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McRetention: How Sprockets' AI helped McDonald’s decrease staff turnover

With annual staff turnover numbers through the roof, mcdonald’s has integrated assessment provider sprockets into its recruiting platform mchire. “our ai instantly predicts which applicants will succeed and stay long-term”, says sprockets ceo aj richichi..

employee retention case study of mcdonald's

According to a 2012 study conducted by the BBC , McDonald’s (including its franchises) is the world’s fourth largest employer. With 1.9 million global workers, McDonald’s ranks only behind the US Department of Defence, China’s army and Walmart. However, with an increase of tech within the big M restaurants, that number will have dropped slightly in recent years.

You’re McHired

In an attempt to better oversee its enormous workforce, McDonald’s teamed up with Paradox in 2019 to create McHire , a talent hiring platform built specifically for the needs of McDonald’s restaurants. It allowed for candidates to have real-time support and communication, with the help of Paradox’s conversational AI assistant Olivia. Meanwhile, hiring managers’ workloads were alleviated because many administrative tasks were now automated.

employee retention case study of mcdonald's

McDonald’s teamed up with Paradox to create McHire, a talent hiring platform built specifically for the needs of McDonald’s restaurants.

“What’s unique about McHire is that, for the first time, candidates have a single point of contact that supports them via conversation throughout the hiring experience”, said Aaron Matos , Founder and CEO of Paradox in a press release . “Olivia is available to answer questions at any stage in the hiring process. It guides candidates and hiring managers through the journey from first engagement all the way through onboarding.”

150% annual employee turnover

McDonald’s doesn’t publicly publish its retention numbers, stating ‘staff turnover is lower than average for retail and catering companies’. But with 150% annual employee turnover rates considered the norm for fast food joints, that means that in the land of fast food, for every 20 positions a company has in a year, it will employ 30 people.

In the land of fast food, f or every 20 positions a company has in a year, it will employ 30 people.

‘Which job applicants will perform like your best employees?’

Now imagine a world wherein you could duplicate your highest-performing employees. It is something McDonald’s (and a wide array of other companies) dream about — and something AI hiring software Sprockets seeks to make a reality. Sprockets is the (co-)creation of former Harvard University grad and CEO AJ Richichi . Launched in 2016, the company prides itself on combining technology and psychology to solve a simple equation: ‘Which job applicants will perform like your best employees?’.

“You’ll know everything you need to know about candidates before you even interview them.”
Sprockets’ AI is said to have reduced annual employee turnover by 22%.

After integrating Sprockets within McHire, the fast food giant has seen significant, positive changes to its key hiring percentages. Sprockets’ AI is said to have improved 90-day employee retention by 43% , reduced annual employee turnover by 22% and allowed for 37% less time spent on the hiring process.

Red, yellow and green

Sprockets’ methodology always starts with a company’s own top personnel. After reviewing a survey sent to top-performing staff, Sprockets amasses a ‘Success Profile’ for a specific position. In turn, new job applicants will respond to the same survey — and receive a ranking out of 10. Then, that ranking will result in a traffic light system. Green for ideal fits. Yellow for potentially decent hires. Red for non-starters.  

employee retention case study of mcdonald's

After reviewing a survey sent to top-performing staff, Sprockets amasses a ‘Success Profile’ for a specific position.

Through the usage of AI and machine learning, also incorporating IBM Watson’s infamous personality insights , Sprockets then offers a further assessment of applicants based on natural language processing. “It’s a method for using language to uncover information about people, in this case personality and behaviour”, the company says. “We study your best employees’ written responses for what’s known as the Big Five personality traits (plus thirty more), their workplace-relevant values and needs. Our solution then searches for the same qualities, in similar proportions, among job seekers.”

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How McDonald’s managed to reduce its turnover by 22% thanks to A.I.

McDonald’s now works with A.I. that predicts which applicants will succeed in the long run based on 55 characteristics. It turns out that this even differs considerably from restaurant to restaurant. How does that work?

Prediction is not that simple

When you talk about assessments, it is often thought that you can estimate someone’s personality quite well with one test, and that you can also predict how well someone will perform in a certain position. Research by the fast food chain at the American McDonald’s restaurants showed that it is not that simple. Based on A.I. is clear that it differs per candidate and per restaurant. Every location has different factors that determine the success of an employee. And vice versa: a candidate will differ in performance depending on where he or she starts work.

