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The success of the McDonalds Corporation

McDonald's Corporation is the main one of the world's major fast foodservice dealer. The business has been around operation since 1940. It currently acts about 47 million customers everyday across the world. McDonald's operates over 31000 restaurants worldwide, utilizing more than 1. 5 million personnel (McDonald's, 2010).

The business has achieved its success through, informal atmosphere and quick delivery system (Ygoy, 2007). (more)

The purpose of this statement is to explore the problems regarding high labour turnover encountered by certain McDonalds' restaurants. Labour turnover is motion in people in and out of a job. Further analysing this matter will help to identify achievable strategies that might be apply to aid in reducing labour turnover. By using best ideas and a variety of models, should permit me to provide appropriate recommendations to address this matter.

This report involves lots of areas. A section consists of a variety of literature based on topics of factors behind high labour turnover, worker recruitment, options and developments. This will aid me to write this statement effectively and treat this particular concern well. The analysis of books review should help in me to identify and resolve this matter. With a review of conclusions and appropriate recommendations will be dealt with in order to attain successful outcomes and this section will conclude this report.

This particular issue has been a matter for among many restaurants of the business and a lot of its personnel and affecting the business enterprise as whole. (more)

According to many press, this business is recognized as a business gives many opportunities for teenagers to develop their careers. However, it isn't clear why the business enterprise fails to keep its personnel for a longer time and provide them opportunities for advancements within the company. In order to address this issue, this examination can be important for the business as it provides possible strategies and tips for the execution.

Background of the business

The business was set up by brothers Richard Maurice McDonald in 1940. The business is functioning in 119 countries serving almost 47 million customers each day. The business enterprise has over 31, 000 restaurants worldwide with an increase of than 1. 5 million employees working.

McDonald's assures its employees needs. Among its employment procedures is to provide a culture of versatility, opportunity, equality and variety (McDonald's Corporation, 2010). As such, the business enterprise is ready to amend its recruitment and selection procedures. However, the business fails to keep its staff for a longer time. Relating to David Fairhurst, key people officer in the UK "Sixty % of McDonald's 75, 000 strong workforces are under 21, while just 1000 are aged over 60" (Richard, 2009).

The business offers a good working environment. The business makes certain that its follows all health insurance and safety procedures set up by Health insurance and Safety Work 1978. Especially in the kitchen when cooking food burgers, it makes sure there are no hazards which could harm their workers. McDonalds also provide at least a 45 minutes break and free food for employees. Employees also get a five minutes break for smoking. In each of its stores there's a staff room, with facilities given such as a television and a computer.

Organisational culture

Young personnel are the primary labor force at McDonalds. The task is principally done by students working as in your free time and teenagers looking to improve themselves by working. Therefore the organisational culture has given the image that the work is performed mainly by teenagers. This makes it difficult to the business to attract aged staff.


The business gives a minimum pay according to the Minimum Wage Work (). And yes it provides a pay surge every half a year corresponding to employees' performance. However, the climb is not significant. However, the business argues that they use workers without experience and provide jobs where they can gain and develop their knowledge. The business pays minimum pay to its personnel. Many regular employees say this income is not enough to look after their family or themselves. Also to become entitled to get rewards and benefits the business enterprise requires employees to benefit at least three years.

Working patterns

Most of its stores operate using adaptable hour working patterns. A store outside London opens from 6. am to 10 pm on weekdays and 6am to 12 am on weekends. Flexible working policies for those hourly paid staff allow changes to change patterns over a weekly basis (Aurora, 2010). (talk about calling on sick!!)

McDonalds also allows swapping shifts between family and friends who are working in the same restaurant. The business enterprise provides opportunity to students employees to work during term time at their college or university or university or college town. However, for salaried employees the versatile working schemes packages out an operation for employees who've achieved a qualifying amount of service who've childcare or elder health care responsibilities (Aurora, 2010). The business also enables employees to are part time workers. However, relating to a store which performs in Uckfield, the store has a higher staff turnover. To repay the shifts personnel can be called to work at short notice. Sometimes the professionals may phone more 5 employees and requesting these to cover the shifts. Generally the shifts are included in more youthful employees as they have got fewer commitments. The number of employees contact sick and tired at least 5 or 6 times in week (Appedix)

The business finds this as a concern. In order to address this problem, the professionals of the business enterprise (who program the weekly transfer time table) make sure that they will have one or two extra personnel every day. However, if the store is not very busy and do not need many staff, then the few personnel may be asked to leave early on or the store will experience a high labour cost.

The issue

The business is facing problems in terms a high labour turnover. (talk about %). The activities of people in and out of work has a significant effect on the prevailing employees. This issue is within a straight collection with a few substantial factors. Mostly the business employs teenagers. You can find either students working as part time, and teenagers who do not want to pursue their education. Students will leave the job when go to travel university or universities. They are also more likely to consider holidays during their exams times. For many young people this can be their first job. However, in recent years there are older people wanting to work temporally at McDonalds. This may be they are made redundant because of the recent economic problems and working there while looking for another job.

