[email protected] Report Provides Key Insights into Job Satisfaction, Hybrid Work and Compensation
July 21, 2022 – Portsmouth, NH – Franchise Business Review has released the results of the annual independent industry-wide survey benchmarking employee engagement and compensation among franchise professionals.
Franchise Business Review (FBR) is a market research firm that specializes in benchmarking satisfaction and engagement among franchisees and franchise employees across North America.
FBR conducted the [email protected] Employee Engagement & Compensation Benchmarking Study to help franchise companies understand how their culture, compensation and engagement compare to others. All corporate franchise employees were invited to take part.
FBR collected data from over 5,500 franchise professionals. Participants were asked 24 core benchmark questions related to job satisfaction, engagement, management, brand leadership, and culture, as well as detailed personal questions about their position, compensation, benefits, and demographics.
“Employee recruitment and retention is currently the number one challenge for many franchise organizations,” said Eric Stites, founder and CEO of Franchise Business Review. “In an FBR survey of franchise executives earlier this year, 60 percent of companies indicated that their growth was limited in 2021 due to limited access to employee talent, and 8 in 10 franchise executives listed employee recruitment and retention as a top strategic priority for 2022. That being said, employee engagement in the franchise sector consistently outperforms other sectors, and this year is no different.”
Employee recruitment and retention is currently the number one challenge for many franchise organizations….That being said, employee engagement in the franchise sector consistently outperforms other sectors, and this year is no different.
-Eric Stites, founder & CEO, Franchise Business Review
Key findings from the [email protected] study:
- Employee engagement: Overall employee engagement in the franchise sector remains extremely high. 82 percent of survey participants find their work rewarding and satisfying, and four out of five employees would recommend a job at their company to a friend. This far exceeds employee engagement studies from other organizations that report general employee engagement at under 40 percent across many industries.
- Remote/hybrid work: While two out of three employees would like to stay remote full-time, many franchise leaders want their teams back in the office more. Currently, 21 percent of corporate franchise staff are working remotely full-time, with another 32% working remotely part-time.
- Compensation: Average wages increased 4.3 percent year over year for all corporate franchise roles; however, with inflation reported upward of 8 percent in the same time period, real wages (nominal wages adjusted for inflation) continue to decline.
- Hourly staff: Wages for hourly corporate franchise staff have experienced the greatest gains, up 15 percent over the past year with the average hourly wage now reported at $19.25 per hour.
- Salaried staff: While many employers report increases of 10 percent or more in their recruitment efforts, average franchise staff salaries have dropped 22 percent since 2019. Franchise development teams have historically garnered the highest compensation within a franchise organization (and still do); however, the past year has seen an overall decrease of 17 percent in the median franchise development wages.
“The compensation data paints an interesting picture,” said Stites. “The drop in average salaries was not due to salary cuts to individual employees, but the result of a large influx of more junior talent, and the exodus of more senior talent within many franchise organizations. Distributions as a result of the pandemic caused many layoffs and early retirements for more senior employees, while simultaneously creating many more opportunities for less experienced (and less expensive) talent.”
Franchise companies and suppliers that participated in Franchise Business Review’s employee engagement research were eligible for the [email protected] Awards. FBR analyzed data from over 5,500 franchise professionals to identify the award-winners based on responses from their employees in eight key areas.
The following companies were recognized:
Franchisors: Large class (100+ employees)
- Realty ONE Group – GOLD
- Wireless Zone – SILVER
- Jason’s Deli – BRONZE
Franchisors: Medium class ( 25 to 99 employees)
- School of Rock – GOLD
- FYZICAL Therapy & Balance Centers – SILVER
- Wetzel’s Pretzels – BRONZE
Franchisors: Small class (Under 25 employees)
- The Mosquito Authority – GOLD
- British Swim School – SILVER
- Payroll Vault – BRONZE
- Curious Jane Marketing – GOLD
- Big Sky Franchise – SILVER
- UMI Turn-Key Marketing Solutions – BRONZE
Additionally, the following companies were named as finalists:
- 919 Marketing
- All Points Public Relations
- Alpha Graphics & PostNet
- Altitude Trampoline Park
- Citrin Cooperman & Company, LLP
- Clean Juice
- DreamMaker Bath & Kitchen
- Epcon Communities
- Franchise Marketing Systems
- Green Home Solutions
- Griswold Home Care
- Hot Dish Advertising
- Junk King
- Launch Trampoline Park
- Lightbridge Academy
- LIME Painting
- Oasis Senior Advisors
- Raintree Franchise Group
- Supporting Strategies
- Unity Road
- USA Insulation
- Wild Birds Unlimited
“If there’s been one positive to emerge from the pandemic, it’s that the importance of employee engagement is now at the forefront for many more organizations,” said Michelle Rowan, president & COO of Franchise Business Review. “The labor shortage that resulted from the pandemic has impacted the franchising sector significantly, but the franchise companies that prioritize well-being and a positive culture continue to attract great hires, retain their best employees and grow their brand. We are proud to recognize the companies that are setting themselves apart as an employer of choice in the franchise sector through their commitment to employee engagement, asking for feedback, and involving their teams in building a positive culture.”
The full results of the study are available at: https://fbrinfo.franchisebusinessreview.com/franchising-at-work-report
About Franchise Business Review
Franchise Business Review (FBR) is a leading independent market research firm that specializes in benchmarking franchisee and employee satisfaction. FBR provides franchise companies with benchmarks and best practices to improve satisfaction, employee engagement and retention. FBR has partnered with over 1,200 top-performing franchise companies to drive franchise growth and achieve greater success through data-driven insights. Learn more about FBR’s research at https://tour.franchisebusinessreview.com/research-and-insights/
B2B Marketing Director