Operations

Two restaurant workers and text reading "Earn More Work Opportunity Tax Credits With Less Effort"

Earn More Work Opportunity Tax Credits With Less Effort

Earn More Work Opportunity Tax Credits With Less Effort 1016 528 Sprockets

Sprockets can help you earn up to $9,600 in tax credits per eligible new hire! Our platform not only reveals which applicants will perform like your top employees, but it also reveals those who qualify for Work Opportunity Tax Credits. You’ll improve your bottom line, provide jobs to individuals who might otherwise face bias, and increase employee retention! You even have access to a dedicated tax expert who can help maximize your credits and handle the paperwork.

Discover Which Applicants Are Eligible for Work Opportunity Tax Credits

The Sprockets platform makes it easy to view each applicant’s eligibility and the value of the tax credits received for hiring them. You could receive between $2,400 to $9,600 for each eligible person you hire, depending on their WOTC Target Group, such as SNAP Recipients, TANF Recipients, Supplemental Security Income Recipients, and Unemployed Veterans.

See Who Will Perform Like Your Best Employees

Our AI-powered software also displays which applicants will be excellent additions to your team. The process begins by creating a unique success profile based on the characteristics of your current top-performing employees and scores each incoming applicant against that benchmark. You’ll see “fit scores” next to WOTC eligibility in the dashboard, allowing you to hire the ideal applicants who will both succeed and provide tax credits.

Let Our Experts Take Care of the Details

As an added bonus, you have access to a dedicated WOTC tax expert to help you every step of the way. The expert will evaluate your new-hire process, send the WOTC questionnaire to applicants, set up the paperwork, give you completed IRS forms for easy filing, and answer any questions you may have. With all the time you save, you’ll be able to focus on the day-to-day operations of your business rather than dealing with the tedious tax process.

Start Maximizing Your WOTC Incentive Today

A screen showing applicants who are eligible for Work Opportunity Tax CreditsIf you’re not already taking advantage of this program, now’s the time! Sprockets offers seamless integration with WOTC and our AI-powered Applicant Matching System. Schedule a demo today to see how our platform reveals WOTC eligibility, predicts success with pinpoint precision, and improves overall employee retention. We can’t wait to help you hire the ideal applicants and earn Work Opportunity Tax Credits!

A woman on the phone with text reading "Maintain Healthy Staffing Levels With a Virtual Recruiter"

Maintain Healthy Staffing Levels With a Virtual Recruiter From Sprockets

Maintain Healthy Staffing Levels With a Virtual Recruiter From Sprockets 1016 528 Sprockets

Despite the high rate of turnover in the QSR industry, GMs are afforded little time for hiring crew members who are the precise fit for their needs. Luckily, a Sprockets Virtual Recruiter can quickly stabilize staffing levels and take pressure off of managers so they can focus on the daily operations of their business. A member of our team will recruit hourly workers, contact potential hires, re-engage past applicants, and improve employee retention. You’ll never miss out on a high-quality hire again!

Increase Applicant Flow

Your Virtual Recruiter makes it easy to post jobs on Google, Facebook, ZipRecruiter, and Snagajob, the largest marketplace for hourly work, for free. Plus, they’ll routinely re-engage previous applicants to capture their potential interest again. So, you always have a healthy flow of applicants to choose from whenever an employment opportunity opens up at your location. That means less time and money lost due to turnover. It’s a win-win for applicants and employers alike.

A phone with a pop-up that reads "Ideal Applicant Found"Reduce Applicant Response Time

You never have to worry about constantly checking job sites or reviewing resumes again. Your Virtual Recruiter will monitor submissions, evaluate applicants, and immediately alert you whenever they identify someone who would be a good fit for your team. GMs can focus on important day-to-day operations and schedule interviews with the click of a button to keep applicants engaged and interested in the position at your company.

Improve Employee Retention

Best of all, our AI-powered platform is proven to improve employee retention by an average of 43%. The Sprockets software creates a unique success profile for your individual location based on the mental makeup of your top employees. It then uses that as a benchmark to find future applicants with similar characteristics. 

