HRM Practices in the Fast Food Industry

Aleksandar Garlanov Todor Kolev Seydi Abdishev

Presentation outline:

1. Industry overview

2. Recruitment & Selection trends

3. Training & Development Trends

4. Recommendations

Industry overview:

- High utilization of part-time labor

- Low compensation and limited non-wage benefits

- High income inequality

- Poor and physically demanding working conditions

- High turnover- Training and development not a priority- Limited use of formal staffing practices

4

Converting Human Capital into Intellectual Capital

Employees Experience

Conversion Process

Role of HR practices in this conversion process

Products and services which have market value

Human Capital Intellectual capital

Recruitment & Selection trends: Each restaurant responsible

individually. Job analysis/description. Local job fairs/career centers, online

applications Interview/questionnaire or both On-site interview Educational, previous employment,

reference, and criminal record check. On job evaluation

Recruitment & Selection trends: Application form-online/Starbucks

store Focus on personality rather than

professional qualifications. Internal recruitment through

website, staff meetings, recommendations

External-ads in newspapers, website, stores, social media.

Friendly interview. Not employees but “partners”

Recruitment & Selection trends: Managing over 85 000 employees Mostly relies on internal

recruitment Specific tests for the position,

including IQ test Using a complex software for

recruitment-IBM’s Kenexa Brassring 2

Integrated assessment tool which lessens the whole process

Recruitment & Selection trends:

Whole process is online based Creation of profile on their

website(personal info) Online assessment tool-recognizes

behavioral and cognitive skills Phone interview One-way video interview,

eliminating the flexibility issues

Training & Development trends:Hamburger University $1 billion on training and

development every year80 000 graduates for the

past decade4 different training

programs

Training & Development trends:4 training programsPersonal trainer for each

new employeeEnhance corporate culture

feeling among employeesCollege credits

Training & Development trends:Global brands under

regional trainingDifferent approach for each

regionDifferent approach for each

brandJoint-venture with several

universities

Training & Development trends:Online training programsCheap and fast Specifically developed

software for fast food inustry

24/7 access availableImmediate feedback

Recommendations:

- Reduce management turnover as a first step to reducing overall turnover

- Recognize effective human resource management as an important contributor to good performance

- Stress on training and development of employees as a way to improve their effectiveness and satisfaction

- Take steps to reduce income inequality

- Expand the provision of non-wage benefits