Posted tagged ‘Turnover’

Burgerville Affordable Health Care Program Featured on FOX & Friends

September 8, 2009

Be sure to check out footage of client Burgerville from FOX & Friends this morning which features President and CEO Jeff Harvey discussing the chain’s affordable health care program for hourly employees.

Under Burgerville’s health care plan, employees who have been with the company for at least six months, and work 20 hours a week, are eligible for health insurance which costs the employee $15 per month. The cost for an employee and children is $30, employee and spouse is $60 and a full family plan is just $90. This coverage comes with no deductible.

Burgerville pays more than 90 percent of the premium for employees and their dependents. The most recent survey by the company found that nearly all of Burgerville’s 579 eligible hourly employees are enrolled.

The Pacific Northwest chain has been able to offer their affordable health care plan for nearly 4 years, and as a result, has experienced reduced turnover, increased long-term retention and increased operational productivity.

Burgerville saw turnover drop from 128% in 2005 to 54% in 2006 (the first year of the program).

Initiatives such as this industry leading health care program, an expanded leadership development training program for employees, the company wide use of wind power, recycling of used trans fat free cooking oil into biodiesel, as well as an expanded recycling and composting program, are all based around Burgerville’s belief that it is good business to adopt practices that are good for their guests, employees, the local community and the environment.

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Retailers and Restaurants Get Smart to Retain Staff

October 6, 2008

Turnover is generally high in the retail industry because of numerous factors ranging from long hours and tedious work to competition for staff from other companies. Retailers and restaurants that have taken several approaches to worker retention include my client Burgerville, who makes affordable health care available to all employees who have been with the company at least six months and work 20 hours a week, all for just $15 per month. Another company, Finish Line, has developed distinctive strategies to attract and retain Generation Y workers, and a third company, Duane Reade, has deployed a work force management application to boost customer service and scheduling flexibility.

Susan Reda of STORES Magazine has written a great piece featuring these three companies which can be found on the STORES Website by clicking here.

From the article:

Recruiting employees to work in retail stores is the easy part; it’s convincing them to stay that can be grueling.

Turnover in the retail industry is notoriously high. For myriad reasons — everything from long hours and tedious tasks to the chance to earn a dime more per hour at the shop across the mall — retail employees suffer from a collective case of retention deficit disorder. Statistics reported earlier this year by the National Retail Federation estimate industry turnover at 58 percent for full-time associates and 114 percent for part-time employees.

Given the cost of recruiting, hiring, onboarding and training, retailers are understandably frustrated when an employee who has been with the company just a few short weeks or months decides to move on. The prospect of investing in an employee who departs before the season changes is unsettling at best, but return on investment is not the only concern: Customer service suffers when there are not enough associates to assist shoppers, process transactions or provide the knowledgeable insight that a seasoned employee can offer.

Company: BURGERVILLE
Headquarters: Vancouver, Wash.
Employees: 1,400+
Retention Strategy: Affordable Health Care

A 2005 employee survey spelled it out in black and white: The No. 1 concern of Burgerville workers was affordable health care.

“We bet that if we could find a way to make health care affordable for all our employees — most of whom are hourly employees — we could alleviate a huge concern and win their loyalty,” chief cultural officer Jack Graves says.

It was a sizeable bet — approximately $1.5 million — but it has paid off handsomely. Since it began offering an extended and improved health insurance plan, Burgerville has achieved a dramatic increase in employee retention and loyalty.

Prior to implementing the new plan, turnover rates hovered around 128 percent. In 2006, the first full year of the health care initiative, turnover dropped to 54 percent; today the rate is holding steady at 52 percent. Productivity and employee confidence are up, absenteeism is down and, by reducing turnover, Burgerville has conservatively saved more than $500,000 — capital the quick-serve chain would have had to invest in recruiting, training and onboarding.

Under Burgerville’s plan, employees who have been with the company for at least six months and work 20 hours a week are eligible for health insurance; it costs each employee $15 per month, or $90 monthly for family coverage. Burgerville’s parent company, The Holland, pays more than 90 percent of the premium for employees and their dependents.

The package, put together in partnership with Kaiser Permanente, has no deductible — a tipping point for employee acceptance, according to Graves. High school and college students, retirees and young moms working part time “are often on a tight budget,” Graves says. “What we learned, however, was that these employees were less likely to go to the doctor — even if they had some insurance — because they couldn’t afford the deductible.

“Offering affordable health care with a zero deductible was a game changer,” he says.

It didn’t happen overnight, however. “The program was so outside the box that people didn’t believe it at first,” Graves says. “We actually set up a field trip of sorts to a Kaiser clinic to demonstrate how it worked.”

Employee retention isn’t the only metric Burgerville uses to measure its return on investment. “With more skilled employees, our restaurants are running better and they look better,” Graves says. “The food is hotter and it’s served faster, too. There’s a renewed sense of pride and commitment.”

The changes are having a healthy effect on the bottom line, too; Burgerville reports a year-over-year increase in guest counts and a lift in sales.

“Being a local company, word spread quickly of our commitment to providing health care, and guests have rewarded us for that,” Graves says. The company has received substantial feedback from guests indicating that the care showed to its employees separates Burgerville from the pack.

“Many guests have written to us saying that it is this sort of program that keeps them committed to the Burgerville brand,” Graves says. “I’ve got the e-mails to prove it.”

Burgerville employees are at the forefront of what allows the company to live its values to their fullest extent. Without strong, vibrant and healthy people working in each of their restaurants, the company cannot provide the service which their guests expect.

Even more important, Burgerville has been able to live their mission “Serve with Love” and stand by their employees. Burgerville believes that thriving individuals lead to thriving families which helps build efficient and connected communities. This in turn supports a very healthy and sustainable business.