'We want to develop people to be able to take on these opportunities with us internally,' says Canadian HR leader
Anticipating record growth in Canada this year, Chipotle plans to open 10 to 14 new restaurants, representing 25 to 35% growth in the country by the end of 2024.
With these gains comes the goal of expanding the restaurant chain’s extensive benefits for employees, according to Bernard Che, manager, Canada people experience.
A focus on development is a key part of the company’s strategy. Chipotle employees are eligible for tuition reimbursement after four months of continuous service while averaging at least 20 hours per week.
“We really want to focus on employee development,” Che said.
“I know a lot of people start with Chipotle and they don't see it as a career path, for example, or only see it as a first-time job. But we really want to lean into the fact that there are a lot more offerings within the company; it's not just restaurants, there are a lot of opportunities, especially with the Canadian growth, as we want to develop people to be able to take on these opportunities with us internally.”
This focus on employee development has contributed to an internal promotion rate of 87 per cent, he said, and the opportunity for crew members to be promoted to general manager within three years of employment.
The company also extended benefits for US workers which includes paying off student debt.
“We feel offering tuition reimbursement to our employees gives us an added advantage to help them with their growth but also in terms of opportunity within Chipotle itself. We see this as an opportunity to lean into down the road when it comes to development and getting ready for our expansions as well,” Che said.
Range of employee benefits at Chipotle
Chipotle offers an increasing number of benefits as they progress through the ranks in an effort to support employees at all stages of their careers, Che said. At the base level, the restaurant chain offers an RRSP matching plan, an Employee Assistance Program with 24-7 benefits and referral bonuses.
As employees move up within the company, they also receive a variety of medical benefits including vision and drug care.
Through surveys, listening sessions and partnering with a third-party team, Chipotle can ensure that their benefits are aligned with the needs of their employees. This also keeps them ahead of the curve when it comes to benefit offerings, he said.
“We feel the voice of our employees is critical when it comes to benefit offerings,” Che said. “This year was a big win for us, as we were able to offer some enhancements in our benefits package that was favourable towards our employees.”
Benefits boost employee retention
Providing employees with a diverse range of benefits helps retail employers retain their workforce, while providing them with opportunities for internal and external growth, said Adam Lukoskie, executive director of the National Retail Federation Foundation.
In 2022, there were roughly 2.26 million retail trade employees in Canada, an increase of over 71,000 compared to the previous year, according to Statista. As careers in the retail sector expand, employers looking at their associate base and working to kind of define their needs is a growing trend within the industry, Lukoskie said.
Employers are trying to maximize their investments in employee benefits to understand what’s driving usage, what’s needed and what barriers exist when it comes to using these benefits, Lukoskie said.
“From our member companies, I'm starting to see a better understanding that they have different groups of associates in their company who want and needed different benefits, resulting in customized benefits packages to meet the needs of their associates versus a one-size-fits-all approach,” he said.
Tracking benefits usage
When establishing an employee benefits plan, employers need to ensure they know what their associates need and want, especially to make sure benefits are not wasted or underutilized. Listening to what employees need, combined with a data-driven approach that tracks usage, is important.
To keep benefits competitive, employers should continue to measure usage and preferences over time to ensure they are continually aligned with both the benefits market and employee needs, and any changes to these needs, Lukoskie said.
Benefits packages should also be clearly articulated and easy to access to ensure employees are able to take full advantage of them without running into barriers and complications, he said.
“Making sure that your benefit programs are employee-centric in terms of access and use can help reduce barriers, especially for frontline associates,” Lukoskie said. “Ultimately, making sure you understand the needs and wants of employees and meeting those demands is essential for keeping benefits competitive.”
Focusing on employee development
Within the retail sector, fostering employee development is valuable for both employees and their employer. With many companies offering tuition reimbursement programs, employees can build new skills to aid job performance and are set up for internal progression within the company, Lukoskie said.
Providing employees with tuition reimbursement and continuing education opportunities also helps build loyalty both from the employee and their peers who can see how the company values employees, he said.
“If a company helps you advance yourself, especially when there are no strings attached, you build loyalty to that brand. So, not only are employees more likely to work there longer, but they may be inclined to build a career there as well.”