55 characteristics

Assessment provider  Sprockets provides the technology that has recently been integrated into McHire, the recruitment platform specially built by Paradox for the fast food chain. Sprockets’ algorithms looked at 55 needs, values and personality traits of the employees of 4 participating McDonald’s stores in the study. First, the local top performers were asked for each location. By analyzing them on all 55 characteristics, a ‘success profile’ was then created for a particular position in a particular location. Subsequently, the applicants were also presented with a similar questionnaire, after which the best candidates were selected against the yardstick of the success profile.

No ‘standard profile’ at McDonald’s

What makes Sprockets’ story so distinctive, however, is that it shows how important even that one McDonald’s location is over another. No ‘standard profile’ of a successful McDonald’s employee is made, but the difference is examined per location. And that turns out to be bigger than expected . ‘There was hardly any overlap between the locations. Each branch turned out to have quite a different success profile.’

Reduced turnover by 22%

Particularly relevant information for McDonald’s, with about 2 million employees 1 of the 4 largest employers in the world, but at the same time an employer that struggles to find enough candidates, and so far has an annual turnover of more than 130% . And that is precisely where Sprockets claims that his A.I. has value. For example, the algorithms would have reduced annual staff turnover by 22%, and 90-day staff retention would have improved by 43%. That saves a drink on a drink in terms of introduction and recruitment costs.

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McDonald’s Franchisee Reduces Employee Turnover by 24% With Sprockets

Hiring and retaining quality employees is harder than ever, so why do businesses still use an outdated process that simply doesn’t work? This McDonald’s franchisee decided it was time to try something different — it was time to try Sprockets that’s proven to improve employee retention.

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Key Results

Reduction in 90-Day Employee Turnover

Increase In Shift Attendance

Reduction in Annual Employee Turnover

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They were understaffed and workers rarely stayed more than a year.

There were frequent call-outs and conflicts among crew members.

Their interview process was difficult and time-consuming.

They force you to waste money on job boards

They eliminate potentially great candidates

They require too much time and energy from managers

Check

Our Applicant Matching System predicted who would stay long-term.

Sprockets revealed the ideal fits based on shared personality traits.

The seamless integration and instant alerts streamlined their process.

We revive interest from the applicants you’ve paid for

We identify applicants like your best workers

We alert you when it’s worthwhile to speak to a candidate

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90-Day Turnover

The first three months are crucial for new employees to settle into a role and for managers to really see if they’ll work out. Sprockets helped Rhiannon hire people who were likely to be a good fit from the start, ultimately reducing 90-day turnover from 69% to 53% .

2x

Annual Retention

Of course, it makes a huge difference when employees stay even longer than 90 days. Thanks to Sprockets, the number of workers who stayed longer than a year more than doubled, increasing from 11 to 28 . This helped them avoid costly turnover and retain productive, experienced workers.

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Time Spent Hiring

Many hiring managers don’t have the right tools to evaluate candidates quickly and effectively, leading to applicant drop-off and wasted time interviewing. Sprockets’ automated scoring and instant alerts allowed Rhiannon to hire much more efficiently.

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Shift Attendance

When people call out, it puts extra pressure on the rest of the team and often increases overtime costs for the business owners. Since adding Sprockets to their process, this McDonald’s franchisee was able to increase shift attendance from 81% to 97.5%.

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Workplace Culture

Conflicts among team members hurt morale, reduce productivity, and can often lead to turnover. After using Sprockets’ hiring solution that reveals which applicants share personality traits with top performers, Rhiannon has seen a major drop in the number of conflicts.

What They Had to Say…

“Sprockets has enabled me to focus more on what is important as an HR manager rather than using a difficult interview process.”

“I love that Sprockets pulls from other application sources as well. It saves me from having to check multiple sites and streamlines my hiring process even more.”

“The Sprockets staff is ALWAYS friendly and helpful, and the setup was easy. I suggest Sprockets whenever I can.”

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Why Top Brands Hire With Sprockets

Simply put, Sprockets increases your hiring success rate by automatically engaging your applicants and determining the ideal fit for specific roles and locations. It’s the modern solution for an outdated hiring process that is fundamentally broken.

employee retention case study of mcdonald's

Post Jobs for Free From Sprockets

Revive Interest From Past Applicants

See Who Will Perform Like Your Best Workers

Receive Instant Alerts About Top Candidates

Get to the Best Employees Before Your Competitors

Stay Fully Staffed With a Team of All-Stars

Don't Just Hire Anybody. Create Simple Red-Yellow-Green Scores.

Red, yellow, and green indicators organize results and suggest what actions results and determine what actions to take next based on how well they match your top performers’ results.

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Discover how much money you can save with Sprockets Pools as opposed to wasting money on job boards.

Pools revives interest from past applicants using multi-touch outreach campaigns.

Make the best hiring decisions every time thanks to our automated applicant scoring system.

