Introduction
McDonald’s is owned by an international conglomerate and is one of the most well-known fast-food restaurants in the world. The company’s headquarters are located in the United States of America. The company was founded by Ray Kroc in 1954 and has been in operation ever since. Daily, McDonald’s serves approximately 70 million customers in 119 countries and territories (Jauhari, 2020). More than 2 million people work for the company in various locations worldwide. The business, a franchisee, an affiliate, or a business affiliate is responsible for keeping things running smoothly. An approximation of 20% of the restaurants at McDonald’s are owned and operated by the McDonald’s Corporation (Kee et al., 2021). The company’s primary sources of revenue are franchisee payments, fees, and rental income. Restaurants that the company owns generate revenue for the company as well. McDonald’s offers a variety of products in addition to cheeseburgers and hamburgers. Therefore, McDonald’s applies various strategies and employee benefits that ensure the company’s success.
McDonald’s Organizational Strategies
Several organizational strategies are embraced in most McDonald’s restaurants in the United States of America. The techniques include health and protection, dental plan, and insurance covering employees with short-term and long-term disabilities. One of McDonald’s primary goals is attracting, retaining, and motivating employees through its benefits program. These strategies aim to gain a competitive edge in ensuring the sustainability of their working population, thus enabling sustained improvement of the company’s service delivery.
Health and Protection
Employees can choose Preferred Provider Organization (PPO) medical plans from McDonald’s company, where these plans use the first health provider network. When a program is set up, in-network costs get paid more often than those born outside the network. This is based on the strategy. In addition to a prescription drug benefit, each plan has a benefit cap that can’t be reached throughout a person’s life. It also includes well-baby care and child immunizations or vaccinations, which cost around $500 per person. This plan helps employees to save money using the plan’s network.
Dental Plan
The company’s dental insurance plan covers a variety of dental treatments and procedures, allowing our employees to see any dentist they choose as part of their health care coverage. Preventive services such as sealants are almost always free of charge, with no out-of-pocket expenses. After deductions, approximately 80% of the cost of primary and significant services is paid for in full. The cost of orthodontic treatment for both adults and children is covered up to 50% after a one-time deductible (Kee et al., 2021). With this type of compensation plan, most employees have been well retained, thus enjoying the employment benefits.
Disabilities that Last for a Short and Long Time
Where employees have short-term and long-term disabilities, McDonald’s allows them not to pay anything. Benefits for short-term disability are based on the type of disability the employee has and the length of time the employee has worked for the business. Short-term disability insurance may be available to employees who cannot work for more than ten consecutive days (Chia et al., 2020). If an employee cannot return to work for a predetermined period, the policy pays 60% of their monthly base salary.
The Components of the compensation plan and their Justification that Enables the Organization’s Success
A well-structured compensation plan aims to ensure employees get the appropriate insurance coverage. To ensure the continuity of the organization, the company facilitates several ranges for the employees. The insurance policies covered by McDonald’s company are accidental and dismemberment and accident coverage for personal and professional travel. These insurance policies ensure that employees are well covered and protected when delivering services and their usual ways of life.
Accidental Death and Dismemberment Insurance
A policy known as Accidental Death and Dismemberment (AD&D) provides coverage for employees who are killed or seriously injured in an accident while on the job. McDonald’s employees receive accidental death and dismemberment insurance equal to two times their annual base salary. According to the company, additional Accidental Death and Dismemberment insurance are provided to employees who choose to increase their life insurance coverage at no extra cost (Kee et al., 2021). This coverage facilitates adequate healthy living for the employees, thus ensuring they continue to work for the organization
Accident Coverage for Personal and Professional Travel
All McDonald’s employees are given free travel accident insurance equal to two times their base salary. If you get into an accident while on a business or pleasure trip, your insurance will care for you. For all of its employees who are traveling on the company’s behalf for business purposes, McDonald’s also provides complimentary business travel accident insurance. There are two types of travel accident insurance, called trip cancellation and interruption insurance, which cost either $100,000 or $200,000.
Therefore, McDonald’s company is one of the best food service organizations in the United States of America. This has been contributed by the various compensation plans and benefits offered to the employees. For a company to ensure continued growth in its operations, employees’ needs must be well considered. With the proper management of the company activities, the objectives and aims of the company have been achieved, leading to great success.
References
Chia, X. R., Kee, D. M. H., Khor, S. T., Chan, K. Y., Lok, T. X., Almutairi, H. A.,… & Kulkarni, S. (2020). Contributing Factors to Organizational Success: A Case Study of McDonald’s. International Journal of Tourism and hospitality in the Asia Pacific (IJTHAP), 3(2), 38-47.
Jauhari, D. S. (2020). A Study on Impact of Promotional Strategies by Branded Fast Food Industry on Consumers. PalArch’s Journal of Archaeology of Egypt/Egyptology, 17(7), 7009-7020.
Kee, D. M. H., Ho, S. L., Ho, Y. S., Lee, T. W., Ma, H., & Yin, Y. (2021). Critical Success Factors in the Fast-food Industry: A Case of McDonald’s. International Journal of Tourism and hospitality in the Asia Pacific (IJTHAP), 4(2), 124-143.