How a culture of “doing the right thing” can be good for business
MOD Pizza was founded with the goal of using business to make a positive social impact. Like many other companies, MOD was having difficulty recruiting entry-level workers to keep up with the 2,000 MOD jobs created every year through their rapid expansion. MOD was also challenged with high turnover. Although their rate was typical of the restaurant industry, it was higher than they would like and represented an opportunity to reduce costs.
Through FSG’s Innovation Lab program, MOD set out to discover whether a partnership with a community-based organization could help address their high turnover and recruitment challenges through providing them with both a pipeline of career-ready youth and the wrap-around supports these youth needed to be successful. MOD decided to focus their pilot partnership in the Bay Area where MOD restaurants were facing upwards of 67% turnover at the 90-day mark. Next, they identified potential partners in the region and ended up forming a partnership with JUMA, a national youth-centered social enterprise that was also interested in piloting a new employer partnership model.
MOD found that their collaboration with JUMA did have an impact on their recruitment and turnover. Of the young people hired by MOD during the pilot, only 50% turned over by the 90-day mark compared to 67% for MOD’s restaurants in the region. Given the success of the pilot, MOD plans to scale partnerships at a national level by creating a database of community-based organizations that all MOD general managers can tap into for talent and support. Additionally, through the Lab MOD learned that 70% of their 6,000+ employee base are 18-24 years old. As a result, they are launching several new initiatives to support their employers more broadly such as new KPIs that track turnover, education benefits, and more transparent career pathways.
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We want to rewrite the script around there being a war for talent; instead let’s start talking about how we collaborate for talent because talent's out there. It's just often overlooked. You walked by it on your way here today. It was sitting in a street corner, it was in a cafe without a job, it was somewhere that you weren't looking.
SVP of People
Through our opportunity employment journey, we discovered that there are a lot of non-profits and social enterprises out there that are getting folks job-ready and just need employers to partner with them. It's been a huge win-win for us because we have found that the partners bring job-ready candidates and some of these support services that we were trying to figure out how to do but I'll be honest, it's not our sweet spot. We have provided a culture of acceptance, a sense of belonging, and for a lot of these folks, a first gig or a first-second gig and opportunities for them to grow and learn transferable skills they can take into that next job for them.
SVP of People