Welcome to KFCA Great Place to Work

2014

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World class recognition culture. Focus on developing people to be the best they can be.

I love the recognition culture and the openness of senior management. I like that senior managers are regularly in restaurant learning about the business.

It’s a great place for work I’m proud I’m working here all, staff are so friendly and helpful.

I think it’s a really great place to work, the team are all individuals and diverse, its full of talented people. I love that ideas don’t just get taken on board but you are encouraged to put them in place. It’s all about the people.

The opportunities to progress yourself within the company is brilliant. Teamwork is key which makes the company a happy place to work.

When I joined the company I was made to feel welcome. I had great support from managers and the team during my training. The manager was approachable to talk to about anything.

Working in my particular restaurant is not really like coming to work, in that yes, you do come in and work, but we have fun at the same time. It is like going to see your friends, and earning money at the same time!

Within the company I have learnt that team work is very important, the job will always get done 10 times quicker because we always work as a team. What makes the company unique is that management are always willing to give hours that are convenient for everyone which is really good.

The culture within this company is completely unlike anything I have ever experienced working elsewhere. It surprises me on a daily basis to see the way in which we work as a team to achieve the results we do. I am also a huge fan of the recognition culture we have in our restaurants.

I have never worked anywhere where personal wellbeing is so highly regarded. I feel as looked after here as I did when I was at school and there are so many people championing this cause.

KFC is a Great Place to Work because of our unique culture of putting people capability first.

Just want to say from my heart its really cool place to work I have been working nearly 2 years at KFC.

The work that KFC does towards its charitable partners.

The focus on People culture and development is something truly unique to this organisation compared to any other organisations I have previously worked for. The environment and ethos is conducive to making a hugely productive, happy and innovative workforce.

The culture of support and recognition is excellent, all staff are treated well, supported and encouraged to do a good job and advance within the business if desired by that person.

This company has a great recognition culture to celebrate successes and motivate people.

The HWWT culture is absolutely brilliant and the leadership team is committed to making it work at all levels. Career development opportunities are exceptional and the recognition culture is second to none.

We asked our people why KFC is a great place to work and these are just a few of the things they had to say...

ContentsGeneral Information 4

Hiring & Welcoming 7

Inspiring 14

Speaking 23

Thanking 30

Caring 40

Celebrating 44

Sharing 46

Contents

KFC’s HistoryOriginally founded by Colonel Harland D. Sanders in the 1950s, KFC is the world’s largest chain of chicken-based quick service restaurants. The Colonel famously found a way to combine 11 herbs and spices with flour to create a unique and delicious taste, and to this day, the secret recipe is only known to a handful of people and remains locked away in a vault in Louisville, Kentucky.

The Colonel was known for his passion for food, hard work and the importance of home-style country cooking -the foundations on which the business was built - and in 2011, KFC found a manuscript written by the Colonel, tucked away inside a vault in the company’s archive facility in Louisville. The book contained 33 never-before-published recipes, dozens of rare historic photos and countless amazing stories told first-hand by the man who created KFC.

KFC’s Mission & Vision We have just launched our new five year strategy for how the business is going to look on Day 1 of 2020 and it is a strategy we are extremely proud of. Made up of three strategies “A Brand Loved By The Nation”, “Every Mood, Every Time,

Everywhere” and “Efficiently”, our overall vision is to be “The UK’s #1, Big Hearted Restaurant Company”.

Our How We Win Together PrinciplesOur ‘How We Win Together’ Principles have been a constant driver of our business since KFC began. Our entire culture is underpinned by these principles and they guide us to authentically set ourselves apart as a place where each and every person can make a difference and achieve breakthrough results together.

RestaurantsIn 2012 we developed an exciting new restaurant design, it sought to bring the feel of the kitchen out into the restaurant itself. 2014 has seen an evolution of that design; Kitchen Design V2 we have commissioned bespoke artwork, as you can see in the images, that really brings to life our passion for food and the care and skill that goes into preparing KFC’s food. It celebrates the unique nature of KFC and it’s attitude to the preparation of our products from the freshest, highest quality ingredients. It creates the feel of a theatre, a visual delight of ingredients. Our first Kitchen Design V2 will be rolled out in our Bracknell Restaurant opening on 3rd November..

Our customers experience our brand in a myriad of ways, from digital platforms to the messaging on trayliners we use in our restaurants. We have been concentrating hard on a series of comprehensive projects that will respond to our customer needs at every single touchpoint.

Corporate Social Responsibility Report – In March 2014 we published our first UK specific CSR report. The report is entirely online and includes our key performance indicators and our performance against those KPIs in relation to our four CSR Pillars (for more information please see chapter 3).

The report describes our visions, includes case studies and outlines the difficult issues that we face and are committed to overcoming, such as nutrition, sustainable sourcing and our terms and conditions of employment.

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General Information

KFC first came to Britain in 1965,

opening a restaurant in Preston,

Lancashire and now has 850

restaurants across the UK and

Ireland. In total, circa 25,000 people

are employed by KFC UKI and its

franchise partners. KFC UKI is a

billion pound business, part of the

Fortune 500 listed Yum! Brands

based in the US.

1 PLEASE PROVIDE US WITH A BRIEF DESCRIPTION OF YOUR

COMPANY’S PRIMARY BUSINESS IN LAY TERMS. INCLUDE A

DESCRIPTION OF YOUR PRIMARY INDUSTRY, PRIMARY PRODUCTS AND/

OR SERVICES, AND YOUR MAIN CUSTOMERS AND COMPETITORS.

New RSCIn addition to our new Restaurant Design, in 2014 our Restaurant Support Centre (that’s what we call Head Office) moved house! We moved into brand new offices just around the corner. The new building has everything you imagine a state of the art work environment should have; in addition to an open plan work space with hot desking space there is a barista with rest area and outdoor terrace, a library with sleeping pods and a games room with ping pong and football. In addition to these wonderful home comforts the new building has some exciting environmental benefits including being BREEAM & SKA accredited. The brand new facility has encouraged us to think more carefully about our environmental impact generally. We are taking part in Travel Smart with Surrey Country Council, cutting our carbon by incentivising our RSC team to find an alternative to their car to travel to work and supports our wellbeing policy.

To achieve our target of zero to landfill we have introduced an anaerobic digestion process for food waste. This turns our food waste and compostable items into renewable energy. We are working on a recycling campaign called “KFC vs Waste”. This will raise awareness, get people recycling correctly and ensure we recycle as much as we can.

Finally we are running a print campaign “KFC vs Print.” This is to reduce our printing by 80%. Reduction of print and paper is through printing being double sided and no small printers. Printers also delete all print jobs not printed after 12 hours.

The characteristics we seek in prospective new employees are determined by our company values that we talked about in the previous chapter – our ‘How We Win Together’ Principles. We also have a set of competencies, which are aligned to these values and our Yum! Dynasty Growth Model. We use these to ensure that potential hires share our values. Our philosophy is very much ‘recruit for cultural fit, training skills’.

We look for people who have the potential to go further than the position for which they are being hired – we call it ‘growth potential’. To find these high potential (Hi-Po) candidates we use three ‘Yum! Hi-Po’ competencies to recruit against: Smarts, Character and Ambition. If candidates tick these three competencies, those on the Dynasty Model and the HWWT2 competencies, we can be confident that they are a good fit

for our business. Our desire is to help people build the career that’s right for them, but also develop leaders of talent and in 2015 we will export a record number of people into leadership roles around the world, this stems from the focus we put on hiring the right people in the first place.

