What retention strategies can be used by fast food companies

Introduction:

Over the past ten years, volatility in the global overall economy has required businesses to re-evaluate functioning assumeptions and financial forecasts. The pressure on businesses today is further increased by market where in fact the customer acquisition rate is slowing, customer devotion is reducing and sales cycles are lengthening. In such an environment, losing a very important customer to a competition can have significant effect on profitability and progress. Because of this, businesses have shifted their concentration from customer acquisition to customer retention. Customers will usually remain the principal focus of each business because without customers there will be no reason behind a business to operate. Fast-food businesses offer products which can be perishable hence there's a need to retain existing customers who are dedicated and frequent purchasers. Brink and Berndt (2004:32) stipulate that many businesses spend a great deal of effort, money and time recruiting clients, but just a few take the necessary measures to preserve existing ones. Furthermore, it is ten times more expensive to get a new customer than to hold on to an existing customer. The study study focused on the worthiness and need for Customer Romance Management (CRM) and technology in improving the retention of customers. The primary emphasis was on Customer Relationship Management (CRM) as a technique to build long-term relationships with the existing customer foundation.

Key staff retention is crucial to the long-term health insurance and success of your business. Managers readily concur that retaining your best employees ensures client satisfaction, product sales, satisfied co-workers and reporting staff, effective succession planning and deeply imbedded organizational knowledge and learning. If managers can cite these facts so well, why do they act in ways that so frequently encourage great employees to give up their careers?

Employee retention things. Organizational issues such as training time and investment; lost knowledge; mourning, insecure co-workers and a costly candidate search apart, failing to keep a key staff is costly. Various estimations suggest that dropping a middle director costs an organization up to 100 percent of his salary. The loss of a senior executive is even more expensive. I have seen quotes of increase the total annual salary and much more.

Employee retention is critically important for another societal reason, too. Over the next couple of years while SENIORS (time 40 to 58) retire, the upcoming Generation X society amounts 44 million people (age groups 25-34), in comparison to 76 million SENIORS available for work. Simply mentioned: there are a lot fewer people available to work.

Employee retention is one of the primary measures of the fitness of your organization. If you are losing critical workers, you can safely and securely bet that other folks in their departments want as well. Leave interviews with departing employees provide valuable information you can use to retain staying staff. Heed their results. You'll never have a more significant way to obtain data about the health of your organization.

Retention tips: http://humanresources. about. com/cs/retention/a/turnover. htm

Recruiting the right employees and keeping the right employees issues, especially now.

A recent World for Human Reference Management (SHRM) news release revealed the answer to the question of what folks intend to do when the work market rebounds. A lot of the Human Source (HR) experts and professionals surveyed arranged that turnover will surge significantly after the job market elevates. Both groups experienced that the work market will improve within the next year, based on the latest Job Restoration Survey.

The survey is produced by SHRM and CareerJournal. com, the free, professional career site of The Wall Neighborhood Journal, two of my own favourite sites. The survey results include replies from 451 HR professionals and 300 managerial or executive employees.

"We're stunned by the percentage of executive employees who say they plan to jump ship once selecting rebounds, " says Tony Lee, editor in key/general manager of CareerJournal. com. "And with 56 percent of HR pros agreeing that turnover will rise, we're interested to see what forms of retention work those companies launch to keep their best employees up to speed. "

Employees cited the following three main reasons they would commence searching for a fresh job:

53 percent seek better compensation and benefits.

35 percent cited dissatisfaction with potential job development.

32 percent said these were ready for a fresh experience.

HR professionals were asked which programs or regulations they use presently to help preserve employees. The next three are the most frequent programs employers are employing to maintain employees:

62 percent provide tuition reimbursement.

60 percent offer competitive getaway and holiday break benefits.

59 percent offer competitive wages.

Most HR professionals surveyed (71 percent),

in large organizations (people that have more than 500 employees), thought it would be extremely likely or relatively more likely to experience an increase in voluntary turnover once the job market helps.

Forty-one percent from small organizations (1-99 employees) said it was extremely likely or somewhat likely that turnover would increase.

Fifty-three percent of respondents from medium organizations (between 100 and 499) thought the same.

Journal article:

Recruitment and Retention Strategies

How to Entice, Keep and Motivate Today's Workforce

By: Gregory P. Smith

Employers face major challenges when they consider the increasing difficulty of finding skilled people, a youthful labor force with different attitudes about work, and an evergrowing population of more aged workers going toward retirement. A recently available research shows 85% of HR executives state the solitary greatest challenge they have got in managing the workforce is their organization's failure to recruit and keep good employees and professionals.

