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McDonald's Restaurants: Using an employee value proposition to drive engagement

Restaurant group, McDonald’s, has developed a three-pronged employee value proposition (EVP) that provides a “filter” for all 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.



CONTENTS

  • Introdution

  • Overview

  • What you will find in this report

  • Organisation profile

  • Who e-reward interviewed

  • Developing the employee value proposition

  • Non-financial reward

  • Market what you do

  • Enhance what you deliver

  • Shift control

  • Engaging reward

  • Managers’ bonus

  • Office staff bonus

  • Performance management flexibility

  • Proof of the pudding

  • Lessons learnt

  • Appendix: Total reward statement example

Issue - 83

Pages - 23

Type - Case Study

Date - 18/01/2012

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