Summary BTEC Business - Unit 8 - Recruitment and Selection Process
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Course
Unit 8 - Recruitment and Selection Process
Institution
PEARSON (PEARSON)
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How McDonald’s recruit and select employees with reasons why they use
their processes. McDonald’s recruitment methods and why they use them.
(P1, M1)
Introduction to business
McDonalds is one of the world's leading fast-food service companies in the world. They
generate over $40 billion in sales constantly supplying people with food everyday every
hour. McDonalds have 30,000 restaurants which is layed out over 100 different countries
which are all located in 6 different continents.1 They are a franchise business which means
that people can buy McDonalds stores if they wish to. In this report I will be writing about
how McDonalds recruit staff and how they decide on who to hire.
Workforce Planning
Workforce planning is the process of analysing and looking into the future of the businesses
in terms of their staffing needs.2 This involves forecasting the supply and demand for
workers where gaps will look to be filled within the business. For example, to address these
gaps businesses would hire, train and attempt to retain employees. This planning is very
important for McDonalds because if a majority of their employees left abruptly McDonalds
would have a plan for this certain circumstance. Businesses with over 250+ staff would need
employees with certain skills such as serving customers and putting out stock. Other
businesses such as financial services would require people with specialist qualifications in
order to fulfil that certain role. This makes it more difficult for businesses like this to plan for
the future since not everyone is fit to work these types of jobs.3
Using workforce planning is important for McDonalds as it ensures that there is enough staff
in each of their locations. It also prevents any of McDonald's locations being understaffed or
overstaffed. By having the right amount of employees it improves the overall efficiency of
McDonalds which helps reduce cost as there are no employees lingering around doing
nothing. McDonalds is aware that their employees are likely to leave in a year or two which
means that they have to be prepared for this to happen. For most people McDonalds is their
first job which means that they are always looking for better career opportunities as working
for McDonalds is not a high tier job unless you are a manager. 4 Workforce planning prevents
McDonalds from any legal trouble. As McDonalds is an entry level job it is difficult for them to
retain their employees which means that they must use workforce planning to ensure that
they are never understaffed.
Reasons for recruiting
The business is growing
One reason why businesses may recruit is because the business may be growing where
more staff will be required. Although McDonald’s is established, they are always growing
year on year. Over the last 10 years there has been an increase of 3.7% in franchise stores. 5
1 https://www.referenceforbusiness.com/history2/56/McDonald-s-Corporation.html#
This shows that they need more staff in order to fulfil these roles as they start to grow even
further, McDonalds has been around for 60 years which means that their growth will not be
as high as it used to. From 1988-1996 the amount of stores doubled for McDonalds which
meant that more employees were required.6 Business growth is the perfect reason for
recruiting as it shows progress in the business where more people are required.
System change
Another reason for recruiting in a business is because systems may change. When a system
changes it means that there may be some employees who do not want to change to the new
system or the performance of some employees fall away because of the system change.
This is where recruiting can be effective because it means that businesses are able to recruit
people who are fit for these new systems. For example with McDonald’s they may change
the way they make their burgers. This could cause some of the employees to become
reluctant to switch as they have been doing it one way or so long. If this was the case
McDonald’s would have to use recruitment to find workers who are effective in these
systems. Therefore, for McDonald’s this could be another reason why they recruit because
they make big changes to their system. It may result in them having to hire new people as
they fit more well into the new system unlike the current employees.
Job roles are changing
Job roles are starting to change because of how advanced technology has become. This
means that the skills required and the amount of employees needed is going to change. For
example, McDonalds have started to use self-service machines to make their restaurants
run more efficiently.7 By using these screens McDonalds now do not need to hire as many
employees as the screens are now taking orders for the customers. If McDonalds wanted to
keep the same amount of staff they could now utilise them for different roles such as cooking
food or restocking ingredients. This makes the store run more efficiently as now roles are
being filled by technology where now employees can take different roles to make McDonalds
run more efficiently.
New vacancies are being created by more space or product development
Another reason for recruiting is new jobs could be available because of the more space
available in store or development of a new product. When a business is expanding its store it
means that there is more space available for them to sell. This is where the business would
look to hire new employees. For example, in McDonalds if they were to expand their store
there would be more kitchen space and tills. This means that more people would be required
because if there is more kitchen space it would mean that there would be more people
needed to cook food. This also applies to more tills where more people would be needed to
fulfil this role.
Vacancies caused by leavers/turnover
McDonalds always has vacancies available which makes it easily accessible for people who
have never had a job before. They currently have an employee turnover rate of 44% which is
incredibly high.8 This shows that almost half of their workforce leaves which means that lots
of vacancies are available. Many people leave McDonalds because it is an entry level job
where people are looking to move away from quickly in order to get a higher tier job. This
leads to McDonalds having vacancies available all the time where anyone of any skill level
can work at McDonalds. Staff turnover is when a certain amount of employees leave a
business voluntarily or involuntarily.9 This is a good way for a business to measure how
many people are leaving their business. Having a high employee turnover shows that lots of
employees are leaving which could indicate that the business is not a nice place to work. 10
As McDonald’s is a fast food chain it means that it is very likely their turnover rate is high.
Fast food places have an annual turnover of 150% which connotes that McDonbald’s
turnover rate is around this figure. Therefore, McDonald’s has a very high turnover which
means that they have to regularly hire new employees.11
Internal promotions
This is another reason for recruitment because if another employee gets promoted it leaves
a spare spot which must be fulfilled. This makes it the businesses job to find a replacement
for the role that has been left open due to the promotion. For example in Mcdonalds when a
crew trainer gets promoted they become an assistant manager. 12 This means that the
McDonalds for that store must promote a crew member to a crew trainer so they are not low
on the amount of crew trainers they have. As McDonalds find it easy to employ people it
should not be much of an issue for them to find crew members which will lead to them
becoming crew trainers.
Seasonal fluctuations leading to the requirement of temporary staff
Season fluctuation is when the workforce starts to increase or decrease depending on the
season.13 For example, with winter a business may need to hire more employees because in
winter Christmas takes place. This means that there will be more customers coming to their
stores which means that there needs to be enough staff to facilitate the increase in
customers.14 The staff that are hired during this time are on temporary contracts which
means that once the season is finished they are released and no longer work for that
business. McDonald’s does use temporary staff depending on the season. As they offer
different types of temporary jobs it means that it results in their staff turnover being very high.
McDonald’s uses temporary staffing to fill any gaps which ensure that they are able to run as
efficiently as possible at all times.15
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