How Can Franchisees Prevent Employee Turnover? Invest More in Their Success

Employee retention and labor shortages became major problems for several industries during the pandemic, and the issue continues to be a pressing concern for franchisees over the past several years. Data from the International Franchise Association shows labor issues as their greatest challenge, topping even inflation and managing costs.

As a longtime franchisee who has operated multiple restaurant brands, I believe that much of the retention issue in that industry rests on the franchisee’s leadership abilities, commitment, and consistency of actions. The franchisee has to be a true leader by being completely involved in the business from the ground floor up – starting with their crucial role in the development, growth, and engagement of employees.

When I hear that a business is having issues with turnover and hiring, my first questions to the franchisee are, “What are you doing to retain your people? What are you doing to motivate them? What are you doing to make them feel like they’re part of the business?”

Train to retain, inspire, and incentivize

As leaders who are invested financially in the franchise system, franchisees need to invest in the success of their employees because that leads to the business’ success. With leaders having skin in the game, they have plenty of incentives themselves to develop good employees, retain them, and help them advance in the company.

Franchisees should be concerned about how the operation works in every phase and how their employees affect each aspect. Since franchisees have been fully trained and understand the franchise’s goals, it’s up to them to keep that continuity and completeness of training going and to enlist effective trainers besides themselves.

Along with selecting the right people to run their business, franchisees must do a good job motivating them and creating an environment where employees feel they’re an integral part of that franchise’s success. That means providing employee incentives. It can’t always be about the profit and loss statement. Franchisees should make sure that a part of those profits go back to the employees.

Franchisees also must show that they’re walking the walk – following up on employee incentives, guidelines, and with the people who report directly to them. It means in-person communication and checking that things are done the right way. When employees see that their franchisee means what they say and follows up on it, they buy in and get excited about working there.

Much like the military, there is a process to be followed. When a new employee enters your business, they come in with baggage that they bring from a past work experience. They often feel like this is going to be the same scenario. But as a leader, you have a lot to do with them making the necessary attitude adjustment. If you don’t show them why your business is a great place to work and how important they are to its growth, then you may be on your way to losing them.

Franchisees should do everything within reason to help employees grow and succeed because a franchisee’s livelihood stems from its team. As franchisees, we have to start with hiring the right people, building a culture that brings them fulfillment, and retaining them for the long term. Training, development, and giving them tangible incentives are key stepping stones to individual and company growth. If you do those things right, you can prevent high amounts of employee turnover.

George Tinsley Sr. is the president and CEO of Tinsley Family Concessions, which operates more than 60 restaurants in Florida and Kentucky. He is also a motivational speaker, motivational coach, and business advisor.