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What our Business Needs…

Employee Engagement

2004

77%

2004

2013

91%
2013

Customer Loyalty

Business Growth

Quality

Competence

Committed
People

Service
Confidence
Confidence
2004

2013

Cleanliness

Customer
Visits

Sales

Profits
What our Business Needs…

Employee Engagement

2004

77%

2004

2013

91%
2013

Customer Loyalty

Business Growth

Quality

Competence

Committed
People

Service
Confidence
Confidence
2004

2013

Cleanliness

Customer
Visits

Sales

Profits
What our Business Needs…

Employee Engagement

2004

77%

2004

2013

91%
2013

Customer Loyalty

Business Growth

Quality

Competence

Committed
People

Service
Confidence
Confidence
2004

2013

Cleanliness

Customer
Visits

Sales

Profits
Unlocking People Power

What our
business
needs

What our
people
value
Skills and Education
Clear career pathways
Blended learning
Training aligned to qualifications
Apprenticeship
ourlounge
Gamification
Engagement through digital channels
Low
36,296

Medium
31,603

High
35,434

Total Respondents = 103,333

Ranked Lowest to Highest by Digital Usage
Engagement through digital channels
Impact:
Commitment, Competence and Confidence
Employee Engagement

2004

77%

2004

2013

91%
2013

Customer Loyalty

Business Growth

Quality

Competence

Committed
People

Service
Confidence
Confidence
2004

2013

Cleanliness

Customer
Visits

Sales

Profits
Impact:
Commitment, Competence and Confidence
Employee Engagement

Customer Loyalty

Business Growth

Competence

Commitment

77%

2004

86%

2004

96%
2013

91%
2013

Quality

Competence

Committed
People

Service
Confidence
Confidence

68%

2004

87%
2013

Cleanliness

Customer
Visits

Sales

Profits
CSO scores
35

30

25

20

15

2007

2008

2009

2010

2011

2012

2013
Employee Turnover
100
90

80.2%
Percentage Turnover

80
70

Crew Turnover

60
50

36.7%

40
30

24.5%

20

90-day Turnover

4.6%

10
0
2004

2005

2006

2007

TTM Crew Turnover

2008

2009

2010

2011

TTM Crew 90-day Turnover

2012
Employee Pride and Commitment
100

88%

90

Commitment

Percentage Turnover

80
70

84%

Pride

77%

80
70

60
50

90

60

60%

50

40

40

30

30

20

20

10

10

0

0
2004

2005

2006

TTM Crew Turnover

2007

2008

2009

TTM Crew 90-day Turnover

2010

2011

Pride

2012
Commitment

Percentage favourable responses

100
Skills and Education Insights
 Alignment of ‘business-as-usual’ training
to recognised qualifications yields multiple benefits:
- Commitment of employees to training
and effective execution of that training
- Reduced employee turnover
- Strengthened talent pipeline

- Enhanced employer reputation

 Important to identify partners which are
culturally aligned with your business
McDonald's 'Demonstrating the Value of Learning' | Learning Insights Live 2014

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McDonald's 'Demonstrating the Value of Learning' | Learning Insights Live 2014

