In various (currently undisclosed) locations, Taco Bell will be implementing a $100,000 annual salary for general managers in an effort to upgrade on-site management and measure the results. This marks a 25-50% increase from current salaries for on-site managers. Taco Bell cites high turnover and issues in recruiting/retention as reasons for the change, recognizing that a talented manager can greatly influence a store’s success, including better hiring and onboarding and reduced turnover.
Business Takeaway: As we have discussed over the last few months, companies in nearly all industries are facing challenges attracting and retaining talent. Companies have implemented varied measures to address these challenges—from forgoing drug tests and offering drug/alcohol abuse treatment options to implementing higher salaries and improved benefits (e.g., paid parental leave, flexible schedules). As to the results of Taco Bell’s pilot program, stay tuned.