Continue to nurture and engage with your pool over time to increase applicant flow.

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McDonald’s Franchise Group Boosts Crew Member Retention by 38% During the Labor Crisis

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Employee Retention Case Studies: How 5 Companies Leverage Our Employee Success Tech

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Table of Contents

Briggs Industrial Solutions & Frontline Worker Retention

Twin Cities Manufacturing Company & Targeted Engagement Analysis

Meritrust Credit Union & Retention Drivers

Mutual of Omaha & Pulse Survey Insights

Sammons Financial Group & Employee Listening Strategy

Quantum Workplace Can Help You See, Sense, and Stop Costly Turnover 

Employee Retention Case Studies: How 5 Companies Leverage Our Employee Success Tech

Employee retention is a top 3 priority for 77% of HR leaders and 62% of senior leaders going into 2023. This is no surprise as the Great Resignation persists and another period of economic uncertainty looms.  

But while retention is top of mind , many leaders admit their employee retention strategies aren’t very effective . Most say their organization’s approach is at the intermediate or beginner level.   

Is your retention strategy effective? Take our quiz to find out >>>

If you’re not taking time to strategically address retention and turnover, you’re leaving a lot on the line. The good news is that a lot of unwanted turnover is predictable and preventable.

These employee retention case studies will give you hope. You’ll learn how these Quantum Workplace customers have optimized their employee listening and performance management strategies for employee retention. And how they’ve leveraged our employee success platform to uncover insights, build better workplaces, and retain their best talent.  

Briggs Industrial Solutions Digs Deep with Frontline Workers to I mprove Engagement & Retention

Briggs Industrial Solutions began partnering with Quantum Workplace on their engagement survey in 2020, wrapping up their third engagement survey in 2022.   

By taking feedback from the surveys and diving deep into targeted areas of the company via focus groups, Briggs has uncovered solutions and strategies to move the needle on areas that are impacting engagement and retention.   

In 2021, Briggs was struggling to retain their technicians, who make up the majority of the company’s workforce. These technicians spend their days out in the field, traveling to customers and repairing equipment. They are critical to the success of the company. But most were leaving the company before they hit 3-5 years of tenure.     

The leadership team at Briggs knew they needed to take a good look at what might be causing disengagement and turnover. Their engagement survey shed light on specific and actionable challenges to overcome:     

  • Technician “intent to stay” dropped 5% 
  • Perceptions of fair pay dropped 4% 
  • Perceptions of recognition dropped 11% 
  • Value of the ESOP dropped 11% 

With the feedback received from engagement surveys, Briggs continued to evaluate benefits, compensation, and team structure across the board. They also worked to understand why techs were not feeling recognized for their contributions.   

Leaders uncovered multiple areas to review. There was frustration around pay gaps between tenured and incoming employees. Work assignments weren’t always aligned with technicians’ strengths and skill level. And there weren’t clear guidelines on increased compensation for new skills and training assistance.     

As a result, Briggs implemented profit sharing in 2022, in addition to ESOP. They created a career path for technicians, providing clarity on what they needed to do to grow, develop, and advance in their career. And finally, they provided more internal classroom training, rather than solely relying on senior technicians.   

The changes the Briggs leadership team made led to impressive results on their next engagement survey:   

  • Perceptions of recognition increased 17 points 
  • “Senior leaders value people as their most important resource” increased 16 points 
  • Perceptions of trust and fairness increased 14 points 
  • Perceptions of fair pay increased 14 points  
“Our industry is very competitive. It’s tough to hire skilled technicians,” says Perez, HR Manager at Briggs. “But we’re now hearing that Briggs is becoming the employer of choice in our industry. Our techs are talking and we’re seeing a ton of referrals now.”  

When it comes to acting on survey results, Perez has this advice:   

“Don’t try to boil the ocean,” she says. “You’re going to get a ton of feedback and a lot of things you want to act on–but you can’t do it all at once. You need to focus on what matters most. On what you can give your full attention to.”  

manufacturing_case-study-01

Twin Cities Manufacturing Company Uses Targeted Analysis to Tackle Employee Turnover  

As one of the largest privately held companies in the Midwest, this Twin Cities manufacturer has experienced exponential growth over the last several decades.   

Coinciding with that growth, the company has evolved its employee listening strategy to capture and understand the employee experience. They partner with Quantum Workplace to implement engagement, pulse, and lifecycle surveys .   

