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EMPLOYEE DISSATISFACTION &

RETENTION
RESEARCH REPORT presented by:

Taco Bell IP Holder, LLC, Yum! Brands, Inc. and/or its franchisee, affiliates, or subsidiaries are not associated with this guide or its production. The Taco Bell logo is a registered trademark and copyrighted work of Taco Bell IP Holder, LLC
EXECUTIVE SUMMARY

Netchex reviewed approximately 100 employee reviews on the job review site, Glassdoor.
com. It should be noted that Glassdoor, Inc is not associated with this review and/or its
findings. For the purpose of this report, Netchex interpreted cons within employee reviews
from July 9, 2019 to August 26, 2019. Information provided was categorized by topic to
determine the most common issues associated with Taco Bell employees’ dissatisfaction.

KEY FINDINGS
The research conducted online found Taco Bell employees report the following issues among
their top reasons for dissatisfaction and/or reasons for leaving the company:
1. Stressful Conditions/Long Hours
2. Other
3. Poor/Ineffective Management
4. Low/Inconsistent Pay

RECOMMENDED TECHNOLOGY SOLUTIONS


Based on the identified points of dissatisfaction, the following technology solutions are
recommended:
• intuitive recruiting for smarter hiring
• electronic onboarding/team introduction to build stronger team relationships
• customizable pay options to offset pay dissatisfaction
• expert level hr advice and policies to address other issues

Confidential and proprietary. © Netchex 2019 All Rights Reserved 2


INTRODUCTION

In the restaurant and hospitality


industry, having the right staff at the
right time is crucial to overall business
success. Employees in this industry
greet and serve customers daily and
are often the only face many customers
see as a representation of a company’s
entire brand. A study presented in the
Journal of Services Marketing found that
higher employee satisfaction resulted
in higher customer satisfaction, greater
consumer loyalty, and increased profits1.

While some factors that contribute to


employee satisfaction may be out of a
company’s control, this report will seek
to determine the top actionable areas
where Taco Bell franchisee groups can
impact employee satisfaction.

1
Robert F. Hurley, Hooman Estelami, (2007) “An exploratory study of
employee turnover indicators as predictors of customer satisfaction”,
Journal of Services Marketing, Vol. 21 Issue: 3, pp.186-199, https://doi.
org/10.1108/08876040710746543

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METHODOLOGY
Netchex reviewed approximately 100 employee reviews on the job review site, Glassdoor.
com. It should be noted that Glassdoor, Inc is not associated with this review and/or its
findings. For the purpose of this report, Netchex interpreted cons within employee reviews
from July 9, 2019 to August 26, 2019. Information provided was categorized by topic to
determine the most common issues associated with Taco Bell employees’ dissatisfaction.

AUDIENCE DEMOGRAPHICS
JOB TITLE
Of the 100 reviews, roughly 87 participants
provided demographic data (e.g. job title,
location, etc.). As indicated in Figure 1.1, over
28% of respondents identify as cashier.

Figure 1.1 Job Titles of Reviewers


LOCATION
The selected reviews were from various cities
in the U.S. including:
• Los Angeles, CA
• Tucson, AZ
• Cleveland, OH
• Olathe, KS
Respondents were primarily located in the
Eastern/Mid-West regions of the country and
Figure 1.2 Locations of Reviewers
California.

EMPLOYMENT STATUS
While most of the respondents on Glassdoor.com are
former employees, it should be noted that over a third
identify as current employees. The findings in this report
may indicate current or ongoing issues within the chain
or franchise locations.

Figure 1.3 Employement Status of Reviewers

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OVERALL RECOMMENDATION OF
TACO BELL RESTAURANTS
The consensus of participants responding
to wheter or not they would recommend
employment at Taco Bell skews more toward
recommending. It should be noted that while
the “Recommend” rate for the time period we
observed for this report is at 59%, Glassdoor
reports an all-time “Recommend” rate of 66%.

Figure 2.1 Percentage of Reviewers who “Recommend” Taco Bell as


a Place of Employment

WHY IS THIS IMPORTANT?