Picture this situation -- John is the CEO of a huge corporation experiencing high turnover. His Human Resources staff was spending increasingly more time recruiting, employing, and training replacements. When they received them trained, they might be absent in six months. Customers were upset and issues were increasing.

John decided to explore the primary reasons people were quitting. He recognized new strategies and strategies such as creating an appearing market leaders program, providing training for professionals, and bettering their employee identification program. Because of this, they are actually attracting better skill and moreover, have retained their best people. The Human being Resource Team is happier because they are not spending all their time performing training.

Few businesses realize how much staff turnover impacts their bottom line. It takes $7, 000 - $14, 000 to displace a typical staff. Replacing a key manager costs exactly like buying a new Honda. In the healthcare industry, it costs up to $185, 000 to replace a critical health care nurse. The question then occurs, how can a company survive when the price of turnover and recruitment incurs the millions of dollars each year?

 

Businesses can improve their ability to catch the attention of, sustain and improve output by applying the following five-step Pleasure process:

P - Provide a Positive Working Environment

R - Understand, Praise and Reinforce the proper Behavior

I - Involve and Engage

D - Develop Skills and Potential

E - Evaluate and Measure

http://www. managerwise. com/article. phtml?id=649

STEP 1--PROVIDE AN OPTIMISTIC WORKING ENVIRONMENT

Jim Goodnight is the co-founder and President of SAS in Raleigh-Durham, NC. SAS is the most significant software development company in america. Their progressive work place and number of family-friendly benefits helps to keep their turnover rate considerably below the national average. Jim said, "My property leave work for home at 5:00 or later each night. It is my job to bring them again every day. "

Wise executives realize the duty for creating a positive work environment cannot be delegated. It starts at the very top. Have you ever worked for a negative boss? One of the main reasons employees quit is the relationship with their first-line supervisor. The truth is many supervisors and professionals are unaware how their activities and decisions affect employee turnover. A critical aspect of a powerful retention strategy is manager training. Properly trained managers play a significant role in an efficient recruitment and retention strategy. Professionals need the abilities, tools, and knowledge to help them understand their employees' retention needs and be able to put into action a retention plan made to increase employee engagement in the business.

STEP 2--RECOGNIZE, Praise AND REINFORCE THE RIGHT Tendencies

Money and benefits may get people to the front door, but something else has to keep them from venturing out the back. Folks have a basic human need to feel treasured and proud of their work. Reputation and incentive programs help meet that require.

A successful pay back and recognition program doesn't have to be complicated or expensive to be effective. Graham Weston, co-founder and CEO of Rackspace Managed Hosting, gives the keys to his BMW M3 convertible to his employees for a week. This creative way to encourage employees has a bigger impact than cash. He says, "If you gave a person a $200 extra, it wouldn't mean very much. When someone reaches drive my car for weekly, they never forget it. "

At First American, managers present a Greased Monkey Prize to the computer technician who's best in resolving issues with computer programs. The honor is a plastic toy monkey in a jar of Vaseline along with a $50 dinner certificate.

An equipment distributor rewards each employee's work anniversary with a cake and a look for $200 for every single year employed. Double per year employees' children receive a $50 savings bond when they bring in their "all A's" survey card. In addition, they encourage employees with a "Safety Benefit Program. " They display each employee's record twice each year, and whoever has a citation is removed from thought. Those employees staying by the end of the year separate $2, 000. On Fridays, all employees turn jobs for just one hour. This develops a more robust team, unity, and improves communication within the business.

STEP 3--INVOLVE AND ENGAGE

People may arrive for work, but are they engaged and productive? Folks are more devoted and engaged when they can contribute their ideas and recommendations. Thus giving them a feeling of possession.

The Sony Corporation is known for its ability to build and manufacture new and ground breaking products. To be able to foster the exchange of ideas within departments, they sponsor an total annual Idea Exposition. Through the exposition, experts and engineers screen assignments and ideas they will work on. Open only to Sony's employees, this technique creates a wholesome climate of creativity and engages all those who participate.

