from the significant stinting impact with an organisation losing any of its critical employees, there is also the knowledge that is lost with the employees departure. This is the knowledge that is used to meet the needs and expectations of the customers (Bassi (1997) cited in Ramlall, S. 200454). Organisations cannot take a passive attitude toward knowledge management, Instead they should seek to delay the competitive advantage and develop systems to control the value of knowledge (Stewart, (1997) ci ted in Ramlall, S. 200454).The Human capital theory suggests that some labour is more productive than other labour simply because more resources have been invested into the training of that labour, in the same manner that a machine that has had more resources invested into it is apt to be more productive (Ramlall, S. 2004).Employers need to review all the costs involved with employee turnover, not all cost are financial, hidden costs embroil the reduction in knowledge. These are not tangible, and will not institute on the companies accounts, but through a lack of skills this can reduce the long term profit.4.7 RecruitmentKey to retaining the right employees is recruiting them in the first place. This process must given consideration to their long term value to the organisation. The attraction and retention of key talent, is increasingly pivotal to organisational success. The ability to achieve competitive advantage through people depends in large part on the composition of the wor k force. This, is the function of who is hired, and how they are genuine, these factors will lead to who is retained (Sturman, M 2003).Retention begins at recruitment time, so it is important to select for organisational and cultural fit, not merely against the technical and skills requirements of a given job. Best practice companies have known this for a long time, and fancy that the selection process allows a full assessment of chances abilities, interests, aspirations, and values, and a knock over review of how well these match their organisational culture (Risher, H. and Stopper, W. 2002).Organisations are under increasing pressure to recruit the right people for the right job. The economical cost of getting this wrong can be vast, with the resources that have been ploughed into the process. many factors are to be considered during this process including the culture of the organisation, legal implications, attracting and employing the sort out outlook and the cost in tim e and resources. Therefore it is paramount that the process is fair, time-tested and valid (Armstrong, M. 2001).Hacker, C.A. (1996) discussed the process of recruitment and advises that employers should consider three areas when they are preparing to employee, these are the cost per hire of an employee turnover rate and productivity. The recruiting of an employee contains hidden costs these include advertising and the time that is employed on screening and interviewing the prospective employee. Therefore, if the recruitment of people is not cost effective option, then high turnover of employees must be avoided. Retention of the current workforce is the most economic solution to an organisation (Hacker, C.A. 1996).The employers requirements relate to the labour process that is the supply side of the labour market. This is simply employing suitable people for the roles that are required. While this is depict as the human capital, this is a sterile and limited interpretation of a var iety of personal characteristics and dispositions which employees bring to the workplace (Alcorso, C. 2003).As Beardwell and Holden (1994) emphasise essential to a good HRM practice is recruitment and selection, which must consider correct fit between personnel and job in order to exploit efficiency in terms of retention and HRM strategic planning. The organisation can use the recruitment process to continue, enhance or even change the organisational culture. When a change of strategic direction is required, recruiting the right candidates is a important factor to increase the chance of success (Beardwell, I. Holden, L. 1994225).There are various recruiting sources, but their success rates are not equal. For example, employee referrals will bribe higher quality workers than do sources such as newspaper ads or employment agencies. In a survey the top three sources of successful candidates are employee referrals, college recruiting and executive search firms. All these methods shou ld be considered for effective recruitment. Although the best recruiting sources are still dependant on the type of industry and the job skills required by the organisation (Terpstra, D. 1996). Recruitment of the right candidate is problematic, the skill of the recruiter is vital to appointing a successful candidate. Insufficient information about employees performance can result in adverse selection by Managers. This arises from where the manager does not know the information h to ask from the candidate and the candidate does not know what to provide. Therefore, productive workers cannot distinguish themselves from non productive candidates (Sigler, K. 1999).Reviewing and monitoring recruitment practices can lead to a reduction in key employees leaving. If the first stage of retention is recruitment, then best practice will lead to the correct candidate being selected. In the long term this will increase the retention levels of key employees within the organisation.4.8 Human Resour ce usingThe principal function of any organisation is to increase the value of the business and therefore enhance the wealth of its Owner(s). This is obtained by efficient use of the limited resources available to them (Blackwood, T 1995). Garrick (1998) discussed that HRD is inextricably linked to market economics, that knowledge is prized in so far as it can