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EMPLOYEE DISSATISFACTION &
RETENTION
RESEARCH REPORT
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
presented by:
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
Confidential and proprietary. 		 © Netchex 2019	 All Rights Reserved 3
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.
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
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.
METHODOLOGY
Figure 1.1 Job Titles of Reviewers
Figure 1.2 Locations of Reviewers
Figure 1.3 Employement Status of Reviewers
Confidential and proprietary. 		 © Netchex 2019	 All Rights Reserved 4
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%.
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.
Confidential and proprietary. 		 © Netchex 2019	 All Rights Reserved 5
Figure 2.1 Percentage of Reviewers who “Recommend” Taco Bell as
a Place of Employment
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
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
Confidential and proprietary. 		 © Netchex 2019	 All Rights Reserved 6
Figure 3.1 Top Dissatisfaction Factors Ranked by Percent of Reviews Containing Wording
•	 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.
Confidential and proprietary. 		 © Netchex 2019	 All Rights Reserved 7
RECOMMENDATIONS TO
COMBAT EMPLOYEE
DISSATISFACTION
3
2018 Bureau of Labor Statistics
Confidential and proprietary. 		 © Netchex 2019	 All Rights Reserved 9
With the food service industry continuing to face
turnover rates well over 70%3
, its imperative that
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.
PROBLEM: STRESSFUL CONDITIONS/LONG HOURS
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.
Confidential and proprietary. 		 © Netchex 2019	 All Rights Reserved 10
SOLUTION: BUILD RELATIONSHIPS
PROBLEM: OTHER (VARIOUS ISSUES)
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].
Confidential and proprietary. 		 © Netchex 2019	 All Rights Reserved 11
SOLUTION: EXPERTLY CRAFTED
HR RESOURCES
PROBLEM: POOR/INEFFECTIVE MANAGEMENT
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/.
Confidential and proprietary. 		 © Netchex 2019	 All Rights Reserved 12
SOLUTION: SMARTER HIRING
PROBLEM: LOW INCONSISTENT PAY
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
SOLUTION: EXPANDED PAY
OPTIONS
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
Taco bell employee dissatisfaction and retention analysis report

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Taco bell employee dissatisfaction and retention analysis report

  • 1. EMPLOYEE DISSATISFACTION & RETENTION RESEARCH REPORT 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 presented by:
  • 2. 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
  • 3. 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 Confidential and proprietary. © Netchex 2019 All Rights Reserved 3
  • 4. 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. 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 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. METHODOLOGY Figure 1.1 Job Titles of Reviewers Figure 1.2 Locations of Reviewers Figure 1.3 Employement Status of Reviewers Confidential and proprietary. © Netchex 2019 All Rights Reserved 4
  • 5. 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%. 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. Confidential and proprietary. © Netchex 2019 All Rights Reserved 5 Figure 2.1 Percentage of Reviewers who “Recommend” Taco Bell as a Place of Employment
  • 6. 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 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 Confidential and proprietary. © Netchex 2019 All Rights Reserved 6 Figure 3.1 Top Dissatisfaction Factors Ranked by Percent of Reviews Containing Wording
  • 7. • 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. Confidential and proprietary. © Netchex 2019 All Rights Reserved 7
  • 9. 3 2018 Bureau of Labor Statistics Confidential and proprietary. © Netchex 2019 All Rights Reserved 9 With the food service industry continuing to face turnover rates well over 70%3 , its imperative that 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.
  • 10. PROBLEM: STRESSFUL CONDITIONS/LONG HOURS 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. Confidential and proprietary. © Netchex 2019 All Rights Reserved 10 SOLUTION: BUILD RELATIONSHIPS
  • 11. PROBLEM: OTHER (VARIOUS ISSUES) 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]. Confidential and proprietary. © Netchex 2019 All Rights Reserved 11 SOLUTION: EXPERTLY CRAFTED HR RESOURCES
  • 12. PROBLEM: POOR/INEFFECTIVE MANAGEMENT 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/. Confidential and proprietary. © Netchex 2019 All Rights Reserved 12 SOLUTION: SMARTER HIRING
  • 13. PROBLEM: LOW INCONSISTENT PAY 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 SOLUTION: EXPANDED PAY OPTIONS
  • 14. 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