McDonald’s to offer childcare and tuition amid hiring push
McDonald’s will be offering tuition payments and higher hourly wages as well as childcare support in an attempt to attract workers due to many of its restaurants struggling to employ staff in the US.
Since the pandemic, the fast food giant has let staff members go in order to save running costs, but is now experiencing difficulties finding staff as the Covid restrictions ease.
Franchises own around 13,450 U.S. stores. McDonald’s corporate parent stated that it will support these efforts by making a multimillion-dollar investment.
Surveys have suggested that some people are hesitant to re-enter the workforce because of healthcare risks, childcare issues and unemployment benefits.
Some restaurant owners in the US will introduce perks which will include the provision of emergency childcare.
Owners agreed to increase pay and benefits in June, which has been validated by the National Franchise Leadership Alliance (NFLA) who represent thousands of U.S. franchises.
Individual restaurants are now adopting the same initiative with one franchise owner in Colorado who is reported to have spent colossal figures on wage and benefit increases, according to McDonald’s.
David Costa, a restaurant owner and officer with the company-backed National Franchisee Leadership Alliance of franchisees, stated that he hopes the incentives will help McDonald’s and its operators compete in today’s job market, which he said will, “remain employers of choice in today’s increasingly competitive hiring environment”.
This summer, McDonald’s franchisees will investigate how their pay compares with other employers in the industry which will make it more attractive. Other franchisees are also offering employees backup child and elderly care this summer.
Wages
The golden arch chain have declared that it will boost wages to around $15 per hour by 2024. That followed significant pressure from campaign groups such as ‘Fight for 15’.
Various other restaurants are attempting to understand how to lure workers back. These include Chipotle Mexican Grill who implemented a survey which led to the annoucment of boosting their wages to around $15 an hour. Also Shake Shack Inc are reported to have increased their hourly wages at more than half of their U.S. restaurants this year.
U.S. President, Joe Biden has released a $1.9tn rescue package in March, so workers can receive a weekly pay at $300 if they are left unemployed.
The Federal Reserve is monitoring unemployment and wage increases in order to combat the rising cost of living.
“The economic downturn has not fallen equally on all Americans, and those least able to shoulder the burden have been hardest hit,” stated Federal chairman Jerome Powell. He has said that opening economy has caused the rising costs to mirror “transitory factors” and wants to continue support following the Covid crisis.