Job seekers simply fill out a brief, three-question survey when they apply, and you see their “fit scores” in your Sprockets dashboard along with the automatic alert. It empowers you to hire the ideal applicants every time, ultimately reducing costly turnover.

Get Your Virtual Recruiter Today

What was once too good to be true is now a reality. You can get a dedicated member of our team to drastically increase applicant flow, reduce response time, and improve employee retention while you and your GMs focus on other aspects of the business. Schedule a brief demo today and see how a Sprockets Virtual Recruiter can help maintain healthy staffing levels for your business.

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The Best Ways to Reduce Employee Turnover

The Best Ways to Reduce Employee Turnover 1016 528 Sprockets

Employee turnover results in significant costs to businesses, including anything from a severance package to the time spent hiring and training the new employee. Therefore, any reduction in turnover will greatly improve your long-term financial situation and success, no matter what industry you’re in. While there’s no perfect “fix” to completely eliminate the inevitability of turnover, we created a list with some of the best ways to reduce employee turnover. Take a look and start improving your retention!

9 of the Best Ways to Reduce Costly Employee Turnover

Hire Applicants Who Are a Good Fit

You can reduce employee turnover by starting at the beginning and analyzing your hiring process. People who are a good fit for your team and workplace culture are more likely to succeed and stay long-term. They’ll be happy and productive as part of your team. On the other hand, employees who don’t fit in well will not like working at your company and ultimately leave for another opportunity. Their low morale can also be contagious. While skills are important, the best hire could be an applicant with no industry experience but fits in well.

Quickly Fire People Who Don’t Fit

If you happen to hire someone who doesn’t fit well at the company and doesn’t meet expectations, it’s important to let them go early. A poor performer can be a drag on morale, slow down work processes, and negatively affect other team members. Avoid this from significantly impacting your business by quickly hiring someone else who will be a better fit.

Keep Wages and Benefits Current

It’s common and perfectly understandable for people to think about their income and benefits packages compared to what they could get at other companies. This is especially true in the digital age, with websites such as Glassdoor and Indeed facilitating comparisons. If your compensation isn’t adequate, your employees might quit and pursue positions with your competitors.

Recognize and Reward Employees

Work is often difficult and stressful. By recognizing outstanding employees and rewarding them, you increase morale and encourage a culture of meritocracy. The prizes do not have to be significant. A pair of movie tickets is sometimes enough. Also, a small trophy can mean a lot. It’s the thought and recognition that truly counts.

Offer Work Flexibility

With the health pandemic, many workers have experienced work flexibility for the first time. They will likely want to keep these new arrangements. Working from home is a huge benefit for employees. There’s no commute, which saves a considerable amount of time and gas. They can also provide childcare to their kids.

If properly implemented, many positions can be done remotely. And, even if one can’t be 100% remote, you could have occasional work-from-home days or offer flexible working hours. Your employees will be very grateful if you do your best in having workplace flexibility. 

Promote Employee Engagement

Employee engagement and well-being can affect things in the workplace, like productivity and worker absenteeism. If morale is low, there are a multitude of things you can do. Try setting up a morale committee to come up with ideas. What can be implemented will vary from company to company. Hosting events like ice cream socials and pizza parties are inexpensive yet effective ways to show employees you appreciate them. Plus, it promotes communication and team-building among crew members.

Offer Career Development Opportunities

No one wants to be stagnant in their career. This is especially true for top performers who prioritize constant improvement. Perhaps some long-time employees should look into lateral moves. No matter the task, doing the same thing for years will eventually get old. By trying something new, they keep work fresh.

One of the most basic ways to drive employee development is to conduct monthly, quarterly, or annual reviews. Also, if your budget allows it, look into offering formal education opportunities or tuition reimbursement. Mentorship can also be a great growth opportunity. This pairs a seasoned executive with a junior employee. Both can benefit from the experience. Best of all, this program does not have to cost you a dime.