Our Employment OfferOur current Employee Value Proposition (EVP) is based on four pillars – Pride, Grow, Connect and Customer - we have used these as a basis for our recruitment advertising articulating what makes a career at KFC so much fun, and so distinctive, from the great training and development opportunities that are available, to flexible working and the skills involved in preparing our food. It’s has been a great way for us to articulate our culture and attract people who would be interested in benefitting from these opportunities. However our EVP has been under review in 2014 as part of a global project which our HRVP James has played a key role. Our new EVP is “Be your best self, make a difference, have fun” and while it is yet to be launched we will be excited to talk to you about it in 2015.

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A One System Approach Roughly two-thirds of all new restaurant openings are franchise operations. KFC has established links with 35 different franchise partners, many of whom operate other businesses from which they are able to bring additional skills and expertise.

The business operates a ‘One System’ approach, with franchise and company staff working closely together to ensure excellent service across the board. KFC’s main competitors are other quick service restaurant brands, such as McDonalds and Burger King.

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Hiring & Welcoming

2A. WHAT ARE THE CHARACTERISTICS YOU SEEK IN PROSPECTIVE NEW EMPLOYEES,ASIDE FROM THE

SKILLS NEEDED TO DO THEIR JOBS?

dynasty growth model

how we lead (with intentionality)Step Change ThinkersKnow How BuildersAction DriversPeople Growers

...with one system operational excellence as our foundation!

how we win together (HWWT)2 Believe in All PeopleBe Restaurant and Customer Maniacs…NOW!Recognize! Recognize! Recognize!

Go for Breakthrough Build Know HowTake the Hill Teamwork

our goalBe the Best in the World at Building Great Restaurant Brands!

our future back visionBe the Defining Global Company That Feeds the World.

our passionCustomer Mania... put a YUM on customers’ faces around the world

our formula for successPeople Capability First… satisfied customers and profitability follow

Drive industry-leading, long-term shareholder and franchisee value

Build leading brands in China in every significant category

Dramatically improve U.S. brand positions, consistencyand returns

how we growDrive aggressive, International expansion and build strong brands everywhere

©2010 Yum! Brands, Inc.

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2B HOW DOES YOUR HIRINg PROCESS

(RECRUITINg, INTERVIEWINg PROCEDURES, ETC.)

ENSURE THAT A JOB CANDIDATE WOULD FIT INTO

YOUR CULTURE?

We are extremely proud of our hiring process here at KFC and hope that the following principles help to illustrate how we ensure that we hire people who are a great fit with our business:

We do it ourselves – Wherever possible we look to carry out our recruitment in-house. For many years a lot of our recruitment was done externally through a variety of agencies. Bringing recruitment in-house offers a number of advantages: external agencies have to juggle the interests of a number of clients, but if we take on the challenge, we can be single-minded and focused. We also believe we are better placed to act as brand ambassadors than an external agency. In 2014 our reliance on external agencies has been greatly reduced; for our restaurant management positions recruitment is almost 100% in-house and has been for some time. For our RSC roles we have reduced agency recruitment spend by over £240,000 this year through driving our employer brand.

All of our candidates from Team Members to Directors go through a very thorough recruitment process, but we see this as two-way assessment. While it is an opportunity for us to decide on cultural fit and growth potential, it is also a fantastic opportunity for candidates to decide whether KFC is going to be a great fit for them.

During the recruitment process we…Provide a realistic picture of what people can expect from the job itself – We have put a lot of resources into developing online screening tests to ensure candidates fit the business, and into creating realistic job previews in restaurant so that candidates can experience the job first-hand before making a final decision. Leave every candidate with something positive – We strive to ensure that every person who applies to work with us, whether they are successful or not, get something positive from the experience. We have a dedicated team that are passionate about providing practical feedback to candidates on how they performed in the application process, regardless

of success. All our candidates who apply online, but do not pass the online assessment, are sent an email with links to the Job Centre and Total Jobs for advice on other vacancies and CV building.

Get to know candidates – We place a lot of emphasis on building relationships with candidates throughout the hiring process. For example, we communicate with a Team Member-level candidate at least four times during the process, to ensure that both sides have a chance to make a real impression. This relationship is especially important at an above restaurant level because it enable us to build a bespoke offer for each candidate that joins our business

Involve senior management and other people with whom the candidate would be working in the hiring process – We think it’s important for every prospective candidate to meet not only their direct manager, but also their manager’s manager and as many members of the team as possible. At restaurant level, we encourage candidates to spend time with teams in restaurants to see whether they are a good fit.

Other ways we ensure that we ensure candidates fit our culture….

We operate a ‘Refer a Friend’ scheme – We believe that recommendations from people who already work in our business are a great first step to ensuring cultural fit as, more often than not, it means they have had regular exposure to the brand already. We also reward employees who put forward a successful candidate with a £1,000 net bonus – a great incentive for growing our teams!

Sun Employment Road Show - We participate in the Sun’s annual campaign, The Sun Employment Road Show. Our COO Russel Smith attended the Birmingham event and joined the discussion panel.

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For the first time since participating in the Sun Employment Road Show we ran assessment centres on the day at the 5 national locations and we were so proud to offer 137 Team Member jobs at the event, we selected candidates for assessment centre based on their successful completion of a competency based, situational questionnaire that is designed to assess their culture fit.

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Sunemployment

Graduate Scheme - In 2014 we are continuing to use our ‘Make This Your Year’ graduate Campaign. We are participating in graduate Recruitment Fairs across the country at various university campuses including the Scottish graduate Fair at the SECC in Scotland, the National graduate Recruitment Exhibition at the NEC in Birmingham and Olympia in London. Alongside these fairs we will also be participating in graduate Skills Sessions on campus. In keeping with our philosophy of training and development, we will be running an adapted version of a Yum! course which we have called ‘Understanding your Personal Brand for Interview Success’. For the first time this year we are also running regional internal recruitment fairs to promote our internal pipeline.

In partnership with our recruitment media agency Jupiter our “Make This Your Year” campaign won the Chairman’s Award for Creative at the Recruitment Business Awards.

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School Leavers Project - Aware of the opportunity to offer development programmes to people wishing to leave school straight into industry we have launched a school leavers project, our Retail Management Trainee Scheme. As part of the scheme we have visited schools and colleges to participate in skills sessions engaging with school leavers and suggesting a viable alternative to university where they can start their career and continue their education. This programme is in its infancy but to date we have hired 14 Retail Management Trainees.

The great thing about the way we have recruited for Graduates and Retail Management Trainees (visiting fairs and running skills sessions at universities and colleges) is that it has allowed us to really engage with these groups so they have a clear understanding of what we look for in prospective employees and are able to self select ensuring the candidates who do apply are a good culture fit for our business.

Skills Events & Recruitment Fairs – In 2014 we have participated in various Skills Events and Recruitment Fairs across the country many of these have been on the initiative of our Restaurant Managers and Area Coaches to inspire 15-24 year olds to consider a full time or part time career with KFC while continuing with their education. These events have included the Thames Valley Skills Event at Ascot, The London Skills Event at the Excel, The World Skills Show at the NEC and the part time jobs fair at Plymouth University.

2014 has proved the digital revolution for the recruitment team at KFC we have launched our brand new careers website, our LinkedIn Page and two new Facebook pages dedicated to careers.

