Job satisfaction and employee turnover at DOMINOS

Compiled by: CHIRANJAYA BISWAL SINGAMSETTY NARAYANA KAPARTHI SHASHWAT MISHRA SUGANDHA SHRISHTI

DOMINOS PIZZA
Type :Public (NYSE: DPZ) Founded :1960 Headquarters Ann Arbor, Michigan Key people : Tom Monaghan, Founder David Brandon, Chairman & CEO Industry Restaurants Products: Pizza sandwiches pasta chicken wings desserts Revenue $1.462 billion USD (2007) Employees 145,000 Website www.dominos.com

Typical Worker in a fast-food industry

Low Pay Part Time Closely Supervised High Turnover

Inferences from the survey

Main Problems Dominos is facing a high employee turn over rate Store Managers leave every 3 6 months Lower level employees turnover rate is 300 % Company policies avoid increasing basic wage How do they handle such problems Recruit better store manager by implementing new test Improving employee skills by training the weak points

Contd.
Providing facilities for store to see their records Better financial incentive Better improvement training

Why is dominos facing a high employee turnover

What drives people to quit jobs

Compatibility with they work reviewed from their basic education, interest, experience, compensation and any others. The Amount of salary and fringe benefits with any others benefit (career, training & management development) Relationship between human either vertical and horizontal (superior treatment and relationship with subordinate and colleagues).

What happens in Dominos

Low Pay Lack of relationship between boss and worker. Mean colleagues + boring days Lack of leadership element (note that store managers quit every 3-6 months)

Different Approach Used

Distinct characteristic of fast food business is high dependence on lowpaid workers. Small problem could trigger worker to seek another job in another company. Some companies use an approach of giving high initial salary.

Money Isnt Everything

Dominos used a different approach wherein they didnt raise the salary. They believe that working environment and quality of store manager play an important role in the turnover rate. They believe if the turnover of store managers is high, it has a ripple effect on the lower levels.

Future Orientation
Dominos tries to focus on recruiting high quality store managers. It selectively hires store managers, trains them, and motivates them with rewards. They also coach and ask store managers to create better working environment.

Recruit Better Store Manager

The Role of a Store Manager : To create better working environment To motivate other employees and subordinates To increase job involvement

Sustainable Incentive Programs

Formal scheme used to promote or encourage specific actions or behavior by worker. This concept is also referred to as Pay for Performance. Dominos is using the concept of sustainable incentive to improve employees job involvement

Incentive program
Types of Incentive : Employee Incentive Consumer Incentive Dealer / Channel Incentive Sales Incentive

Types of Reward : Cash Reward Non Cash Reward Non Monetary Reward

Rewards for Managers & Employee

Employee Stock Option Plans Company has introduced a program that grants stock options to about 15% of store managers based on criteria such as sales growth and customer services Suggestion Rewards : A simple Thank You appreciation of good work Treating employee with respect Birthday celebrations Employee field trips Casual lunch with staff

Final Result
The result is significant: employee turnover rate declined to 107%. Far below previous and average industry.

Statistical improvement from using new managerial tools