McDonald’s Announces Wide-Ranging Worker Benefits to Attract New Employees

McDonald’s is testing out long-term solutions to address the current labor shortage by not only increasing starting wages but also offering benefits like tuition reimbursement, paid time off, and child and elderly care. 

In an industry that is short 1.3 million workers from pre-pandemic levels, McDonald’s is trying to attract workers to the brand and “fundamentally change what it means to work at a McDonald’s restaurant,” according to the Wall Street Journal.

Last year, McDonald’s franchisees began looking for ways to improve worker pay and benefits. The franchise surveyed thousands of workers and managers, asking them what they would like in terms of compensation. The result: Franchise owners agreed to help boost benefits like higher pay, flexibility and child care, and McDonald’s corporate team is making a multi-million dollar investment to back their efforts by testing out various benefits programs.

According to the Wall Street Journal, “A group of franchisees this summer are also expected to begin offering employees backup child and elderly care, and owners will decide whether to expand it by the end of the year.”

McDonald’s also announced that it has created an Employee Value Proposition, which is a partnership between owner-operators and the brand’s corporate office to test and expand employee benefits. It has already started an emergency backup care pilot program and plans to create and test others for national expansion. The program will act as a framework for local franchise owners to utilize and build on.

“Our Employee Value Proposition was born from crew member, manager and franchisee feedback at the local level, and that partnership will be critical as we work to grow and expand this work across the McDonald’s system,” said Tiffanie Boyd, McDonald’s USA chief people officer, in a statement. “I’m thrilled that owner/operators aren’t just embracing the EVP – they’re really making it their own, introducing plus-ups to our national programs that resonate with the needs and wants of their employees locally." 

The details of these benefits are still unclear, but the fast food giant says it is invested in changing it’s employees’ overall experiences. The industry as a whole has had a hard time with staffing over the past few months as restaurant workers are in short supply, citing unemployment benefits and a general disenchantment with the industry as primary reasons for not returning to restaurant jobs, according to Compass Restaurant Research and Consulting firm.

These changes come just a few weeks after McDonald’s announced it would be increasing pay by an average of 10% for employees at its corporate-owned restaurants. Other brands are following suit in an effort to attract workers in an environment that increasingly demands higher wages and better benefits. 

Papa John’s recently announced hiring, referral and appreciation bonuses. Chipotle increased its starting pay to an average of $15 per hour as well as tuition reimbursement benefits. Subway introduced signing bonuses of up to $1,000.

The restaurant industry is still short millions of workers, but increased compensation and benefits is making an impact, at least initially. Snagajob reported last week that hospitality wages have increased 7.9% compared to pre-pandemic levels, and 3.6% for workers overall.