Careers Website – Our careers website is a critical tool for us at KFC and we receive on average 240,000 applications via the website every year. In 2014 we have done a full refresh of our careers website. The new site includes the opportunity for visitors to undertake an interactive realistic job preview and listen to and read about real members of the teams from across KFC to get an insight into their experiences and decide whether it sounds like the place for them!

www.kfccareers.co.uk

Facebook – KFC Careers and KFC graduate Careers. Through these pages we want to start a conversation with potential applicants, talking to them about our culture and career opportunities as well as what makes us proud to work at KFC and offering advice on the recruitment process (CV tips and interview advice)

LinkedIn – We have used our LinkedIn company page to share our brand story and really bring to life our world famous culture we are proud to have 4500 LinkedIn followers.

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2B. HOW DO YOU WELCOME NEW EMPLOYEES

AND INTEgRATE THEM INTO YOUR CULTURE?

We pride ourselves on our friendliness at KFC and we know that our recruitment process sets high expectations for employees joining the company. The first few weeks and months of a new hire’s life at KFC, are a vital opportunity to show them what a friendly and helpful bunch we are. Some of the things that we do to make sure people feel part of the KFC team include:

We consider people part of the team from the moment they accept an offer to work with us – Our hiring managers call them to congratulate and welcome them to the team as well as send a bottle of champagne or a bunch of flowers! We also invite new hires to attend any social events we have planned, even those taking place before their first day with us, such as a Christmas Party or Team Meeting.

We provide a very structured and comprehensive onboarding plan for all our new people – As soon as a job offer is accepted, our HR team arrange a 1-2-1 with the new starter’s coach to scope out a uniquely tailored and comprehensive onboarding plan. This means that we make sure that all new people are expected and properly welcomed on their first day, and that they have all the equipment they need to start training (e.g. laptops, iPhones, uniforms etc.) As part of the onboarding plan, new starters have meetings with various colleagues scheduled, these sessions are focussed on relationship building rather than operational.

We also make sure that their training schedule is organised, and they have been assigned their own account for our Learning Zone platform to do their online training. All staff who join us at the RSC, spend time working in a restaurant to get a really good understanding of what our business is all about and the Senior Managers’ induction programme includes spending three weeks in a restaurant.

So many businesses underinvest in giving their leaders frontline experience, often leaving it months before getting them out in the field and then only allowing a brief half day or so. Not at YUM! Everyone is given the chance to experience first-hand what our business is all about.

I was fortunate enough to be given the opportunity to really frontload my learning, with nearly 5 weeks in a variety of KFC Restaurants. My experience began in KFC Victoria Station where, with the support and coaching of the whole team, I worked my way through all the core roles, learning to prepare, cook and serve all of our menu items. To broaden my experience I then spent a few days with the regional team in Glasgow, learning many of the operational review processes. After this I spent 3 days at KFC Heathrow, learning the art of Drive thru before finishing up in one of our lower volume restaurants in Camberley, looking at the challenges of balancing availability with minimising waste.

Overall the experience helped me build my know how on the key drivers of success and profitability in our business. It also gave me a huge respect for our team members and RGMs who do an amazing job day in day out to give our customers excellent service.

Tom Walland – Commercial Finance Leader (Central and Eastern Europe)

Branded Onboarding – Our onboarding process has been branded. As soon as a candidate verbally accepts our offer of employment a branded offer pack is sent to them, which includes their contract, to drive engagement from day one.

Culture Buddy System and Culture Induction – Once they start with us and as part of their onboarding we have introduced, a Culture Buddy System which is an informal system where a new starter is buddied up with someone of a similar level, outside their function who really lives and breathes the KFC culture. They help the new starter to understand the nuances of life at KFC that are unique to our culture, such as Recognition (which we will come to later). We have also launched a Cultural Induction as part of our Centralised Induction for new starters aimed at building their know how about some key aspects of our culture, such as our How We Win Together Principles, the Dynasty Model and Taking People With You.

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I love being a ‘Culture Buddy’ it gives me a great opportunity to be a part of new starter’s induction, and to show how proud I am to be part of the KFC team and its Culture. Talking about the recognition at KFC which in itself is a huge part of the culture is really important to me as a buddy. It’s the perfect time to be able to explain what it is, what it’s about and give some examples on how people within the business deliver their recognition.”

Steph Poore - Project Co-ordinator

The ‘Culture Buddy’ is a great initiative. KFC’s recognition culture is very unique and it has been fantastic to have a colleague that can help me understand it better and get integrated much quicker. As a consequence, I’ve really embraced it and already recognised with my personal award.

Lluiz Ruiz Ribot - Marketing Director -New Concepts and New Culture Buddy

We make sure everyone knows when a new person arrives – We do whatever it takes to make sure that word gets out when someone new joins us. At the RSC, we introduce them in meetings and send around a ‘new starter shout out’ with a little bit of information about them to the teams. We also welcome them on our electronic notice board at reception. In many cases, we have new starter lunches to welcome them properly to the team. Martin Shuker our general Manager also introduces all new starters at our periodic communications meeting.

Welcome Bucket – Every new starter at our Restaurant Support Centre receives a welcome bucket in the iconic form of our bargain bucket on day one. This bucket is ready and waiting on their desk and contains the various gifts and useful resources, such as a USB stick and a much coveted Chicken Cheque.

We involve new hires in the onboarding process and seek feedback from them – We have a new starter questionnaire which we ask all our new hires to complete, as well as new starter breakfasts which provide an opportunity for a face-to-face discussion about how the onboarding process is going and what could be improved.

Centralised Induction – Introduced last year as a know-how building session for new starters from across the business to come together, meaning that all new starters will have a consistent induction and the opportunity to build relationships outside of their function.

Supporting Our Line Managers – As well as centralised induction to promote consistency for new starter inductions we coach all of our Line Managers to drive their passion for onboarding. giving them support and letting them know what tools are available to make onboarding a new Team Member a great success.

Team Member Induction – Team Members (TM) joining us at restaurant level take part in a centralised onboarding day where they have the opportunity to meet other new hires. In 2013 we changed this induction to have more focus on our business, culture, career opportunities and our customers. Health and safety has been stripped out of this first day and moved into the first week of training, the aim of the changes has been to make the induction more interactive and inspiring.

Attached Supplementary Evidence: To support our submission we are also attaching the following evidence separately:

Sample Onboarding Plan RSC Induction Deck Team Member Induction Video graduate Brochure Retail Management Trainee Scheme Brochure

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In 2014 our aim is to

raise £1 million for

WFP. You can see

from the photos just

some of the ways we

like to do this!

3 HOW DO YOU INSPIRE EMPLOYEES

TO FEEL THAT THEIR WORK HAS MORE

MEANINg THAN BEINg JUST A JOB?

At KFC UKI we are hugely proud of our company culture, our people and our products, and of being a key market within the world’s largest restaurant company, Yum! Restaurants. Central to our 2020 Strategy (as discussed in Chapter 1) and our vision to be “THE UKs #1, Big Hearted Restaurant Company” is the concept “With Heart”, this notion is step changing our strategy and revolves around us running our business the right way. We take our responsibility to our teams, to our customers, to our local communities and to the wider society extremely seriously at KFC.

World Food Programme - As part

of a global business, we believe

it’s right to contribute to the

global community. That’s why we

raise hundreds of thousands of

pounds every year in support of

the United Nations’ World Food

Programme (WFP)

Pennies for Change - We believe

that small change can make a big

difference and we’re committed to

providing our employees with easy

ways to raise funds for the World

Food Programme. Our ‘Pennies

for Change’ scheme allows

employees who sign up to donate

the pennies over and above the

last whole pound they earn in

their salary – for instance, if their

monthly pay is £1000.23, they can

sign-up to donate 23 pence every

month to charity.

