As the saying goes, "be careful what you wish for." Just a few years ago, franchisors were yearning for less regulation and a stronger economy. Now, with the economy humming along and unemployment rates at historic lows, some franchisors are struggling to grow.
The problem? Top talent--both franchisee candidates and employees--is getting harder to find, and even harder to retain. Many franchise organizations have openings in key positions that they can't fill. More and more people in the franchise sector are now wishing for "a little recession" to help get strong franchise growth moving again.
The Pulse of Franchising
With the unique combination of a strong economy yet growth challenges, we thought it was an ideal time to formally check-in with the people who make franchising happen every day--the employees who work for the brand--commonly referred to as "corporate."
Last quarter, Franchise Business Review conducted a first-of-its-kind study of corporate employees across the franchise sector. In partnership with the International Franchise Association, we launched the Franchising@WORK Employee Engagement and Compensation Benchmark Study and invited all corporate franchise employees to take part.
The response was incredible, with more than 1,000 employees representing upwards of 250 franchise brands sharing their opinions and feedback. Participants were asked 24 core benchmark questions related to job satisfaction, engagement, management, brand leadership, and culture, as well as detailed personal questions about their position, compensation, benefits, and demographics.
While the full findings of the Franchising@WORK study won't be released until Thursday, March 14 as part of a webinar (see page 54 for details), we want to share a few key highlights from our study:
Overall Satisfaction and Engagement Very High
90 percent of corporate franchise employees find their jobs and the work they do rewarding and satisfying. The vast majority of employees have strong connections with their team members, and 85 percent feel that their ideas and feedback are valued by their managers.
Recognition and Compensation Keys to Retention
While satisfaction and engagement are high overall, nearly one-third of all employees (29 percent) don't feel they receive the recognition they deserve, and two in five employees (41 percent) feel they are under compensated. Given the current "Employees' Market" and the fact that compensation is the number one...