Business
McDonald’s Offering Tuition and Childcare to Attract Workers
Fast-food giant McDonald’s Corporation is now adding emergency child care services and tuition assistance as perks in order to hire new workers. With the shortage of workers wanting to return to the foodservice workforce, companies like McDonald’s are adding more incentives on top of an increase in hourly pay.
RELATED: McDonald’s To Raise Wages For Corporate Store Workers
Hiring Shortage
US franchisees of the burger giant are working to give workers a host of new benefits on top of higher hourly rates. Specifically, these include benefits such as paid time off and assistance in tuition costs.
This movement is in line with the company’s push to improve its image as a responsible employer. In fact, parent company McDonald’s said it is making a multimillion-dollar investment to support its franchisees’ efforts. Currently, franchises operate 95% of McDonald’s 13,450 stores in the US.
Currently, a worker shortage is plaguing the foodservice industry, same as with other retail and hospitality businesses. During the pandemic, many restaurants and bars let their workers go as losses mounted due to closures and limited customers.
Now, the industry is lacking 1.3 million workers even as other industries near full employment. Many former restaurant workers quit their jobs and refuse to return. In fact, many found jobs outside the industry that pay more and require less labor-intensive work.
McDonald’s Internal Survey Results
Meanwhile, many companies are closely watching how McDonald’s responds to the worker shortage. The company is one of the largest US employers, with over 800,000 workers helping out in its 13,00 plus restaurants.
Early this year, McDonald’s said it would increase hourly wages in corporate-owned restaurants from $11 to $17 for starters.
McDonald’s franchise owners took a survey on current workers on what they’d like to see as compensation. More than 5,000 McDonald’s workers and managers participated, and many said they’d like to see enhanced pay and more workplace flexibility.
As a result, franchisee leaders last month agreed to help boost training, workplace flexibility, pay, and benefits across markets. In fact, McDonald’s owners admitted that they need to show their commitment to employees. Now, individual restaurants are adopting the employee program and implementing wage increases and other benefits.
Unemployment Benefits Main Reason For Leaving The Food Industry
Meanwhile, about two dozen chain operators by the Compass Restaurant Consulting and Research firm conducted a survey to find out how best to attract workers. The survey found out the majority of workers left the industry due to unemployment benefits.
This is followed closely by disenchantment with the restaurant industry. The third major reason is feeling unsafe while working in a public-facing job.
As a result, a number of chain restaurants are bumping up pay at an average of $15 per hour. Many other companies will now review compensation rates frequently and check if they remain competitive.
In particular, McDonald’s will start benchmarking their pay rates with others. Many franchises will also offer backup child and elderly care, with owners deciding whether to expand it by the end of 2021. This way, McDonald’s and other foodservice chains will be more ready to compete in the new labor market.
Watch ABC4 Utah as they report that restaurant employees are given tuition assistance through McDonald's ‘Archways to Opportunity':
Loading ...What’s your take on the shortage of workers in the foodservice industry? Do you agree with the need to add benefits on top of raises in pay for food chain workers? In addition, will you support workers by going out to eat more?
Let us know what you think. Share your comments in the comment section below.
16 Comments
Approx. 30% of the time fast food workers do not get my order right. From talking with others, they have the same experience. I would not keep my job if I did it improperly 30% of time time. These are entry level jobs meant for teens or those adults that want to supplement their income. They were never meant to support a family.
McDonald’s is a multi-billion dollar a year corporation. I’m sure the CEOs are all sitting pretty. It’s time to share some of that wealth. People still eat it regardless of the poor service. It’s kind of like Facebook… if Americans are really fed up with their dictatorlike behavior THEY SHOULD STOP USING IT!!!
Employers should realize how much work a person does in one hour for that measly money. Those people have bills to pay like everyone else. For those who say no and are worried that cost of fast food will be balanced on their backs. Newsflash: Fast food goes up all the time, just like stamps. Only difference, post office let’s us know. When is the last time your local fast food joint announced the price hike???Fast food is way up, but workers are barely making minimum wages. The average burger meal costs around $7.00 for small. Oh yeah, they get more money from you for the medium and large sized meals. The only part of the medium and large meals you are actually getting is the soda size. Employers, pay $15.00 an hour or stop raising the fast food prices under the table and sneaking it by us consumers. Grrr
Ummmmm who do you think runs these restaurants? Managers, District Managers, assistant managers. All these people are supporting their families. So yes they are ment for exactly that. Not everyone is meant for trade school or college. Honestly, it’s irresponsible to go get a crap ton of student loans for school and not be able to find work in your chosen field. Not only can’t you find work, you start your life in debt over your head. Food service workers deserve more money just because rude customers cuss at them and belittle them over a $5 hamburger. You don’t make mistakes though, only the lowly fs worker. Enough is enough. If you can do such a better job I have a hat and an apron for you. Oh wait, you probably don’t know the first thing about food safety, or storage or anything else relating to it. Give me a break. I’m a cook, I’ll happily remake anything I mess up, unless you act an ass. Then you can get your refund from the gm in the morning. Who gave you the right to decide what other pol’s physical labor is worth? P.S. There is absolutely nothing wrong with anyone putting in an honest days work. No matter where it is. Get your head out of your butt. Your no better than that 16 year old or that single mom trying to provide for herself and her FAMILY. You aren’t God.
