McDonald’s franchisees offer higher hourly wages, paid vacation and tuition fees for winning over employees because restaurants across the industry are struggling to recruit employees.
The company told CNBC that McDonald’s and franchisees would jointly invest millions of dollars in enhanced workers’ compensation programs, including pilot programs for emergency childcare programs. During the pandemic, caregiver benefits have become popular among businesses as employers seek to compete in a tight job market.
During the Covid shutdown, the restaurant industry was one of the worst-hit businesses and laid off many workers when sales stalled. Now all walks of life across the country have fully resumed operations, and restaurants are trying to keep up with demand. Large chain restaurants, including Papa John’s, Chipotle and P. F. Chang’s, have increased incentives for new employees, including signing bonuses.
McDonald’s stated that the plan is based on feedback from more than 5,000 crew members, managers, owners, and operators. The company hopes that these changes will help it remain competitive in recruiting employees.
According to the Wall Street Journal, which first reported the news, McDonald’s franchisees agreed last month to help promote training, workplace flexibility, compensation and benefits for all market employees.
Franchisees own around 95% of McDonald’s locations, and corporate owns the remaining 5%. Very recently in this year, McDonald’s announced a salary increase of about 10% for some employees of the company’s restaurants, as it scrambled to recruit employees and meet demand. The company predicts that by 2024, its median hourly wage will reach $15.