The American fast food chain Chick-fil-A recently announced that it was awarding $14.5 million in scholarships to over 5,700 of its employees across the country this year:
The investment in this year’s program marks a $5.7 million increase since 2017 and is the one of the highest unrestricted per-employee scholarship investments in the industry. Team Members who are beginning or continuing their higher education will be awarded scholarships in the amount of $2,500 or $25,000.
Chick-fil-A’s “Remarkable Futures” education initiative allows students employed by the company’s local franchise Operators to receive up to $25,000 in scholarships that can be applied for any area of study at any accredited institution of their choice, including any two- or four-year colleges and universities, online programs or technical/vocational schools. There is no requirement of hours worked or length of service to qualify. In addition to $14.5 million in scholarships, all of Chick-fil-A’s 120,000 Team Members also have access to tuition discounts and other educational benefits at 100 colleges and universities nationwide.
Chick-fil-A, which has been awarding college scholarships since the 1970s, has provided more than $60.5 million in education funding for nearly 46,700 employees over the years. The company launched the Remarkable Futures program in 2016 to expand this initiative considerably, more than doubling the amount of funding it would provide for employees’ educations.
The KFC Foundation, the charitable arm of the fast food chain, is providing a new benefit for employees of both corporate-owned and franchised KFC restaurants in the US: personal finance coaching. According to a press release from the foundation, the MyChange program, offered in partnership with the mobile financial planning service company Sum180, “fosters personalized financial wellness and teaches foundational personal finance skills” to employees, combining a confidential financial wellness app with a personal adviser who can help them budget, plan, and learn more about how to manage their personal finances.
The MyChange program comes in addition to several other educational benefits KFC offers its US employees through the foundation:
MyChange joins several other KFC Foundation offerings, including Rise with GEDworks (personalized high school credential assistance), the KFC Family Fund (hardship and crisis assistance), and the REACH Educational Grant Program (college tuition assistance at $2,000, $2,500 and $3,000 award levels), rounding out the employee assistance organization to support the whole wellbeing of KFC’s restaurant employees.
Krista Snider, managing director of the KFC Foundation, tells Amanda Eisenberg at Employee Benefit News more about how the program came to life:
McDonald’s announced last week that it was expanding its education benefits program for employees to both increase the value of the benefit and widen the pool of employees who are eligible for it, USA Today reported on Thursday:
Previously, employees had to be on the job for nine months before having a shot at tuition assistance, but that’s been dropped to 90 days. Plus, the weekly shift minimum was 20 hours and now is 15 hours. The changes will make close to 400,000 U.S. employees eligible, the company said. Now, staffers can get as much as $2,500 a year from the Archways to Opportunity program for a trade school, a community college or a four-year university — up from $700. For managers, the figure jumps from $1,050 per year to $3,000.
Some employees’ family members will also now be eligible for assistance. The changes, which McDonald’s attributed to a tight labor market and the savings it accrued from the recent cut in the corporate tax rate, are funded by a $150 million commitment the fast-food giant is making to the program over the coming five years. Since launching in 2015, the company says, Archways to Opportunity has distributed over $21 million in assistance to around 24,000 people.
The program, which is open to employees of both McDonald’s franchises and company-owned restaurants, is offered in partnership with the online education company Cengage Learning. Amanda Eisenberg goes into more detail about how the expanded program will work at Employee Benefit News:
Taco Bell announced this week that after piloting a program to provide employees at 700 of its restaurants with education benefits in partnership with Guild Education, the fast-food chain is expanding the program to 210,000 employees at its 7,000 locations, including many franchises, Amanda Eisenberg reports at Employee Benefit News:
Through Guild Education’s reduced-cost courses and degree programs, both corporate and hourly Taco Bell workers have access to more than 2,000 classes and programs in their pursuit of undergraduate or graduate degrees, college-level education, a GED, or mastery of English as a second language. Combined with the company’s education benefit of up to $5,250 in tuition assistance, paid upfront, and access to federal financial aid, employees are expected to pay little to nothing for the benefit. …
Two thousand Taco Bell employees enrolled in the nine-month pilot program, and 98% of those employees stayed at the company for more than six months, says Rachel Carlson, CEO and co-founder of Guild Education. “That’s phenomenal, especially in fast casual,” she says, noting the retention rates of workers in the program were 34% higher than those who were not enrolled.
