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Working Hours & Retirement

Another EU law is the working hours and for certain ages you are only allowed to work for a certain amount of hours for the health and safety of the worker. A worker cannot work longer than 48 hours per week, however if they want to work longer they may do so but they cannot be influenced by anyone else. This is another factor that affects their recruitment and they will have to employee many people and spread their hours equally.

Lastly, the elder workers that are on to retirement can carry on working if they wish to and cannot be forced to retire. This will effect their recruitment as they will be forced to reduce their recruitment and work with their current (elder) workers. The current retirement age is 65 for both men and women and its set to rise to 68 by 2050; this could only reduce the rate of recruitment at McDonald’s.

Economical

There are many economical factors that could effect the recruitment of McDonald’s. One of them is competition; as the Shires is developing and more shops are being introduced to the public, the staff requirement is increasing at the same time. McDonald’s could face competition in payment; if

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other restaurants/stores are paying their employees higher, offering better bonuses and better training, this could mean that McDonald’s employees might leave for such offers. For example Aldi, a supermarket not that far away from the McDonald’s, pay their employees �9 per hour which is near enough double to what McDonald’s pay their staff.

Another factor is interest rates which have recently been decreased from 5.75% to 5.5%. The decrease of interest rates means that the disposable income will increase which will lead to consumer confidence in purchasing non-essential products. However, if inflation occurs then McDonald’s will find it difficult to keep their staff happy because bonuses will be cut down. I believe it could be their major fear if inflation occurs, as that will cause the prices to go up. Therefore McDonald’s costs will increase and their profits will eventually decrease, this could mean the staff pay might be cut down or staff could even resign.

Lastly, they could be affected by a low level of unemployment in the regional area as that would decrease their applicants for their recruitment at McDonald’s and this will narrow down their options. At the moment 1.2% of the population in the region is unemployed; this statistic could have an affect on them. In other words if it the figure was a high one then McDonald’s wouldn’t have any problems in employing people because they will be easier to find.

Social

The corporative image of McDonald’s as a restaurant is essential and it has to be all positive in order to attract employees. The feedback of current/other employees should be good and it has to match with the overall image of the restaurant. The manager of McDonald’s at our talk has explained to us that the atmosphere around the place is very friendly and optimistic. He described the working environment as a sociable place and everyone know each other’s names etc. This could have a positive affect on their recruitment as many staff would be attracted by the work environment and the openness of the restaurant.

However, with recent incidents such as bird flu affecting the country might have put off many potential employees of McDonald’s working for the restaurant. These are one of the negative factors that could affect the McDonald’s recruitment. Religion is another factor as some people are not allowed to touch certain meat due to religious policies.

Technology

New technology and innovations can have a positive impact on McDonald’s. However, their recruitment will be effected as they will be looking to recruit employees who might have past experience with certain technology. They might be able to offer training for those employees who don’t have the experience but even though it will cost them money and that might be wasted if the employees decide to leave at the end.

For instance McDonald’s has recently introduced the Chip&Pin machine allowing the customers to pay by credit/debit card. With this new technology the restaurant will need to have expertise behind the tilt, therefore they would have to recruit the right people for the job.

New technology will have an effect on the recruitment of McDonald’s, as they will either have to get rid of people, train the staff or recruit employees that have experience or knowledge about certain technology. As technology leads to efficient gains in a business and it allows a business to reduce some of the staff, this allows them to make more profit as they will not be paying as much wages. However, they might be forced to employ an expertise or a higher skilled person to control the piece of technology and that will cost them a lot of money.

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