  • 1.
  • 2.
  • 3. What our Business Needs… Employee Engagement 2004 77% 2004 2013 91% 2013 Customer Loyalty Business Growth Quality Competence Committed People Service Confidence Confidence 2004 2013 Cleanliness Customer Visits Sales Profits
  • 4. What our Business Needs… Employee Engagement 2004 77% 2004 2013 91% 2013 Customer Loyalty Business Growth Quality Competence Committed People Service Confidence Confidence 2004 2013 Cleanliness Customer Visits Sales Profits
  • 5. What our Business Needs… Employee Engagement 2004 77% 2004 2013 91% 2013 Customer Loyalty Business Growth Quality Competence Committed People Service Confidence Confidence 2004 2013 Cleanliness Customer Visits Sales Profits
  • 6. Unlocking People Power What our business needs What our people value
  • 10. Training aligned to qualifications
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 25. Engagement through digital channels Low 36,296 Medium 31,603 High 35,434 Total Respondents = 103,333 Ranked Lowest to Highest by Digital Usage
  • 27. Impact: Commitment, Competence and Confidence Employee Engagement 2004 77% 2004 2013 91% 2013 Customer Loyalty Business Growth Quality Competence Committed People Service Confidence Confidence 2004 2013 Cleanliness Customer Visits Sales Profits
  • 28. Impact: Commitment, Competence and Confidence Employee Engagement Customer Loyalty Business Growth Competence Commitment 77% 2004 86% 2004 96% 2013 91% 2013 Quality Competence Committed People Service Confidence Confidence 68% 2004 87% 2013 Cleanliness Customer Visits Sales Profits
  • 30. Employee Turnover 100 90 80.2% Percentage Turnover 80 70 Crew Turnover 60 50 36.7% 40 30 24.5% 20 90-day Turnover 4.6% 10 0 2004 2005 2006 2007 TTM Crew Turnover 2008 2009 2010 2011 TTM Crew 90-day Turnover 2012
  • 31. Employee Pride and Commitment 100 88% 90 Commitment Percentage Turnover 80 70 84% Pride 77% 80 70 60 50 90 60 60% 50 40 40 30 30 20 20 10 10 0 0 2004 2005 2006 TTM Crew Turnover 2007 2008 2009 TTM Crew 90-day Turnover 2010 2011 Pride 2012 Commitment Percentage favourable responses 100
  • 32.
  • 33. Skills and Education Insights  Alignment of ‘business-as-usual’ training to recognised qualifications yields multiple benefits: - Commitment of employees to training and effective execution of that training - Reduced employee turnover - Strengthened talent pipeline - Enhanced employer reputation  Important to identify partners which are culturally aligned with your business