  • Engagement. The growing manufacturer deploys an employee engagement survey to uncover areas in which the company can move the needle. Leaders pay close attention to what is happening within specific business units and regions.   
  • Pulse. The company uses pulse surveys to hear from employees at locations where acquisitions have happened. The goal is to make sure that new employee onboarding is effective, and employees have what they need to succeed.   
  • Lifecycle. The company uses exit surveys to get a more holistic view of turnover.  

With data from these surveys, the company can understand macro and micro turnover trends. They can also see how turnover affects different employee demographics and pinpoint reasons for turnover within specific groups. Exit survey analytics have helped the company uncover areas of misalignment and opportunity, including:   

  • Creating more clarity on manager/employee workload expectations to help prevent unwanted turnover early in the employee journey 
  • Better understanding compensation expectations in a competitive market 

Survey analytics have also helped shed light on why critical roles and skill sets have left the company, and to uncover trends in areas of the business experiencing higher turnover.   

“The labor market is really tight right now, and we get a lot of great intel from the surveys to help us improve the employee experience and understand why people might be leaving,” said the company’s Organization Effectiveness Leader. “In an industry where turnover is pretty high right now, it’s important for us to have this intel in order to stay competitive.”  

Read more about this Twin Cities Manufacturing Company’s success here >>>  

Meritrust

Meritrust Credit Union Use s Surveys to Understand Employee Retention Drivers  

HR leaders at Meritrust Credit Union were focused on retention and turnover in 2022. They wanted to take a deeper dive into the reasons employees leave–and why they stay. Partnering with the People Insights Team at Quantum Workplace, they were able to uncover key information that shed light on just how critical company culture is to their retention strategy.   

When asked to rate “it would take a lot to get me to leave this organization,” Meritrust followed up with a logic-based response based on how employees answered the question.   

  • If they responded favorably, they were asked “what makes you stay at this organization?”  
  • If they responded unfavorably, they were asked “what would make you leave this organization.”  

Meritrust asked every employee a variation of the question and then turned the responses into a custom survey demographic. What did they find? The primary reasons people stay at Meritrust were:   

  • Workplace culture (90%) 
  • Career advancement opportunities (89%) 
  • Relationship with their manager (84%) 

This proved that culture and career growth are imperative for retention and engagement–something leaders at Meritrust had been trying to improve all along.  

Mutual-of-Omaha-logo-2

Mutual of Omaha Leverages Pulse Surveys to Un cover Insights and Retain Talent  

A Fortune 500 insurance company, Mutual of Omaha was founded on a simple but powerful principle: to help people in their time of need and protect those they love the most.   

In recent years, the insurance and financial services industries have become increasingly competitive for talent. Mutual of Omaha was having a hard time recruiting for technology roles—and was seeing high turnover within the first two years of employee tenure.   

The company knew that having the right insights would help them understand and troubleshoot turnover effectively—so they turned to Quantum Workplace’s employee engagement platform .     

Mutual of Omaha utilized a broad range of employee surveys to capture feedback at various stages of the employee journey. In addition to leveraging an annual engagement survey, Mutual of Omaha also launches regular pulse surveys to capture critical feedback on important topics.   

  • In 2021, they launched a pulse to understand employee perceptions and preferences related to post-pandemic work arrangements. 
  • In 2022, they launched a “War for Talent” pulse to get a feel for how equipped the company was (or wasn’t) to attract, engage, and retain top talent.

A strategic employee listening strategy has empowered Mutual of Omaha to gain clarity around what is driving people to stay, what is driving them to leave, and what leaders can do to improve retention and engagement. The company has seen measurable improvements:  

  • 94% favorability ratings from new hires after 30 days of employment  
  • 93% of associates making progress on a learning and growth plan (a key magnet in the company’s retention strategy)  
  • 86% employee retention rate  

Read more about Mutual of Omaha’s success here >>> 

Sammons Financial Group Increases Frequency of Employee Listening to Drive Change  

Sammons Financial Group (SFG) is heavily focused on establishing a “workforce of the future” and best-in-class workplace culture. The company feels both are necessary to retain top talent in a competitive market. To support its retention and talent management efforts, SFG uses employee listening tools from Quantum Workplace.   

Initially, SFG’s survey implementations were infrequent, happening only every 2-3 years. Years later, they had a big question:   

“What are we actually doing to understand employee voice?”   

The company realized employee voices needed to be captured more frequently to achieve a more accurate, timely view. After shortening their engagement survey cadence to 18 months, SFG’s employee engagement efforts started gaining momentum. The company saw an increase in engagement and a stronger organizational commitment to action. The progress led to leadership buying into an annual survey.     

With a regular cadence of employee listening, SFG gains a true year-over-year understanding of employee voices—and can design annual commitments around this timing to better align with opportunities uncovered in the survey data.   

