Chipotle’s Strategy for Addressing the Talent Shortgage

Chipotle Mexican Grill Inc. plans to hire 4,000 employees in a single day next month, seeking to counter a tightening market for restaurant labor by dangling the possibility that high-performing recruits could someday earn six-figure salaries and stock in the burrito chain. The planned Sept. 9 hiring binge—which would expand Chipotle’s 59,000-member workforce by nearly 7%—is one of the starkest examples yet of restaurant chains stepping up recruitment efforts as the industry struggles to attract and retain employees, according to the Wall Street Journal. “The economy has been thawing, more restaurants are opening, and there are fewer job applicants than there were several years ago,” said Monty Moran, co-chief executive of Chipotle.

Other competitors in the fast food industry are also stepping up to the plate. Wendy’s, McDonald’s and Cheesecake Factory have all increased wages, while Starbucks is offering tuition reimbursement and financial aid to employees who enroll in an online bachelor’s degree program, the Journal said. Starbucks also offers a 401(k) to all employees. McDonald’s said it would help pay for employees to earn their high school equivalency degree and take college classes.

Regarding the war on talent, “If it was ever gone, it’s back,” Susan Marks, CEO of Cielo, a global talent management and acquisition provider based in Milwaukee told Chief Executive last year. “Companies are starting to find that they’ve really got to work harder than they’ve ever had to in this area. Yes, there are horrible pockets where the economy still isn’t doing well. But the unemployment rate for people with college degrees is only about 3%.”

In a recent KPMG global survey of human resources professionals, most respondents say that addressing skills shortages is a higher priority now than two years ago – and will become critical in the next two years. Skill shortages appear likely to increase as globalization and competitive pressures take hold across sectors and industries and improving economic conditions spur employees to seek new jobs.

Survey respondents say the top three strategic approaches to addressing talent skills and shortages are as follows: 1. Enlist and empower management in talent management – don’t just leave it to HR 2. Focus on developing clear career paths 3. Take a holistic approach to talent management across the entire employee population

Read more:

The War for Great Talent Rages On Despite Slight Employment Gains

The Revolving Door of Talent

 

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