Mcdonald And Employee Retention Strategies

Employee retention refers to the technique employed by organization, in order to let employees, stick for long in the organisation, hence achieving low turnover, this is done by altering their HR policies and practices which are favourable to the employees. Employee retention has become a major problem these days, as every organization invests a lot of time, money, efforts and resources to recruit and groom employees and develop their skills in order to make him at par with existing employees. Employees have a tendency to shift their organisation after being fully trained for better salary, environment, growth and many other reasons. Thus organisation is in big loss then. To attract and retain best talent, company should meet employee’s needs …show more content…
One of the major reasons of employee’s leaving their job is because they want different working environment and it is not possible till you change the job. But McDonald was able to overcome this problem McDonald’s used a much innovated strategy, they introduced McPassport program in September 2006. Main purpose of introducing Mcpassport was that many of their employees desired to travel and explore different places. Therefore in Europe they decided to do something about it. Mcpassport is a certificate program to support the movement of employees from one restaurant to other across the European Union, in twenty five countries.To earn this, employees must earn good rating in their performance and there is no priority given based on seniority, it was open to all. They saw it as a tool to achieve long term goals. If an employee wants to leave one branch, they can go to another. This is how they will not lose their reliable employees and retain talent. Thus one restaurant’s loss is another’s gain. The time and money spent on the employee does not go waste and they achieve a fatter bottom line. This is a strategy of creating flexible work …show more content…
Exit interviews are a common practice when employees leave the organization. Maruti Suzuki is using ‘stay interviews’ to build a long term relationship with its employees. It is an informal conversation with the employee in order to understand them better. SY Siddiqui (Managing Executive Office) said that, it is better to understand employee’s needs and wants in advance, while they are working in the organization and make changes accordingly, rather than lose them to the competition and then asking for it. Senior managers are trained to specially conduct these interviews. For last three years, they have continuously made efforts to understand its employee’s aspirations and problems. By the help of that, it had come up with some changes in the HR practices and modified its performance ratings scale. The previous rating scale was not good enough for the employees as it was a four-grade scale. Excellent at top, very good, good and fair. Employees did not perceive ‘good’ as good, thus they revised to a five-grade scale: exceptional, star performer, high performer, performer and