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New e-reward case study: McDonald's Restaurants

A new case study by e-reward looks at how restaurant group, McDonald’s, has developed a three-pronged employee value proposition (EVP) that provides a “filter” for all of its employee engagement activities, including a recent redesign of its employee discount scheme and a re-focusing of bonuses.

Around half of all McDonald’s employees are under the age of 21, often in their first job, creating a real challenge for such a highly service-led business. Five years ago, the company started to look at the relationship between employee engagement and business results, and in particular at the reputation of McDonald’s as an employer.

“We faced the age old problem of how to use the insights and metrics which HR collects to add value to the strategic direction of the business,” the company told e-reward. Could the people team at McDonald’s, which included training, customer services and environment experts, really prove that higher levels of employee engagement created better motivated staff, which in turn fed through to an improved customer experience and business performance?

The people/profit chain beloved of academics in many ways describes McDonald’s perfectly – the business needs committed people, with the competence and confidence to deliver quality, service and cleanliness. This should, in turn, lead to more customer visits, sales and ultimately, profits.

What you will find in this e-reward report

This report, researched and written by e-reward, examines:

  • how and why the employee value proposition was developed

  • the role of reward in creating fusion between what employees value, and what the business needs, from work

  • the design of the two main bonus schemes for restaurant managers and office-based staff

  • the performance management process

  • how the focus on EVP and filtering all people management activity through this proposition is producing bottom-line business benefits

  • the lessons learnt.

Want to know more?

Title: "McDonald's Restaurants: Using an employee value proposition to drive engagement", eresearch 83, January 2012, published by e-reward.co.uk Ltd.

Availability: The report is also available as part of an annual subscription to e-reward's research report series, eresearch. Starting at £255 + VAT buys you a single annual subscription (10 issues). For an additional fee, paid-for subscribers may access our digital archive which contains every research report we have published since 2002. You can then download all the reports via this web site. To find out more visit www.e-reward.co.uk/whatare.asp.

If you want to subscribe online visit www.e-reward.co.uk/subscribe.asp.

Date 18/01/2012

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