Employee Turnover Case Study

The most important step in determining the best retention strategy is to address high employee turnover instead of focusing on cutting labor costs in the fast food industry (Harris). Business owners often choose to control and reduce employee wages to the levels that are as low as possible to maintain their company’s profitability. Business owners practice wage decreases on labor cost because they fear that if they do otherwise, the costs of products would be higher on consumers. Therefore, this would decrease customer demand. They believe that increasing wages would not be profitable in any way for their company. They ignore the biggest issue of high turnover that they instead should focus on, by doing so. The employee turnover rates are high …show more content…
This helps employees to feel that they are valued and committed to their organizations. As stated by the CEO of a big fast food chain based in Atlanta, it is observed that the more the leaders of the organizations act in supportive and caring ways towards their subordinates, the more the chances are that they could retain the employees (Broner). This indicates the fact that the upper level management should train the supervisors who are in direct contact with the employees on a daily basis on how they should treat the employees. Supervisors should be trained on the importance of exhibiting care, concern and fair treatment, as these are the main factors that contribute to employee satisfaction and retention. Therefore, we can suggest that upper management in the fast food industry should carry out research-based strategy to ensure that they discover the underlying facts about why employees perceive their supervisors to be ineffective. The management should acknowledge that employee turnover considerably has to do with what kind of treatment they receive from their …show more content…
However, some studies have concentrated on fast food chain owners who were able to retain the majority of their employees for more than 10 years. According to the Business Opportunities Journal, Jack in the Box being one of the biggest fast food chain, provided some benefits to those employees that have remained with the company for quite long periods of time. However, employees who didn’t receive any benefits left their companies within short periods (Giegerich). We can recommend that business owners in the fast food industry offer benefits to help retain employees in their companies for longer periods of time. Benefits that the employees devote great values include retirement plans, health insurance or even stock options. Furthermore, managers could be rewarded by incentive bonuses for their additional efforts to retain employees