Conduct Quality Exit Interviews

Your human resources employee should be well trained in giving exit interviews. Hopefully, they’ll be able to identify why the employee is leaving. This interview can be an excellent source of information on why people leave your company. For example, if many people are leaving because of low income, then you know you should probably increase salaries.

Add Sprockets to Your Hiring Process

A woman showing a laptop screen of the Sprockets hiring platformLast but not least, one of the best ways to reduce employee turnover is to hire the ideal applicants with Sprockets’ AI-powered hiring solution. Our platform creates a success profile based on your current top-performing employees and automatically assigns a “fit score” to applicants with sophisticated personality assessments. It ensures you hire the right fit for your team — every time.

A happy man on a computer and text reading "Post Jobs for Free on the Largest Marketplace for Hourly Workers"

Post Jobs for Free on the Largest Marketplace for Hourly Workers

Post Jobs for Free on the Largest Marketplace for Hourly Workers 1016 528 Sprockets

Sprockets users can now enjoy free job posting on Google, Facebook, ZipRecruiter, and Snagajob, the country’s largest platform for hourly work! Avoid the fees that job sites typically charge while still attracting top talent for your team. You’ll spend less time and money on the hiring process, allowing you to focus more on the daily operations of your business.

Reach 6 Million Monthly Job Seekers

Simply create the job listings within your Sprockets dashboard and push it live to millions of job seekers on Google, Facebook, ZipRecruiter, and Snagajob with the click of a button. You don’t need to worry about creating separate accounts or paying any additional fees. It’s a quick, convenient way to advertise your employment opportunities to qualified applicants.

Improve Retention by 43%

The applicants will automatically appear in your Sprockets dashboard along with their respective fit scores, predicting who will perform like your best employees. You’ll instantly be able to identify who is worth interviewing and will contribute to the success of your business. Users report a 43% improvement in 90-day employee retention, on average!

Join the List of Satisfied Customers

We know Sprockets’ AI-powered software is the solution for your hiring needs, but you don’t need to take our word for it. There are numerous happy customers who love to share their thoughts on Sprockets. Here’s what one user had to say:

“Sprockets has allowed us to focus on the people who have the right characteristics, the right personality, [and] the right traits, and we don’t waste as much time on those that aren’t qualified anymore.”

– Ken Cope

Home Instead Franchise Owner

Start Posting Job for Free Through Sprockets

The Sprockets and Snagajob platformsDon’t wait any longer to improve your hiring process and reduce costly employee turnover. Our team is ready to set you up for success with the Sprockets platform, empowering you to reach millions of job seekers for free and build the best team for your business. Schedule a brief demo today to get started!

Someone packing up their desk with text reading "How to Identify the Warning Signs of Employee Turnover"

How to Identify the Warning Signs of Employee Turnover

How to Identify the Warning Signs of Employee Turnover 1016 528 Sprockets

Employee turnover remains one of the most significant issues that businesses experience, especially in the restaurant and home health care industries. Turnover drains a company’s budget and time and affects overall productivity, but it can be difficult to manage.

Although there might not be a perfect solution that completely eliminates turnover, you can begin to combat the issue by learning to recognize certain red flags. Identifying the warning signs of employee turnover is essential to avoid staffing issues and ensure your business runs smoothly. It can also help you notice problems in the workplace and fix them, ultimately improving overall retention.

4 Common Warning Signs of Employee Turnover

1. Changes in Work Routines

When employees begin to miss deadlines or submit sub-par work, it may be an indication that they have started to check out. Each of us has a bad day from time to time, so you should address this issue with sensitivity to gauge the cause effectively. However, you should note apathy about missed deadlines and errors.

2. Absenteeism and Tardiness

When employees who are always punctual and never miss work start reporting to work late, leaving early, or asking for several sick days unexpectedly, something might be wrong. They could be modifying their schedule to meet with prospective employers or undergoing significant personal issues that could affect their mood. Either way, you should talk to them to understand punctuality changes and try to work with them to improve their situation in the workplace.