Barnados - Through our Great Place To Work Survey in 2010, our teams told us that they wanted to make an impact in their local community to compliment the fundraising that we do for the World Food Programme. We responded to the feedback by establishing a partnership with Barnado’s in 2011.We offer disadvantaged young adults across the UK, the opportunity to participate in a four-week work placement in a KFC restaurant, learning valuable team-working and employability skills.

The partnership is designed to help people from Barnardo’s services get a foot on the career ladder, and harnesses KFC’s expertise in training and upskilling young adults.

In 2014 we had 40 young people participating in the scheme and a quarter of those have gone on to be offered permanent team member roles with us. The photos above show two of our Barnados placement young people being recognised by their RGM.

Guest Experience Survey (GES) -

The Guest Experience Survey was

launched in all of our restaurants

this year, it gives our customers

the opportunity to give real time

feedback about their visit and it

gives everyone in our teams from

cooks to tillers the chance to see

the impact that they directly have

on our customers experience in

their restaurant.

Inspiring

‘Grab a Grand’Every year each of our restaurants across One System and our RSC Functions are encouraged to ‘Grab a Grand’ for WFP. In 2014 some of our restaurant teams have already grabbed £2,000

Give As You Earn To make it easier for our teams to regularly contribute to the WFP and other charities, we offer an optional payroll giving scheme in which employees can choose to donate part of their salary each month. This is a tax efficient method of raising money for

charities.

Harvest Project

– (see page 17) donating tonnes of

edible food to local charities.

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So Good for the Community - Pre-planning Community ConsultationWe work hard to speak with local communities long before we arrive to better understand any concerns and to work with them

to adapt restaurant sites and designs where we can. We have recently launched a range of new materials designed specifically for local residents and stakeholders.

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Community website We have developed and launched a new website aimed at local communities before KFC even arrives. A first in the QSR sector,

it provides details about the plans for sites in the community and invites comments from residents and local stakeholders. The site will capture potential concerns and provide tailored information on issues such as traffic, litter, local jobs and training.

http://www.kfcdevelopment.co.uk/

Litter Prevention Initiative - In May KFC became a founding signatory of the Keep

Britain Tidy Litter Prevention Commitment and spoke at the launch event hosted by the Tidy Britain All Party Parliamentary Group in the House of Commons.

WRAP Hospitality and Food Service Agreement In 2014 we signed the WRAP Hospitality and Food Service Agreement, a voluntary initiative to help the food sector reduce waste and recycle more. The targets in the agreement are to reduce food and packaging waste by 5% by the end of 2015 and to increase the rate of food and packaging waste recycled to at least 70% by the end of 2015.

Food Waste - From January 2015 all food waste from back of house of our restaurants in Scotland will be recycled via Anaerobic Digestion. Our plan is to roll this out to all restaurants throughout 2015 and 2016.

Harvest Project - We are currently piloting a food waste collection scheme in our Brixton restaurant, and we plan to extend this to eight other restaurants by the end of the year. Our plan is to roll out the programme nationally in 2015 to as many restaurants as possible. This means that almost a tonne of edible food can be donated to a local charity partner per restaurant, providing meals to some of the most disadvantaged in communities across the country.

Good Neighbour Guide We recognise that we must fully engage with communities before we open a new restaurant and an important part of this is to commit, ongoing, to managing our sites in a responsible and transparent way. We

have created our Good Neighbour Guide, which sets out in detail how we operate our sites and what it means for every community.

http://www.kfcdevelopment.co.uk/assets/files/4_good-neighbour-guide.pdf

Community Commitments - To provide confidence that we are committed to investing in local

communities and running our restaurants and sites in a responsible and responsive way we have developed a series of commitments across areas such as cleanliness, noise, traffic, litter, employment and local partnerships. Our commitments to every community are clearly set out in the new development website and are available for local residents and stakeholders.

http://www.kfcdevelopment.co.uk/assets/files/6_07-commitments.pdf

Socio Economic impacts - To help local communities better understand the scale of investment when KFC arrives we quantify these impacts and set them out in an infographic available for local residents and stakeholders.

http://www.kfcdevelopment.co.uk/assets/files/7_kfc-socio-economic-benefit-v6.pdf

Construction

ECONOMIC BENEFIT SUMMARY

KFC (UK & Ireland)

In its economic role, the planning system is required “to contribute to building a strong, responsive and competitive economy, by ensuring that sufficient land of the right type is available in the right places and at the right time to support growth” [para 7, NPPF].

KFC develop between 30 and 40 restaurants per annum. The development of each restaurant delivers multiple economic benefits throughout local communities, contributing to the economic dimension of sustainable development.

The development of each restaurant with drive-thru facility will typically deliver:

• Up to £1.8M in economic output (GVA) during the construction phase

• 45-50 jobs, of which around 63% will go to people living locally

• Up to 25% of new jobs will go to unemployed young people

• Around £77k in business rates

• A contribution towards growing the UK economy of

c. £428m through our supply chain.

JOBS CREATED DURING CONSTRUCTION

Direct construction jobs (on- and

off-site) = 140 jobs

Plus 100 indirect

jobs

Additional economic output (GVA) over the construction phase =

c. £1.8M

The construction of each restaurant will support indirect employment opportunities throughout the supply chain. The delivery of one restaurant could generate 95 indirect employment positions.

The supply chain will support economic activity across a variety of sectors, including:

• Distribution and transport;• Service sectors;• Manufacturing; and • Energy and Utilities.

The construction and fit out of each restaurant will generate and sustain direct employment opportunities, both locally and nationally, within the construction sector. On average, the construction of each restaurant will provide 140 direct construction jobs, comprising 90 on-site and 50 off-site positions.

Each direct construction job will contribute to economic output in the form of Gross Value Added (GVA). GVA can be used to measure the financial contribution the development of each restaurant makes towards the economy, measuring the value of goods and services produced within the construction sector.

It is estimated that, on average, the construction of each KFC will generate up to £1.8M across a 10 week construction period

CONSTRUCTION SUPPLY CHAIN

Di

stribution & Transport

Service Sectors

Ener

gy & Utilities

Manufacturing

NEW

NEWSo Good For The Environment: Commitment To The EnvironmentTackling Litter – Litter remains a key concern in the communities in which we operate and we are continuing to work hard to tackle the problem: we send out daily and nightly litter patrols and work closely with local authorities and national support groups to make a difference. For example we worked with Keep Britain Tidy and Essex Council to launch the Love Essex litter programme in Basildon. We get involved in ‘Big Tidy Up’ events with local authorities and Keep Britain Tidy, as well as engaging in their national Love Where You Live campaign. We also sponsor waste bins and co-ordinate litter picks with local businesses in the communities in which we operate.

Scottish and Welsh Bag Taxes - As with the Welsh Bag Tax, funds from the Scottish Bag Tax will fund local good causes and we will allow our stores to choose the local good cause. In Wales we reduced the amount of bags used by a whopping 45%. We’ve also been able to raise £16,000, 90% of which has gone to local charities like Noah’s Ark Appeal, with the rest going towards keeping Wales tidy.

Waste Reduction – In the kitchen area, the company has invested in defrosting appliances to help minimise water consumption and installed energy reduction devices to ensure economic use of cooking aids. Recycling our cooking oil into biofuel is just one of the ways we’re going the extra mile.