Taco Bell took inspiration for its education benefit from Chipotle, which also partnered with Guild Education to help its employees finish college, and McDonald’s, whose employees can earn high school diplomas through the company’s “Archways to Opportunity” program, a partnership with Cengage Learning.
McDonald’s made headlines last week when it revealed that it would be accepting job applications this summer through Snapchat, in an effort to attract more candidates in its key age demographic of 16- to 24-year-olds. Recruiting through social media is a promising tool for companies looking to put job opportunities before the eyes of younger millennials and Generation Z, as that is where most of their media attention is focused—not TV, newspapers, or job boards.
Another millennial-targeted innovation in recruiting is gamification, where candidates prove their skills and compete for jobs through online platforms and mobile apps where they solve puzzles or participate in simulations that demonstrate their ability to do the work. The latest example of an employer gamifying their hiring process is Jaguar Land Rover, Amie Tsang reported for the New York Times this week:
The carmaker announced on Monday that it would be recruiting 5,000 people this year, including 1,000 electronics and software engineers. The catch? It wants potential employees to download an app with a series of puzzles that it says will test for the engineering skills it hopes to bring in. While traditional applicants will still be considered, people who successfully complete the app’s puzzles will “fast-track their way into employment,” said Jaguar Land Rover, which is owned by Tata Motors of India.
All of these new, tech-savvy approaches to recruiting are deliberately meant to appeal to a younger crowd, but not every applicant is a Snapchatting millennial raised on video games, Steve Boese points out in his take on McDonald’s “snaplications,” and employers who rely too heavily on these novel techniques might find that it has an unexpected and potentially unwelcome impact on age diversity in their organization:
New York City Mayor Bill de Blasio signed a suite of bills into law on Tuesday that will require fast food and retail employers in the city to provide employees with more predictable work schedules, Reuters reports:
A key component of the package is a requirement that fast food restaurants schedule their workers at least two weeks in advance or pay extra for shift changes. … The legislation also ensures that fast food workers have breaks of at least 11 hours between shifts and are given the option of working additional hours before their employers hire extra workers. …
The New York City package, which takes effect in six months, also would ban unpaid on-call scheduling of retail employees and would enable fast-food workers to contribute voluntarily to worker advocacy groups or other non-profit groups, but not unions, through payroll deduction.
With this legislation, New York becomes the third (and by far the largest) US city to take aim at the controversial practice of on-call scheduling, which San Francisco targeted in its 2014 “retail workers’ bill of rights” and Seattle banned in a law its City Council passed last year. Another such law is scheduled to take effect July 1 in the Bay Area city of Emeryville, CA, and similar scheduling bills have been introduced at the state level in Connecticut, Minnesota, North Carolina, New Jersey, New York, Oregon and Texas.
According to the New York Daily News, however, New York State Governor Andrew Cuomo is working on a series of regulations that would preempt the city’s and offer employees somewhat weaker protections, albeit more than they currently enjoy:
Wendy’s, which began installing self-service ordering kiosks at its restaurants last year, plans to add them to over 1,000 stores this year, the Los Angeles Times’ Shan Li reported this week:
At Wendy’s, Chief Information Officer David Trimm said that customers and franchisees have taken a liking to the kiosks. “You will see customers deliberately going to those kiosks directly, bypassing lines,” Trimm said during the company’s investor day Feb. 16. “Some customers clearly prefer to use the kiosks.”
There’s “a huge amount” of demand among franchisees, who will shell out about $15,000 for three kiosks, Trimm said. Wendy’s has estimated that the cost will be recouped in less than two years, he said.
Automated ordering is also a way to help cut labor costs in the face of rising minimum wages throughout the US, ostensibly supporting the argument often made by critics of the minimum wage that these hikes merely encourage employers to automate low-wage roles:
In the long term, many chains are looking toward kiosks as a way to reduce their employee headcount, especially as wages rise. … For Wendy’s, kiosks are part of an overall move into automation that could cut labor costs, said Robert Wright, chief operations officer. He called 2016 a “tough” year, with wages rising 5% compared with 2015.
Yet Greg Miller at Wall Street Daily argues that focusing on minimum wage increases as the cause of this trend is misguided—these jobs are getting automated regardless: