Essay on Leadership: Pizza Delivery and Employee Turnover

Submitted By Tumka1
Words: 3051
Pages: 13

Domino's Pizza is a international pizza chain with roughly 9000 locations worldwide who has been in the pizzeria business for nearly 50 years. Domino's Pizza has a combination of corporate owned and franchised locations. They are also a publicly traded and multinational organization. Domino's Pizza has set their goal in becoming the number one pizza delivery service ever. Domino's Pizza falls under the fast food industry, which has been characterized for high employee turnover. Domino's Pizza is no exception to the high employee turnover of this industry. Domino's Pizza has a trend of young and inexperienced employees that only stay with the company for a short while. With turnover rates high and new inexperienced employees filling job positions it seems that Domino's Pizza is in a vicious cycle of hiring and re-hiring. Employees do not see Domino as a long-term dream job, but a temporary job just to earn money. The cost of the hiring process is taking a continuous toll on this pizzeria company.
In terms of my role with this company I have been asked to assume the role of a consultant. A manager has asked me for my expertise in handling the large employee turnover rate. In this industry the employee turnover rate can be as high as 200% to 300%. It can be quite a challenge to bring this rate down. However I am confident that with the right management strategies in place this employee turnover rate can decrease. It is all about getting the right people for the right job by shifting the focus on investing in the people of the organization. This new investment in the people of the organization is the right change in culture that management is looking for to decrease the unwanted and expensive employee turnover rate.
Domino's Pizza has created a system and culture where employees do not treat employment at Domino's Pizza a lasting position. With this in mind Domino's Pizza clearly does not value or understand their critical and most powerful asset, which is their employees. This industry with its high turnover rate is extremely costly. Any company can hire employees to fill positions, but is that company getting the right people? If a company is continuously hiring new people to fill the same positions that people have either quit or have been fired it sounds like something is wrong with the company not its people. Emphasis on satisfying the needs of its employees and understanding the motivation behind its employees will lead to job satisfaction and ultimately lower the employee turnover rate. If Domino's Pizza can implement strategic ways to reduce employee turnover they will be building themselves a bright future with the right people. Reducing the employee turnover at Domino's Pizza is goal, but how will Domino's Pizza be able to make this a reality?

A company is driven to reduce employee turnover to decrease the exceptionally large expense that comes with it. It is safe to say that as a company reduces its employee turnover rate the more profits are seen. Saving money, reducing costs, and increasing profits are serious motivations that companies have to reduce employee turnover. However there is more than just money at stake when it comes to employee turnover. What is the cost of employee morale, employee efficiency, quality of work, and productivity? According to Laser (1980), " While these human costs may be less tangible, their expense is equally significant" (p. 17).

Determining the driving force to why people leave a company is important. A common misconception is that money is the sole reason why people leave an organization. If it was that easy to understand then any company can just pay more and keep their people. However this is not the case. Mowday (1984) suggests that, "organizations that understand the reasons why their employees leave can take steps to reduce turnover" (p. 366). Money is not the sole motivator. People have certain needs, wants, and…