With U.S. unemployment rates hovering near historic lows, especially for frontline retail and restaurant roles, workers have plenty of options for employment. Businesses that aren’t offering a job environment with competitive benefits and a path to a career are seeing those employees leave for competitors who are.

This trend is particularly prominent in quick-service restaurants (QSRs), which historically experience high turnover in even high unemployment climates. Unfortunately, the problem has only grown in recent years. According to a 2022 study, only 54 percent of QSR workers worked for more than three months before quitting.

How can QSRs retain their workforce and reduce turnover rates? One technique to consider is to provide employees with educational support to enhance their skills and prepare them to move up in the company. Several high-profile chains have found that by offering upskilling programs they can significantly reduce employee turnover. 

The importance of tuition assistance 

There are numerous factors to consider when you’re thinking of implementing an employee upskilling program. Workers are increasingly looking for employers who offer tuition assistance as opposed to tuition reimbursement. With tuition assistance, businesses pay tuition and fees upfront for employees to attend school while working. By eliminating the wait for reimbursement of these fees,  employees who have limited financial means have greater opportunity to pursue education programs, leading to higher and more equitable rates of participation. 

While some QSR owners and operators may pause at the thought of paying their employees’ tuition, it is a smart business move. Consider what happened after Chipotle announced a program to pay their employees’ college tuition in full if they major in agriculture, culinary skills or hospitality. The program more than tripled the average employee tenure in three years. 

The impact of tuition assistance programs extends beyond job satisfaction and employee retention. Employees who take advantage of these programs can develop durable skills such as time management, problem-solving and critical thinking, which can be directly applied to their roles in the QSR environment to boost productivity and customer service. For one cellular retailer, employees taking advantage of the company’s education program, sold 10 percent more product than employees who were not enrolled, likely taking advantage of the experience that comes with longer tenures.

Creating upskilling opportunities 

Upskilling is about more than just short-term benefits. While it might be tempting to focus narrowly on skills that are directly applicable to employees in their current roles, it’s also a good idea to consider skills that prepare employees for greater responsibility and career growth, both within the company and beyond.  

These include durable skills – such as leadership, communication and problem-solving – which are essential for long-term career development. These skills enhance employees’ current performance while equipping them for future opportunities, particularly in the face of rapid technological advancement. Integrating courses that focus on durable skill-building alongside training in digital literacy and technology is key to building a resilient workforce.

This approach has been embraced by leading companies like Medtronic, which implemented an upskilling initiative that supports the learning and application of technical knowledge and durable skills. The company’s efforts have led to improvements in employee performance and satisfaction, with a more than 60 percent increase in participation in the first year. 

Effective upskilling programs may also include courses in the following focus areas: 

• Customer service and teamwork, supported by effective communication and conflict management courses.
• Leadership and management, equipping employees with the skills needed to lead teams, make strategic decisions and advance into supervisory roles.
• Project management, critical thinking, data analysis, and financial literacy, enhancing employees’ ability to contribute to strategic projects and make informed decisions.

By investing in comprehensive upskilling programs, QSRs can bolster customer service and build a more capable workforce all while demonstrating their commitment to an employee’s long-term success. This approach communicates to employees that the company cares about more than just the immediate value of these programs to the company, which helps to foster loyalty and a positive organizational culture.

The key to ROI

Employer-sponsored education benefits are not just a feel-good initiative; they also make economic sense. Hiring and training new employees is costly. According to the Center for Hospitality Research at Cornell, the cost to replace a frontline worker averages $5,864. This includes direct costs such as recruitment and training, as well as indirect costs related to lost productivity and decreased morale.

Now consider that such workforce education programs see a 226 percent average return on investment over a three year period, a marked improvement over standard tuition reimbursement education benefits. That ROI comes from several areas: lower recruitment costs due to fewer new hires needed, decreased training expenses as employees stayed longer and improved morale and, consequently, productivity. 

Beyond cost savings, investing in employee education signals that a company values its workforce. It develops a more skilled and engaged workforce that can adapt to new roles and challenges, enhancing customer service and satisfaction. For QSRs and other sectors, this means not just a reduction in turnover-related expenses but also a competitive edge in the marketplace. By building a culture of continuous learning, companies can ensure sustained growth and resilience.

Going forward

Building a more educated workforce can safeguard a company’s financial future by enhancing the future of its workers. By investing in education and upskilling, QSRs can cultivate a more motivated, skilled, and loyal workforce. This investment lowers turnover costs while significantly improving guest experiences and overall customer satisfaction.

Looking ahead, companies that prioritize continuous employee learning will be better positioned to attract top talent and achieve sustainable long-term success. Embracing these changes isn’t just about maintaining competitiveness; it’s about nurturing a workforce that’s ready to contribute to growth and align with the company’s strategic goals. 

Gurpreet Singh, Group Vice President at InStride, leads the development of corporate partnerships, helping employers in the franchise, retail, technology, travel and hospitality sectors provide life-changing education to employees through partnerships with high-quality global academic institutions. Before joining InStride, he dedicated 15 years to the enterprise technology space at Cvent, where he built high-performing, customer-focused enterprise sales teams that worked with Fortune 500 customers. A University of Texas at Austin graduate, Gurpreet is committed to expanding access to education for lifelong learning.