Aug 31, 2009

Burgerville even does health care right

My brother sends along a link: the Wall Street Journal explaining how Burgerville's health care coverage has improved employee retention--and the bottom line.
In absorbing more of the costs, Burgerville's annual health-care bill nearly doubled, to $4.1 million from $2.1 million. But company leaders figured the move would boost recruiting and retention.

Under Burgerville's plan, individual hourly workers can enroll in a health-maintenance organization for $15 a month, with no deductible. A worker and spouse pay $30 monthly; family plans cost $90. Salaried employees, whose plans didn't change significantly, pay $84 a month for individual and $240 monthly for family coverage, and have an annual deductible of $500.

Executives say the plan paid for itself, and more. Turnover in 2006 plunged to 54%, from 128% in 2005. That's a big deal when it costs an average of $1,700 to replace and train a restaurant worker, according to People Report.
No word on whether the HMO actively encourages its members to abstain from their own products.

Burgerville's overall approach shows how corporate social responsibility doesn't have to hurt profits. Once they enter the South Sound (or at very least send a Nomad our way), they'll be the perfect fast food company.

1 comment:

TeacherRefPoet said...

Oh man. Looks like I'll need to get me another couple of turkey sandwiches chased by chocolate monkey smoothies. (Not as much saturated fats as one might think.)