operations in several states, pays minimum wages, offer no benefits to employees, and has a
twenty-five percent (25%) employee turnover rate per year. Management has constantly searched
for a solution to the enormous employee turnover rate that has cost the franchise several
thousand dollars per year, without finding a valid conclusion or reason(s).
Further investigation revealed various cost directly associate with the high employee
turnover has created problems for the Burger World franchise. Some of the cost associate with
high turnover will be: recruitment/training cost; overtime; when other employees fill in at vacate
positions; loss productivity; the cost of mistakes; and low morale that spreads like a cancer
throughout the workplace. When these cost are added together, employee turnover cost
can be astromical.
Fortunately, there are things Burger World can do to reduce high employee turnover
by offering higher wages, moderate benefit packages, and incentives that will eventually be paid
by increase customer sales, and reduced employee turnover. Burger World can create programs
that will motivate employees and improve their performance. Incentive and rewards programs
can also be good motivators in providing employees with a safe and comfortable environment
that will increase that desire to want to stay at Burger World. Studies have shown that a safe,
comfortable, friendly work environment are important factors in reducing enormous employee
Conclusion: My recommendation to Burger World to help them reduce the 25% employee
turnover rate that has plagued the fast food industry for so long; would be for them to do
implements changes in their interviews during the hiring process.
Provide a questionnaire that will focus on the potential employees’ desire to want to have an
long lasting employee/employer relationship at Burger World.