McDonald’s improves employee benefits in the US

McDonald’s USA is enhancing its benefits offering for more than 90,000 employees at its company-owned restaurants.

McDonald's auto-enrolment plans

It will include a wage increase and paid time-off for all employees of up to five days.

The global restaurant chain will also provide eligible employees at both its company-owned and franchise restaurants with free high school completion and college tuition assistance; to help 750,000 employees achieve a higher level of education.

From 1 July, starting wages at McDonald’s will be one dollar above the local-mandated minimum wage, which differs in some states, but the US minimum wage is $7.25 (£5) an hour. The organisation will adjust pay accordingly based on tenure and job performance.

By 2016, the average hourly rate for employees at company-owend restaurants will be in excess of $10 (£6.75).

Also on 1 July, full- and part-time employees with at least one year of service, will begin to accrue personal paid time-off.

For example, an employee that works an average of 20 hours per week will be eligible to accrue approximately 20 hours of paid time off per year. 

If these employees do not take the time off they have earned, they will be paid for the value of that time.

Steve Easterbrook, chief executive officer and president of McDonald’s, said: “We’ve been working on a comprehensive benefits package for our employees, the people who bring our brand to life for customers every day in our US restaurants.

“We’ve listened to our employees and learned that, in addition to increased wages, paid personal leave and financial assistance for completing their education would make a real difference in their careers and lives.

“We know that a motivated workforce leads to better customer service so we believe this initial step not only benefits our employees, it will improve the McDonald’s restaurant experience. We’ll continue to evaluate opportunities that will make a difference for our people.”

In the UK, McDonald’s has its own people practices on employee benefits.

A McDonald’s UK spokesperson said: “In the UK, all of our employees are on permanent contracts and entitled to holiday and sick pay, a stakeholder pension scheme and a competitive range of employee discounts and benefits.

“Every member of staff receives an annual pay review, where increases of up to 4.5% are available for staff at all levels. 

“Alongside this range of entitlements, we invest over £40 million a year in training and qualifications for our people, giving them the opportunity to develop and progress their career.”