3. Change in Attitude 

If a team member who rarely complains starts to say negative things about their work or seems disgruntled, it could be an early sign of turnover. Their poor attitude and comments could also begin to negatively impact the rest of the team, ultimately reducing productivity and company culture.

4. Low Engagement

When friendly and talkative employees suddenly stop engaging with other workers, it could be another red flag. Breaking routines and leaving acquaintances and friends is one of the hardest parts people experience when leaving a company. Therefore, when you notice that employees have begun to pull away and remain quiet, they might be preparing to leave.

Reduce Costly Employee Turnover With Sprockets

A woman showing a laptop screen of the Sprockets hiring platformAnother major step toward improving retention is to implement Sprockets’ AI-powered solution to your hiring process. Our sophisticated software creates a unique success profile based on the mental makeup analysis of your current top-performing employees and gives applicants a “fit score” based on this benchmark. You’ll instantly see which applicants are worth interviewing, will succeed, mesh well with the team, and contribute to your company’s success.

A tired woman and text reading "The Top Reasons Why Employees Leave a Company"

The Top Reasons Why Employees Leave a Company

The Top Reasons Why Employees Leave a Company 1016 528 Sprockets

One of the best steps toward reducing employee turnover is to understand precisely what causes it. Some businesses, especially franchises in the QSR and home health care industries, experience particularly high turnover rates. The factors can vary, but we created a quick list of common reasons why employees leave their companies to help you improve retention.

6 Reasons Why Employees Leave Companies

You might think that low income is one of the leading causes of employee turnover. However, research has revealed that only 12% of workers quit their jobs because of money. Here are some of the top reasons why employees leave their companies:

1. Lack of Flexible Work Arrangements

Today, most employees want more flexible schedules. They no longer search for a typical 9:00 to 5:00 job, which requires them to stay in the office daily. They often choose to work for an organization that allows them to work remotely at least once per week. Our increasingly digital work environment gives us many reasons why we should enable our employees to work remotely.

If a company starts to offer a more lenient schedule, applicants might choose it over competitors. About 37% of workers would leave their companies for another organization that allows them to work remotely. Correspondingly, 82% would become more loyal to their employers if given a more flexible work schedule.

2. Lack of Appreciation

An employer’s failure to appreciate their workers is one of the significant causes of employee turnover. Employees want their performance noticed, especially when they put in extra effort or work additional hours. However, many employees feel undervalued or underappreciated, and 66% say they would leave their job due to lack of appreciation.

This number is high in millennial workers, as eight out of ten say they would quit their jobs if their present organizations do not appreciate them. A simple “great job” or “thank you” can help employees understand that managers value their efforts and contribute to improved retention.

3. Lack of Progress

Employees understand progression in different ways. For example, some may feel that they want a promotion or salary increase to progress, while others may define progress as acquiring new skills. It does not matter what they would like to work on, who they work with, or how the organization compensates them. When managers fail to give employees room to grow, they get tempted to search for new opportunities and leave companies. Employers should create career and educational advancement opportunities for staff.

4. Poor Workplace Culture

Overall workplace culture also determines employees’ length of stay. Corporate culture begins at the top, and it is one of the essential elements that contribute to employee retention. Although companies have different cultures, always ensure it gives employees a sense of belonging.

Workers appreciate an environment with transparent communication, clear direction, and respectable and approachable managers. An unwelcoming organizational culture is one of the top reasons for employee turnover. 47% of individuals who actively look for new jobs do so due to bad corporate culture.

5. Excessive Workload

Although employers might want to reward high achievers with more tasks, they must be careful when doing so. When employees get overwhelmed with their job’s demands, they tend to leave for other organizations that provide more manageable workloads. Managers should ensure that their teams have manageable workloads. If you increase an employee’s list of responsibilities, pair it with a promotion, salary increase, or other noticeable benefits.

