McDonald’s Restaurants was voted winner of this year’s Grand Prix award because of its textbook approach to aligning its reward strategy with the needs of the business and its effective development of an employee brand.
The organisation reduced staff turnover and increased sales significantly after discovering a strong correlation between employee engagement and business performance. For example, in restaurants where staff were engaged, sales were, on average, 28% higher and the number of customer visits were 66% higher.
The organisation took steps to simplify reward and respond to employees’ needs by providing greater choice and flexibility in the benefits offered, as well as improving how the brand is perceived. In its work to improve its employer brand image since 2005, McDonald’s has undertaken a number of reputation and recruitment campaigns, heavily featuring its pay and reward packages.
As a result, McDonald’s Restaurants successfully turned previous negative press coverage on its head, for example through its ‘Not bad for a McJob’ communications campaign, which highlighted its extensive benefits package as well as its commitment to flexible working arrangements. Messages about benefits appeared on posters in restaurants, were used in information sent to external opinion formers and stakeholders, and were even displayed, for maximum impact, in the iconic advertising space at London’s Piccadilly Circus.
The company’s investment in employees has provided continuing benefit to the business. In 2011, McDonald’s Restaurants served 100 million more customers than in 2010. It paid out more than £9 million in staff bonuses in 2011 and continues to see reductions in staff turnover. Over the last seven years, the number of leavers has fallen from one employee in five to one in 25 during the first 90 days of employment.
Neal Blackshire, benefits and compensation manager, said: “We are so pleased to win this. We are very grateful and happy that we are here.”
Read more about the Employee Benefits Awards 2012