Causes of the problem

There are a number of problems the business enterprise experiences due to the high staff turnover. (refer %) It is also important to analyse why staff want to leave after a brief period. The most important causes have been discovered as; pay and inner exterior factors. However, inefficient recruitment and selection methods may also be the cause for

Current recruitment insurance policy and procedures

Each individual store is in charge of selecting hourly paid positions under McDonald's recruitment insurance plan. Generally vacancies are advertised in the restaurants. The business enterprise also uses other facilities such as local job centres, profession fairs and other local facilities. First applicants must apply online. The business has a range process, which include a short online psychometric test. This test produces the initial score based on which successful applicant will be asked to attend a first stage interview. Accompanied by this, there will be an evaluation in a restaurant for just two days. Successful conclusion will lead a final level of interview, and the manager can make the ultimate decision on if work with the applicant. However, according to the one of the recruit manager, sometimes they are more enthusiastic about individuals' personality therefore ignore the test. Simply if they like an employee then they will hire him or her. Unfortunately frequently they hire the wrong people. To be able to reduce the high labour turnover, this aspect of the HR practice must be resolved properly.

The general routines of training and developments to be used by the business. However, does not seem to be to be motivating employees for developments. In order to develop, appropriate training is required. The business will require its employees to go through certain training and there a continuing training procedures in place. In terms of development, employees should be given additional support in order to encourage applicants for promotions. This can make their workers stay much longer.

HR Strategies to minimise the problem

The Human Learning resource Management (HRM) function's improvement is significantly important. That is to ensure that recruitment strategies, selection methods, steps with regards to trainings and advancements will be the key aspects to resolve or minimise this problem. However, making changes on these four areas can be frustrating and cost the business in the short term. (ref). Most of all, it is important to solve this problem, by causing any changes to the factors which the employees consider as the complexities. It is essential to implement appropriate strategies so that it will be beneficial in the long run.

Analysis of available strategies for HR to apply.

The problem can be deduced that the problem needs attention on selections, recruitment, training and trends for employees. A higher staff turnover is clearly a concern of matter for the business enterprise HR office.

In order to respond to the problem motioned above, it is clear that some changes needs to be integrated in conditions of recruitment, selection, development and training. In this example, the business should consider two essential questions. How they can get the suitable applicant and keep them longer in the company. In order for employees to remain longer, the business must provide appropriate training development opportunities and rewards.

There are a number of strategies on how to reduce staff turnover experienced by McDonalds. By changing or bettering the existing plans towards recruitment, selection, development and training can help the management to tackle this issue. A higher labour turnover result scheduled to poor selection strategies.

Providing good working conditions, establishing accountability and making good hiring alternatives would retain employees at McDonalds. The business does provide a good working environment, however the business does not take into account of other factors. Studies show that workers who've a larger variety of responsibilities have a tendency to stay longer in the careers. It is therefore important that the business enterprise makes should staff are trained properly so that they can handle performing a variety of work inside a restaurant.

The culture of the organisation indicates that the business enterprise does offer opportunities to its personnel. However, the encouragement towards employee developments is missing. By encouraging personnel especially the non pupil personnel and making them alert to all the opportunities which can help then to progress their career. It really is vital to examine meticulously the merits of constant development for and to each person in that organisation. It is ultimately the managers or supervisors responsibility monitor this "development of every individual at work is really as important as it is to the introduction of children at school" (Rosemary, 1990 p. 71). McDonalds has a number of opportunities for staff. However, many personnel have no idea of this, which means business needs to make sure and encourage them to get involved. One of the ways is that professionals of a store can provide information, advice for promotion opportunities and information on career progression.

Line managers take the essential responsibility for making certain their people are helped to execute their jobs effectively and successfully. The management of the business can motivate employees to stay longer in the organisation in lots of ways. Employee engagement, a well designed job role, support and commitments shown by the management team can all have a significant influence on appealing to workers in which to stay the organisation. A greater pressure from top management to store professionals may improve recruitment, and selection. This means the store managers work with new employees they will be more alert the problem business encounters.

Literature review and research of theories

It is important that businesses should comprehend what the causes for high labour turnover. By identifying whether retentions issues are caused by internal or external factors can help the business to take appropriate actions. Pay and performance can have an effect on personnel turnover. However, for some individuals pay will never be the sole criterion when people opt to continue in a organisation.

Studies suggest new employees leave after a short period in the work, poor recruitment and selection decisions both for the employer and employee will be the key causes. (McDonalds send) If goals are raised too high through the recruitment process can lead to people accepting jobs for which they may be unsuited. McDonalds invites people to work a shift before accepting jobs. However, if job seekers leave after one move this can be a disadvantage to the business enterprise as they would have misused time and learning resource on training the individual. .

