For those of you in the franchising business, you’re more than likely well aware of the big news from 12 days ago. The National Labor Relations Board (NLRB) redefined the term “joint employer” and how it relates to franchisors (see The New York Times article for more information). This has been a widely expected ruling from the NLRB and the decision shouldn’t come as a shock for those who’ve been closely following this matter.
What The Decision Means For Franchisors…
While the ruling is undoubtedly significant, when you boil it down to its basics, the NLRB decision is a ruling on a single case. The ruling has broad implications for employers everywhere, including the franchising industry. But there are still unknowns as the ruling will be hotly contested.
“We are still a presidential election and congressional fight away from having this rule become the new standard,” says Hireology CEO, Adam Robinson. “Now more than ever it’s time to think about how you are handling recruitment-related issues with your franchisees.”
If you’re a franchisor, there are some things you should consider in light of the NLRB Browning-Ferris decision. The need for your franchisees to hire great employees continues, regardless of the ruling. How can you support your franchisees' success without increasing your exposure?
Hiring, firing and employee management should be controlled by the franchisee. What you need is a tool to do all of that so you, as the franchisor, can support those needs without direct involvement.
It’s important to take the appropriate steps now to prepare for the future of your brand in this new post-Browning-Ferris environment. The possible interpretations of the NLRB ruling stand in stark contrast: you’re either responsible for all of it (the aforementioned hiring, firing and management of your franchisees) and you’re changing your business model, or you can’t be involved in franchisee hiring at all.
Either way, in both cases you need an experienced partner who understands how to make franchisees successful through better hiring.
If you and your franchisees don’t have a process for finding great people, then you’re not competing at the level you should be. Don’t let politics or hiring challenges define your franchise. Take charge and implement a franchise hiring solution that works.
Still unsure how the NLRB ruling? Get more insight on the matter by downloading the eBook below—compliments of Hireology.