Staff turnover As HRM issues McDonalds Wentworthville Staff turnover As HRM issues Prepared By Ashma Upadhyay Md Ifthakharul Alam Nagendra Koirala Praveen Bisht Rohith Reddy

McDonalds Australia In 1971, 1st Mcdonald’s restaurant in a Sydney suburb called Yagoona over 780 McDonald's across Australia, 85,000 people employed in restaurants and management offices 2/3 restaurant businesses owned and operated by franchisees.

Franchisees An individual who purchases the rights to use a company’s trademarked name and business model to do business

Goal good food friendly and fun environ. socially responsible company good returns to its shareholders provide customers >food of a high standard, >quick service >value for money

McDonald’s Wenworthville Great Western Highway, western suburb of Wentworthville Established in the year 1992 Franchise restaurant of McDonalds' Australia The restaurant is open 24/7

Work station in Mc wenworthville Front Area walk in and buy food. open from morning 5am to 11pm. facilities of eat-in/take away

Work station in Mc wenworthville Drive through It is open 24/7. People drive through the lane. Their orders are taken, processed and handed to them within a designated period of time (2:45 seconds)

Work station in Mc wenworthville Mc Café

Work station in Mc wenworthville This section of the restaurant, the food is made.

Employees structure in Wentworthville MacDonald’s 14 managers and 160 staffs. All the managers are full time employees The staffs are hired as full time, part time and casual employees Majority of the staffs’ i.e. 85% of them are casuals.

Organizational structure of Wenworthviille MacDonald’s

Problem Identified One of the main problem faced by the McDonalds at Wentworthville is High Employee Turnover Rate. What is Employee Turnover rate ? Employee turnover is a ratio comparison of the number of employees a company must replace in a given time period to the average number of total employees. It’s a huge concern to most companies as employee turnover rate is a costly expense.

Employee Turnover Financial performance as well as the morale of the employees is affected. High employee turnover rates cannot be solved easily or swiftly. Turnover rates have an impact on profitability, and even survival.

Employee Turnover Rate in Australia Cost Australian organizations more than $100 billion in 2008 (Source: Unisys) According to Mercer Human Resource Consulting in Australia 25% employees were planning on looking for a new job Rise in staff turnover is hitting business hard

Factors Demographics The person Unrealistic expectations The characteristics of the job The organizational culture The performance of the organization The economy

Reasons For McDonald’s High Turnover Rate Poor Recruitment Process Lack of motivation/ High workload Job instability

“Evaluate what you want – because what gets measured, gets produced” Performance Appraisal

Aims of Performance Appraisal Motivate employees Feedback on performance Identify employee training needs Provide the opportunity for organizational diagnosis and development Facilitate communication between employee and administration

Raters and Method Raters Shift Managers and Assistant managers Method Balanced Score card Performance management technique which evaluates organisational performance in areas including people, internal operations, customer satisfaction and finance.

Existing Performance Appraisal

Proposed Performance Appraisal Discriminating on the basis of performance “Employee of the Month” Rewarding performance “Bonus” Developing employees “Training” Giving feedback to employees “Individual Feedback Session”

Recruitment

Solutions Changing Recruitment policy Enlightening Interviewing questionnaires Practical and open internal recruiting process.

Recruitment policy Current Framework Saving money by recruiting more under18 staff Giving casual positions instead of giving part-time or full-time positions Suggested Framework Recruit more matured and motivated staff regardless of their age. Evenly distribute part-time and full-time positions as required. Sufficient staffs should be available to avoid worklo0ad

Interview Questionnaires What was your previous job and why did you leave it? Where do you see yourself in 3 years of time in the organization? Are you interested in the management department of the organization?

Recruitment Methods This helps to promote the motivation and security in staff Internal recruitment should be made more practical and open.

Exit interview Exit Interview ?

Purpose of Exit interview Innovative way to reduce high staff turnover in Mc Donald. Sample Questions What is your primary reason for leaving? Were you happy with your pay, benefits and other incentives? What did you like most about this company? What did you like least about this company? What does your new company offer that this company doesn't?

Conclusion Recruitment policy Age independent, motivated staffs should be recruited Job security should be enhanced. Performance Appraisal Employee growth and development Performance feedback Rewarding performance

References