Page 232 - Everything I Know About Business I Learned

Everything I Know About Business I Learned at McDonald’s

Recognition: The Gift That Gives Back
Always a student of top performance, I was intrigued with why
some operators fared better than others. I had my accounting
team analyze the top-performing restaurants within my region
and noticed this: The successful franchisees shared some com-
monalities. They consistently developed great people within their
organization. They paid more for their people in salary, bonuses,
and perks. They understood that to keep and engage employees
their compensation package had to be competitive. And they
knew that spending a little bit more for talented management
readily paid for itself in elevated operational levels, sales, and
profits. They knew that simply throwing cash at staff would
result in a huge waste of money. So they were more responsive
than others about offering raises and bonuses, and provided a
culture that kept employees engaged. They offered incentives
that were tied to performance. And they utilized celebrations,
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dinners, awards, and recognition on an ongoing basis. They cul-
tivated a strong social network within the stores, which some-
times even resembled a family unit, strengthening their teams as
a whole. Most of their employees had no previous job experi-
ence. Yet, the operators saw this as a chance to inspire and
engage these first-time workers—and it made a difference in
their stores’ performance. These operators demonstrated strate-
gies that are useful not just on the restaurant floor but in any
business environment.

Lesson Learned

Most employees make no distinction between their immediate
manager and the company; hence, the expression “people
leave managers, not companies.” Recognition must come from
all levels of supervision.