McDonald's franchises are offering emergency childcare as a draw for fast-food workers
- McDonald's owners aim to extend employee benefits to include emergency childcare and tuition.
- It follows a poll of current employees' compensation preferences, according to the Wall Street Journal.
- A lack of affordable childcare is a barrier for many American workers.
McDonald's franchise owners could offer emergency childcare to staff in a bid to demonstrate commitment to workers, as the US labor shortage runs on.
Franchise owners, who make up roughly 95% of the business, could extend the range of employee benefits offered after an internal poll asked current employees what they would favor as compensation, according to a report first published in the Wall Street Journal.
A spokesperson for McDonald's told Insider that the additional benefits - which are optional - also include eldercare, "a third-party led wage" and support for tuition costs. McDonald's parent company will co-fund the benefits with its network of owners, who will implement the trials in a way that "best serves their local markets."
The hospitality sector in the US is among those currently most affected by a labor shortage. In May 3.6 million workers left their jobs, many from the hospitality sector.
Favorable unemployment benefits, apathy with their role, and a fear of returning to face-to-face interaction with the virus still prevalent, are among the most common reasons being cited among those leaving the industry.
In 2020, McDonald's franchisees launched an evaluation of worker compensation. They asked 5,000 current employees and managers from 750 sites for their views. Increased flexibility as well as greater workplace training featured high on the list of feedback.
The plans received the endorsement of National Franchisee Leadership Alliance, an elected group that represents the company's more than 13,000 owners in June, and individual owners are expected to decide whether to expand the benefits at the end of the year.
In December, the two organizations clashed after franchisees were asked to pay a charge, which the company said related to past unpaid tech fees.
Many US workers are held back by a lack of affordable childcare
Access to affordable childcare has long been a bane for US workers, especially those from low-income families.
According to McKinsey's first American Opportunity Survey, released in May 2021, 16% of the US workforce is dependent on childcare in order to work. A lack of access was cited as the third most common barrier to finding a role.
This was more acute among mothers - listed by 18% of women compared to 16% of men. Hispanic/Latina and Black mothers are as much as twice as likely to say they are responsible for all household work and childcare compared to white women.
Of respondents with children, only 39% of those with a household income of below $50,000 said they could afford childcare.
Amid the staff shortage, companies are being forced to be more generous and creative with benefits they offer.
Other McDonald's franchises are offering iPhones and payments for attending interviews, while in May starting pay at company-owned restaurants was boosted from $11 to $17.
The CEO of a the Washington-based restaurant chain &pizza told Insider, however, that it was not hard to attract workers, firms just had to be prepared to pay them well.