Prior to moving to an annual survey cadence, one of the challenges SFG faced was understanding how to best utilize their data. Now, SFG can equip organizational leaders with the data they need, on a more frequent basis, and understand where to act. They have the potential to activate real, meaningful change when it comes to engagement and retention.  

Read more about Sammons Financial Group’s success here >>>  

Quantum Workplace Can Help You See, Sense, and Stop Costly Turnover  

With the right intel, insights, and a roadmap for change, you can build a culture that draws in and retains your best talent. Quantum Workplace offers employee retention solutions to help keep your top talent engaged and on the path to success—making them more likely to stay.  

Learn How to Keep Your Best Talent by approaching retention with intention in this eBook.

Improve your employee retention strategy in this eBook on How to Keep Your Best Talent

Published December 9, 2022 | Written By Kristin Ryba

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First page of “COMPETITIVE ADVANTAGE THROUGH TRAINING AND DEVELOPMENT IN MCDONALD’S: A CASE STUDY”

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COMPETITIVE ADVANTAGE THROUGH TRAINING AND DEVELOPMENT IN MCDONALD’S: A CASE STUDY

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This case study is about the McDonald‟s Training and Development and how the company achieve competitive advantage through training and development. Training and development is one of the important concepts of HRM. There is lots of concept in HRM like Recruitment, Selection, Performance appraisal but this case study basically focus on training and development concept. In this case study we are not comparing McDonald‟s Training and Development with their competitors like Burger King, Subway, Pizza Hut, Domino‟s, KFC. The main focus of this case study is to know how McDonald‟s achieve competitive advantage through their training and development process.

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Global Journals Inc. USA, 2013

