Moreover, high employee turnover implies recruitment activities, which represent costly and time consuming processes, focusing the human resources efforts on finding new people and training them the basic skills required for the jobs that they will perform, instead of training the more experienced staff new customer service techniques, showing them real career prospects, motivating the employees and assuring like this the employee retention.Īnalyzing McDonald’s employee turnover, Macy, Walker and Terry (n.d., p. People having unpleasant experiences at McDonald’s can generate negative word mouth, which can affect the company’s brand awareness and brand equity, decreasing its popularity (Kumar, 2003, p. However, McDonald’s is still the number 1 player in the fast food industry today, but in fact this does not signify that the problem, the high employee retention, does not exist. Longer waiting time at McDonald’s cues and customers dissatisfied by the quality of McDonald’s products (which are both the result of high employee turnover) may lead to increased costs for the organization, as in this case, the customers might reduce their visits to McDonald’s because having to deal with unpleasant situations, associating like this an isolated negative experience with the brand itself. The evidence to support the fact that the high employee retention exists at McDonald’s is precisely the increased negative feedback that McDonald’s customers offer based on their experiences in this company’s restaurants (Jargon, 2013). Equally, people newly employed in the back, to cook McDonald’s products, might damage the quality of the products, because they are not yet accustomed with how to cook them, what ingredient to use, and so on, which might generate customer dissatisfaction. In McDonald’s case, the high employee turnover is visible in the fact that people are most of the time in training: the cashiers usually have more experienced staff looking after them, helping them to take orders and to serve the clients and this results in more time to wait for the customers. However, the fast food restaurants have an average of 60% in terms of annual turnover, as a 2010 report from National Restaurant Association indicates (Jargon, 2013). McDonalds refuses to offer clear information regarding its turnover, which specifically indicates that this aspect is damaging for the company’s operations. 54).Ĭompanies activating in fast food industry are renowned for the high employee turnover. Scholars explain the term employee turnover as an action that occurs when employees decide to resign an organization, which means that the organization will have to replace them and this was found as a costly problem for companies that deal with a high employee turnover (Matthis & Jackson, 2012, p. This is an outside view of what is like to work in McDonald’s, which briefly explains the high rate of employee turnover. Therefore, employees leave McDonald’s because they do not resist much in this environment Moreover, while McDonald’s employees face these internal problems, they sometimes also face hurried customers, who expect from a fast food fast delivery and are not interested to know any of the restaurant’s internal problems, such as newly hired employees that are still accustoming with their jobs, which cause stress for the employees (Jargon, 2013). 88), considering that fact that teenagers represent the principal workforce in this industry and for companies such as McDonald’s increasing their payment would mean also increasing the price of the fast food products, which would affect the overall success of the business.īesides the low wages, employees working at McDonald’s also face long shifts, sometimes having to work even longer, without being paid for their extra – hours spent at the job, unskilled work, without real career prospects, without benefits, having to deal with a routine work and a greasy work environment, defined as McJob (Nawaz, 2011, p. 88).Ĭompanies activating in fast food industries have struggled hard across time to minimize the role of the unions, so that they can lobby against increasing the minimum waste or against imposing a minimum wage for teenagers (Smith, 2006, p. The business concept that drives McDonald’s operations, and for this matter, most companies working in the fast food industry, is to maintain low prices in order to have affordable offers for the customers, so that they to remain loyal to consuming fast food products, but this comes with the price of giving small salaries to fast food workers, which is the main cause that generates high employee turnover at McDonald’s (Smith, 2006, p. McDonald’s High Employee Turnover and Lean Management Solution
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