Why Franchise Owners should Engage their Employees

Why Franchise Owners should Engage their Employees

Posted by Stephen on May 27, 2014

A recent Gallup poll found that companies with engaged employees outperform their competition by as much as 202%. Imagine if your customer experience reviews improved 202%. How about if your Revenue increased 202%? Wouldn't that be worth reading a simple 300 word blog post? Then read on!

The Engagement Principle

Engagement measures the level of commitment and motivation that is present within an organization. Whether you own 1 or multiple franchise units you can identify with the challenge of managing employees and the relationship dynamics between them and your customers. Some of your team members are excited and peppy but are dragged down by those that don't have as much energy and zeal. Of course this same relationship behind the counter does make its way across to the customer asking for an 'Oreo Overload' or a 'Birthday Cake Remix'. So how does engagement help my franchise exactly?


Engagement Drives Business Results

Engagement is important as a core company initiative because it is a driving factor that:

  1. Lowers turnover
  2. Lowers operational cost
  3. Increases Sale
  4. Increases average check

In a whitepaper for the Society for Human Resource Management (SHRM), Robert J. Vance, Ph.D., states, “The greater an employee’s engagement, the more likely he or she is to ‘go the extra mile’ and deliver excellent on-the-job performance. In addition, engaged employees may be more likely to commit to staying with their current organization. Software giant Intuit, for example, found that highly engaged employees are 1.3 times more likely to be high performers than less engaged employees. They are also 5 times less likely to voluntarily leave the company.”

In our own experience we have seen CrewHu lower turnover by 40% in one calendar year and lower labor costs by $21,000. We have also seen gross sales increase in the same time frame by $130,000! With the advance of affordable online employee engagement programs your small business can see big results and a high return on investment.

Why Does Engagement Work

Think about anytime when you truly have been engaged in an activity. Perhaps it was opening your first franchise and you were doing research on finding the right place. Perhaps it was planning a vacation with your family overseas or learning a new hobby that has been passed down from earlier generations. Your excitement and engagement made the 'work' seem 'fun! You had a personal interest in what you were doing and as a result you got things done faster and with a great attitude. Engagement works the same way in a business organization as it will help:

  • employees take ownership
  • employees become brand ambassadors
  • encourage influential good behavior

Engagement is the easiest way to clone your initiative and drive. It equips your Cold Stone crew to not only put fires out when they occur but also to pro-actively think of how to improve your business. Everything your team displays is a reflection of your actions and core values. While there are many tactics to help employees achieve goals , a leadership style that promotes engagement, ownership and positive influence will empower your crew to do great things. Put these concepts to work and you will see results in a few short weeks.


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