Abstract:Every business is a people business. At the heart of every successful business are the people who make things happen. Human capital is its most valuable resource, which provides the solid foundation needed to build long-term profitability and ongoing success of an organization. Therefore, businesses must constantly seek new and innovative ways to attract and retain a top-notch workforce, and motivate them to perform to their fullest potential. The evidence from the literature review, the key success factor of business innovative and motivated human resource. Top management responsible for creating a positive organizational environment by intervening cooperative relationship within functional departments for innovation and creativity in organizational interfaces. Everything can be imitated but competent and innovative workforce cannot be imitated and it becomes a distinctive resource regarded as a competitive advantage. Human capital consists of the “people assets” that drive an organization’s continuous development and sustained growth, and includes the collective attitudes, skills, abilities, and knowledge base of an entire workforce. Human capital management, also commonly referred to as human resource management or workforce management, is a vital discipline that combines technology systems with advanced methodologies to help businesses effectively build, manage, and maintain their “people” assets, and best leverage them to achieve and maintain a competitive advantage (B.S., 2013) . The belief that individual employee performance has implications for firm-level outcomes has been prevalent among academics and practitioners for many years. Interest in this area has recently intensified; however, as scholars have begun to argue that collectively, a firm’s human capital can also provide a unique source of competitive advantage that is difficult for its competitors to replicate. The success of any organization falls back upon its competent and motivated human resources (Mohiuddin, 2008) . The results of global research on human resource management confirm that employees (for their abilities and motivation to work) represent a critical resource of any organization and demonstrate the positive impact of various practices in human resource management on organizational performance and competitiveness (Armstrong, 2007) . Management should recognize that employees and their behavior represent strong forces that can diminish or enhance effectiveness of every organization (Hasebur, 2013) . The world of business becoming more and more global and demanding, nowadays organizations are forced to seek for new means to withstand fierce competition and succeed in their operations. Among the challenges they have to face, the following ones are viewed as the most critical ones: the need to increase productivity, enhance organizational capabilities, expand into global markets, develop and implement new technologies, respond to more demanding customer needs and changes in the highly volatile marketplace, increase revenue and decrease costs, attract and retain high-performing and flexible workforce, introduce and manage relevant organizational change, etc. (Burke, 2005) . In response to the above changes, there is a dramatic change in management efforts to build and retain human resource for improving productivity of human capital. On the other side management scholars have been consistently investigated such possible sources of competitive advantage (CA) at both conceptual and empirical levels. It is now generally believed that human resources and their management serve as a strategic asset to the organization. However, there is an ongoing debate in scholarly publications, as to what in particular leads to the development and sustainability of competitive advantage in the organization (Rūta K., Ilona B., 2008) . This study is an attempt to discuss Human Resource Management focus on human capital and building and retaining human capital on fostering competitive advantages in the enhancement of organizational effectiveness 4. HRM Focus on Human Capital: Effective management of human resources is directly linked to business success (Hasebur, June 2013) . Soft or high commitment human resource management practices are those that generate trust in employees and these practices include giving employees empowerment and involvement in decision making; extensive communication about functioning and performance of the employees service; designing training for skills and personal development of employees; selective hiring; team-working where idea are pooled and creative solutions are encouraged; rewards system that commensurate with effort; reduction of status between the management and staff and all workers are valued regardless of their role (Pfeffer, 1998) . Society has entered a new era in the relationship between organizations and their employees. In this new era, people are the primary source for a company’s competitive advantage and organizational prosperity and survival depends on how employees are treated (Lawler, 2005) . Organizational performance and competitiveness are determined by employee performance. The essence of the positive relationship between best practices in human resources management and organizational performance and competitiveness is the optimal system of human resource management that enables to employ and develop capable and motivated employees and achieve expected organizational performance and competitiveness by achieving desired employee performance (Šikýř, M., March 2013) . HRM involves attracting, developing, and maintaining a talented and energetic workforce (Schermerhorn, 2008) . Its major responsibilities include: (1) attracting a qualified workforce, which involves human resource planning, recruitment and selection; (2) developing a qualified workforce, which involves employee orientation, training and development (T&D), and performance appraisal; and (3) maintaining a qualified workforce, which involves career development, work-life balance, compensation and benefits, retention and turnover, and labor-management relations (Southiseng, N., Walsh, J. March 2013) . HRM functions which have relationships with effective HRD included human resource planning; job analysis; staffing (recruitment and selection); compensation and benefits; equal employment opportunity; T&D; employee and labor relations; health, safety, and security; companies and job design, performance management/ performance appraisal systems; research and information systems ( Puvitayaphan, 2007) . Human resource management practices influence employee’s skills through the acquisition and development of a firm’s human capital. Recruiting procedures that provide a large pool of qualified applicants, paired with a reliable and valid selection regimen, will have a substantial influence over the quality and type skills new employees possess. Providing formal and informal training experiences, such as basic skills training, on-the-job experience, coaching, mentoring, and management development, can further influence employees’ development (Bassey E., Tiesieh T. 2012) . Human resource development (HRD) is another HRM function but it is possible for the HRD function to stand alone. However, to optimize HRD goals, it is necessary to interact with other HRM functions. HRM functions have direct association with dimensions of employee relations, rewards management, performance management, recruiting and selection (Thornhill et al., 2000) . 5. The Efforts HRM to Build and Maintain Human Capital: The most valuable corporate asset, in the 21st century, is seen by distinguished professors to be “the knowledge worker” (Drucker, 1959) . Human capital is the stock of competencies, knowledge, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value (Wikipedia, 2013) . Management accounting is often concerned with questions of how to model human beings as a capital asset. However it is broken down or defined, human capital is vitally important for an organization's success (Crook et al., 2011); human capital increases through education and experience. IBM is a leading professional services provider focused on excellence and innovation in Human Capital Management. With over 400,000 employees globally and over 5,000 focused on Human Capital Transformation and Outsourcing, our HR Transformation practice addresses organization and people issues associated with the evolution of the HR business function. (IBM, 2013) .

Human Resource Management

Training and development is an integral part of HR function in the changing business environment. !6 items scale has been formulated in the present study which has been tested for its reliability. The technique of factor analysis has been used to identify important items of T&D and chi square test applied to examine if there exists any association between age, experience and designation of 302 HR executives from whom the information was collected Economists have viewed training and employee development as a means of engaging the commitment of employees to the enterprise (Rainbird, 1994; Heyes and Stuart,1996) Reynolds (2004) points out , training has a complementary role to play in accelerating the Learning. It should be reserved for situation that justify a more directed , expert led approach rather than viewing it as a comprehensive and all pervasive people development. In the dynamic world of business, the objectives keep on changing which calls for proper identification of learning needs of workforce. Then proper planned training programs need to be established. In this what techniques are to be used what facilities are to be provided and at which location .The in house training or help of outside trainer is required are to be identified by HR. There has to proper implementation of the training programme and then its proper evaluation is required by HR. The training and development needs of any organisation needs following steps Define learning objectives Decide on Content Decide on methods of delivery Establish Training needs The role of training and development in increasing the competitive advantage as compared to others is well documented. The employee quality of a particular organization is bound to give it competitive advantage. The skills of the employees need to be updated with the changes in the

Solid State Technology, 2020

This research aims to pattern out the selected human resources practices (training and also development, compensation, job analysis, job evaluation, recruitment and selection, performance management and retention) as tools in attaining and also sustaining competitive advantage. The researcher executed a survey comprises ninety-four (94) subjects as the data collection method. The questionnaire was distributed among the employees at different branches of Carrefour supermarket in Erbil, Kurdistan Region. The findings exhibited that training, compensation, performance evaluation, as well as retention is positively and significantly related to competitive advantage, on the other hand, recruitment and also job analysis had no relationship with a competitive advantage in Carrefour supermarket in Erbil, Kurdistan Region.

