Employee Value Proposition Mcdonalds

Topics: Human resource management, McDonald's, Employment Pages: 13 (3989 words) Published: July 30, 2013
CIPD Advanced Diploma in Human Resource Management
Solihull College

Resourcing and Talent Management 7RTM

Name: Sian Meddings

CIPD Membership Number: 23073479
Word count: 2,999

1. SWOT Analysis of McDonalds Position in the Labour Market

Strengths:

A sophisticated training and development programme. McDonalds has improved its programme significantly, focussing on basic maths and English skills, up to degree level education. They received a ‘good’ overall rating from OFSTED in May 2012 and are listed as a ‘good practice resource’ on the OFSTED website.

Recognition Awards. McDonalds recently received 2 highly regarded awards for being a good employer. These were the Investors in People Award and the Sunday Times Top 25 Best Big Company to Work For, 2013.

Well known brand. McDonalds is a multinational company with over 34,000 sites worldwide in 120 countries and is a household name. In the UK alone they employee 85,000 people.

Attractive employee benefits. These include flexible working and staff discounts in a wide range of retailers.

Weaknesses:

Hard to attract top talent. McDonalds, although it has improved its reputation over the last 10 years, still struggles to attract top graduates and employees of a more senior level. Particularly in what the CIPD describes as the ‘war for talent’ in its employer branding research. This could potentially be turned in to an opportunity if exciting and attractive graduate/employment programmes were offered.

Staff generally dissatisfied with pay. Despite a wide benefits package and paying above minimum wage, the 2004 attitude survey showed this as an area of concern; however this could be a potential area for opportunity.

High turnover. Turnover in the catering sector is generally high throughout, however, in order to progress the business forward even more, McDonalds needs to be able to retain the employees that it has invested in so heavily with training and development.

Opportunities:

Enhance advertisement around corporate social responsibility. McDonalds state that they are ‘striving for a sustainable future’ and in recent years have focused advertising campaigns around this, highlighting their work in reducing waste and increasing recycling. More recently, they have focused on where their products come from, for example TV advertising based on their beef products being sourced from British and Irish cows only. As environmental issues become more transparent to stakeholders it is important for them to continue with this type of reassurance.

Up to 3000 applications per day. This huge influx of applicants should make it much easier for McDonalds to consistently select the best candidate for the job and avoid making bad recruitment decisions as they have done in the past. This will also allow them the opportunity to lower recruitment costs in the future and potentially lower turnover.

Recruiting from schools. 60% of the UK workforce of McDonalds is under 21 years of age (www.mcdonalds.co.uk) showing that this is a huge resourcing pool that needs to be sustained. As many other companies do, McDonalds has the opportunity to capture a young audience at primary schools to educate them about the benefits and potential careers that working for McDonalds can have. This will engage people at a young age and may help to change public perception in a positive way for the future generations.

Expansion in other countries. Although McDonalds dominates in terms of size of company and number of sites across the world, there is still the opportunity to grow in countries such as China where they have fewer sites and there is potentially a strong labour market for graduates, where 8 million students graduate each year (chinalabourmarket.com).

Threats:

Fast food competitors. Competitors such as KFC are now competing with training and development opportunities that rival McDonalds programme. In addition to this, they...

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http://www.cipd.co.uk/NR/rdonlyres/DD66E557-DB90-4F07-8198-87C3876F3371/0/Creating_engaged_workforce.pdf
[accessed May 1, 2013]
Anon, (2013), ‘Even in China, College Graduates Can’t Find Jobs’, China Labour Market, [online], available at:
http://chinalabourmarket.com/even-in-china-college-graduates-cant-find-jobs.html
[accessed May 2, 2013]
Anon, (2013), ‘McDonalds University, Fries With That?’, The Economist, [online], available at:
http://www.economist.com/news/international/21576656-degree-burgerologyand-job-too-fries
[accessed May 7, 2013]
CIPD, (2008), ‘Employer branding, a no nonsense approach’, CIPD, [online], available at:
http://www.cipd.co.uk/NR/rdonlyres/D0AC3CB0-BC5F-44F5-886D-4C00276F2208/0/empbrandguid.pdf
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CIPD, (2010), ‘Creating an engaged workforce’, CIPD, [online], available at:
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