It’s a entry level job or for people on social security. Teens learn about the real world at places like these. Orders are wrong maybe 30% of the time. Your not paying for a 5 star meal. With that said fast food joints could learn a lot from Chik fil A. Maybe they deserve more.
For all those that voted “no, who do you think the owners will charge for the increases, there is an easy alternative for you.
To the person that indicated her order is only right 30% of the time, you have the same alternative as those who don’t want to be charged for any increases in prices. Also, you stated that you wouldn’t keep your job if you only got it right 30% of the time. If you were a MLB player you be a millionaire for getting it right 30% of the time.
Let the market do its thing. Shut off the govt. subsidies being paid as a result of the pandemic and allow the market to do its thing in the case of worker shortages.
Because the fed is giving away free money, people do the math and figure out it pays not to work. Until that changes and/or we replace the marxist admin that is running things, the problem will persist.
I think this is better than paying them to stay home! A raise is good and certainly childcare. Especially if it doesn’t raise the food cost out of sight.
McDonald’s is an entry level job. They do a good job of teaching work ethic and have good training. That said, the individual franchise owners have a very small profit margin and must pass all costs like this on to their customers. Child care is an expensive benefit and perhaps could be offered at the managerial level, certainly not for entry level people. Give people incentives to advance in their careers!
I applaud every food service employee out there. Until you have been in there shoes, you have no idea how hard there jobs really are, so I 100% support them getting higher wages, even if it comes with paying a little more for the food, and as far as the tuition, I have ALWAYS supported anyone who wants to further there education. Helping employees with childcare sounds great, because my moma owns a daycare facility, and she says that alot of times she hears her parents that work in food service jobs say that it’s hard to find childcare after 6pm, and on the wkends, but most importantly they say that if they have more than one child, that it cost them more for there children to go to daycare, than what they bring home on there paycheck. So there thing is why work, when it’s all going to a daycare facility. Teenagers learn so much when working at places like this. It teaches them how to deal with the public, problem solve under pressure, and it makes them appreciate a dollar when they get older. I think that adults know what they have to do, to provide for there family, and they go out and do it. To the lady that commented that 30% of the time her order is incorrect. I can promise you that whether you go to a 5 star restaurant, or even a department store, that they will also make a mistake, whether it be with your food order, or an incorrect price on something. If you, and the other people you talked to get your orders incorrect 30% of the time, I suggest y’all start cooking at home, and for God’s sake Don’t Make a Mistake, but remember this there is ONLY one person that NEVER makes mistakes, and that’s GOD. Meteorologist get the weather wrong a good bit of the time, and life goes on. I don’t think that no one job is better than the other, as long as you give 110% when you’re doing it.
I voted yes for better benefits, etc., but I also know that the cost is going to be passed, just like our taxes have been increased to cover all the so-called betterment of lower-income individuals. But what I also expect is those same individuals who take these low-skill jobs to better themselves by upgrading their own personal job skills. Despite these fast food jobs being classified by most as, not permanent jobs, there are important job skills to learn—customer relations, team coordination skills, job effiencies within a timed performance level, attention to detail, etc..I, as a consumer, will expect, that the for the increased pay, that the persons who have the jobs will enhance their job performance skills, especially if school cost and childcare are included as benefits.
If the government is going to keep giving them unemployment money why should they work. There making out better by staying home. Pay increases will be passed onto the people. You can’t win. Let the unemployed go back to work and stop paying them to stay home. Common sense. It must be lacking in their minds.
Give them the benefit that is needed. They work and gave to sometime have to deal with irate customers. So yes give it to them.
I do not eat at McDonald’s
Yes they will pass on costs like any business.
If the workers cost themselves out of a job they will not have learned from the histiry they were never taught.
If corporate screws this up they will be gone.
The facts of a free market do jot care about feelings.
Compete or quit.
I don’t eat at McDonald’s. That being said I have worked in fast food. I read other comments about not getting an order right, they are just old people on retirement, etc. these people work hard for very little. I want you all to ask yourself if you ever made a mistake on your job – yes and for those that are unconcerned about the older people – they are trying to make a living and sometime have to raise the children of their children because your age thinks they owe you something. All of you grow up. They need as many incentives as possible to get workers – wow what a concept!
I made most of the repairs to thirteen fast food restaurants in Great Falls, MT for ten years. By and large, the quality of the employees does not warrant a raise. I can’t even mention some of the many things I saw during these years that should have landed an employee in jail. Yes, there are a FEW good workers, but they’re the “here today, gone tomorrow” type, because they realize the quality of the people they’re surrounded by, and I suspect that it depresses them so much that they quit. To add insult to injury, the Democrats have been giving these ex-workers SO MANY payouts that they can make more money sitting on their fat asses at home playing video games, smoking dope, and having sex than they can at work (by the way, I saw ALL of these acts while employees were “on the clock” at these fast food places). That’s all…