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What Good Looks Like: McDonald’s Case Study

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McDonald’s

Main challenge.

McDonald’s restaurant employees have a wide range of needs and desires related to education and skill-building. Additionally, a McDonald’s job is often a first job for many individuals. Providing these employees with access to education helps develop the workers’ skills, which supports employee recruitment and retention.

Opportunity Employment Practice

Offer opportunities for growth and skill-building through cross-training, job shadowing, or other company-sponsored and paid education programs.

Business Case

Employees of color face systemic barriers to education that limit their access to high-paying and knowledge-based occupations. Company -sponsored and paid education programs help employees overcome some obstacles impeding them from continuing their education, while businesses further develop their talent rather than having to hire external talent. By investing in its employees, businesses may also see increases in employee loyalty, retention, and new employee recruitment potential.

About What Good Looks Like

When companies empower their employees, everybody benefits. What Good Looks Like  presents case studies of leading companies who have committed to supporting their frontline and entry-level employees. In a changing workforce landscape, it’s not only important but also urgent for employers to respond with innovation. Each edition of What Good Looks Like and each individual case study gives readers a closer look into how companies of diverse geographies and industries have piloted, implemented and scaled equitable talent practices.

We heard a consistent request from our employer partners for detailed examples of how other companies have made their visions of a more equitable, robust talent system a reality. We compiled What Good Looks Like to fill that request and added practical exercises on top of the research to help readers assess their own paths forward.

employee retention case study of mcdonald's

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EMPLOYEE LEARNING AND ENGAGEMENT THROUGH GAMIFICATION

McDonald’s sought to improve their brand perception from the inside out by increasing employee understanding of the brand, corporate strategy, its associated business drivers, and creating confident brand ambassadors who proudly support the business. 

We created a global internal gamification and learning portal, where employees could accumulate points, in an entertaining and fun way to encourage and reward employees to learn about the McDonald’s brand of “good food, good people, good neighbors”. We developed an overarching theme for the solution, World of Good, and supporting content and creative for several critical components. Employees learned about the brand through a variety of engaging and visual lessons. They were then invited to participate in a “Jeopardy” style trivia game to test their knowledge and retention. The game tracked individual points, displayed them on a leaderboard, and linked with a global fulfillment center where users could redeem their points for prizes. In this way, McDonald’s could educate employees, debunk myths, and fuel excitement around the brand. The game was played by over 10,000 employees across 40 countries.

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Human Resource Management: A Case Study of McDonald's

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IMAGES

  1. McDonald’s Franchise Group Achieves 73% Employee Retention

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  4. McDonald's Case Study

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  5. The Use of Reward and Incentive Systems: A Case Study of McDonald's

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  6. The Use of Reward and Incentive Systems: A Case Study of McDonald's

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COMMENTS

  1. Final Employee Retention at Mc Donalds Restaurants Business ...

    Management in Context: Assignment 2. Employee Retention at McDonald's Restaurants, problems and solutions. Introduction : This essay will be discussing the issue of employee retention within McDonald's Restaurant Limited. McDonald's is a global business, with over 38,000 restaurants internationally, in over 100 countries, they serve over 69 million people everyday (McDonald's, 2020).

  2. McDonald's Franchise Group Achieves 73% Employee Retention

    A 15-location McDonald's franchisee reduced their dependence on sourcing while boosting employee retention with Sprockets. Our AI-powered platform accurately predicted applicant success, empowering them to hire and retain high-quality workers. In just 90 days, they reached 73% crew member retention in an industry averaging 130% employee turnover.

  3. PDF CASE STUDY

    Per Crew Member. $2,600. Per Shift Managers. $3,600. Per Assistant Managers. In Total Savings. 5%SummaryA McDonald's franchisee was desperate to stabilize stafing levels in the face of a once in a generation la. or crisis. The group wanted to reduce their dependence on sourcing while boosting employee retention, so they turned to.

  4. McRetention: How Sprockets' AI helped McDonald's decrease ...

    150% annual employee turnover. McDonald's doesn't publicly publish its retention numbers, ... the company says in its case study of McDonald's. "Our AI instantly predicts which applicants will succeed and stay long-term. ... Sprockets' AI is said to have improved 90-day employee retention by 43%, reduced annual employee turnover by 22 ...

