HRM Report: Subway's HRM Problem and Engagement Solutions

This report delves into the critical human resource management issue of low employee engagement at Subway, a major factor contributing to high employee turnover and decreased revenue. The analysis identifies the core problem as a lack of employee dedication and enthusiasm, leading to reduced job satisfaction and loyalty. The report proposes two potential solutions: implementing open-door meetings and introducing motivational factors, and building a constituency of engaged staff. The report advocates for the former, highlighting its potential to foster better communication between management and employees, address concerns, and enhance employee responsibility. It also addresses potential objections, such as employee reluctance to attend meetings and the risk of conflict, offering strategies to mitigate these issues. The report concludes with a call to action, emphasizing the establishment of an effective communication cycle and the importance of monitoring employee engagement levels. The report is a comprehensive analysis of the problem and the proposed solutions.

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Author Note

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Abstract
The purpose of this report is to analyse a major Human Resource Management related problem
faced by Subway and provide effective solution of that specific problem. The HRM issue faced
by the mentioned organization include low employee employment. Subway is suffering from low
employee engagement that is resulting in huge turnover of the organization which in turn is
resulting in lowering of revenue of the organization. In this paper, two solutions of the problem
have been shared. Amongst them one of the solution has been chosen appropriate for the
organization.

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a. Introduction to the problem
Subway is suffering from low employee engagement that is resulting in huge turnover of the
organization which in turn is resulting in lowering of revenue of the organization. Subway refers
to an American privately held restaurant which is popular not only in America but also in
different parts of the word.
b. Thesis statement
Recently the turnover rate of the employees working in Subway has got enhanced a lot due to
high workload and other word and pay related issue. This in turn is directly affecting the
reputation as well as the consumer base of the mentioned consumer (Friedman & Kass, 2018).
The purpose of this report is to analyse the problem of low employee engagement of the
mentioned organization and provide the management of Subway with effective solution that
possess the potential to eradicate the issue (Weiss & Morrison, 2019). In order to enhance
consumer satisfaction, the mentioned organization has introduced new strategies in order to
enhance consumer satisfaction. The mentioned strategies includes on job training sessions and
new working procedures. According to researchers, getting to grip of a new system, specifically
when an old system has been in place for a prolonged period of time, often results in employees
tending to act reluctant for using the new HRM system (Graban, 2018).
c. Definition of the problem
The term low employee engagement can be defined as lack of concentration and dedication of
the workforce of an organization (Mone & London, 2018). Low employee engagement is
considered to be one of a vital sign of lower job satisfaction of the employees as well as their
loyalty towards the organization. An engaged employee can be defined as an individual who is

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fully absorbed and is highly enthusiast about their work. According too researchers, an
organization that possess high employee engagement possess the potential to outperform
organizations with low employee engagement.
d. Why the problem needs solving
An origination with low employee engagement faced issues like high employee attrition,
resulting in lack of efficient service to the consumers (Bailey et al., 2017). This in turn lowers the
consumer base of organization. High employee and consumer attrition in turn results in drastic
fall of overall revenue of the organization. Thus, it can be clearly understood that it is one of the
major HRM problems that possess the potential to ruin the reputation as well as consumer base
of organizations like Subway.
e. Detail potential solutions
In order to handle the situation effectively by enhancing the engagement of the employees, it is
highly crucial for the Subway organization to find out effective solution to the problem of low
employee engagement. In the following paragraphs, a potential solution for enhancing employee
engagement has been discussed:
1. Conducting an open door meetings and introducing motivational factors: For Subway,
one of the chief reasons behind low employee engagement is lack of communication
between the employees and management (Albrecht et al., 2015). In order to enhance the
awareness of the employees about the changes made, the management should conduct a
closed door meeting with the employees in order to state both the reason behind the
change and to understand the perspective of the employees. Communication regarding
the change will make the employees feel valued and thus it will enhance their

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responsibility towards the organization. Along with this, employees who will be rapid in
adopting the change will be given monetary rewards as extrinsic motivation
2. Building a constituency of engaged staffs: Managers should enhance regular interaction
with the employees. According to researchers, each and every interaction posses the
potential of influencing the engagement of the employees (Mone & London, 2018).
Managers should also use the right employee engagement survey.
f. Selecting the best solution
Considering the fact that the employees are reluctant to the change made by the organization,
employee empowerment needs to be implemented in order to enhance employee engagement.
Thus, the first, solution will be more advantageous for the organization. Conducting the meeting
will not only help the employees to understand the perspective of management and the
importance of the new system. On the other hand the management will be able to the areas where
the employees are facing issues which in turn will help them to eradicate the same.
g. Refute possible objections
The three possible objections that may be raised on the behalf of the employees are as follows:
1. reluctance of the employees to attend the meeting
2. Risk of conflict situation
Considering the fact that the new strategies have replaced age old strategies of Subway, a good
number of employees may show reluctance to even attend the meeting (Albrecht et al., 2015). In
such case, the mentioned organization should implement strategies like compulsory attendance in
the meeting. When it comes to the risk of conflict situation, In case some of the employees try to
demonstrate violence against the managers in the meeting, a positive approach needs to be

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shown. In order to discuss the issues with the employees, a one to one meeting will be
conducted.
h. Call of action
The first step towards call of action should be establishing n effective communication cycle with
the employees through internet. The responsible individuals associated with the mentioned step
should include HR manager, managers. The second step should be conducting meetings with the
employees before imposing new decisions and the third step should include monitoring the
degree of employee engagement.

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References
Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2015).
Employee engagement, human resource management practices and competitive
advantage: An integrated approach. Journal of Organizational Effectiveness: People and
Performance, 2(1), 7-35.
Bailey, C., Madden, A., Alfes, K., & Fletcher, L. (2017). The meaning, antecedents and
outcomes of employee engagement: A narrative synthesis. International Journal of
Management Reviews, 19(1), 31-53.
Friedman, H. H., & Kass, F. (2018). 'Substance Over Form': Meaningful Ways to Measure
Organizational Performance. Available at SSRN 3128595.
Graban, M. (2018). Lean hospitals: improving quality, patient safety, and employee
engagement. Productivity Press.
Mone, E. M., & London, M. (2018). Employee engagement through effective performance
management: A practical guide for managers. Routledge.
Weiss, M., & Morrison, E. W. (2019). Speaking up and moving up: How voice can enhance
employees' social status. Journal of Organizational Behavior, 40(1), 5-19.