Labour shortages are 1 of the finest problems experiencing most organizations now.
Franchisors and franchisees are not immune to this truth, whose effects affect the revenues and profitability of franchised companies as a great deal as the advancement potential of a network.
However, the characteristics of the franchise product give franchisors and franchisees particular avenues for dealing with this lack that are significantly less obtainable to independent companies.
Some of these avenues include things like:
1. The systematization of duties
The implementation of a franchise community needs the franchisor to systematize and doc the business model it proposes to its franchisees.
This includes the description of the duties of every single category of employees in a franchised establishment.
In purchase to handle the labour scarcity, a franchisor may properly take this work out a stage even further to optimize the productivity of its franchisees’ staff through much better business, systematization and coordination of employees’ jobs, schedules and routines, which might minimize the quantity of workers essential to work a franchised business enterprise.
The truth that jobs are greater arranged, as properly as the truth that this group is nicely documented (notably by a very clear description of roles and by a distinct and total process for the execution of every endeavor) also will make it possible to integrate more immediately a new staff into a place.
This has been, and carries on to be, a single of the major strengths of big franchisors, such as the McDonald’s restaurants community.
2. Authentic-time training equipment
Several franchise networks have teaching procedures and applications for their franchisees and their personnel.
It is now attainable to style, produce and apply serious-time training applications, like movies, coaching modules and on the net teaching courses.
By presenting this kind of real-time instruction packages (i.e., out there at any time and spot), a franchisor makes it possible for its franchisees to fill a vacant placement far more effortlessly and swiftly, both of those by an employee who by now occupies one more posture (in particular on a momentary basis) and by a new personnel who is thus capable to carry out far more speedily the obligations of a placement.
Training expenses are also lowered for franchisees considering the fact that these types of instruction can be done at any time by an employee with out the have to have to vacation outside at a unique time to obtain the training.
3. Technological equipment
A franchisor can also establish or get numerous technological applications that lessen the require for manpower within just the franchised businesses.
We have a short while ago seen in the media robots capable of accomplishing many jobs in restaurants or for decontamination of commercial areas.
Past robots, there are several technological resources accessible right now in most industries that can reduce the sum of human sources necessary to perform several duties and features inside of a company.
Given that a franchise community allows the from time to time major expenses of developing, obtaining, deciding on and applying this sort of instruments to be shared amongst various businesses, a franchisor and its franchisees have a true benefit in this regard.
4. Community-extensive recruitment
Yet another edge of franchise networks in terms of manpower is the chance of community-vast recruitment.
An impartial enterprise seems for new staff on a piecemeal foundation when a placement opens up.
This is a fairly sporadic search that is only performed when a will need occurs.
Even so, considering the fact that a franchise network has various companies presenting comparable positions, there are almost usually many positions to be stuffed inside the network.
This can make it achievable, on a network basis (or, for more substantial networks, on a regional basis), to place in place long lasting applications for locating new workforce, this kind of as a recruitment web page, recruitment webpages on social media and numerous other equipment and procedures for acquiring new workforce.
These equipment can be applied to fill vacancies as properly as to create a pool of candidates that franchisees can attract from when a have to have occurs.
5. Mobility
The point that a franchise community is manufactured up of numerous similar companies also provides it the possibility of creating a specified variety of mobility within the community.
Thus, a franchisor, with the guidance of its franchisees, can acquire a variety of resources and treatments making it possible for for a certain mobility of personnel, both of those quickly (in get to enable out a franchisee who is shorter-staffed) and completely (for instance, when an employee moves to a new municipality).
This often makes it possible for for the retention of superior personnel and, in some cases, the possibility for staff to maximize their function hours (by sharing their time with additional than a single franchisee).
6. A shared services middle
In the similar vein, it is also doable for a franchise network to set up a shared companies middle wherever selected tasks (notably clerical and administrative tasks) are performed by the very same group of persons for quite a few franchisees.
These a middle can also supply franchisees with short-term personnel to fill an rapid staffing gap.
In addition to clerical duties (such as bookkeeping, purchase preparing, central billing, payment management, etcetera.), a shared services middle might also consider on sure non-main, but often significant, actions, this sort of as maintenance and protection of the franchised corporations.
On a various degree (and generally less than distinctive names), a shared company heart might cope with, in a popular location for various franchisees, certain functions these as, for illustration, the preparing of particular meals for restaurants (as a result of a central kitchen area or meals preparation plant), the supply of goods (from the franchisees’ institutions or from a centralized warehouse for many franchisees, as a result steering clear of the want to just about every sustain significant inventories), the getting of appointments and/or orders, the preparing of pillboxes for pharmacies, etcetera.
The existence of a network of a number of enterprises functioning according to the very same small business product presents a number of appealing options for grouping and/or sharing many jobs, features and things to do, to the benefit of the two the franchisor and its franchisees.
7. Seeking for staff abroad
Exploring for staff overseas is one more way of beating the lack of manpower in several sectors of action.
Having said that, the steps needed to uncover staff abroad and to carry staff recruited abroad to function in Canadian organizations are usually prolonged, pricey and elaborate.
Below yet again, the two for the reason that of the actuality that it has various similar organizations and for the reason that it is run by a franchisor who manages the entire network, a franchise community is improved positioned than an independent SME to undertake an initiative to obtain, pick, immigrate and integrate foreign workforce.
Depending on the sector of action in which the franchise community operates, several other avenues could also be obtainable to deal with the labour shortage. Between people, we discover the capability of a franchise network to supply workforce of franchisees much better and much more uniform operating circumstances (including social gains) than impartial firms by combining the workforce of all of the franchised organizations for the intent of contracting selected benefits (which include, for illustration, a team coverage strategy or a pension program).
Obviously, the exploration, structure, collection, evaluation and implementation of these applications in a network need initiatives and bills that, in most situations, have to initially be made by the franchisor.
However, these are extra solutions which, in nearly all conditions, can be invoiced (of course at a fair value) by the franchisor to its franchisees and, as a result, at some point turn out to be a source of more revenue for the franchisor.
In a potential bulletin, we will return to the topic of additional services that can be rendered and billed by a franchisor to its franchisees in addition to the royalty.
Fasken has all the know-how and sources essential to assist you construction your network adequately, to present you with satisfactory agreements tailor-made to your desires, and to correctly get ready and execute any enlargement job, no matter if in Québec, in other Canadian provinces or everywhere else in the environment.