6. Changes in Personal Life

A change in personal life is one of the reasons employees leave a company, but it’s one that it’s difficult to avoid as a manager. For example, a worker may relocate to a new country for themselves or family members. Additionally, changes in their health can cause an employee to quit their job or look for a more accommodating position. While you do not have control over changes in employees’ personal lives, you can always support them in the workplace and through any major transitions.

Reduce Employee Turnover With Our AI-Powered Solution

A woman on a laptop hiring applicants with no industry experienceAlthough employees quit their jobs for various reasons, paying close attention to these factors can potentially help retain your best talent. And, when crew members inevitably leave, Sprockets makes it easy to find new workers that perform like your best employees.

Our sophisticated hiring solution combines artificial intelligence, natural language processing, and over 80 years of psychological research to predicts an applicant’s likelihood to succeed and stay long-term. Building the best team, and saving time and money, is as simple as adding our brief survey to your recruiting process. Sprockets even has an easy-to-use platform and integrates with other major hiring tools!

A woman with a headset and text reading "Maintaining Morale in the Workplace After Employees Leave"

Here’s How to Maintain Morale in the Workplace After Employees Leave

Here’s How to Maintain Morale in the Workplace After Employees Leave 1016 528 Sprockets

It’s inevitable for employees to leave workplaces, whether it’s for them to pursue another opportunity or their manager decided to let them go. However, when influential employees leave, the remaining team members may get frustrated about the situation or worry about their own position. These negative emotions might lead to low morale and reduced productivity. Leaders must then apply their skills to rejuvenate the workplace culture and positive atmosphere.

8 Ways to Boost Morale and Motivation in the Workplace

If you’re a manager, especially in the QSR or home health care industries, you likely deal with a high rate of employee turnover. Therefore, it’s crucial to know how to rebuild team morale after an employee — or several — employees leave, whether voluntarily or involuntarily.

Here are some strategies to maintain morale in the workplace after employees leave:

1. Re-Affirm the Team’s Vision and Goals

When employees leave their workplace, some rumbling in the workplace might occur as the remaining workforce might wonder about the future of the business. The remaining labor force needs reassurance that the company will still meet its long-term goals and be successful. Remind the team about the company’s vision and the significant roles they all play in that.

2. Be Open and Transparent

If you decide to let employees go, the remaining team members might wonder why you came to such a decision. In most situations, it is alright to provide an explanation and invite any questions or concerns your employees might have. This can put them at ease about their job security and workplace environment. 

(When informing the team about the reasons for termination, ensure that the engagement is a one-on-one meeting with open-ended questions. However, you might not be able to share all the contract’s termination details due to legal requirements in the state.)

3. Praise Employees for Their Contributions

The remaining team needs to be made feel appreciated for their contributions toward meeting the company’s short-term and long-term goals. As you commend their work, you need to put it appropriately for them to see the sincerity in the appreciation. Some people give their best in every team, and they need recognition through awards or recognition. Such credit will create a humane picture in the remaining employees’ minds, and they will remain focused on meeting the company’s goals.

4. Treat Laid-Off Employees With Respect and Dignity

If you have to terminate an employee for any reason, make sure you follow the due process and do so respectfully. If you handle a firing or layoff poorly, the ill-treatment will only create resentment within the remaining labor force. The remaining labor force will be less disgruntled if their former colleagues get treatment full of respect and dignity even as they leave.

5. Lighten Workers’ Mood

Buying free lunch or morning coffee for the remaining staff may improve the workplace’s mood. The company may also opt to take the workers for a trip or a social outing. During the event, the management should freely interact with the remaining employees. It might be a good opportunity to communicate why the decision was necessary and the next step the team will take to reach their goals together.

6. Emphasize Work-Life Balance

Management should create time for the employees to enjoy their social life with their families to increase their morale and prevent burnout. The administration can promote work-life balance by coming up with flexible schedules and remote working opportunities. Management should also avoid engaging workers while they are outside the workplace.

