Robert Calaf BUS311 – 1801 May 9th, 2021 Prof. Brielle Buckler
- What are the advantages of choosing a host-country national staffing strategy?
A. There are numerous advantages to choosing a host-country national staffing strategy for an international country. Some advantages are the elimination of any possible language barriers between the employees of that host country and their national customers/vendors; better understanding of local rules and laws since those employees live there, and additional hiring costs would be avoided such as visas, cost of relocating employees from home country to host country and additional incentive pay for them; and last but not least, local employees are in tuned with the local culture which could avoid cultural mistakes when dealing with local customers, employee evaluations, and labor force management.
2. Develop a compensation plan for each of the two countries, revising the current compensation for managers in the United States, if necessary. The compensation plan should include salary, benefits, and any fringe benefits to attract the most qualified people. The plan should also address any legal compensation requirements for both countries.
US
- Restaurant Manager – $45,000 per year, plus 2 percent profit sharing. (Current offering)
- According to Indeed.com, a General Manager in a US Quick Service Restaurant on average makes about $44,592 per year. Fish to Go’s current salary offering of $45,000 plus 2 percent profit sharing is competitive with current industry wide salary averages. The 2 percent profit sharing would serve as the General Managers performance bonus since the more successful the business is, the more that payout from the profit sharing will be and the more the company will bring in.
- Other Industry wide common benefits offered to quick service restaurant general managers are dental, health, life, and vision insurance. These benefits should be offered at Fish to Go as well to ensure they are competitive in the industry; in addition to vacation and sick pay. It will also attract longer-term career employees to this role since these benefits are almost considered mandatory for staying power in a company. It ensures that the employee feels safe and secure in their medical needs and that the company is investing in their well-being by offering these quality-of-life benefits.
Mexico
- Restaurant Manager (per linkedin.com, “in-salary”) – $270,000 MXN (Mexican Peso) per year. At the time of this research (May 8, 2021), 1 Mexican Peso = 0.050 United States Dollar. This means that this salary is equal to $13,562.32 USD per year. A 2 percent profit sharing should be offered in Mexico as well and would serve as the General Managers performance bonus. This would put the position on par with its American counterpart in terms of compensation incentives.
- According to the website “Thomson Reuters Practical Law”, the following notable rights are given to workers in Mexico under the FLL (Federal Labour Law):
- Employment benefits, for example:
- Christmas bonus (aguinaldo);
- vacations;
- vacation premium (an amount paid to an employee on top of his/her regular pay for vacation days).
- Working conditions, for example:
- maximum working schedule;
- weekly day of rest;
- statutory days of rest.
- Payment of employees’ profit-share.
- Protection against dismissal.
“Minimum paid holiday entitlement
The FLL provides for a minimum vacation period that all employers must grant to their employees. Minimum vacation days are dependent on the employee’s length of service as described below:
- Six days’ vacation after one year of service.
- Eight days’ vacation after two years of service.
- Ten days’ vacation after three years of service.
- Twelve days’ vacation after four years of service.
- After the fourth year of service, an employee’s vacation entitlement will increase by two days for every further four years of service.
Employers must pay full salary and benefits during the employee’s vacation period.
In addition to the paid holiday entitlement outlined above, employees are also entitled to a vacation premium consisting of 25% of their base salary, payable during the vacation period.”
“Entitlement to paid time off
Employees are entitled to paid time off in the case of illness or injury whether or not they have been caused by work. Such illness or injury must be certified by the medical authorities of the IMSS for the paid time off to apply. The maximum time limit regarding the amount of paid time off that an employee can take is 52 weeks (whether the illness or injury is work related or not). “
- Dental, health, life, and vision insurance should be offered for Fish to Go General managers in the Mexico market that is on par with industry wide averages/expectations in Mexico. These benefits should be offered to ensure they are competitive in the industry. Vacation and Sick pay should offered that meets Mexican Labor law expectations listed above.
UK
- Restaurant Manager (per talent.com) – £35,976 per year. At the time of this research (May 8, 2021), 1 Euro = 1.22 United States Dollar. This means that this salary is equal to $43,758.47 USD per year. A 2 percent profit sharing should be offered in the UK as well and would serve as the General Managers performance bonus. This would put the position on par with its American counterpart in terms of compensation incentives.
- According to the website “Thomson Reuters Practical Law”, the following notable rights are given to workers in United Kingdom
“Minimum paid holiday entitlement
All workers have the right to 5.6 weeks’ paid holiday each year. For these purposes, a week means a normal working week for that individual (although the maximum statutory entitlement is 28 days, regardless of how long the normal working week is). If a worker starts or ends work part way through a holiday year he/she is entitled to paid holiday on a pro rata basis.
Holiday pay is paid at the same rate as normal pay, and should include any elements of pay directly linked to the work that the worker is required to carry out.”
“Entitlement to paid time off
Employees who are unable to work due to illness or injury, generally for four or more consecutive days, are entitled to receive statutory sick pay (SSP), provided they meet the qualifying conditions. Employees do not receive SSP for the first three days of any sickness absence. The current weekly rate of SSP, from 6 April 2020, is GBP95.85. The maximum entitlement is 28 weeks’ SSP during any continuous period of incapacity for work (or any series of linked periods).
An employee may also be entitled to contractual sick pay (that is, pay during sick leave at a higher rate than SSP) if the employer offers this benefit.”
- Dental, health, life, and vision insurance should be offered for Fish to Go General managers in the United Kingdom market that is on par with industry wide averages/expectations in the UK. These benefits should be offered to ensure they are competitive in the industry. Vacation and Sick pay should offered that meets UK law expectations listed above.
3. Develop an outline for a training plan, making reasonable assumptions about the information a new manager would need to know at Fish to Go.
A. The following will serve as an outline for general manager training at Fish to Go in the American, Mexico and UK Market.
- Food safety and food waste
- Workplace safety
- Cash handling
- Procurement
- Inventory management
- Equipment training
- Managing/Developing new hires
- Employee conflict management
- Customer service
- Marketing (e.g., oversight of social media, online reviews, etc.)
References
https://www.kickfin.com/blog/restaurant-management-training-plan/
https://www.linkedin.com/salary/restaurant-manager-salaries-in-mexico
https://www.salary.com/research/salary/posting/fast-food-restaurant-manager-salary
https://www.indeed.com/cmp/Quick-Service-Restaurant/salaries/General-Manager
https://www.workforce.com/news/learning-to-manage-host-country-nationals