Compensation: Bang for the Buck
Applebee’s gives managers the nontraditional benefits that employees feel have the most value.
By Mary Boltz Chapman, Editor-in-Chief -- Chain Leader, 5/1/2007
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At the manager level, many of the rewards across the industry are pretty standard: competitive pay, annual bonus and benefits package. Applebee’s has been innovating beyond these basics to give managers perks that address personal well-being and professional growth.
To learn what employees value the most, the Overland Park, Kan.-based casual-dining chain conducted a comprehensive total-rewards survey in 2005. According to Scott White, vice president of human resources--design and services, the survey revealed that employees wanted benefits that help them with work-life balance as well as development and growth.
Expert Advice
In response, Applebee’s created Life Matters. Employees call a toll-free number to speak to experts on life coaching, career planning, family counseling, and financial and legal advice.
The toll-free number also holds answers to any of their benefits questions. NeighborLine is a boon not only for team members but for unit-level managers. “It takes a lot of pressure off of managers,” White says. “They don’t have to be benefits experts or payroll experts. They trust the associates are getting help.” A bimonthly newsletter, NeighborLine Notes, discusses benefits topics and reminds employees of the service.
White adds that Applebee’s has been able to add benefits for hourlies by taking the responsibility out of managers’ hands: “You can’t put these cool things out there unless you have a way to execute them.”
Healthy Future
Managers can participate in a wellness program that comes with rewards beyond improved health. If they follow a highly personalized plan that helps them avoid health risks, manage a current condition or achieve a goal, they earn a $200 credit toward their health care. The company hopes the credit will encourage people to participate and take advantage of the help.
General managers also receive GM Perkx, $1,200 each year doled out quarterly apart from their payroll check. They can spend the money as they wish, but Applebee’s suggests they use it for a gym membership, vacation or other healthy outlet to help them lead a more balanced life.
They also can take part in Applebee’s Leadership Institute, which offers personalized development and life coaching. About 98 percent of GMs who have participated are still with the company; Applebee’s annual GM retention rate is 88 percent.
Beyond the Basics
Other nontraditional benefits include discount programs on things like health clubs, retail stores and insurance. “It’s inexpensive for us,” White adds, “but it’s money in their pocket every month.” Applebee’s also offers domestic-partner benefits and adoption assistance.
Looking forward, White says Applebee’s continues to look for unique benefits to set it apart, such as allowing managers to tailor their rewards packages as their lives and priorities change.
Measuring Up: Mazzio’s Italian Eatery keeps top-performing managers around by offering bonuses tied to unit performance.
Benefits of Culture: California Pizza Kitchen’s benefits help retain managers by being true to the company’s culture.
Long Time Coming: Lawry’s Restaurants offers benefits to hourly employees to keep those who want a career.
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