McDonald's Employee Benefits To Include Tuition, Child Care, Paid Time Off To Attract Workers

McDonald’s employees could soon receive a wider range of benefits, including emergency child care, as part of the fast food chain’s attempt at luring back workers following layoffs forced by the COVID-19 pandemic.

The food chain’s franchise owners are looking to offer higher hourly pay, paid time off, backup child care and funding for tuition costs to draw more workers to its doors and make McDonald’s more competitive, The Wall Street Journal reported.

McDonald’s move comes after it announced in May that it would raise its pay for more than 36,500 hourly workers by 10% over the next months. Entry-level workers will now make $11 to $17/ hour, while shift managers will make $15 to $20 an hour, depending on their location.

“Together with our franchisees, we face a challenging hiring environment, and staying ahead means we must constantly renew our commitment to offer one of the leading employment packages in the industry,” McDonald’s USA President Joe Erlinger said in May, CNBC reported.

The new benefits also come after McDonald’s franchisees surveyed employees on what they’d like to see as compensation. More than 5,000 workers and managers said they wanted more additional benefits, including enhanced pay and workplace flexibility.

A recent survey conducted by the Compass Restaurant Consulting and Research firm found that the government’s unemployment benefits was the top reason why many restaurants are now experiencing labor shortages, according to WSJ.

Workers cited disenchantment as the second reason and feeling unsafe while working in a public-facing job amid the COVID-19 pandemic as the third.

Aside from McDonald's, a number of other restaurants have also offered improved compensation to battle the labor shortage. Large retailers, such as Walmart and Target have previously opted to keep their stores closed on Thanksgiving to allow employees to stay home for the holiday. Best Buy also improved its child-care benefits.

Papa John’s announced last week that it was giving new hire, referral and retention bonuses to workers employed in company-owned locations. Enterprise workers would also earn an additional $50 for every worker they bring into the company, with every new hire also receiving $50, according to Texas News Today.