17

18 19

Sustainable ConstructionWe minimise resources used while building new restaurants and overall, we have reduced CO2 from construction materials by 25% per tonne. We continue to research alternative sustainable building materials and the timber we use throughout is FSC certified. During the construction phase, onsite waste management means that less than 5% of waste is sent to landfill. All our contractors must be members of the ‘Considerate Constructors’ scheme, which is designed to ensure construction sites are thoughtful towards their neighbours, keep them informed of their activities and provide contact details for raising any problems.

Water UseWater conservation schemes in our restaurants include dual-flush cisterns in toilets and waterless urinals, which together save over 200,000 litres of water per year in each restaurant.

Our restaurants have never been greener! In 2009, we began to investigate ways to build more sustainable restaurants with lower carbon emissions by piloting energy saving measures in two eco stores. Technologies successfully tested in these restaurants are now standard in major refurbishments, where technically feasible.

For example: We fit all our new stores with the most efficient lighting

and will install energy efficient LED lighting in all company-owned restaurants by the end of February 2015

Voltage optimisation trials have delivered a 5-10% energy saving in pilot restaurants

Three restaurants are trialling energy management systems, with a target of reducing energy use by 10%. We plan to expand this trial to another four restaurants

In 2014 we announced our new target that all company-owned restaurants built or having a major remodel from 2015 will be built to the standards of the Leadership in Energy & Environmental Design (LEED) programme, though they needn’t apply for certification.

NEW

Energy ManagementIn 2013 we commissioned our energy consultants to help us develop a new energy reduction target and an energy reduction programme for our restaurants for cutting energy use and carbon. We announced our new target in 2013 to reduce total energy use per customer transaction by 20% by 2020 from 2012 levels.

To achieve this energy reduction target, we have developed a programme of prioritised investments in energy management. Our operations teams will focus on year-on-year energy efficiency improvements towards our goal and their priorities are:

To recycle at least 80% of ‘back of house’ waste by 2015 For zero waste to be sent to landfill by the end of 2015

Carbon Trust Certification - KFC is applying for Carbon Trust Certification for 2014 following an increase in refrigerant emissions. The Carbon Trust recognises companies for reducing their greenhouse gas emissions each year.

Yum! has participated in Carbon Disclosure Project (CDP) reporting since 2010 and as part of this KFC UK and Ireland has submitted data since 2012. The project examines how well companies are reducing their carbon footprint that affects climate change and has a long-term impact on our environment. 2014 CDP scores have been announced and for the third year in a row we saw an increase in our score, achieving a 95 for our Disclosure score and a B on the Performance score!

Packaging - It is important to generate less waste as well as sending less to landfill, and we have set a new target to help achieve this.

As well as using customer-facing packaging that is recycled and widely recyclable, we require the same for the packaging for the ingredients delivered to our restaurants, where possible. Almost 100% of back of house packaging is made from materials that can be recycled.

Elimination of Palm Oil – We have clarified our palm oil reduction commitment this year and by the end of 2015, we aim for all the palm oil used in our products to have green Palm certification, and for all our suppliers to be members of, or suppliers to members of, the Roundtable on Sustainable Palm Oil.

In 2011 we stopped frying in palm oil, switching to High Oleic Rape Seed Oil. By switching to more sustainable cooking oil we have not only played our part in reducing the impact that palm oil demand has on deforestation, but

also reduced greenhouse gas emissions. Our business is now 95% palm oil free and we are working on removing the final 5% by 2017.

NEW

NEWCorporate and Social Responsibility (CSR) Report - As we mentioned in Chapter 1, in March 2014 we published our first CSR

Report. It is an honest start for us as we set out our vision for taking our responsibilities to people and the planet seriously. We wanted to be transparent about areas where we still have more work to do and recognise that perceptions of quick-service restaurants and the opportunities we offer are not always positive, so we also face challenges in changing perceptions about the contribution our restaurants can make to a community. The CSR report contains several firsts for us such as our Supplier Code of Practice.

The report provides an update of our progress to

date in areas such as managing the environmental footprint of our restaurants, responsible sourcing of all our food, waste management, community partnerships and how we invest in and develop our employees. We will update the report on a regular basis and will work to further integrate into our new website to be published in 2015.

http://kfc-csr.co.uk/

20 21

So Good At FoodWe are extremely proud of the food we serve at KFC, much of which is prepared fresh in-restaurant, and we always look at ways to make it even better. For example, innovating and improving our offer, particularly in terms of our nutritional credentials and setting ourselves ambitious targets to help, motivate and engage our people.

Our commitment to sourcing the best quality food - Supplier Code of Practice We are committed to ensuring suppliers source and process our food and ingredients in a sustainable way. As

part of this for the first time, via our CSR Report we published our Supplier Code of Practice. It includes specific standards to help us responsibly manage our supply chain and meet our aim of sourcing all food, packaging and products sustainably. The Code applies to all suppliers to KFC UK&I in all countries and covers labour standards, bribery and corruption, sustainability, packaging and animal welfare.

TransparencyThroughout 2014 as part of our commitment to transparency we have provided information and answered customer questions about where our food comes from, how we work with suppliers, animal welfare and nutrition through the C is for Chicken and Let’s Talk Chicken sections on our website. This remains an honest and straightforward way for customers to ask us any questions about our food and our restaurants. We actively manage customer questions on our Facebook page and recently launched on Twitter which provides another channel for us to answer customer questions.

@KFC_UKI NEW

http://www.kfc.co.uk/dontworryeathappy/c-is-for-chicken

http://www.kfc.co.uk/dontworryeathappy/lets-talk

As part of this campaign of transparency we have really focused on the provenance of our chickens to be open about welfare and standards. We have produced a number of videos featuring Martin Shuker our gM, and Mark Baxter our Head of Technical, where they visit the farms our chickens come from, and meet with Red Tractor auditors to discuss the welfare standards of our chickens and demonstrate the short and simple supply chain that we have. These have been featured on our Facebook page, to support open and honest conversations with our customers about the origins of our chickens and to dispel some of the myths that exist. They also feature on our KFC website – “C is for Chicken” with lots more conversation about how we source and prepare our chicken.

Red Tractor – We buy our chicken from the same quality suppliers as the major UK supermarkets, all our chicken is purchased to rigorous quality standards and can be traced back to the farm it comes from. Furthermore, all of our Original Recipe chicken on the bone is British-sourced and farm assured.

We’re proud to be part of the Red Tractor farm assured scheme, an independent mark of quality that guarantees the chicken we source from every country meets the high standards for food safety and hygiene, animal welfare and the environment. Furthermore all our UK suppliers implement welfare enrichment in their barns, thereby exceeding the requirements of Red Tractor.

Red Tractor Week - We introduced the Red Tractor logo on packaging for the first time in September and were an active supporter of Red Tractor Week 15 – 21 September. We ran a full page advertisement in The Sun on Sunday during the Week and on our Facebook page.

“One hundred per cent of our Original Recipe® Chicken on the Bone is Red Tractor certified and comes from over 500 UK farms. We are proud of our association with Red Tractor standards of welfare and we want our customers to know about it; that’s why we took the decision to put the logo on pack. The new-look buckets will be in stores in time for Red Tractor Week, providing the perfect opportunity to promote our independently audited quality assured chicken to customers.”Ian Hagg - CSR Director for KFC UKI

NEW

NEW

Bloggers – As part of our ongoing strategy to increase transparency and build trust, we hosted an open day for a range of food and lifestyle bloggers. They were invited into the RSC to meet our teams, and were able to ask any question about the quality, origins and provenance of our chicken. We shared our supply chain journey, as well as information on nutrition and ingredients. They were invited into our test kitchen to taste new products and find out about the development process. The day finished in a real KFC restaurant kitchen, with our Operations teams giving a masterclass on how our chicken is hand-breaded and cooked,

and they had the chance to have a go themselves.

