By Lawrence J. Gitman, Carl McDaniel
principles and practices
principles and practices
Philip C. Grant
Vantage Press, 1984 - 160 pages
How McDonald’s tracks morale at the front line
A successful engagement effort should result in happier customers Mark Blundell
Mark Blundell started work in McDonald’s in 1985 and has gained experience working at all levels in the retail arm of the business. He has recently become head of HR Operations within the organization.
Like most retail organizations, McDonald’s is well aware that a drop in engagement at the front line is likely to have an impact on customer service. So the company has a number of initiatives in place to motivate employees and build loyalty. Here, Mark Blundell describes the approach used to monitor the impact of its engagement efforts.
Following my presentation at Melcrum’s Annual Employee Engagement conference in London in May 2007, I was asked many questions about the way we measure the impact of the recent employee engagement initiatives at McDonald’s. In broad terms, we use three categories of measurement: employee surveys, third-party review and operational outcomes.
The McDonald’s “Your Viewpoint” survey is a long-term tracking study of employee opinion. It’s been conducted on a global scale for many years with ORC International, who provide an independent assessment of the results in every country in which we operate. A UK participation rate of 83 percent in 2006 demonstrates that it’s something everyone in the business takes very seriously. The data is analyzed and cut to mirror the structure of our organization in terms of job “families” (e.g., hourly-paid restaurant staff, restaurant management, office staff, etc.) and geographically, from national level right down to the level of the individual restaurant.
The survey consists of 50 statements which cover five recognized drivers of commitment. Employees respond to these statements with a simple “agree”, “neutral” or “disagree”. In 2006 the results from our UK hourly-paid employees were as follows: •Development and personal growth: 85 percent agree.
•Resources to get the job done: 82 percent agree.
•Values and leadership behaviors: 84 percent agree.
•Competitive pay and benefits: 77 percent agree.
•Respect and recognition: 80 percent agree.
Although these results aren’t perfect they are, I think, better than many people assume McDonald’s would achieve.
We also regularly open our doors to those who would like to undertake a serious, objective study of our business and in recent years have welcomed Investors in People, the Work Foundation and the Great Places to Work Institute among others. Last year we gave Professor Adrian Furnham of University College London unrestricted access to our managers and crew to study the impact of working at McDonald’s on our employees. Regarding employee engagement he concluded the following: “Overall, McDonald’s staff felt good about themselves, experienced strong job satisfaction and had exceptionally high engagement levels. Indeed, nearly every staff member interviewed could be counted as engaged, whereas the typical figure is substantially lower.”
The McDonald’s business model is a simple People-Profit chain: engaged people delivering quality products and great service in a clean environment create loyal customers. Customer loyalty, in turn, drives sales and profitability. If we’re succeeding in engaging our employees we should be seeing a measurable impact in our mystery-shopper surveys. These assess quality, service and cleanliness in our restaurants – results of which are fed into a “People Scorecard”, which details annual performance data for the last five years, alongside quarterly data and targets for the current year.
In addition, the People Scorecard presents snapshot...