Franchise operators face a daunting mix of challenges, including labor shortages, economic constraints and, perhaps most damaging, high hourly worker turnover rates. Constant turnover is expensive: Gallup estimates voluntary turnover costs U.S. companies over $1 trillion per year.
To limit turnover and mitigate costs, franchise operators should invest in a positive and rewarding employee experience. That includes using a learning management system (LMS) that streamlines employee onboarding and training while enhancing engagement and effectiveness.
Turnover Is No Stranger To Franchise Operators
Franchise operators are currently dealing with labor shortages and economic constraints alongside historically high industry turnover rates. According to the U.S. Chamber of Commerce’s January 2023 report, there are currently 10 million job openings but only 5.7 million unemployed workers to fill them. Amid those job openings, hourly jobs don’t stand out as glamorous opportunities — maybe believe them to be “thankless” jobs and not worth pursuing.
Part of the perception around hourly jobs starts with how franchises train and manage their workforces. Franchise workers, and hourly workers in general, have little tolerance for inefficient processes when they’re on the clock. And minor sources of friction can appear in many places during a worker’s shift.
For example, recalling multiple passwords and navigating between numerous applications can tire your employees. Context-switching — when employees switch between programs — can delay productivity, elevate stress levels and disrupt concentration. A study published in the Harvard Business Review reported that the average user switches between various apps and websites about 1,200 times per day. Each toggle costs two seconds, which adds up to four hours a week spent solely on toggling between different platforms. This lost time can seriously affect an employee’s ability to engage in customer-centric activities, such as restocking shelves, cleaning and assisting customers.
Friction points as simple as switching between programs can tire out a worker quickly. Left unaddressed, friction leads to dissatisfaction and, ultimately, turnover.
Reduce Friction While Shrinking Tech Stacks
Some franchises try to survive by continuously training new employees who, rubbed raw by compounding friction points, leave in weeks (if not days). The unending hire-work-frustrate-quit cycle sticks managers with constant training duties without much return on their investment (ROI). With so much time spent training and retraining, they can’t better serve customers and identify innovative ways to improve efficiency, hurting the bottom line.
Your first instinct might be to buy a new technology or tool to solve this issue. But this can put a drag on your processes. With too many tools at their disposal, employees end up spending more time toggling between tools instead of completing useful work. It slows down the flow of work, cuts into employee satisfaction — and costs you more in paying for point solutions and lost productivity.
Retaining a happier, more effective workforce starts by auditing your processes to remove friction from the entire employee experience. Consider beginning with a revamp of your employee onboarding experience.
Start with Seamless Onboarding and Training
Modern technology can simplify onboarding by centralizing all resources within an easily accessible LMS and seamlessly combining learning materials with practical experience. Interactive learning software enhances employees’ learning experience by incorporating quizzes, exercises and role-playing, resulting in more effective training. Managers can observe their team’s performances and uncover where specific coaching or training would be most beneficial. This investment pays dividends fast: Employees with effective onboarding feel up to 18 times more committed to their workplace.
Your LMS of choice should be designed for franchises, meaning it operates within an all-in-one platform tailored to reduce multiple friction points your team comes across. That platform should offer everything managers need to handle daily operations, including:
- Employee shift scheduling.
- Policy enforcement.
- Facility and asset maintenance.
- Corporate communications like announcement roll outs and team chat.
- A resource repository — crucial for an effective LMS.
A streamlined approach makes it more convenient for employees to access crucial messages, policies and training. Managers also benefit from access to most, if not all, of the necessary data to make critical business decisions, reducing the likelihood of errors in places like scheduling or ordering. Simplifying your technology infrastructure can significantly enhance the overall employee experience.
Reduce Friction, Realize Results
In today’s challenging labor market, reducing employee turnover is more important than ever. Franchise operators can reduce friction and retain employees by investing in a seamless onboarding and training experience with an LMS that integrates into an all-in-one solution. By doing so, employers can cut costs, improve employee satisfaction and drive better business outcomes.