7. Organize Team-Building Activities

One of the most common ways to create a positive relationship between managers and their teams is to schedule team-building activities. Team-building creates collaborative cultures among teams, which is necessary after a significant layoff at work. If you are looking towards maintaining morale in the workplace after employees leave, a team-building initiative is one of the approaches to adopt.

8. Address the Workload Burden

Whenever workers leave, there is an unallocated workload that will have to be shared by the remaining staff if there is no immediate replacement. Adding extra work could cause resentment. If you are firing some employees, consider having them replaced as soon as possible. If the workload is to be re-distributed to the remaining workforce, consider informing them positively. You might want to consider even adding something to their paycheck.

Improve Retention and Team Morale With Sprockets

Two happy employees in a kitchenOne of the best ways to avoid the reduced morale associated with employee turnover is to hire the right applicants in the first place. Sprockets’ AI-powered solution predicts an applicant’s likelihood to succeed like your current top-performers, fit well with the existing team, and stay long-term. Users experience a 43% improvement in retention, on average!

Schedule a brief demo today to see how it works and start building the ideal team. You’ll save valuable time and money during the recruitment process and see an increase in overall productivity.

An unhappy man and text reading "How Employee Turnover Affects the Customer Experience"

How Employee Turnover Affects the Customer Experience

How Employee Turnover Affects the Customer Experience 1016 528 Sprockets

Business managers and human resource professionals must fully understand the effects of employee turnover. It disrupts scheduling practices, causes productivity slips, hurts company morale, wastes valuable time, and costs money.

However, one of the most significant consequences is the negative impact employee turnover has on customer service. The loss of long-term, top-performing employees means the loss of leadership, institutional knowledge, and rapport with customers. Experienced and seasoned employees, who understand the needs of customers, are in a better position to serve them.

The Effects of Employee Turnover on Customers

They Feel Less Valued

Businesses of all sizes should understand how employee turnover affects the customer experience. Whether it’s greeting them by name or knowing their favorite order, customers feel valued when employees understand them and their preferences. However, they can easily feel undervalued or unappreciated if there are always new employees at your location who lack the information or time to go above and beyond like this.

They Get Impatient

Employee turnover can lead to a loss of efficiency and productivity. New employees need time to understand a company’s business policies and procedures, how to solve problems, and meet expectations. Customer satisfaction depends on fast and friendly customer service, and it can be compromised by errors, repeated questions, or delays.

They Don’t Return

Repeat customers can significantly increase the ROI and reputation of your business. They provide you with consistent income and become loyal supporters, recommending your company to several other potential consumers. However, employee turnover can damage customer loyalty and even prevent people from becoming repeat visitors. A customer who receives poor service due to negative workplace culture or overloaded employees resulted from turnover might never come back to your store after an initial purchase.

How to Improve Retention and Customer Satisfaction

A waiter providing good customer serviceIt’s crucial to hire the ideal applicants to mitigate the negative effects of employee turnover. Many successful businesses use pre-employment assessments to screen applicants and make the right hiring decisions.

That’s where Sprockets comes into the equation. Our AI-powered hiring solution predicts an applicant’s likelihood to succeed and stay long-term based on the success profile of your current top-performing employees. Numerous franchisees across a variety of industries have reduced costly turnover with Sprockets. You could be next!

A business man with an hourglass and text reading "How Much Time Is Lost When an Employee Leaves?"

How Much Time Is Lost When an Employee Leaves?

How Much Time Is Lost When an Employee Leaves? 1016 528 Sprockets

It can be challenging to estimate the average time lost when employees leave. After all, there are numerous potential factors, including your type of business, the amount of training you provide, and your employee recruitment process.

However, every manager and business owner knows that losing an employee costs valuable time. Perhaps more considerably, in most businesses, this time lost equates to money lost as well.

Evaluating the Amount of Time Lost When Employees Leave

There are three main ways that employee turnover can cost your business time:

Of course, losing an employee means you no longer have their labor hours. The work that your former employee was doing is now nonexistent. This is especially true for former employees who don’t give an appropriate length of time for leave notice (if they chose to quit).

