Background
The company selected for analysis is Burger King; the analysis is related to the challenges faced by the company while HR planning and recruiting are discussed in the report. Employees or workers play a vital role and act as an asset to the company. The company Burger king is selected or the analysis as the food industry is having the highest retention rate.
Burger King is an American company established in the year 1953, the company is having operations across the world this clearly shows that the company is global food chain (Panczel, 2010). The report includes the challenges faced by burger king for HR planning and recruiting the workforce.
The human resource planning is a process that helps the company in determining the current and future human resource needs for an organization to accomplish the strategic goals and objectives (Breaugh, 2017). Human recruitment is the process of the appointing and selecting the candidates for the company. The brand is popular in Australia with the name of hungry jacks, when brand decided to establish as many as possible outlets in then the company kept the name hungry jacks (Edghill, 2015). Burger King has more than 12,200 outlets, in 73 different countries (Shetty, 2011). The activity of the human resource planning and recruiting is performed by the HR department of Burger King.
There are certain challenges faced by the company while planning and recruiting the workforce for the company. Some of the challenges are discussed below: –
Labour supply is defined as the total working hours of worker wants to perform the work in the real wage (Taylor, McLoughlin, Brooke, Di Biase, & Steinberg, 2013). Most of the companies involved in the food industry hire the workers for the part-time and for the full time according to the working hours the companies pay the amount to the employees. Similarly, burger king follows the same concept and the pay the wage according to the working hours. Though the labors always demand more of the wages which make them switch the job and this leads to the problem for the companies and they lack the human resource because of the labor supply.
Apart from the wages, another issue which leads to the problem of the labor supply for burger king company is the requirement of the skills. In the food industry, there is a specific need for the skills to perform the activity. Skills might vary according to the different fields in the fast food industry. While recruiting the employee the company always check the skills according to the set standard and this helps the company in making the fair decision. Burger king company select those employees who meet the criteria but the employee who is experienced and have skills will ask for the good amount which leads to the problem for the company. If in case, the company doesn’t find it a beneficial deal till the time company agrees, and this deal might create the problem of labor supply.
- It is recommended to the company to provide the additional benefits to the employees who work for the full-time job so that employees whose working hours are short they can try to extend their time and this will resolve the problem of Labour supply.
- It is recommended to the company to start providing training and development facilities along with that the company should make use of on- job training which helps the company to hire the cheap labor. The company should provide training to a batch of employees who want to perform a full-time job. By doing so the HR of a company will be able to plan and recruit easily.
Human Resource Planning and Recruitment
The changes in the generation are visible with the change in the century. Most of the people in the current generation want to work in the food industry to spend time and to earn some amount as a pocket money and this is the reason they either work on seasons or work for short hours (part-time jobs). After achieving the personal objective these employees leave the company and this leads to the problem for burger king as their retention rate will increase and company have to recruit more employees and have to spend the time and money on those employees (Ulm, Mate, Dalley, & Nichols, 2013).
- The HR of the company has to be very specific while hiring the employee and along with that the HR should have the skills to check that the employee will stay in the organization or not.
- The company can offer bonus and extra rewards to the employees if they stay in the organization for more than 3 months. This makes the employee stay in the company because initial 3 months is the saturation point where employee feel to switch the job, if they are able to stay for the 3 months then they may stay longer (Vu, Bo, Brooks, Cheng, & Tsang, 2012).
The labor demand shows the relationship between the wages of workers and the number of hour’s labor is working. Burger King is not able to maintain this relationship and this is the reason their retention rate is high (Sardar, & Talat, 2015). The company doesn’t pay much amount to the employees who are doing overtime to make some personal for their personal interest. This is the reason the employees of the company leave or switch which create the problem for the company. For example; in the year 2014, there was a fight for $15 organizers who are demanding employee for their wages and asking for status from SEIU (Kasperkevic, 2016). Most of the companies pay the wages according to the shift hours, similarly, Burger should provide the fair wages the employees considering the 60 hours working for a day.
- The company should follow the policy and should pay the fair wages to the employees, if in case the employees are doing overtime then a company should pay the amount along with the incentives considering the efforts of the employees.
- The inventive plans not only help the company to retain the employees but this incentive will motivate the employees and then the productivity of the employee will enhance.
- It is recommended to the company to keep 8-9 hours shift instead of 10 hours (Hart, 2010).
The income level of the workers in Burger King is very less, this is the reason the workers of the company are fighting for the high wages. The employees of the Burger king get less than $6.93 per hour which is less than minimum wage. Labour who is engaged in the full-time job only gets the wages account for $14,414 annually. Income factor affects the motivation of the employees towards the work. The HR of the company only provides the placement to the people who agree to work with Burger King at a low price, the reason being the company is not willing to spend more amount because they know that the employees can switch any time they want (King Size Combo, 2017). On Glassdoor, an employee who worked for the company for 5 years shared his review and he said that the situation of the company is becoming worst as most of the employees are overworked and underpaid (Glassdoor, 2017).