  5. How McDonald's managed to reduce its turnover by 22% thanks to A.I

    Reduced turnover by 22%. Particularly relevant information for McDonald's, with about 2 million employees 1 of the 4 largest employers in the world, but at the same time an employer that struggles to find enough candidates, and so far has an annual turnover of more than 130% . And that is precisely where Sprockets claims that his A.I. has value.

  6. PDF THE LINK BETWEEN STAFF TRAINING AND DEVELOPMENT AND RETENTION ...

    nities, work pressure, and an unbearable and unfavorable working environment. Also, the study estab-lished that the. e is a positive link between training and development and employee retention. This can benefit an organization in terms of improved organization performance and overall wealth, better cus-tomer se.

  7. McDonald's UK: Staffing & Retention Issues

    Employee retention in staffing became an issue for the company. The company had 529 International Journal of Economic Research fAriz Naqvi and Farah Naqvi to deal with staffing issues to avoid the rise in employees leaving for other jobs elsewhere. The case will refer McDonald's UK branch in the year 2014.

  8. Case Study

    Sprockets helped Rhiannon hire people who were likely to be a good fit from the start, ultimately reducing 90-day turnover from 69% to 53%. Of course, it makes a huge difference when employees stay even longer than 90 days. Thanks to Sprockets, the number of workers who stayed longer than a year more than doubled, increasing from 11 to 28.

  9. The link between staff training and development and retention levels in

    The study found that McDonald's has a great commitment to training and developing its workforce through e-learning, e-business, and product development training. The company derived benefits from training and developing employees include improved organizational performance and overall wealth, better customer services, and improved employee ...

  10. How McDonald's Integrates Learning into the Employee Experience

    Although McDonald's employees are each unique in their career aspirations, backgrounds and personal interests, they have one thing in common: an employee experience shaped by learning and development. McDonald's goal is to engrain professional development into the employee experience. #Archyways to Opportunity. #employee experience.

  11. Employee Retention Case Studies: How 5 Companies Leverage Our Employee

    The company has seen measurable improvements: 94% favorability ratings from new hires after 30 days of employment. 93% of associates making progress on a learning and growth plan (a key magnet in the company's retention strategy) 86% employee retention rate. Read more about Mutual of Omaha's success here >>>.

  12. Comparative Analysis of Training and Development Practices in Fast Food

    Employee tra ining program at McDonald's is designed i n highly structured format. In that line-level sta ffs a re given priority to go t hrough the basic let training name Crew T raining System ...

  13. Competitive Advantage Through Training and Development in Mcdonald'S: a

    This case study is about the McDonald‟s Training and Development and how the company achieve competitive advantage through training and development. ... The employees are required to be effective and efficient in their respective field. ... compensation and benefits, retention and turnover, and labor-management relations (Southiseng, N ...

  14. What Good Looks Like: McDonald's Case Study

    Main Challenge. McDonald's restaurant employees have a wide range of needs and desires related to education and skill-building. Additionally, a McDonald's job is often a first job for many individuals. Providing these employees with access to education helps develop the workers' skills, which supports employee recruitment and retention.

  15. McDonald's Case Study

    We developed an overarching theme for the solution, World of Good, and supporting content and creative for several critical components. Employees learned about the brand through a variety of engaging and visual lessons. They were then invited to participate in a "Jeopardy" style trivia game to test their knowledge and retention.

  16. PDF Case study IntegratIng McDonalD's BusIness, HuMan resource, and

    Case study IntegratIng McDonalD's BusIness, HuMan resource, and staffIng strategIes ... people factors that improve the company's results by improving employee commitment, retention, productivity, ... members is to advertise inside the restaurant and attract local people and/or friends of existing employees. McDonald's also recruits at ...

  17. PDF Supporting McDonald's on their employee engagement journey Case study

    Global restaurant chain McDonald's commissioned ETS to devise and run a new employee survey. This was to be rolled out to its 85,000 UK employees across its offices and some 1,200 restaurants around the country. Case study We recognised that a great employee experience is about far more than just employee satisfaction, it is about engagement.

  18. Human Resource Management: A Case Study of McDonald's

    Employee retention - The employee retention at Mc Donald's is considerably low. - This is because, people at Mc Donald's are generally short term employees looking out for better job opportunities. Grievance Handling - The employee handbook comprises of exquisite details on how employee should carry out the procedure during the grievance.

  19. (PDF) The Use of Big Data and Statistics in Human ...

    A study of employees working in various general IT companies in Telangana, Andhra Pradesh and Karnataka region has been carried out to measure the influence of retention factors on employees ...