You also lose time because you have to devote labor hours toward recruiting a replacement employee. Now, you’re allocating hours toward searching for a new hire. The current labor market, your company’s needs, and the level of skill required for the position can all increase the time it takes to hire a replacement. Plus, you need to advertise and vet potential candidates. Unfortunately, the time it takes to hire employees can be extensive when you don’t have the proper tools to streamline the hiring process.

It’s important to consider the time it takes to properly train the new employee and bring them up-to-speed in the workplace. This amount of time varies depending on your business, but it can be considerable. Don’t forget: You will need to think about how long it takes for a training manager or fellow team member to teach the new employee. This potentially doubles the hours necessary to train a new employee.

What Can You Do?

Implement Strategies to Improve Employee Retention

If you want to avoid the costs of employee turnover and run your business as efficiently as possible, you need to keep your employees happy and healthy. Employee retention initiatives vary from business to business, but the basic concept is to make working at your company preferable to working at a competitor’s company. Some initiative examples include salary incentives, career growth opportunities, paid time off, and insurance benefits. You can even start something as simple as a weekly happy hour for your team to engage outside of work.

Investing in your current employees reduces the lost time and money from turnover. It’s a win-win for both employers and employees to create a positive work environment.

Hire Applicants Who Will Stay Long-Term

Improving employee recruitment is one of the best ways you can reduce the lost time of employee turnover. There are three main ways that a better recruitment process will help you reduce lost time.

First, having a better system in place to locate and hire new employees will make the actual recruitment time period shorter. When this system is improved, you will find qualified candidates more quickly. You will move to the onboarding phase sooner and replace the former employee’s work hours in less time.

Additionally, you will not have to devote as many human-resource hours toward the actual recruitment process with a more efficient system in place. Remember, the hours that your human resource employees spend also factor into the amount of time you lose. These hours could be spent elsewhere.

An improved employee recruitment process also increases the number of high-quality candidates you attract to reduce your turnover. Being able to focus only on the ideal candidates, rather than having to stress about weeding out poor fits for your positions, ultimately reduces the overall time spent.

The Solution: Sprockets’ AI-Powered Hiring Platform

A woman showing a laptop screen of the Sprockets hiring platformOne of the best ways to reduce the time lost on employee turnover is to integrate Sprockets into your hiring process. Our sophisticated solution to hiring combines artificial intelligence and over 80 years of psychological research to identify the ideal applicants for your needs. It’s not magic — it’s logic.

Plus, it’s proven to work with numerous business owners in a variety of industries, including home health care, quick service restaurants, call centers, and more. You could be the next success story! 

A smiling woman holding a sign that says "OPEN"

When Is It Time to Expand Your Franchise Operations?

When Is It Time to Expand Your Franchise Operations? 1016 528 Sprockets

There are a number of important clues you should look for when you are trying to decide when to open the next franchise location. Expanding your franchise operations takes more than a desire to make more money. You have to make sure there’s a large enough customer base and strong enough demand for your product to make the new location a success. 

We have been providing franchisees with the staff they need to successfully expand their franchise operations for many years. We have the expertise and experience to help any franchisee get the staff they need to grow their business at just the right time.

Expanding Your Franchise Operations

Important Considerations

Expanding franchise operations is a major step. It’s one that should not be taken without taking several things into consideration. They include:

  • Are there too many customers for your staff to handle at your current location?
  • Can simply increasing the size of your shop or restaurant handle the overflow?
  • Is your customer base large enough to make a second franchise location profitable?
  • Have you identified the right location for your second business? 
  • Can you find the right people to staff it?

When to Open Your Next Franchise Location

Some of the key factors that can help you decide when to open the next franchise location and ensure it will have a high probability of being successful include:

1. You Have Several Regular Customers

If you have a large number of regular, loyal customers, and your customer base continues to grow, that means there’s a consistently increasing demand for the product or service you provide. No matter what type of franchise you have, repeat customers are the key to success. Don’t base your decision on expanding franchise operations on one sudden spike in customers at your current location. When you see a stable, recurring revenue stream year-round, you should seriously consider opening a second location.