- Burger King should establish a day-care center through which the employees of the company can share their problems.
- Distribution of the wages should be fair according to the working hours of the employees avoiding the unnecessary deductions.
- It is recommended to the company to please listen to the employees so that through communication they can resolve the problems faced by the workers which generate the efficiency and effectiveness.
Challenges Faced by Burger King
The company might also face other challenges such as an image of the organization for the stability workers. This is a fact that the company is well known and maintain a good brand value, as it is the second largest company in the burger chain (Diamond, 2015). Though, on the other hand, the company is going through with the highest turnover which is enhancing the problems for the HRD. In the year 2008, the company had a turnover rate of 210% confirmed by Weblog. The high turnover of the company creates an impact on the image of the brand, as the people don’t want to work with the companies who are not having good feedback for the working environment (Ryu, Lee, & Gon Kim, 2012). This is the reason most of the potential employees of the company don’t give an interview because of such image in the market. This image not only affects the existing or potential customer but also create an impact on the newcomers.
- The company should try to grab the attention of the people who are new to the field because these newcomers can work for the company at the low prices. The company is providing an advertisement for the job vacancy. The company started using JobApp network’s in the year 2009 because during that time the restaurants faced a tough time. The company took this step in the year 2009 because according to the bureau of labor statistics in the year 2008, there were approximately 2.6 million of the employees who lost their jobs (Hospitality Technology, 2009).
- It is recommended to the company that to improve the brand image in the market, a company should provide the other facilities to the employees that help in enhancing the image of the company in labor market.
Conclusion
The report talks about the challenges faced by the Burger King company while recruiting and planning the employees. The growth and success are not possible without the employees and this is the reason recruiting process is becoming important for the company as the company is having outlets in more than 73 countries. The need of the human resource is only for the new outlets but for the existing outlets and along with that, there is need of the specialist employees for the coordination among the outlets. Moreover, the report talks about the challenges faced by the burger king while planning or recruiting the employees for their working.
References
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Diamond, M. L. (2015). 5 steps restaurants can take to reduce turnover. Retrieved on 20th May 2017 from https://www.app.com/story/money/business/main-street/2015/07/10/bubbakoos-restaurant-worker-turnover/29956771/
Edghill, K. (2015). THE NEW AUSTRALIAN FRANCHISING CODE OF CONDUCT AND THE OBLIGATION OF GOOD FAITH-WILL IT LIVE UP TO EXPECTATIONS?. International Journal of Franchising Law, 13(1).
Glassdoor. (2017). Burger king reviews. Retrieved on 20th May 2017 from https://www.glassdoor.com/Reviews/Employee-Review-Burger-King-RVW2288664.htm
Hart, B. (2010). Working Time and Employment (Routledge Revivals). Routledge.
Hospitality Technology. (2009). Burger King Franchisee Cuts Employee Turnover in Half with Job Network. Retrieved from 20th May 2017 form https://hospitalitytechnology.edgl.com/news/Burger-King-Franchisee-Cuts-Employee-Turnover-in-Half-with-Job-Network53253
Kasperkevic, J. (2016). Fight for $15 organizers demand employee status from SEIU. Retrieved on 20th May 2017 from https://www.theguardian.com/us-news/2016/aug/12/fight-15-organizers-demand-employee-status-seiu
King Size Combo. (2017). What Burger King and Goldman Sachs Are Costing Our Country. Retrieved on 20th may 2017 from https://www.pehub.com/wp-content/uploads//burgerking.pdf
Panczel, Z. T. (2010). FRANCHISING AS A MODEL IN FAST FOOD INDUSTRY. Annals of DAAAM & Proceedings.
Ryu, K., Lee, H. R., & Gon Kim, W. (2012). The influence of the quality of the physical environment, food, and service on restaurant image, customer perceived value, customer satisfaction, and behavioral intentions. International Journal of Contemporary Hospitality Management, 24(2), 200-223.
Sardar, R., & Talat, M. A. (2015). What managers believe as important while recruitment in fast food industry within Norway: A case study of Burger King and McDonalds (Master’s thesis, University of Stavanger, Norway).
Shetty. N. (2011). Human Resource Management of Burger King Holdings. Retrieved on 20th May 2017 from https://www.managementparadise.com/forums/human-resources-management-h-r/213979-human-resource-management-burger-king-holdings.html
Taylor, P., McLoughlin, C., Brooke, E., Di Biase, T., & Steinberg, M. (2013). Managing older workers during a period of tight labour supply. Ageing and Society, 33(01), 16-43.
Ulm, S., Mate, G., Dalley, C., & Nichols, S. (2013). A working profile: The changing face of professional archaeology in Australia. Australian Archaeology, 76(1), 34-43.
Vu, A., Bo, D., Brooks, J., Cheng, V., & Tsang, M. (2012). Burger King: Changing or Imitating?.
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