ATTRITION RATE IN MCDONALDS

ACKNOWLEDGEMENT
We (Shipra Negi, Kritika Rawat,Manish Kumar) hereby declare that this project titled ATTRITION RATE OF MC DONALDS AND THE FUTURE CHALLENGES is a record of our work carried out under the guidance of Mrs. Preety Bajaj(HRM Prof, BIT Noida). We gratefully acknowledge the guidance provided to us by her and also thank our batch mates for providing constant encouragement, support and directions throughout the development of the project.

ATTRITION RATE

The rate at which an employer loses or gains employees.  It can also be defined as the rate of traffic through the revolving door or how long employees tend to stay.  High turnover is harmful for a company s productivity.  It is reduced when company address issues that affect overall company morale.  the company size and industry also play an important role in attrition rate

ATTRITION RATE FORMULA

The attrition rate for fast food industry has gone down to 85% from 111% since 19972004.

CAUSES
 Compensation package differences.  Less recognition.  poor supervision.  less growth opportunities.  job and employee skill mismatch. Inferior facilities, tools, etc. Poor training. No overtime pay rates.

 World s largest chain of fast food restaurants, serving around 64 million customers.  Was founded by businessman RAY KROC on May 15, 1940 in California, US.  It is operated either by a franchisee, an affiliate or the corporate itself.  It has experienced an expansion into many international markets.  It survives in 119 countries. It also operates other restaurant brands such as piles caf. James Skinner is the current chairman and CEO of the company. It entered India in 1996.

MAKE IT

MC CAREER

NOT

MC JOB

MC DONALD'S APPROACH

As a company they continue to be adversely impacted by the negativity associated with the word Mc Job in some of the markets they operate. So they recognized that they need to distinguish themselves as a great place to work both at staff level and in the restaurants.

CONTIu.
They take a modern strategic approach to address this challenges. Business is strong and they need high performing employees to help them continue that trend. Their operations span a range of cultural environments. They are diverse by design. Their people policies and programs are designed to meet employee needs through the following priorities: Respect : Create a diverse and inclusive culture where everyone feels valued and respected. Commitment Enhancement : Enhancing their employment value proposition to drive high levels of employee commitment. Talent Management : Attract, develop and retain the most talented people at all levels.

EMPLOYMENT VALUE PROPOSITION

An employment value proposition expresses the value of what a company offers to crew and managers that they receive in exchange for their commitment and performance on the job. In essence it is a promise that the company makes to current and potential restaurant employees just as their brand Promise clarifies what they deliver to their customers and reflects and reinforces their core Mc Donald's values and commitment to their employees worldwide. To create Mc Donald s EVP they conducted an unprecedented effort to gather input from crew and managers. From the result they identified the key which their employees value most about working in the restaurants.

CONTIu.
The identified key themes were as follows : People and Culture Flexibility and Variety Development and Opportunity Although the value of these themes may vary in different cultures, the basic element of the EVP must be consistent across all countries and reinforced over time to leave their mark.

CONTIu..
These themes were further simplified into 3 pillars by Mc Donald's : oFamily and Friends : I work in an enjoyable, energizing atmosphere where everyone feels part of the team. oFlexibility : I have a challenging , varied job that has the flexibility to fit into my lifestyle. oFuture : I have an opportunity to grow and progress by learning personal and work skills that will last me alifetime, whatever I chose to do.

At Mc Donald's they believe in respecting people at both the sides of the counter. This means allowing their employees to engage in honest dialogue and education to understand people different from themselves. The core of their education framework are interactive, employee-led workshops that are designed to practice the skills and behaviors needed to cultivate effective work habits and lead people in an inclusive, diverse workforce. Some of their seminars and workshops include : Intercultural Learning Lab Black Career Development Women s Career Development Asian Pacific Middle-Eastern Employee Career Development

CONTIuu
Mc Donald s has a number of employee networks, originating out of their US based headquarters : Mc Donald s African American Council Women s Leadership Network Asian Pacific Middle-Eastern Employee Network National Hispanic Employee Business Network

MC DONALD'S

STRENGTHS
 It is ranked number one in fortune magazine s 2008 list of most efficient and effective fast food joint.  A company oriented and socially responsible company.  They also operate effectively in an economic downturn due to the social need to seek out comfort foods.  They successfully and easily adopt their global restaurants to appeal to the cultural differences by an effective employee training program.  They have an efficient assembly line style of food preparation along with a systemized format of employee position.

WEAKNESSES
Their test marketing for pizza failed to yield a substantial impression in the mind sets of the consumers, again because of lack of proper employee supervision.  High employee turnover in their restaurants leads to more money being spent on employment.  They have yet to capitalize on the trend towards organic food. Mc Donald's have problems in fluctuations in operating employees in their outlets. Their current attrition rate is around 44%.

OPPORTUNITIES
In today's health conscious society, introduction of healthy burgers are of good opportunity.  they can increase their efficiency in home delivery aspect as they are not offering it to a great extent.  provide optional allergen free food items, such as gluten free and peanut free.  the business can direct efforts at the breakfast, beverage and convenience category.

 They have been sued many times for providing unhealthy food.  Many close competitors like Burger King, Wendy s and KFC are on the same run.  Their customer care section has to be well managed.  Their employee attrition rate should be controlled which is leading the firm to restricted profits.  Training programs and employee supervision should be improved.

RECOMMENDATION
In addition to competitive wage and promotional programs; hard work, dedication, motivation and results should be recognized and be rewarded. Mc Donald's should also offer a centralized incentive program with access to Mc Donalds gift certificate and merchandise. Appreciation comes in many forms- from a simple thank you for a job well done, to restaurant wide recognition through programs like employee of the month or employee of the quarter. These programs should be held.