2. Customers Often Ask You About Opening Another Location

If many customers that regularly spend money at your current location keep asking you when you are going to open a second location, it might be time to grow. Being able to better satisfy your customers should be the motivating factor behind expansion plans. Plus, if customers routinely travel a long distance to purchase your products and services, expanding into a second location makes good business sense if you grow based on customer requests and their consistent purchasing patterns. 

3. Your ROI Is Steadily Increasing

If the profit you make from your current franchise location is consistently increasing, it could be a sign the market can support your expansion into a bigger or second location. This decision should not be based on short-term success. However, if the size of your customer base, revenue, and profits show consistent, long-term growth, expanding into a second location could be a lucrative business decision. The key is to make sure that you see a pattern of consistent growth. If customers are satisfied with your products or services, a second location can enable you to profitably serve more customers in a wider area. 

4. Your Franchise Is in a Growing Industry

Before deciding to expand into a second location, study the trends in your industry. If your research shows your industry is growing, now might be the right time to open a second location. Opening a second franchise location is a great way to take advantage of the opportunity for increased income, growth, and stability. By opening up another location, you not only reap lucrative short-term benefits, but you can also future-proof your franchise by providing customers with new products or services.

5. Your Current Location Has Too Much Business

If your franchise is attracting much more business than you can handle in your current location, it might be time to grow. Don’t wait until overcrowding or customers having to endure very long wait times for service begins to hurt your business. If just expanding franchise operations to a second location will allow you to better manage consumer demand for your product or service and even bring in more customers, take action. We can help you hire the additional employees you will need to serve customers at your new location.

6. You Have Done Your Due Diligence

Opening and running a second franchise location requires funding, franchisor approval, potential structural changes, as well as assessing growth potential and possible liabilities. If you’ve done your due diligence, and your calculations look overwhelmingly positive for the outcome of an expansion, and the only real question is when to open the next franchise location, it’s time to open a second location and grow your business. Double-check the details, get professional financial advice, and take the plunge.

7. You Have the Skills, Resources, and Opportunity for Growth

Creating and growing a business requires a unique set of skills, abilities, resources, and opportunities. It also requires vision and courage. In business, there’s no such thing as “a sure thing.” However, if you have the skills, resources, and opportunity for growth, don’t let fear hold you back. Do an evaluation of your business skills, customer base, and potential market size and share. If they all are in your favor, the time is right for you to expand into another business location where new customers are waiting to spend money with you.

8. You Have the Right Team

Running a franchise profitably and successfully requires a team effort. You must have the team with which to share the burden involved in the day-to-day details of managing two business locations. If you have a team with the expertise, focus, vision, customer service, and time management skills needed for a second location to prosper, you are ready to grow. If your team is equipped to take on the challenge, delegate some responsibility as necessary and go for it.

9. You Have a Trusted Network of Outside Experts

Outside experts can give you the help needed for your growing business to prosper. If you have a network of outside experts to give you the help you need, you are ready to expand into a second location with your business. Being willing to listen to and follow the advice of the business experts you hire is essential for success when you expand your business to a second location.

10. You Have Help Hiring the Right New Staff

A woman showing a laptop screen of the Sprockets hiring platformYou know it’s time to open a second location when you need to hire several new employees to serve the large and growing customer base. We can help you to hire the right new employees you need to help your current staff with the increasingly demanding workload.

Sprockets empowers you to hire applicants that are such a good fit that it might seem like magic. However, it’s a result of combining technology, logic, and psychology to identify which job applicants are most likely to be as effective in performing the job as your best employees.

We interview your franchise’s top employees and use artificial intelligence to recommend employees that have similar characteristics. Our sophisticated solution makes expanding your franchise operations easier and much more likely to be successful.