Editor's Notes

  1. Job creation, skills, qualifications, benefits to business & employees, [Zero Hours?]Number we employ, job creation this year, last year, & over last 5 yearsCareer progression on offer – BMs/Jez starting as Crew etc, personal experience1st Jobs, and particularly for young people – but opportunities for all (including elderly)Investment in training - £43m annuallyNationally recognised qualifications we offerSome detail on each – particularly the Apprenticeship and Foundation DegreeGames Maker qualification – how we’ve supported sector, not just employeesQualifications on the horizon? Financial Skills?Benefits to employeesBenefits to business, 18 applications for every job, average length of service upRecognition of the brand in The Times Best Big Companies etcAlso, I’m not sure if Allison/Cheryl would want to raise:Zero hours, why we use them and benefits to employees (seems like a good opportunity to me to show we are responsible employer?)£10m funding we get from Government, to convert training into qualifications Apprenticeship, maths and English programmes.History Why – How – What2006 Journey Questions 1,250 restaurantsWe serve 3.5m customers a day93,000+ employees60% under 21First employer for 10,000+Hire on attitude not qualifications
  2. At the heart of their discussions is the overarching objective of our People Strategy … to harness the power of our people by Fusing together two elements – what our business needs, and what our people value. Let’s start by looking at what our business needs from our People …>Our People Strategy, therefore, is to continually enhance the Commitment, Competence and Confidence our business needs to grow and develop by ensuring that when our People deliver these things they simultaneously generate something in return which they value.Well-trained staff Recognised qualificationsMeet emerging skills Develop emerging skills
  3. Skills development is part of the DNA of our business,and has been an important part of the way we do business for over half-a-century.
  4. As a result, wherever you’ve got to in the business, there is a clear pathway ahead for your further career development …… each step of the way supported by the relevant training and personal development programme. This clarity – plus the presence of role models from restaurant floor to Senior Management – creates a culture of aspiration ... our people see their colleagues attending programmes, studying hard, applying what they’ve learned, and moving up through the hierarchy.
  5. Aligning our training to recognised qualifications has helped to fuel this culture of aspiration … and drive business performance …… for example [Nicky] highlighted earlier that over half of our Olympic Champion Crew were qualified Apprentices.In the UK this alignment has enabled is to create a ‘learning ladder’ which extends from Level 1 programmes in Functional Numeracy and Literacy through to a Foundation Degree for Restaurant Managers …… with a similar alignment of training to qualifications in 31 of the 38 European markets.WIDENING THE MANAGERIAL TALENT POOLPROGRESSION FROM APPRENTICE TO SHIFT MANAGER 50%Could use:[Similarly, we have partnered with MMU in the creation and delivery of our Foundation Degree]… and, of course, here in the UK.[Visit the University]
  6. [Details of the Apprenticeship][Highlight role of C&G and LearnDirect as delivery partners]GOOD LEARNING HABITS AND SELF STUDYPASTORAL CARD
  7. ‘ourlounge’ was developed in 2006 to host a highly innovative online learning function, enabling our employees to study online for nationallyrecognised qualifications including GCSE equivalents in Math and English. Since launch the site has evolved to become the primary way in which we communicate and engage with our hourly paid workforce (Crew). In 2008, the decision was made to remove paper based publications and channel all internal communication aimed at Crew, digitally through ‘ourlounge’. The site has proven to be an essential tool in promoting key business messages, equipping employees with the knowledge to improve job performance, in a fun and informative way. For example, all of our national marketing campaigns are promoted on the site two weeks prior to going live in restaurants. There are games and quizzes that focus on opportunities for business improvement and the monthly e-newsletter keep employees updated. Employees are able to check their work schedules online, connect with each other through page comments and polls and submit their own stories for publication. Need a slide about ourlounge and how people access it - devices
  8. We’ve found that using online technology as part of a blended learning strategy has created massive benefit for the business as it means that:…we can deliver training on a scale which would be extremely expensive and time consuming using traditional methods,…we can update our materials instantly and at very low cost …and we can use the latest “gamification” techniques to create training programmes that our people actually enjoy.The McDonald’s Crew Challenge here is a great example.This game was developed to support the roll-out of the NP6 till system, with staff being invited to respond to a range of customer service challenges against the clock.The response was amazing! Crew and Managers were creating league tables of the best times within their teams… there were even a number of leagues set up amongst our office staff.Now, this was till training! Something that not long ago would have been an absolute chore.[DEMO]The McDonald’s Crew Challenge here is a great example.This game was developed to support the roll-out of the NP6 till system, with staff being invited to respond to a range of customer service challenges against the clock.The response was amazing!Crew and Managers were creating league tables of the best times within their teams.People were accessing the system from home to practice. And there were even a number of leagues set up amongst our office staff.Now,this was till training! Something that not long ago would have been an absolute chore.All of which underlines the value that a creatively developed and effectively deployed online training and engagement strategy can deliver.
  9. We’ve attempted to assess the scale of business impact engaging our people digitally has had.So, early last year we brought together the employee survey responses for over 100,000 of our restaurant staff in 17 markets across Europe.We then ranked this data according to the levels of digital engagement individual employees are experiencing in their markets, and then split them into three approximately equal-sized groups… Low, Medium and High.We then aggregated the data for each of these three groups and calculated the scores for a number of the key People factors ...
  10. And as you can see, the results are striking.In short, where employees are experiencing the highest levels of digital engagement we find…… significantly higher levels of customer satisfaction… significantly lower levels of employee turnover.…and significantly higher levels of employee pride and commitment.Clear evidence that, for a business like ours, the investment in digital engagement is one that is clearly worth making.
  11. … Crew turnover and 90-day turnover have dramatically reduced …
  12. … while the Pride and Commitment of our people has been enhanced.
  13. Finally – and critical to our plans to create a whole new level of authentic British service – is the sustained improvement in our reputation as an employer. So, it is heartening to see that the efforts we have made in recent years are continuing to be recognised by external organisations, such as these. The sort of recognition which has driven our good employer score to an all-time high. And we'll continue to seek this kind of recognition in the months and years ahead, because – as we raise the bar on the standards of entry into our business – we will reap the benefits of this positive momentum by attracting even more of the talented individuals we will require.
  14. So, that’s an overview of our Skills and Education initiatives.The key learnings are: Alignment of ‘business-as-usual’ training to recognised qualifications yields multiple benefits:Enhanced employer reputationCommitment of employees to training and effective execution of that trainingReduced employee turnover Strengthened talent pipelineImportant to identify partners which are culturally aligned with your businessNeed to work with partners to reduce bureaucracyand unnecessary business distractionAny questions?