Brands like Taco Bell should pay close
attention to an employee’s likelihood to
recommend friends for one simple reason
recruiting. According to a recent study by the
Nation’s Restaurant Association Educational
Foundation2, over 70% of Millennials and Gen Z
job seekers say that a positive recommendation
from a friend or family member who has worked
at a restaurant would influence their decision to
take a job at a particular restaurant.

2
National Restaurant Association Educational Foundation, and The Center for
Generational Kinetics. Serving the Next Generation of Restaurant Leaders. Fall 2018.

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TOP DISSATISFACTION FACTORS

After reviewing 100 employee reviews, we identified the following issues mentioned most
frequently:
1. Stressful Conditions/
Long Hours
2. Other
3. Poor/Ineffective
Management
4. Low/Inconsistent Pay

1. STRESSFUL
CONDITIONS/LONG
HOURS
Over 40% of reviewers
complained about stressful
conditions and long hours.
Reviewers that complained
about long hours and/or
stressful conditions were also Figure 3.1 Top Dissatisfaction Factors Ranked by Percent of Reviews Containing Wording
likely to cite additional reasons, such as management, and were also more likely to complain
about poor management and low/inconsistent pay in addition to working conditions.

2. OTHER
While parsing through the reviews we did find several “cons” that did not fall within
previously mentioned categories. Some that stood out that we would like to call attention to
include:
• Gender Discrimination

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• Lack of required breaks
• Difficult Co-workers
• Training/Learning

3. POOR/INEFFECTIVE MANAGEMENT
Disparaging statements, such as “management is hard to work with” and “Managers
don’t care,” were found within 22% of the employee reviews. Those that complained
about management seemed more likely to be former employees, indicating management
involvement could have been a factor in the employee’s turnover.

4. LOW/INCONSISTENT PAY
Roughly 18% of reviewers also complained about low or inconsistent pay. Respondents that
felt their pay was low/inconsistent were also more likely to cite long hours, as well as the
stress level of the job as contributing factors. They also tended to be former employees and
pay may have been a factor in the employee’s turnover.

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RECOMMENDATIONS TO

COMBAT EMPLOYEE

DISSATISFACTION
With the food service industry continuing to face
turnover rates well over 70% , its imperative that 3

brands such as Taco Bell get a firmer grasp on


employee attrition factors. Here, we will examine
some possible solutions, as well as technology
geared to combat the aforementioned factors.

3
2018 Bureau of Labor Statistics

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PROBLEM: STRESSFUL CONDITIONS/LONG HOURS

SOLUTION: BUILD RELATIONSHIPS

The food service industry can be tough due to


long hours and high customer demands which
often this leads to employees feeling burnt
out. In a recent article, the Society for Human
Resource Management recommends building
relationships as way to prevent employee
burnout6. This can be through company-wide
charitable initiatives, but also through shared
personal interests.

Fostering an environment that allows for


employees to build relationships based
on common interests outside of the work
environment can prove to be beneficial for Taco
Bell franchisees. One way to start building such
an environment is to utilize an electronic team
introduction solution that allows employees to
share interest, social media handles, and more.

6
Meinert, Dori. “How to Prevent Employee Burnout.” SHRM. April 11, 2018. Accessed
May 24, 2019. https://www.shrm.org/hr-today/news/hr-magazine/0817/pages/
how-to-prevent-employee-burnout.aspx.

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PROBLEM: OTHER (VARIOUS ISSUES)

SOLUTION: EXPERTLY CRAFTED


HR RESOURCES

Many of the “other” issues noted in the employee


review sampling echoed the HR challenges
outlined in a recent Modern Restaurant
Management article7. Some issues raised include:
• Gender Discrimination
• Lack of required breaks
• Difficult Co-workers
• Training/Learning

Providing a helpful resource for managers to


access expert HR advice and policies is imperative
for franchisees to manage today’s workforce.

7
Pescatore, C. (2019). Ten HR Challenges That May Be Holding Your Restaurant Back
| Modern Restaurant Management | The Business of Eating & Restaurant Manage-
ment News. [online] Modern Restaurant Management. Available at: https://www.
modernrestaurantmanagement.com/ten-hr-challenges-that-may-be-holding-your-
restaurant-back/ [Accessed 28 May 2019].

