Explain Management Managing Human Resource?
The report talks about the challenges faced by the company during the recruitment process. For each and every company workforce or employees of the company is key to the success for the company. This paper talks about the challenges faced by the food industry (burger king). As this industry has the highest employment retention rate. Burger king is having a global food chain and it’s an American company founded in 1953 (Panczel, 2010). This paper includes the problems or challenges faced by burger king and also the strategies that company should follow to overcome challenges which are faced by the company.
Recruitment is the process of selecting and appointing candidates for jobs. It pays a vital role for Human Resource Management. In other words it is an action taken by the organization to add new arm force to the company (Breaugh, 2017). Each and every company needs employees to expand their business for that they have separate human resource management team. As burger king do have teams who take care of human resource. Burger king has more than 12,200 outlets, in 73 different countries (Shetty, 2011). In Australia, burger king is known with name of hungry jacks. When burger king took decision to establish there outlets in Australia they came to know that name are trademark by takeaway in Adelaide so they kept the name hungry jacks (Edghill, 2015). Food industry is having highest employee’s retention so that brings increase in demand of workforce in food industry. In recruitment Process Company hire people who fit to their requirement. So company faces different challenges in the recruitment process.
Below points shows what are the different challenges faced by burger king in recruiting workforce and what all strategies they are following or should follow to overcome that problem.
Organization image in the prospective of stability of employees: - Burger king is the emerging company as it is the second largest company in burger chain but on the other hand company is having the highest employment turnover rate this lead to problem for human resource management team. As per the Higher education weblog in the year 2008, burger king had a turnover rate of 210%. This shows company’s image in the prospective of stability of employees in the company. That brings a question in the mind of job seekers – why employees do not stay for long time in burger king? This question impact those people who want to give interview but they are not giving interview as they found that burger king don’t have employees stability scope. Job seekers also check reviews given by previous employees for the company on different portal so this will also impact the organization image towards the new comers (Ryu, Lee, & Gon Kim, 2012).
Challenges in Recruiting the Workforce
Strategy Recommended: - Burger king need to work on the employee turnover rate because this is the reason which is stopping new comers or job seekers to come in the field. This reason is becoming huddle for the human resource management team while doing recruitments. Company should identify those people who are new in the career as this may lead to stability of employee in the company. For identifying these kinds of employees company is giving advertisement of job vacancy with full requirement. In 2009, it was a tough time for restaurants so Burger king started using JobApp network’s for the human resource. As per the bureau of labor statistics, in 2008 there were 2.6 million who losses their job. They started using app for 48 outlets and later the number increased. This will create a mindset of job seekers that company is looking for employees who will fulfill their specify requirement of skills (Hospitality Technology, 2009).
Labor supply: - Labor supply is the total working hours of labor work wants to work in a real wage (Taylor, McLoughlin, Brooke, Di Biase, & Steinberg, 2013). Working in food industry needs skills, the way you treat or talk with the customer, the way you handle complains etc. so that skills need to be there in person. While recruiting the employee, burger king team always checks the skills that the person has, either the worker will be able to manage the work or not. So they hire skilled workers who can actually work. But definitely the person who have the skills and ready to work certain no. of working hours will ask for good wage on the other hand burger king management try to hire people at less amount. Labor always more wage, but it should be actual wage depending on skills so this lead to problem and will became a challenge for recruiting employees.
Strategy Recommended: - Burger king should hire employees who have skills and potentials to work in the company. There are many workers who are experienced in food industry so they ask for high amount of salary for the certain number of working hours. So, company should hire employees for full time work and provide them wage according to their skills and potentials. Company has started providing extra benefits to the full time workers that are benefit related to dental, medical, optical etc. This creates the stability of the employees in the company and will help in reducing the challenges in the recruitment process of the company.
Organization image in the prospective of stability of employees
These are some demographic issues which are related to the personal and socio characteristics such as generations, income level, age, gender, etc. these issues bring challenges in the recruitment process.
Income level: - The income levels of the workers are very less. Burger king fast food workers fight for their income. They get less then a medium wage that is $6.93 per hour. Employees who work for full time job only get wage accounts to $14, 414 per year. This decreases the motive of working and will lead to retention of employees (King Size Combo, 2017). While recruiting the employees, the human resource team gives placement to whose employees who are ready to work at low price. Because don’t want to expand more on their employees. As per the employees reviews given on Glassdoor, they say that there is a situation of over worked and under paid. This statement is given by the worker who worked for 5 years (Glassdoor, 2017).
