Hello 👋 Julissa this side from Delightree, with the recent updates from the world of Franchises. As we witnessed a historical presidential campaign, with Trump finally agreeing to handover the baton to President Elect Joe Biden - the nation is now looking forward to the holiday season!
With Thanksgiving & Black Friday round the corner, Restaurants, Cafes & all local businesses are hustling with new strategies to make the most of the Holiday Season demand - while tackling the challenges of COVID. In this difficult time, we often forget what makes our businesses successful - our workers! Today, we’re discussing what 4 industry leaders have uniquely done to hire right talent, keep them happy - and lower their employee turnover rates!
1. Starbucks – Employee Benefit that Matter
Starbucks has the lowest turnover rate in its industry. This is much better than the average quick-service beverage restaurant with a turnover rate of over 150 percent. They top our list because Starbucks makes conquering turnover a priority. One way they do this is by providing benefits to their employees that are unusual to their industry.
For example, full and even part-time employees receive tuition reimbursement for online education programs. They even have an equity reward program for eligible front-line workers. More importantly, they listen to their employees and make employee retention a priority right from the start!
2. Greystone Bakery – A Creative Hiring Strategy
Greystone Bakery located in Yonkers, New York spearheaded the movement of using kindness to lower turnover rates and increase profits. They started Open Hiring - an innovative process of hiring blindly without requiring any background skills at all. Instead of applying directly, interested employees join a waitlist. Once their name reaches the top of the list they are automatically hired.
Hold on to your hats because, because despite this unusual strategy, it works:
- The average tenure at the Greystone Bakery is three years. “Resulting in retention that is 9% higher than the industry average.”
- The average cost of hiring a new employee is $1,900, compared to $4,500 across US.
Greystone used kindness and positive company culture to reduce turnover & save money too. They also partner with community programs and financial institutions to give their workers access to important services. A little bit of kindness goes a long way! :D
Wait, there’s more. Due to their positive company culture and reputation, the Greystone team was able to secure a major deal with Ben & Jerry’s. Greystone soon became the sole supplier of brownies for Ben & Jerry’s. Today they have deals with both Ben & Jerry’s and Whole Foods.
3. Pal’s Sudden Joint – Hire for Attitude, Train for Skill
What is the secret to Pal’s success? CEO Thomas Crosby told Inc.com that he doesn’t expect employees to stay forever so Pal hires for attitude not for skill. Pal requires all potential employees to take a qualitative exam that exams their character and attitude. It is a custom 60-point survey based on Pal’s star performers. The survey allows this fast-food brand to guess with stunning accuracy who will be successful on the job. After the initial survey, those hired go through a rigorous training program. This uncanny hiring process allows Pal to have the lowest turnover rate of 1.4% yearly.
4. General Mills – Upward Mobility for Higher Retention
General Mills owns major brands such as Betty Crocker, Yoplait, Nature Valley, and Pillsbury. Best of all, they make employee retention a priority. One of the key factors behind General Mills’ high retention rate is the option for growth within the company.
Over 80 percent of management roles at General Mills are internal hires! When young employees start working there is plenty of room for growth. This focus on upward mobility is having a positive impact on General Mills because they boast a low turnover rate of 3 percent! More than half of General Mills employees have been working for the company for over a decade!
Well that’s all for this week. Have a happy Thanksgiving & hope you take a moment this holiday season to do something special for your Employees, even if it’s giving them a complimentary brownie! :D
If you have interesting stories on how you’ve given back to your teams - and would want to share with 1000s of business owners - share it in the comments section below.