INSIGHTS/

The Secret to Retaining Top Talent

Here’s the bottom line: If you don’t provide opportunities to your employees, another company will. And some who think there’s no chance for advancement at your business won’t bother to apply.

June 21, 2023

Why Your Franchise Should Promote From Within

Do you struggle to find good employees, retain the ones you have, and keep your team happy? Many franchise owners do, but promoting from within your existing staff can help move the needle on all these problems and provide other benefits along the way.

Research shows that internal promotions promote higher retention, boost team morale, and improve loyalty. Many people still perceive quick-serve restaurant positions as “dead-end jobs,” and those who think that way are more likely to job hop in search of the highest pay rate. But when your workers can see a future for themselves at your business, it incentivizes them to stick around.

Younger workers are especially eager to manage and want to see a career path for themselves at their jobs. Those who feel “stuck” become disillusioned quickly and feel they have no future at the company. So, it’s in your best interest to talk with your staff about their goals and provide leadership training. Even better, internal candidates typically cost less than outside talent and are more likely to stay in the position.

Of course, some people aren’t cut out for management roles, so you shouldn’t let people rise in the ranks just for the sake of it. But you should have strategies in place for your employees who express interest in receiving mentorship and working on skills they’ll need to have a shot at a promotion. Developing your employees makes them feel more fulfilled while improving their work.

Further, you might think outside the box about what constitutes a promotion. Do your employees consider working the drive-thru window a step up from staffing the grill? Their perceptions matter, and allowing more tenured employees to advance to more desirable roles builds morale even when the change doesn’t come with a raise.

Here’s the bottom line: If you don’t provide opportunities to your employees, another company will. And some who think there’s no chance for advancement at your business won’t bother to apply. Change their perception by developing your talent and proudly advertising your efforts. You’ll likely see higher-quality candidates, great workers who want to stay and grow, and happier teams.

West Coast Franchise Law

If you have any questions about franchising, please contact the experienced franchise and business law attorneys at West Coast Franchise Law today at (206) 903-0401 to discuss your situation. Nate Riordan is a 2023 Franchise and Bankruptcy Super Lawyer with over 20 years expertise helping clients achieve their business goals.