Bonus Pay for Employees – The Way Forward for McDonald’s?

McDonald’s is known to pay its staff minimum wage. However, it could be beneficial to both McDonalds and their staff to give a bonus based on how many customers they serve.

It would be fair because it will compensate employees for the growing intensity of their work. Rational as it helps the company to retain qualified employees in a tightening, competitive labour market.

Like it or not, low-pay employees are the very heart of the McDonald’s business model. They’ve always been overworked too. These are the people preparing and serving the meals of demanding customers.

Adding breakfast items like pancakes and McMuffins to the lunch and dinner menu turned out to be a great idea for the company. Not to mention for the customers, who couldn’t get enough of the idea during breakfast hours. It helped the bottom line for the company and allowed it to capitalize on economies of scope.

The company was able to offer even more choice to their customers in their prime locations. That is to say, the customers that wanted more choice got more choice.

Employees are still earning close to the minimum wage; making between $8-$10 an hour on average in tight working conditions.

To give McDonald’s its due, the company does at least offer lots of benefits to employees, including tuition assistance and free food.

Even so, the reality is still there McDonald’s employees are working harder and they should be paid more for the extra effort.

Perhaps this payment could come in the form of a supplemental bonus based on how many meals a store serves in a month.  Optima Foods CEO Kostas Mastoras thinks so. “If employees produce more sales, they should be paid a bonus,” he says.

McDonald’s franchises are operating on thin profit margins when franchise and lease costs are factored into the equation.  However, the parent company is still making quite a tidy profit.

Perhaps reducing the franchise fee could ease the burden on local operators who decide to pay such bonuses to their employees.

 

 

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