Hodes Voices

I’m Lovin’ It… or Not.

Feb 21, 2012 | Mark | Consulting, Corporate Culture, Employee Engagement, Employer Branding, Global, Internal Communications, Millennials, Public Relations, Recruitment, Relationship Marketing, Research, Strategy

By all accounts, it is a good time— check that, a GREAT time— to be McDonald’s. Just look at some of Golden Arches’ latest accomplishments according to a recent article in Advertising Age:

· Global same-store sales rose 5.6% in 2011 over 2010

· Its brand is ranked 6^th in world, valued at $35.6 billion by Interbrand

· McDonald’s serves 68 million people every day at 33,000 locations in 119 countries

· Harris Interactive released its 2012 Reputation Quotient and McDonald’s scored 71.77, or “Good”

· Company stock hit an all-time high of $102 per share in January

· McDonald’s made headlines in April 2011 for its National Hiring Day, when it added 55,000 new employees to its U.S. workforce of 600,000

And yet, all is not perfect in the land of the Hamburglar and Mayor McCheese. The same article goes on to discuss how McDonald’s is waging an aggressive campaign to educate consumers about its suppliers and changing its menu to be healthier. Both efforts hope to deflect criticisms about processed foods and childhood obesity.

More importantly, market research reveals that while many people eat at McDonald’s, few willingly admit to it. The research suggests that consumers know that the food isn’t that good, either from a culinary or health standpoint, but that the Company fills a need for fast, convenient and predictable food (drive-through customers, for example, are estimated to be nearly 66% of the chain’s U.S. business). Long-term, the concern on the part of McDonald’s is that consumers’ behaviors may follow their attitudes. While behaviors are much more difficult to change than attitudes, when the two reach relative parity instability results. “That’s the big fear,” the article quotes a brand expert observing, “which one wins: people’s stated dislike of McDonald’s or their unstated love of McDonald’s?”

This situation corroborates findings McKinsey published a couple of years ago on the Customer Loyalty Loop, namely that brand loyalty is subjected daily to a barrage of competing opinions and consumers must continually “re-choose” brands. In other words, the fight for customers is never won.

As we pointed out last spring, the same can be said for employees, their engagement and their loyalty. And the McDonald’s example gets at the core of a dynamic we’re seeing in the workplace today. Many employees express dissatisfaction with their employers, but they continue to work for them. The obvious explanation is that jobs are still relatively difficult to come by, so employees hunker down and put up with less than ideal conditions.

So, to paraphrase the pundit above, “Which one wins: people’s stated dislike of their employers or their unstated love of stable employment?” Obviously, the most talented can and will leave because, quite frankly, they can. Which leaves you with what?

Employers can learn from McDonald’s example. Instead of waiting for the exodus of talent to surge, wise employers will begin communicating with employees regularly to remind them of how good they have it and how bright their futures will be. And, just as McDonald’s has added fresh fruit and salads to its menu, employers need to back up their words with deeds.

Lest you put it off for another day, remember that changing attitudes or behaviors takes time. McDonald’s has impressive numbers to show its success in the marketplace, yet it is investing in its long-term brand. If your people are dissatisfied or disengaged, it will take time— and actions— to turn those around. If you wait until the labor markets heat up again, you will be too late.