Strategy Recommended: - Burger king company is providing less amount of wages to the employees. As there are more workers who are working for part time job and for seasonal purpose. Company should come up with some motivational scheme so that employees will stay and they choose their work as their career. Company should think to establish a daycare center, which helps the employees to share their problems at one go. Management should listen to the problems faced by employees and also they should make proper salary criteria for the employees who are working. Should provide fair wages to the employees, no unnecessary deduction should be there.
Generations: - Today’s generation works at food industry just to spend time or earn some pocket money or they do part time jobs or do job at seasonal time. Some work for the financial problems (Ulm, Mate, Dalley, & Nichols, 2013). So this left impact on the companies. Company face problems when they hire those employees because they leave their jobs very frequent and this will impact the working of the company. So while doing recruitment company have to keep in mind that the person they are hiring will stay or not. When company needs more and more employees so they hire employees for part time job or as seasonal employee. This lead to ongoing process for the recruitment and will create challenges for the human resource management team.
Strategy Recommended: - As youth generation keep switching their jobs so to hold employee retention, the company offers a signing bonus to the employees and will pay that bonus to the employees when they complete 3 months of the working in that organization. This is the strategy of burger king to retain the employee’s at least for 3 months, which will definitely affect the employee turnover rate. Though 3 months is not a long duration but for food industry it is a time when company can earn annual turnover averages 300% approx. these incentives plans attract more and more people (Vu, Bo, Brooks, Cheng, & Tsang, 2012).
Labor demand: - Labor demand is the relationship between the wages of worker and no. of hour’s labor is working (Crinò, 2012). This lead to recruiting problem as burger king don’t pay to their employees even though if workforce is doing overtime the company don’t pay to the workers for their work as well. So this will demotivate the workers and lead the problem in the stability of workers. In the year 2014, there was a Fight for $15 organizers who were demanding employee for their income and was asking for status from SEIU (Kasperkevic, 2016). Company keeps shift timings for almost 60 hours a week that is too much for the employees who are working. If coming is keeping the huge shift timings then company should also give a good wages to the employees of the company.
Strategy Recommended: - Company should pay to the workers according to the number of hours they are working. If any employee is doing overtime company should pay the amount for the overtime as well so that they get motivate and do their work willingly. Apart from, company should provide extra incentives plans for working in effectively and efficiently. Company should make strategies to prevent the formation of any union because they may lead to more problems and this will lead to problems or challenges for the company. Company can also take necessary steps to change the number of working hours. If there is a shift of 8-9 hours daily then employees can give their best and can work with full efficiency and effectively (Hart, 2010).
A hungry jack’s is on the second position in the burger chain but being on second position doesn’t mean company doesn’t have to work on challenges faced by the company. There are many challenges which a company can face out of which one of the challenges is recruiting employees for the company. There are many influencing factor, company should focus on those factors. Accounting company should make proper strategy on time because with the time the factors start leaving big impact on the company’s working. Over here, company need to focus on other companies whose ever is having low employment retention such as Bubbakoo’s, this company believe in the stability of the employees (Diamond, 2015). Company provides slightly higher wage to the employees then a minimum wage and also provide incentives to the employees. This leads to stability of employees in the company. Company should create a good reputation in front of employees and also for recruiting human resource team can give advertisement through different media. Out of which the best source is online as there are websites where company can clearly mention the requirement of skills. As company started using JobApp Network they got a positive response after using it there turnover started decreasing and they decided that they are going to roll out JobApp Network for reaming 216 restaurants. Company should keep using JobApp Network this will help in keeping employee stability (Hospitality Technology, 2009).
This report focuses on the recruitment process of the hungry jacks. For the growth and development each company have to hire more and more employees so that they can expand their business. As company is having different outlets in more than 73 countries so hiring process is important for them to develop more outlets. Not only for developing outlets but for the working of existing outlets they need more employees because company is having high employment turnover rate (Sardar, & Talat, 2015). The paper also talks about the challenges faced by the company during the recruiting process. Factors related to demographic factors, labor demand/supply and organizational image in the prospective of employees retention. So for deceasing the recruiting challenges company is following some strategies as well. There are some other recommendations that company should follow for the smooth working of company. This report shows how these factors should be taken into the consideration and analyzing these factors will increase the skills and potentials and make them capable to understand the analysis of organization.
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