Talent Management - November 2008 - (Page 29)

Burgerville Beneﬁts Management: A Commitment to People Jack Graves Helping employees thrive is of utmost importance to Burgerville’s success. The 1,500 employee, 39-unit quick-service restaurant chain in Oregon and southwest Washington has created sustainable initiatives — such as its health care program — based around the belief it is good business to adopt practices that are good for guests, employees, the local community and the environment. Without strong, vibrant, healthy people working in its restaurants, Burgerville cannot provide the service guests expect. After an employee survey revealed affordable health care coverage was the No. 1 concern, the company made a business decision that would have a farreaching impact on its employees and the communities they serve. In 2006, when other companies across the country were cutting back on employee health care, Burgerville recognized the signiﬁcance of happy, healthy employees and unveiled a health care plan unmatched by food-service chains of its size. The health care plan expanded options for hourly workers and their dependents. Employees who had been with the company for at least six months and worked 20 hours a week became eligible for affordable health insurance for just $15 per month. The cost for an employee with children was $30 per month, and for an employee and spouse or signiﬁcant other it was $60 per month. A family plan cost $90 per month. Burgerville now pays more than 95 percent of the premium for employees and more than 90 percent of the premium for dependents, all with no deductible. Burgerville saw signiﬁcant results in the ﬁrst year following implementation of the new employee health care plan. The experience and efﬁciency of longer-tenured employees increased speed of service, quality of food and overall customer satisfaction. Productivity also increased and higher sales and proﬁts followed. The health care plan helped the company buck traditional restaurant-industry challenges related to employee recruitment and retention. During the ﬁrst year, the company saw turnover rates for hourly employees drop from 130 percent to 54 percent, and management turnover decreased by 18 percent. This reduction saved Burgerville more than $500,000. The company also attributes a large portion of its sales increase to the more affordable health care program. In addition to the cost beneﬁts, the plan promoted company pride and loyalty amidst the workforce. Talent managers found when employees didn’t have the stressful concerns associated with health care hanging over their heads, they were much more content to come to work and dedicate themselves to their responsibilities each day. The new beneﬁts program also had implications from a recruiting and retention perspective. An employee is likely to choose and remain with an employer that fully supports and stands behind its employees. Further, just as guests are aware of Burgerville’s commitment to using local ingredients, the company has received substantial feedback from customers intimating that Burgerville’s treatment of employees is one of the areas that separates it from the rest of the pack within the quick-service industry. The company has received letters from many guests stating that this type of employee beneﬁts program keeps them committed to Burgerville. The company believes thriving individuals lead to thriving families that help build efﬁcient and connected communities. This in turn supports a healthy and sustainable business. Jack Graves is chief cultural ofﬁcer at Burgerville. He can be reached at editor@talentgmt.com. http://www.spectrumhr.com http://www.spectrumhr.com

Table of Contents Feed for the Digital Edition of Talent Management - November 2008

Talent Management - November 2008 Editor’s Letter Contents Human Performance Leading Edge Learning Connections Recruitment & Retention Assessment & Evaluation Compensation & Benefits Performance Management Learning & Development Succession Planning Insight Dashboard Application Advertisers’ Index Editorial Resources Full Potential

Talent Management - November 2008

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