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Franchise Tutorial 14: Intro to Recruitment

As a franchisee, one of the roles you will spend a lot of time in is the area of recruiting staff. Unless you are operating a one-person operation, this will be an important part of your business. Recruiting staff is an ongoing function of management and well-selected employees can dramatically improve the success of the business.

Although some franchisors will assist the franchisee in hiring staff during the start up phase of a new location, it is typically the franchisee’s responsibility on the location is up and running. Most franchise agreements will clearly state that you are required to maintain a sufficient number of staff, you must take the necessary steps to ensure that they are trained, and that your staff represent the brand well to ensure good customer relations. The franchise agreement will typically further clarify that, as a franchisee, you are responsible for all decisions related to hiring, firing, training, wages, hours supervision and discipline. The employees are clearly working for you and not the franchisor.

Staff requirements vary depending on the type of business you invest in. A full-service restaurant may have as many as 80 to 100 employees, whereas retail concepts may require only one or two. Staffing requirements may also vary depending upon seasonal variations. For example, retail tends to have higher staffing needs during the Christmas shopping season.

In industries where there is a high need for labour, progressive franchisors have developed recruitment departments to address current labour shortages in Canada and also have programs to bring in foreign workers. Progressive franchisors also look at ways to reduce the labour needs of the franchisees through outsourcing certain aspects of the operations.

The type of staff you require will vary depending upon the business model. Often the business will rely on you and your staff’s ability to build relationships with customers and sell your product. As a result, you will typically want employees that are people oriented. You are looking for staff that reflect that brand’s values, have the ability to learn, and are available the hours required. The more flexible employees are, the easier scheduling will be.

Have clarity on the staffing needs of the business before hiring your staff. The franchisor will often provide details of staffing needs in the operation manual, as well as provide specific job descriptions and tools to assist you in the recruitment process. The franchisor will also typically provide tools in the form of leadership training, staff surveys for feedback and recognition programs for staff retention.

The recruitment process will vary but typically involves the following steps:

Advertising to generate enquiries
Reviewing resumes or applications
Conducting interviews, either individually or by groups
Checking references
Orientation and training

The franchisor, based on the experience of existing franchisees, can provide you with best practices for the entire recruitment process. What you pay employees is dictated by labour laws as well as what is required to attract employees in your specific market. Today’s market is competitive and you will want to be aware of what other companies are paying by doing a quick survey of the market. The cost of employees goes beyond the paycheque. Depending upon the business and market, there will be the costs of employment taxes, workers compensation and benefits. But the biggest cost is the cost of turnover of employees. You will want to ensure that you take the time to hire the right employee and then provide a great work environment that will encourage good employees to stay. You can improve staff retention and reduce your hiring costs by becoming an “employer of choice.” Employees today are looking for:

Career development and advancement opportunities
Ongoing and progressive training
Recognition
A fun environment
Flexible work hours and time
Fair treatment
Involvement and consultation with management

Throughout the recruitment process, you need to be aware of the employment standards and labour laws that are applicable to your area. Provincial Human Rights Codes prevent employers from discrimination when hiring and managing employees. There are certain questions that cannot be asked during the recruitment process such as race, age, sexual orientation and religion. Instead you need to focus on the position being filled and identifying the characteristics that a successful candidate needs to fill this role. There are also privacy laws to be aware of. You do not want to disclose personal information of your employees. It is the franchisees responsibility to be familiar with all applicable laws and to adhere to them.

Your business success is dependent upon you finding the right people who will deliver great customer service. No matter how good your employees, it does not diminish the need for you to be involved in the business. Sales and customer satisfactionoften increases when a franchisee is actively involved in the day-to-day operations. All franchisors will agree that there is nothing that can replace the dedication and commitment of a franchisee who has a vested interest in the success of the business and who has made a financial investment.

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Posted Date: January 2011