Chipotle wants to give workers an extra month of pay
Chipotle is cutting through a tight labor market with a new incentive: An extra month's worth of pay.Posted — Updated
The offer is part of a new bonus program for hourly employees at its restaurants, which Chipotle announced Tuesday.
The program puts Chipotle "at the forefront of the industry for attracting and retaining top talent to ensure the crew is as passionate about their work experience as guests are about the food," the company said in a release.
To be eligible, employees must meet certain criteria, and their stores must meet sales and cash flow goals. If those quotas are met, Chipotle will pay employees a bonus each quarter equal to one week's pay.
Chipotle will average the weekly pay that hourly workers make over the quarter to determine the bonus.
The new program is an expansion of the chain's existing rewards for employees, including free food, tuition reimbursement and medical insurance.
"At Chipotle, we're not only looking to compete for the industry's best, we're looking to keep the industry's best," said Marissa Andrada, the company's chief people officer, in the news release.
Chipotle is not alone. Companies are struggling to hire people as the labor market tightens and unemployment stays low. The unemployment rate fell to 3.6% in April, the lowest level since December 1969. The rate held steady at that number last month.
Shake Shack CEO Randy Garutti recently told CNN Business' Christine Romans that the "fight for talent is fierce." The company is experimenting with a four-day work week.
McDonald's announced in April it's partnering with AARP, a nonprofit interest group for aging Americans, to help attract workers who are aged 50 or above.
And Taco Bell is hosting "hiring parties" with free food, swag and Instagram-friendly photo props that it hopes will lure in new employees. The chain, which is owned by Yum Brands, wants to create 100,000 new US jobs by 2022.
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