Pulled Chicken launch - In September we launched our new Pulled Chicken range of slow cooked Pulled Chicken products which includes the Ultimate Burger, Chicken Twister Wrap and lower calorie Lil’ Wrap - these have

been launched to provide customers with a greater choice across the KFC menu. A blend of white breast and dark meat slow cooked in a sauce and tumbled in a dry spice rub offers a non-fried option for customers with the Pulled Chicken Twister at 440 kcal and the Lil Wrap at 240 kcal.

Our Journey of Nutritional ImprovementKFC UK and Ireland is working towards the Yum! goal for each menu category to offer credible meal options that provide one third of the guideline Daily Amount (gDA) of calories, salt and fat. Our goals are for 15% of meal options in each category to achieve this by 2015 and 20% by 2020.

SaltBefore the introduction of the Public Health Responsibility Deal, we were the first quick-service chain in the UK to stop salting our fries. We have maintained a programme to reduce the amount of salt in our food every year for more than five years and we recently became one of the first companies to sign the Salt Pledge as part of the Responsibility Deal, which commits us to further reducing salt by training employees and changing our kitchen practices.

Our efforts successfully cut the salt content in five of our chicken options by 8 – 20% in 2012. Specifically, salt content in recent years has fallen by:

24% in our popcorn chicken since 2009 30% in our Zinger chicken since 2011 15% in our Hot Wings in 2012 15% in our mini fillets in 2013

We are exploring an innovative technology that uses salt crystal to further reduce salt in our original recipe chicken without impacting taste.

Our aim is to deliver an additional 15% reduction in salt from our best-selling lines by

the end of 2014.

As part of our commitment to the Responsibility Deal, we are always looking to improve the quality of information we provide on nutrition for both staff and customers. Nutritional information is currently available on trayliners and on our website, as well as a mobile phone app for customers on the move. We have been displaying calorie information on our menu boards, to help customers make informed choices about the food they eat.

NEW

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We have a number of courses and programmes which help to reinforce our business values:

The RSC & Team Member Inductions – (both in additional evidence in chapter 2) help our new starters to understand and familiarise themselves with our culture.

Achieving Breakthrough Results (ABR) – Is a brilliant way for us to inspire our restaurant and RSC teams to strive for truly exceptional results that so clearly impact the overall results of the business. ABR is our global training scheme. The building blocks of the training scheme are our ABR tips or tool cards, which our people use to inspire and guide them in their day-to-day roles. Ask any member of staff at KFC which is their favourite ABR card; they’re bound to have an answer!

Taking People With YouIn 2012, Yum! CEO, David Novak published his book on leadership ‘Taking People With You’, his approach on being a daily leader rather than an annual visionary. To help our people get the most out of his leadership insight, we developed a specific training model on the book for our Restaurant general Managers, all of whom will go through the training. We’re delighted to say that the business has been recognised with a Brandon Hall gold award for this initiative, an accolade that we take great pride in.

4 WHAT ARE THE DISTINCTIVE WAYS IN WHICH MANAgERS, ESPECIALLY SENIOR MANAgERS, SHARE

INFORMATION WITH EMPLOYEES AND FOSTER A CULTURE OF TRANSPARENCY?

Speaking

Enshrine transparency and openness in our core values One of our core HWWT2 values is about building ‘know-how’, which is our passion at KFC for sharing know-how and best practice. As part of that we commit to ‘seeking truth over harmony’ every time. We believe that an honest and open approach to communication about all things – good and bad – must start at the top of the organisation if we are to maintain the high levels of trust our people display in each other. We are also proud of the collaborative and friendly, no blame culture that we have in our business.

Annual RGM Conference – The senior management team shares the upcoming year’s plan with Restaurant Managers at the annual RgM conference –restaurant managers, over 1,000 from our One System, gather to discuss the strategic direction of the business in a full-day off-site event. In 2014 the RSC Team was also invited to the RgM Conference so about 1300 of our team converged on Wembley to engage in the 2014 strategy and celebrate the success of 2013.

Sharing the 2020 Strategy – As we talked about in Chapter 1 we have just launched our Day 1 2020 Strategy which we are immensely proud of. We have just shared the new strategy with our franchise and equity above restaurant leaders at a full day offsite at Ascot Racecourse where the management team took everyone through the strategy in detail. It will be rolled out to our Restaurant teams at our 2015 RGM Conference.

NEW

A structured cascade approach to communications Our restaurant teams are spread the length and breadth of the country, so we have a really structured approach to communications to ensure that everyone is kept well informed about important information. We operate a communications cycle across the whole business. This comms

cycle uses several different channels to repeat key messages to different audiences:

Senior comms takes place once every six weeks, key stakeholders in the business present their messages to the senior operations team (Region Coaches and COO), they are discussed and modified as appropriate. The Region Coaches then cascade the same information down to their Area Coaches and finally Area Coaches cascade it to their RgMs at six weekly area meetings.

Those key messages are then filtered down to Team Leaders and Team Members in restaurants by Restaurant Managers. To facilitate a better communications cascade to our restaurant teams we have what we call a ‘Meeting in a Box’. Once every six weeks, we provide RgMs with all the content that they need to host an engaging team meeting. It makes it easy for teams to understand the key information they need, quickly and easily, but most importantly it’s fun.

At the RSC we hold a monthly face-to-face comms meeting, facilitated by our Managing Director, where we celebrate long service awards, welcome new starters and discuss key business updates such as restaurant performance.

24 25

Glassboard – We discuss glassboard in more depth in the next Chapter, but as well as forum for sharing recognition we use it as a platform to share information with our teams.

Senior Leader Videos – To share exciting news about winning gPTW and Britain’s Top Employers we often make videos of our Senior Leaders for example Martin Shuker and James Watts which we distribute across the business by email, glassboard and comms. The QR code below shares Martin’s thank you message shortly after our gPTW achievement this year. We also use video communications in the build up to events such as the gPTW survey to encourage 100 percent participation.

Senior Leader Blogs – The CEO of Yum! David Novak writes regular blogs, which are available via the global intranet. This is a key way in which people receive news updates from across the international business and gain a better understanding as to how their particular business unit is performing relative to others within Yum!

People Planning Reviews – Every year we go through our People Planning Review (PPR). This process reviews employees (Team Leaders, Restaurant Management and above restaurant) performance against KPIs or agreed goals and leadership behaviours (the way in which a goal is achieved is as important to us as achieving the goal itself ).This information enables succession planning and is then reported to YUM!

Coaching – Coaching is a fundamental part of KFC’s management approach and it is a skill that we train and encourage from very early on in our team’s careers. It starts at the first level of management training (Leading A Shift) that our team have the opportunity to participate in; they take part in a 2 day people workshop, the first day is based on “Leading Culture” and the second day on “Leading Behaviours” which talks them through transitioning into a managerial role, a feedback model, the gROW model and situational leadership. As part of this Leading A Shift training participants must evidence conducting 2 Observation Checklists (discussed below) or coaching sessions.

For salaried restaurant management and our above restaurant teams, the gROW Model and Break Through Conversations are part of our coaching training.

