HR Trends in Franchising

LinkedIn
Facebook
BDc Performance talks HR trends in franchising

A Modern-Day Dilemma in Franchising: Should I ‘Make’ or Buy’ Talent?

What are the HR trends in franchising? In a recent survey across 180 franchise organisations and 6,000 franchise-based staff in the US, it was uncovered by franchise executives that hybrid work, talent shortages, and employee stress and burnout are the three most significant HR challenges affecting franchising. 

There were some bright spots for franchising, though. 59% of franchise leaders report that recruitment at the corporate level has gotten better compared to the previous year. 

However, talent shortages continue to be a top challenge, particularly at the unit level. According to the FCA, in Australia and New Zealand the availability of suitable people to hire as employees of franchisees remained a top concern, with almost two-thirds of franchisors nominating this as a “high” or “very high” concern.

In fact, recruitment-related matters continue to be in the top five areas of concern with franchisee recruitment and the availability of suitable people to employ in support offices a major concern.

Our observations are that franchisors are understandably focused on product development, market expansion and customer satisfaction.

According to KPMG the biggest challenge in business for 2024 will be “Talent acquisition, employee retention and re/upskilling staff to meet a more diverse future”.

Therefore our concern, and it should also be yours, is the lack of proactive dialogue around how to resolve talent acquisition challenges moving forward.  

We were delighted that Harvard Business Review suggested, “Pursuit of nontraditional candidates will expand talent pipelines.” we agree that a sector with modest true growth such as franchising in Australia, will require a new paradigm for hiring, particularly in field manager and franchise sales roles.

For years, organizations have talked about the strategic value of expanding and diversifying their talent pipelines. With more employees charting nonlinear career paths and organizations having trouble meeting their talent needs through traditional sourcing methods, now is the time to act.

To fill critical roles organizations will need to become more comfortable assessing candidates solely on the skills needed to perform in the role, rather than their credentials and prior experience. 

Top Tip

Organizations can do this by removing formal education and experience requirements from job postings and instead reaching out directly to external candidates from nontraditional backgrounds who may not have access to certain professional opportunities, or even be aware of them.

Unfortunately, this takes time, and arguably resources, including technology, that many growing businesses do not have. We are currently assisting clients in that exact way using our franchise-specific business profiling and cost-effective search processes.

BDC Performance

To learn more about how we navigate recruitment through technology and franchise-specific profiling, or to receive a more detailed overview of the US research by Franchise Business Review contact John Cooksey from BDC Performance at [email protected].

About the author

Share the post

LinkedIn
Facebook
success is connected

Catch up for a coffee (or a beer)?

Industry insights
straight to your inbox

Join the BDC community!