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PROBLEM: POOR/INEFFECTIVE MANAGEMENT

SOLUTION: SMARTER HIRING


Building a better workforce starts with hiring
the right team leaders. One of the more effective
ways employers can do this is by developing an
understanding of the specific talents and “soft
skills” job candidates need. According to Touro
University Worldwide4, the five traits of a good
leader are:
• Empathetic
• Decisive
• Transparent
• Tenacious
• Motivational

When recruiting for managerial positions, Taco


Bell franchisees might consider incorporating
pre-screening questions designed to measure
these traits. For example, to measure a potential
manager’s level of empathy, Wisestep.com5
suggests questions like:
• What do you fear the most?
• How will you help your company and team
when the company faces some uncertain
events?
• What is your contribution towards society?

With a proper Applicant Tracking System (ATS) in


place at the start of the recruiting process, Taco
Bell franchisees can build such questions into the
prescreening process. This will allow franchisees
the opportunity to build a talent pool of only the
most qualified candidates.

4
Touro University WorldWide. (2019). Five Traits of a Good Leader | Top Leadership
Qualities | Manager Skills. [online] Available at: https://www.tuw.edu/program-re-
sources/traits-of-a-good-leader/ [Accessed 30 May 2019].

5
Reddy, Chitra. “Top 21 Empathy Interview Questions and Answers.” WiseStep.
November 23, 2018. Accessed May 23, 2019. https://content.wisestep.com/top-em-
pathy-interview-questions-answers/.

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PROBLEM: LOW INCONSISTENT PAY

SOLUTION: EXPANDED PAY


OPTIONS
With growing inflation rates9, remuneration will
likely always be an issue for employees. Many
industry leaders have implemented incentives
to reduce employee dissatisfaction and
subsequent turnover. Brands like Papa John’s
and Chick-fila offer education perks in the form
of free tuition and scholarships funds.

However, profit margins and other economic


factors may make it difficult for many
franchisees to expand budgets to include
educational perks. In that case, Taco Bell
franchisees might consider changes in pay
frequency and/or format. Many in the industry
have implemented weekly or daily pay options
for employees. Additionally, options like pay
cards can give workers access to pay earned
at any time without the need to run to the
bank. More frequent pay and easier availability
of funds can alleviate financial stress many
employees face when waiting for bi-weekly
paychecks.

9
The Balance. (2019). How Bad Is Inflation? Past, Present, Future. [online] Avail-
able at: https://www.thebalance.com/u-s-inflation-rate-history-by-year-and-fore-
cast-3306093 [Accessed 28 May 2019].

Confidential and proprietary. © Netchex 2019 All Rights Reserved 13


CONCLUSION
This report examined over 100 Glassdoor.com employee reviews from around the United
States to determine the top reasons for employee dissatisfaction and possible turnover. We
found the 4 main points of dissatisfaction to be:
1. Stressful Conditions/Long Hours
2. Other
3. Poor/Ineffective Management
4. Low/Inconsistent Pay

In addition to the 4 points outlined above, we found that over 25% of respondent grievances
fell within a category we deemed “Other.” Issues among the “other” category included:
• Gender Discrimination
• Lack of required breaks
• Difficult Co-workers
• Training/Learning

Combating all the issues outlined above is crucial for the continued growth of the Taco Bell
brand and its franchisees. Within this report we outlined the types of software a franchisee
can consider when tackling the aforementioned dissatisfaction points.

A full-service HR provider like Nethex can easily and affordably provide Taco Bell groups with
the following solutions:
• Intuitive Recruiting
• Electronic Onboarding/Team Introduction
• Customizable Pay Options
• Expert Level HR Advice and Policies

It is highly recommended that Taco Bell franchisee groups reach out to their Netchex Sales
Representative for more information, or visit Netchex.com/tacobell to sign up for a free,
no obligation demo of the technology.

Confidential and proprietary. © Netchex 2019 All Rights Reserved 14

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