Observation Checklists (OCLs) - As an illustration of the importance of coaching and feedback at KFC, our restaurant management teams use OCLs, a checklist of five questions to observe the performance of Team Members in the various areas of our restaurants. The person conducting the OCL should include a description of what they have observed in addition to the questions. They then take the team member off the restaurant floor and deliver their feedback about what they did well during the observation and how they could be more effective. Restaurant Managers have been given the resource of three cards to help coach and support Team Members to deliver great customer service. These cards enable on the spot recognition of fantastic customer experience delivery, as well as positive reinforcement of the basics of customer service at KFC, and a positive vehicle to coaching if observations from the management team don’t meet the standards our customers deserve by way of the coaching card.

5A. WHAT ARE THE WAYS IN WHICH EMPLOYEES

CAN ASK QUESTIONS, PROVIDE FEEDBACK, OR

OTHERWISE COMMUNICATE WITH MANAgERS,

ESPECIALLY SENIOR MANAgERS?

Everything we do at KFC is underpinned by the concept of ‘Listen-Ching’. This concept is a core part of our Achieving Breakthrough Results Training programme as discussed in Chapter Three.

On a practical level, as we mentioned in our response to question four, we have a dispersed workforce where the vast majority of our teams work in restaurants or in the field. We therefore need to make a particular effort to ensure that our senior managers are visible and accessible to teams outside of our RSC. We do this in a number of practical ways:

Via the Management Team Stewardship Roadshow – In addition to the Management Team spending time every week in restaurant for informal visits, we operate a twice yearly, senior management, four-day roadshow. This involves the whole team travelling up and down the country to meet with Restaurant Managers, receive feedback on anything relevant to business operations, and offer coaching.

At Region Rallies – The region rally format is a bi-annual forum planned and delivered by Area Coaches (that’s what we call our Area Managers). It’s an engaging, full-on, energetic day whereby ownership of key focus areas is given to the RgMs. They are encouraged to work in area teams to build their know-how, develop innovative solutions and commit to actions. The day is also used to publically welcome new RgMs to the business, celebrate and recognise successes from

the previous quarter and re-energise/focus the teams’ efforts on delivering breakthrough results. As a forum it serves as a tremendous platform for communication and leadership development and has been fully bought-into by the restaurant leaders in our business.

Great Place To Work survey goes global! – The gPTW survey is now our lead survey in the UK, has already been embedded in germany and Canada, and is now going to be piloted in the rest of our international business, but it gives our teams a fantastic opportunity to give us really honest feedback.

Face-to-face in restaurants – Our CEO, Martin Shuker, and the rest of our management team generally spend 2-3 days per week in the field, visiting our restaurants. Clearly there are a lot of restaurants to visit but we are not a company that believes we can get great results from our restaurant teams by ‘directing’ them from afar – instead, we believe in maintaining a constant dialogue with our Restaurant Managers.

26 27

In Sunderland we have a Team

Member Ambassador. The managers

have a meeting every Monday and

the Team Member Ambassador

represents them at the meeting.

Since joining I have found this to

be really effective. The team don’t

always feel comfortable talking to the

management team and would rather

use the Ambassador to voice any

concerns they may have.

Joe - Training Restaurant Manager

Sunderland

During Round Tables – As we’ve already mentioned our management team are frequently out in restaurant and James Watts our HR Vice President holds Team Member Roundtables on every visit to find out what teams like about working at KFC and where there is room for improvement.

Senior Management approachability and ‘open door’ policy – What we believe really differentiates us from other businesses in our sector is the lack of hierarchy within our organisation. When staff were asked what they really liked about communications at KFC, they agreed that it was our fun and friendly ‘open door’ culture, where managers were always available for help and support and you could go straight to a senior manager with a query, whatever your level and whatever the issue. This is also used at a restaurant level where RgMs have an open office on their administration day.

At the RSC, the following opportunities exist for people to provide feedback to management:

Face-to-face Team Meetings – Teams typically hold these weekly with their Head of Department. Team members also have scheduled 1-2-1s with their coaches.

Talk to David – Once a quarter, Yum! CEO David Novak hosts a global conference call and invites anyone from the business to join, and ask any unscreened questions that they would like him to answer.

KFC Voice - In 2014 we launched KFC Voice survey to all of our 24,000 employees across franchise and equity restaurants in the UK. KFC Voice is an employee engagement tool that enables every Team Member to provide feedback on their KFC experience. The survey is based upon our 4 engagement pillars, Pride, Grow, Connect and Customer and enables us to measure Team Member engagement at an organisation and restaurant level. This initiative is a key part of our model to build a great culture by providing each restaurant manager with a feedback report that they can action plan against with their team. For our first KFC Voice run in June we had a 64% One System participation rate. We will be running two main surveys and two pulse check surveys annually.

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Via Yammer! – This is our online business networking application, a bit like Facebook for the office. Yammer enables us to ask anyone a question in Yum! Worldwide on any topic and results are posted openly.

Course Feedback Processes – All of our learners have the opportunity to provide feedback on courses through learner feedback sheets at the end of every course. Our Apprentices have the opportunity to feedback three times during the course of their Apprenticeship via surveys.

Ching-building Breakfasts – Are held monthly at our RSC. These are not formal occasions but rather offer an opportunity for people to chat and interact with new starters or people outside of their functions. These breakfasts are often hosted by a function or a regional team, to help them build relationships at the Restaurant Support Centre and share with us the nature of their roles.

Coaching – Coaching is key in our management approach, we have included it in Speaking (see Chapter 4) but it is a two way process of speaking and listening and our coaching culture, trains people not only to give feedback and coaching in an appropriate way but also to accept it and act on it appropriately.

5B. WHAT PROgRAMMES ARE AVAILABLE FOR

EMPLOYEES TO MAKE SUggESTIONS AND/OR

BECOME INVOLVED IN MAKINg DECISIONS THAT

AFFECT THEIR JOBS, WORK ENVIRONMENT, OR THE

DIRECTION OF COMPANY AS A WHOLE?

Speaking out is encouraged at KFC. As part of ‘Believe in all People’ one of our HWWT2 principles (discussed in Chapter1), we trust in people’s positive intentions. This helps to ensure that discussions and disagreements don’t become personal but focus on tackling the issue in question. There are a number of ways in which employees can make suggestions or be more involved in making decisions that affect their jobs or work environment, or seek to redress what they consider to be an undesirable workplace situation, including:

At Hazel Grove we use availability

sheets, the team can then tell me when

they would like to work and I am

then able to plan the rotas around this

ensuring that all of the team work the

days and hours that they want.

Alex Batty, Restaurant Manager,

Hazel Grove

KFC Voice - As discussed in 5a.

innov8am – As part of our goal to promote innovation at the RSC we have been piloting an idea called innov8am.The functional teams have the opportunity to propose and vote for the topics to be discussed at the quarterly innov8am meeting. The team then get together for breakfast to discuss and ideate on the chosen topic, the first of which was gamification. No idea is ruled out enabling participants to be as creative as they like.

In Restaurant – In our restaurants RGMs use many and varied ways of receiving feedback from their teams, you will find a couple of example on the post it notes on this page.

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Building Capability Cycle – As part of this, employees get the chance to input into their Individual Development Plans and their annual goals which directly impact their work. (Our Building People Capability Cycle is discussed further in Chapter 7)

Retail Trust Partnership – KFC is proud to partner with the Retail Trust, the principal charity for the retail sector providing support to three million people. The Retail Trust provides a free, independent, confidential service available to all our staff, from financial advice to domestic abuse counselling.

