Franchises can be a great way for both the original company and for the franchise owner to make money. After all, expanding a successful brand can oftentimes work very well. However, franchise businesses often face a number of HR issues that can present challenges to franchise business owners. Here are some of the most common HR issues in the franchising industry.
1. High Turnover Rates
Turnover rates can be extremely high for business franchises. The reason is because many franchises have low paying jobs that are worked by young people who only view the positions as temporary. For example, McDonalds, KFC, Starbucks, and other big name franchise businesses often employ high school students, or college students who are looking for temporary work.
Due to this phenomenon, many of these employees quit after only working at the business franchise for a short period of time. This puts franchise owners in a position where they have to hire people frequently, and this can be a challenge. It can cost an average of 16 % of an employee’s yearly salary to replace him or her for franchise owners.
To eliminate the damage done by high turnover rates franchise owners should try to not place too much responsibility in the hands of one employee. They should also offer any benefits possible to keep employees more incentivized to keep working for the business.
2. Employee Scheduling
Franchise businesses oftentimes have many seasonal or part-time workers. Because of this, scheduling can be trickier at franchises than at other companies. So, oftentimes, managers at franchises can be overwhelmed by the scheduling requirements that are necessary to keep the business running at all work periods.
To make the employee scheduling process easier, franchise managers can use an employee scheduling app, such as the NimbleSchedule app. The NimbleSchedule app allows managers to generate schedules, approve shift or shift swap requests, approve or deny time off requests, and even track employee work hours, all from the convenience of their mobile devices. It is an incredibly handy tool to have when it comes to employee scheduling.
3. Workplace Safety
Workplace safety is another HR issue that can be extremely prevalent in the franchising world. The reason is because many employees who work at franchises are new employees and are not well tuned in to the dangers that can occur while on the job.
For this reason, it is important for HR personnel to conduct safety training for all new employees at franchise businesses. Also, it is crucial that franchise owners have adequate workers’ compensation insurance. Adequate workers’ compensation insurance will go a long way toward protecting the company financially, and looking after workers if injuries to employees occur at the business.