The importance of getting HR right for your franchise business

James Brouillard| Franchising consultant 

You're looking at franchise opportunities, and as a potential franchise business owner, you wonder how to tackle one of the most important tasks: employing and managing people. In fact, it is likely that you won't be spending the majority of time interacting with the end customer, as you might be looking after other areas of your franchise business such as business administration, determining products and service to sell and - indeed - managing staff.

That' s why it is important for you to undertake this task with all of the knowledge and care that the franchisor used to select you as a franchise business owner. When staff is dealing with end customers they are representing your franchise business' image and are a major factor in a customer' s likelihood to return, and ultimately the word of mouth reputation, as much as you.

When you' re looking at purchasing a franchise business - in particular a franchise system which may require you to hire and manage staff - it is important that you do the due diligence and consider whether the franchisor is actually putting in place HR recruitment tools and training programs to help you managing your future staff.

HR in Franchise Business still calling for attention

Results of a survey we conducted in the latter part of 2009 showed that while delegation of tasks from franchise owner to staff was improving, it is still an area to be looked at.

This is partly due to the amount of time senior staff remain employed. Surprisingly, managers hired by franchisees measure their employment in months, 45% of managers have tenure of 6 months or less, rather than years.

The underlying cause of this staff turn is inconsistent and/ or ineffective recruitment practices at business unit level. Along with this, is not setting the proper expectations of the role and the working environment.

Best practices to retain your best staff and boost your franchise business

So which are the best practices you should be aware of to build up a successful team of people able to make your franchise business thrive?

Key to attracting and retaining great staff is a great working environment. Setting clear goals and expectations and measuring them on a regular basis will keep everyone focused on achieving a common vision.

Rewarding employees for a job well done will enforce how much you appreciate and value their accomplishments. A positive work environment can be clearly seen by clients and creates ties on many levels that will have them recommending your brand and your franchise business.

It is important that your staff perceive your franchise business as a professional business, not a hobby. Your staff will appreciate it if you are well-organized: a comprehensive training program and a consistent employer are just a few things that reflect efficiency.

"The underlying cause of this staff turn is inconsistent and/ or ineffective recruitment practices at business unit level. Along with this, is not setting the proper expectations of the role and the working environment"

Satisfied Employees

Satisfied employees will also speak highly of you as a person and your franchise business as well and act as great ambassadors to customers in the local community and potentially other prospective employees.

With over 500,000 staff employed by over 70,000 franchisees in Australia you can imagine how powerful the word of mouth of employees is.

Valued and happy employees are far less likely to change jobs and, therefore, will be around to build the trust to delegate tasks and allow the franchise business owner to put themselves in the key areas to drive their business.

In the 3 P' s of business success; People, Products & Profits, People come first for a reason. A franchise system that helps its franchisees to better understand and execute their human resources will create happier and more profitable workplaces.