Taco Bell Rolls out Education Benefit to All Employees After Successful Pilot

Taco Bell Rolls out Education Benefit to All Employees After Successful Pilot

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.

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The Business Lessons in Taco Bell’s Turnover Equation

The Business Lessons in Taco Bell’s Turnover Equation

In a session at last week’s WorldatWork Total Rewards Conference and Exposition, Taco Bell Vice President of People and Experience Bjord Erland discussed how the fast food chain has handled turnover—a major challenge in its sector—in recent years. At HRE Daily, David Shadovitz passes along some insights from Erland’s talk:

Leadership was hearing that pay was a major reason people were leaving. But in order to come up with the right game plan, HR knew it needed more data. So it brought in global consultancy Mercer to better understand the key drivers behind the high turnover and identify ways to address it. When it looked at why workers stuck around, Taco Bell, a unit of Yum! Brands, found that a flexible work environment and strong culture were major drivers. As to why people were leaving, factors such as a high level of stress, lack of training and better opportunities elsewhere emerged as a big contributors. …

Well, the big “Aha!” for Taco Bell was learning that earnings were far more important to workers than their rate of pay. Were they working enough hours, including overtime, to bring home a bigger paycheck? (Erland noted that Taco Bell’s pay was competitive with others in the industry.) In light of these findings, Erland said, the company began to increase its use of “slack hours” to increase the amount of employee take home pay. “Turnover improved when employees were able to bring home more earnings,” he said.

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