Not to overstate the impact, but this is a pivotal moment for the fast food industry to be better employers. With seven major players in that market agreeing to forego their anti-employee ‘No Poach,’ clause. For many workers, a job in fast food is a stepping stone on a career path to a livable wage. Granted, there is some that move into supervisory roles and management who can flourish in the industry. At the minimum wage levels for ‘associates,’ it is not a career. Despite this, the impact for associates can be profound. With the no-poach clause removed, employees are effectively at-will. Now, food franchise leadership must differentiate themselves to retain employees. Yes, the ability to move around more freely will pressure the wage levels and that will be balanced with the move to further automate stores. Now, like any industry, they must inspire and lead effectively to retain workers.
There are two fast food restaurants near our office, which are different brands, within walking distance. Based on proximity, they are recruiting from the same pool of candidates. What continually amazes me about these two stores, is the distinct contrast in the customer service between them. The store that has been here longer has predictably poor service. [poor leadership?] On a number of occasions I have received my sandwich and then, driven to the office, only to find that it is a bun with condiments only, the star of the show (egg, chicken, beef, etc) is missing! After an initial attempt going back to the store, the general indifference from the associate made the effort appear fruitless. Based on the lines at each register and drive-thru queue wrapping the entire parking lot, it seems that my dissatisfaction will not be a blip on their radar.
The other store, which is opened in the last seven years, is a completely different experience. Every time I go in or use the drive-thru, the experience is prompt, accurate and positive. Over the time they have been opened, I notice the faces change, but the experience remains the same. [good leadership?] With the predictable, positive experience, I go back. Colleagues remark that they do not like the food there, but it is easy and dependable, so when they are in a pinch, that is where they grab a quick bite to eat.
It would be easy to lament that for several generations, fast food was the common first job, to learn responsibility, experience leadership from an adult that is not from home, school or church, and to gain the skills of money management. Certainly, there are a lot of first jobs that can teach those skills, but with the transition from fast-food to fast-casual and the decline of teenagers with summer jobs, the face of fast food has gotten older. With the ‘No Poach’ clause, these older workers, with the skills developed in fast food, were relatively captive, unless they could make the leap to another industry. With that barrier removed, employees can now move around and earn more where their skills may pay better. But the impact now is greater than the wage.
The difference in customer experience between the two restaurants belies a greater issue: leadership and culture. The first store does not hire all the indifferent employees and the second store filters through and only picks the good ones, over and over. The restaurants, and particularly the franchisees, have to assess their culture and the leadership environment they foster, or lack thereof, to make the jobs they offer a meaningful experience for the employees. The head of the International Franchise Association indicates that these minimum wage jobs were not meant to be livable or permanent. If that is the case, then beyond the explicit task of getting the job done, these store owners need to focus on the value of the job to the employee, for the time the employee is there, to develop their skills for that next job, and to foster the environment and a leadership culture. Then, when the inevitable employee turnover occurs, the next wave of personnel embrace the established culture and can propel it forward, in a sustainable way.
For anyone leadership looking for a valuable tool to share with employees, here is a great podcast from organizational psychologist Adam Grant on emotions at work. And for further reading for leaders, take a look at A More Beautiful Question.