10 Most Common HR Dilemmas Faced by Franchises

June 25, 20158:40 am1941 views
10 Most Common HR Dilemmas Faced by Franchises
XpertHR (PRNewsFoto/XpertHR)

Being a franchisee can pose it own set of problems when it comes to HR compliances and demands. Today, even experienced franchisee owners are overwhelmed by this surging trend in HR management faced by franchises. Here’s an attempt to list the 10 most common HR dilemmas faced by franchisees today by Xpert HR.

Franchisees are independent business owners responsible for the business decisions they make. While the overwhelming risk is primarily to franchisors if they are held accountable for the mistakes of their franchise owners, franchisees will feel the effects as well, since damage to a franchisor’s brand could negatively impact a franchisee.

In an effort to preserve the franchisor-franchisee relationship, franchise owners should ensure that customers and employees alike understand that the franchisor is not the employer.

Big name franchises in particular often face employee lawsuits due to perceptions of “deep pockets”, negative news and activism in certain sectors. In reality, most franchises are really small business owners trying to run their business, keep up with changing laws, evolving technologies, recruitment and retention challenges and changes in workforce demographics, to name but a few. High profile protests by low-wage fast-food workers have sparked major trends related to minimum wage increases, causing angst for both the franchise owner and the franchisor.

However in cases when you are backed by franchisee brand name, you get the support you always wanted to run a small business. Through backing and support, franchises will hold a better standpoint to address common HR challenges such as employee leaves, joint employer liability, paid sick leave, reasonable accommodation, overtime, employee classification, protected activity and more.

Many franchisees do not have an HR function are still required to be compliant with employee laws, while others might be tempted to let the employment issues get out of control.

This can lead to significant legal problems, when HR concerns are not addressed to resolution on time and involve related costs. According to a whitepaper published by Xpert HR, it addressed the 10 most common HR dilemmas faced by franchises.

“Most franchises are trying to run their business, keep up with changing laws, evolving technologies, recruitment and retention challenges, and changes in workforce demographics,” says Tracy Morley, Legal Editor, XpertHR. “Franchise owners, both small and large, should have a thorough understanding of federal, state and municipal employment laws, anticipate changes and proactively manage their workforce to reduce the potential for employer liability.”

See: The New Face of Human Resources

The ten most common HR compliance issues faced by franchises today are:

  1. Employee leaves and reasonable accommodation requests
  2. Joint Employer liability
  3. Paid sick leaves
  4. Minimum wage, employee classification and overtime requirements
  5. Finding and hiring the right employees
  6. Onboarding and Training issues
  7. Performance management
  8. Hours worked
  9. Workplace safety
  10. Protected activities under the National Labour Relations Act

While most franchisees face the common HR challenges, smaller franchisee owners are focused on putting out the fires, while staying in sync with the current legal and workplace trends.

There is a high level of uncertainty surrounding the franchisor-franchisee relationship right now. While the overwhelming risk is primarily to franchisors if they are held accountable for the mistakes of their franchise owners, franchisees will feel the effect as well, since damage to a franchisor’s brand could negatively impact a franchisee.

In an effort to preserve the franchisor-franchisee relationship, franchise owners should ensure that customers and employees alike understand that the franchisor is not the employer. Franchise owners should also ensure a thorough understanding of federal state and municipal employment law, anticipate changes and proactively manage their workforce in an effort to reduce the potential for employer liability.

Also read: Auto workers double their pay hike demands this year

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