Recruitment and selection steps lay out how to ensure so far as possible, that the best pool of applicants are recruited. Recruitment and selection can help managements to ascertain and improve the behavioural characteristics and competences of employees. Every single company wants their employees to be well prepared and suits for the conditions on the job. Corresponding to Rosemary (1997), job explanations and personnel specifications will aid the recruitment and selection processes. This means that McDonald's job explanation should help the business in terms of recruitment and selection to get the best pool of candidates. The recession, redundancy and unemployment can help employers to get a huge pool of prospects. (Brayan Livy, 1988).

Effective recruitment steps

In order for recruitments to be effective, it is significantly essential that a business understands the kind of employees it needs. Another step for an efficient recruitment is that to recognize potential employees who have the essential skills and knowledge. However, a business like McDonalds, may become more considering people who the capability to do the task alternatively than skill or experience. Crucial to the success of any recruitment program is the emphasis place upon proper and satisfactory planning and company. Recruitment must identify the existing constitute of the workforce. This implies McDonalds needs to define the target group, identify strategies and resources, and prepare job announcements. McDonalds should also educate its existing staff on how to identify an opportunity to recruit new employees. By employing this strategy, current staff are used to entice other workers who have similar backgrounds and personal aims.

Selection Techniques

Section techniques aren't same for all positions. Different selection techniques are being used based on the type of positions. This implies McDonalds cannot use the same ways to a managerial and a crewmember position. Choosing the appropriate techniques will help these to recruit the best candidate to the best position. Most of the time the choice techniques have a tendency to be based on this skills, attributable and knowledge necessary to the position. Regarding to Brayan Livy, interpersonal skills, intellectual skills and attitudes are key factors for group selection methods. It essential that when McDonalds matches the selection methods with the choice criteria that's needed is for the positioning. Relating to Mullins (2006), the more homogeneous the group in terms of such features as distributed backgrounds, passions and attitudes, the simpler it will be to promote cohesiveness.

Selection techniques include evaluating written applications, executing panel interviews, presentations and teams work. (conversation in greater detail).

There are appropriate options techniques can be utilized by McDonalds. Public skills include sensitivity to the views and views of others can make a difference at office. Friendliness, a reaction to disagreement, the handling of issue and criticisms are also important factors which the business should consider during the selection process. Also capacity to influence and persuades others can be benefits for McDonalds. However, interview should be the primary selection technique.

Strategies for successful recruitment

Management's commitments


Employees leave because of factors that exist both within and beyond the company and adjustments of its managers. Exterior factors are factors which have a significant impact outside place of work. Factors such as, changes in lifestyles, family requirements and other social obligations can have affect kid jobs. Internal factors within the organisation such as job satisfaction can influence employees work and triggering desire to seek a new position in other places. (Connect with McDonalds). In order to minimise or resolve this matter, management of the business enterprise should keep these factors at heart and trey to make necessary improvements at work place when required.


The reason for this report is to identify ways to reduce the high labour turnover experienced by some of McDonald's restaurants. The literature review on labour turnover identifies a variety of factors which have direct effect on the business. Organisational dedication, job satisfaction, alternate opportunities are the key causes identified. Data on the role of pay has a significant influence. Time, personal characteristics, and other interior, external factors also have an impact on labour turnover. These factors can help the business enterprise to understand the general nature and triggers. Regarding McDonald, the existing retention strategies used by the business enterprise do not tackle this problem they face. Therefore different strategies should be contacted and put in place.

McDonalds can take a variety of measure to reduce the high labour turnover. Improving remuneration deals can make employees to remain longer at the job. Commitments to training and skills development, good management, and producing and maintain a confident organisational culture.

A beneficial recruitment is only going to drive just part of what must be done to reduce the high labour turnover. For recruitment to become more effective, the management must establish a positive working environment within stores. Recruitment decisions should not be predicated on one selection method by themselves. This is particularly important in case a business is wanting to recruit a older position. However, an enterprise such as McDonalds can use a few methods when recruiting staff members. For example the business can use work examples as this is a good way assess just what a candidate is with the capacity of.

Many studies focus on the value of training the recruiters in the development of good interviewing skill that can identify the best pool of applicants. Also really helps to produce a positive atmosphere that will enhance recruitment attempts and public relations for McDonalds. An informal attitude may well not achieve the results needed; therefore finally the management of the business is dependable to ensure this.


By increasing recruitment procedures to ensure individuals receive a realistic impression of the business and the job role.

Providing clear job pathways, interesting work and support for personal accomplishments and improvements.

Keeping pay in line with appropriate market rates.

Offering attractive staff benefit package

Creating a pleasurable working environment

Communicating and talking to effectively with employees.

More campaigns options for personnel.

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