TD Establishments in Dallas, TX has a distinctive way of making its employees feel appreciated and involved. One wall membrane within the business contains the images of most employees who have worked there more than five years. Their "equality" program goes beyond the normal slogans, posters, and HR guidelines. A couple of no reserved car parking places or other incentives just for professionals -- everyone is an equal. This is one reason TD Sectors was stated by Fortune newspaper among the "Top 100 Best Places to Work. "

STEP 4--DEVELOP SKILLS AND POTENTIAL

For most people, career opportunities are just as important as the money they make. In a report by Linkage, Inc. more than 40 percent of the respondents said they would consider giving their present company for another job with the same benefits if that job provided better job development and increased challenges.

Deloitte is listed among the "Top 100 Best Places to Work. " They learned in the past they were shedding talented visitors to others. They conducted leave studies and found 70 percent of these employees who remaining to consider new jobs and careers outside the company, would have found the same careers and opportunities within Deloitte. As a result they created Deloitte Career Cable connections, an intranet-based development and job coaching program for those employees. During the first week of implementation over 2, 000 employees got advantage of this program and viewed interior job opportunities.

Not only does the program provide new job opportunities, but Job Connections offers a bunch of job development tools such as self-assessments, tools to build up resumes, and articles on various job seeking strategies within the business. Skilled people will not remain in a job if they see no future in their position. To remove the feeling of being in a dead-end job, every position should have a person development plan.

STEP 5--EVALUATE AND MEASURE

Continuous analysis and never-ending improvement is the ultimate step of the PRIDE system. The primary purpose of evaluation is to evaluate progress and determine what satisfies and de-satisfies your labor force. The evaluation process includes the way of measuring of attitudes, morale, turnover, and the engagement degree of the workforce. Here is a checklist of items which should be contained in your evaluation and measurement process.

Conduct a worker satisfaction survey at least once each year.

Initiate interviews and studies concerning the real reasons people come to and leave your organization.

 

Improve your hiring process to generate an improved match between the individual's abilities and job requirements.

 

Provide versatile work agreements for working parents and more mature workers.

 

Hold managers in charge of retention in their departments.

 

Start measuring the cost of turnover.

 

Focus on the key jobs which may have the greatest effect on profitability and production.

 

Examine those departments that have the best turnover rates.

 

Design a powerful employee orientation program.

 

Case study of pizza hut retention strategy:

http://t2. gstatic. com/images?q=tbn:RDXK0GnLy3wtUM:http://www. classymommy. com/blog/uploaded_images/Pizza-Hut-Logo-780541. jpg&t=1

About Pizza hut:

In 1958, Frank and Dan Carney had a concept for a great local pizza restaurant in Wichita Kansas. The small 25 couch restaurant only experienced room for 9 letters on the signal the building appeared as if a hut so 'Pizza Hut' was born!

Fifteen years later, we exposed the first UK restaurant and since that time we've become the biggest Pizza Company on the planet!

Recruiting the right employees and keeping the right employees concerns, especially now.

A recent Culture for Human Reference Management (SHRM) press release revealed the response to the question of what people plan to do when the work market rebounds. A lot of the Human Source (HR) experts and managers surveyed arranged that turnover will go up significantly once the job market helps. Both groups believed that the job market will improve next year, in line with the latest Job Restoration Survey.

The review is made by SHRM and CareerJournal. com, the free, executive career site on the Wall Streets Journal, two of my own favourite sites. The study results include replies from 451 HR pros and 300 managerial or professional employees.

"We're amazed by the ratio of professional employees who say they plan to jump dispatch once employing rebounds, " says Tony Lee, editor in key/general supervisor of CareerJournal. com. "And with 56 percent of HR pros agreeing that turnover will grow, we're interested to see what types of retention work those companies launch to keep their finest employees on board. "

Employees cited the following three top reasons they would get started searching for a fresh job:

53 percent seek better reimbursement and benefits.

35 percent cited dissatisfaction with potential job development.

32 percent said they were ready for a new experience.

HR pros were asked which programs or policies they use currently to help sustain employees. The next three are the most typical programs employers are using to keep employees:

62 percent provide tuition reimbursement.

60 percent offer competitive holiday and getaway benefits.

59 percent offer competitive wages.

Most HR professionals surveyed (71 percent),

in large organizations (people that have more than 500 employees), thought it would be extremely likely or relatively more likely to experience an increase in voluntary turnover after the job market increases.

Forty-one percent from small organizations (1-99 employees) said it was extremely likely or somewhat likely that turnover would increase.

Fifty-three percent of respondents from medium organizations (between 100 and 499) thought the same.

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