McDonald's tries to keep workers from flipping jobs

This morning we read with interest an article published Tuesday in the Chicago tribune pertaining to our topic from yesterday, hospitality jobs and the opportunity they will offer. Very interesting figures here that also mirror the Pittsburgh job market. Here is the article in it's entirety:

McDonald's tries to keep workers from flipping jobs

By John SchmeltzerTribune staff reporterPublished May 15, 2007

A high employee-turnover rate has been a perennial problem for fast-food restaurants. Last year the rate rose to 130 percent. Despite rising wages, flexible schedules and even health insurance, the revolving door is turning faster than ever."People know what needs to be done, but it is an investment," said Sherri Daye Scott, who has observed the ups and downs of the sector for more than a decade as editor of QSR magazine, a trade magazine that covers the industry.McDonald's Corp. believes it has found an answer: Make it a McCareer, not a McJob.

On Monday, Oak Brook-based McDonald's announced a nationwide campaign promoting careers at the world's largest restaurant chain. The campaign was released two weeks ago in the Chicago market. "We think working at McDonald's is a tremendous opportunity, that this is a great place to work. You can start as a crew person like I did," said Karen King, 50, East Division president of McDonald's USA. More than 600,000 people work at McDonald's USA's 13,700 restaurants. King's division contains 5,000 restaurants.The hamburger giant tried promoting careers two years ago with mixed results by shining the spotlight on famous individuals who once worked at McDonald's, such as singer Macy Gray, 10-time Olympic track and field medalist Carl Lewis and professional speedskater Derek Parra.Now the firm intends to turn the spotlight on its employees.

Even cutting the turnover rate, which matches the industry average, by a few percentage points would reduce the millions of dollars the restaurant chain spends annually on training. McDonald's declined to divulge how much it spends on training new hires.But King, in a dubious claim of distinction considering the high turnover rate, said, "We train more people than the U.S. Army." Jonah Kaufman, chairman of the national advertising committee for owner-operators and the owner of 12 McDonald's in the New York area, said the campaign using King; Ofelia Melendez, vice president of quality service and cleanliness in McDonald's Greater Southwest region; and other employees is aimed at raising the profile of jobs at the chain. "The world identifies who we are, and many times they don't do it correctly," Kaufman said. "This is our attempt to let people know the opportunities that are here."We're frustrated because the opportunities are so great and the people who stay at McDonald's many times have moved up and feel good about themselves," he said, adding that he knows at least 10 owner-operators in the New York area who started as crew members.

Crew member is McDonald's terminology for a person whose first job is taking and filling customer orders.Restaurant operators, whether they are operators of fast-food outlets or fine-dining restaurants, say the biggest task they face is the recruitment and retention of employees. "Many are becoming proactive at retaining the staff they already have so they don't have to go fishing in the shallow labor pool, as well as develop new tactics to reach out to new employees," said Hudson Riehle, senior vice president of research for the National Restaurant Association. "The industry's need for employees will remain unabated for the next decade," he said, noting that the industry is expected to create an additional 2 million positions over the next 10 years. Currently, there are 12.8 million people working in the restaurant industry.Jared Bernstein, an economist with the Economic Policy Institute, a Washington think tank, said McDonald's should have no trouble using the career program to recruit a higher level of employee."I can tell you that there is robust supply of smart people stuck in low-wage jobs champing at the bit to get into a career ladder," he said.