generate a market advantage(Garrick, J 19985). Leading to the assumption that HRD can give the organisation advantage aiding the ability to increase profit. Therefore using that theory HRD should be viewed as a vital function of all organisations, and not just there to satisfy training issues, a proactive role. Garavan et al (2000) discusses the emergence of strategic HRD practices, which are directly linked to the organisations strategies, with profit maximising paramount, HRD is a jibe that should be employed to obtain and support this (Garavan et al, 2000). HR and training literatures highlights the organisational benefit s to be gained from adopting a systematic approach to HRD, therefore the ongoing development of employees skills underpins the wider business objectives (Keep, E 1989). This systematic approach to training often includes models that identifying needs, planning, delivery and evaluation. Harrison developed an eight stage model to identify monitor and evaluate training. The evaluation stage is possibly the most problematic part of the training process (Reid, M.and Barrington, H. 1997).4.9 reproductionTraining can be defined as a planned process to change attitudes, knowledge or skills and behaviour through a range of activities to achieve effective performance. When this training is in the work situation, it develops the employee to satisfy current or future needs of the organisation (Beardwell, I et al 2004)It is generally accepted that methods of training can usually be separated into two categories on-the-job, and, off-the-job. On-the-job training is implemented at the trainees wo rkplace, while off-the-job training is conducted away from the trainees workplace and takes them outside of their work environment (Mullins, L. 2005).Training can be used as a change agent, to change the culture of an organisation. It is also a tool to improve organisational effectiveness, especially in fiercely competitive markets. All too often organisations that are facing financial problems will cut back the training program, where as they could be used to increase overall performance. The training budget is viewed too often as an expendable, and the first to cut or even go in crises (Rogers 2004).4.10 Reward systemsAmongst the theorist there a several key areas of management, which affects the retention of key employees, this includes motivation, job satisfaction, reward systems and the psychological contract. The first area reviewed is reward systems these can be both intrinsic and extrinsic.Reward systems are one of the four key policies within strategic HR. the organisation can use this tool to raise commitment, competence, and congruence and it is cost effective. With individuals having more control on their reward, at a basic level this can motivate, at a higher level can introduce self-importance esteem and self worth. These values are congruent to the organisations values and principles (Beardwell, I et al 2004). PRP is an tell form of payment which reflects individuals performance. These increases may determine the rate of progression through an organisation (Farnham, D. 2002).The problem of attempting to keep quick-witted members of the work force is further complicated because of bounded rationality. This leaves colleagues who cannot improve their positions within the hierarchy more likely to remain with the organisation. This is often due to inadequate information on large performance, therefore it is not recognises financially. Non-productive and productive workers end up receiving the same or nearly the same compensation and package of pe rks because of managements inability to distinguish talented employees from the rest of the labour force in the organisation (Sigler, K. 19992)Incentive pay can be used for employees, setting targets and when they are met rewarding with cash bonuses. Share self-control by the employee is another type of pay incentive. It in essence makes the employee a shareholder of the organisation aligning the interests of the employee with the owners. Employee share ownership can come through restricted share plans where ownership of the share is not transferred to the employee until after a specific period of time has passed or a specific goal has been achieved. This not only provides the employee with the incentive to drive the share price higher through their work effort, but also remain with the organisation until maturity of the plan (Sigler, K. 19993)4.11 MotivationThere are four main categories that the theories of motivation are classified (1) Economic needs of man, money motivates, Tay lorism (2) Social concept of motivation, from the Hawthorne studies (3) Self actualisation this took the findings from the Hawthorne studies further, psychological issues were analyse (4) the contingency approach, large number of variables that influence a persons motivation. These theories all have factors that relate to the work place (Mullins L. 2005). Motivation is an individuals perception of their worth, role and work environment within an organisation. There are common motivational factors that employees share, although when at rest will lead to different levels of motivation. Both Intrinsic and extrinsic rewards add to the motivation level of employees, if managed correctly. Although the perceived equitable reward varies amongst employees, those who receive less than their perceived value will feel undervalued, and not motivated. This will impinge on job satisfaction, with employees feeling dissatisfied with their award (Mullins, L. 2005).Mitchell (1982) described motivati on as the psychological process that cause the arousal, direction, and persistence of voluntary actions that are goal oriented (Mitchell (1982) cited in Ramlall, S. 200455). Motivation defined by Robbins (1993)55) is the willingness to exe