Exit Interviews – We use these to better understand why people leave the business, so that we can highlight any issues which may need to be reviewed to improve the working environment.

GPTW Action Groups and Roundtables – Each year, following the publication of gPTW results, we create project teams responsible for action planning against the results. For example our new flexible benefit programme (discussed further in Chapter Ten) has been implemented as a direct result of the results from our gPTW survey in 2012.

KFC Voice Brainstorming & Action Planning – Following the KFC Voice results being published each of our restaurants spent time during team meetings brainstorming and action planning against the results of their individual restaurants.

We have an anonymous feedback locker!

One of the lockers is used for team

members to post any issues/ideas they

have which they want the management

team to be aware of/resolve.

Sam Benson – Training Restaurant

Manager, Wishaw

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5C. HOW CAN EMPLOYEES ADDRESS AN

UNDESIRABLE WORKPLACE SITUATION OR RESOLVE

CONFLICTS WITH THEIR MANAgER(S)?

At KFC we pride ourselves on the giving and receiving of feedback on a regular basis, the foundation of this is one of our HWWT2 Principles (discussed in Chapter 1), “Build Know How”. Build Know How talks about “seeking truth over harmony every step of the way”. It is complimented by one of our Achieving Breakthrough Result cards (discussed in chapter 3) “Discuss the Undiscussable” It encourages us that in a safe environment where trust is a given we are able to have the courage to raise issues and discuss them.

Coaching – as discussed in an earlier section of this chapter and in chapter 4 is a way of life at KFC. It is during these coaching sessions that there is an opportunity for our teams to raise any issues or concerns that they might have on a one to one basis with their line manager.

Mid Year Review Training - To support this strong culture of giving and receiving feedback, and in addition to the coaching courses provided to employees at various levels (see Chapter 5a), we have training at mid year reviews for all employees in the giving and receiving of feedback via the SBI Feedback Tool (Situation – Behaviour – Impact) and for Line Managers an IDP Coaches Guide to support open and honest conversations.

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Local HR Resources - Our business is divided into 4 regions, each region has an HR Business Partner and at least 3 People Capability Coaches that are dedicated restaurant resources for our teams to contact in the event that they have a complaint. In addition our Restaurant Managers have access to our employee relations partner, Croner, who can advise our restaurant teams on how best to manage employee relations issues and provide field teams with appropriate letters and advice, this helps to ensure that complaints are dealt with quickly and professionally.

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Grievance Policy – KFC operates a policy that allows employees to resolve any grievance formally or informally. A formal appeal process exists within the organisation, to ensure that employees have the opportunity to challenge decisions presented initially if they feel they would benefit from a fair evaluation of their grievance consistently. Our grievance policy is openly available to all of our teams via our Electronic Standards Library available on all back of house computers, it is also referred to in the Team Member handbook which is issued to every new Team Member, it encourages our teams to approach their line manager in the first instance.

Ethics Line – This is an independent, confidential service, which we outsource and is available to all staff. People are encouraged to use this service if they need advice about a workplace issue. Once an issue has been reported to the ethics line, it is forwarded on to the appropriate local HR resource, who is then tasked with responding to the issue and is responsible for reporting back to the ethics line on progress. Posters advertising this service are up in the team rooms of all of our restaurants.

Retail Trust Programme – this is our Employee Assistance Programme – further details in Chapter 5b.

Attached Supplementary Evidence: Mid Year Review Training IDP Coaches guide grievance Policy Team Member Handbook

Next page needs to start on a double spread

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6 HOW DOES YOUR COMPANY

SHOW APPRECIATION AND/OR

RECOgNITION FOR EMPLOYEES’

gOOD WORK AND ExTRA EFFORT, OR

OTHER ACHIEVEMENTS? IF SPECIFIC

PROgRAMS INVOLVE AWARDS, PLEASE

DESCRIBE THE NATURE OF THE AWARDS

(E.g. CASH, gIFTS, TIME OFF, ETC.)AS

WELL AS HOW MANY EMPLOYEES

RECEIVE EACH AWARD ANNUALLY.

Our Recognise, Recognise, Recognise principle is the bedrock upon which we build our culture and we really think it is what makes our business unique and special.

Recognition takes the form of major events such as an annual conference to celebrate the achievements of the best performing RGMs, but it is also expressed in more informal ways too.

Recognition has become so big and important to us that we know it is a reason people stay and grow their career at KFC, and a reason people cite when asked why they wanted to join our team.

Thanking

‘Employee of the Year’

awards take place across the

business – Our Restaurant

Managers receive their

awards at the annual

RGM conference, the RGM

conference is a huge event

where our best performers are

recognised in front of 1,000

of their peers.

Bonus Schemes – At KFC

we’re all about rewarding hard

work; that’s why we paid out

£3.6 million in bonuses to our

restaurant employees last year, as

well as an additional combined

£906,461 in bonuses to our RSC

employees, plus $748,250 in

Yumbucks. That’s in addition to

the £458,484 we paid out to our

Area Coaches in bonuses.

Saying Thank You – It

may not sound like a lot

but a simple thank you can

make all the difference and

is something new starters

always comment on.

Sales Incentive programme

that allows Team Members

and Team Leaders to share

in the success of their

restaurant. Our eligible

Team Members received their

personal bonus in cash.

The restaurant also receives

a sum that can be used to

fund a team event. In 2014

we paid out £659,295 in

individual cash bonuses

for this incentive and an

additional £142,115 into

the restaurant team pots.

Champions Club - made up

of our 25 top performing

RGMs, they are celebrated at

the RGM conference with a

champagne reception. This

year we took the Champions

Club to Rome to thank

them for their hard work.

Our RSC team receive

their awards at our annual

Christmas party.

Employee Award Scheme - We

recognise Team Members and

Team Leaders through this scheme

throughout the year. These awards

are created by areas and include

awards such as employee of the

month, being the best at up selling

products and having a five star smile.

Long Service Awards - We like to

recognise people who have been

with us for a long time. We give out

an award after five years’ service

and an extra five days of holiday

to celebrate. After ten years’

service you get a voucher for £100

and this goes up by £50 for each

further five years of service. We

give out approx. 600 Long Service

Awards every year.

Recognition Cards – We hand

out recognition cards almost on a

daily basis (you can see them in

the photos), featuring a personal

thank you message from the

person awarding the card, as

well as some details of how that

individual has been seen to ‘walk

the talk of leadership’.

31

32

Personalised Recognition

Cards – Employees can

even customise their own

recognition cards online,

enabling them to give

personalised recognition.

Anyone and everyone can be

rewarded with a recognition

card and there is no limit

as to how many cards an

employee can receive.

Personal Recognition

Awards – Another way our teams

say thank you is by handing out

their personalised (and coveted!)

recognition awards, awards that

reflect what is important to them

or the recipient, which they give

out on an ad hoc basis. These

imaginative and individual ways

of thanking people for their effort

and achievements really supports

our fun and friendly culture.

Supercheques - These

cheques are essentially

vouchers to spend money

at lots of high street

retailers, leisure centres

and supermarkets, and are

given out as recognition

and for birthdays.

Glassboard - We love it! In fact

we love it so much we’ve bought

it to save it from closure. We use

Glassboard as a forum to share

our recognition achievements

internally and build recognition

momentum across the business.

We encourage our teams to take a

photo and post it on Glassboard.

We have hundreds of Glassboard

groups including restaurant, area,

region, function and team boards.

Employees have been known to

recognise customers in store as

well, recognition is truly limitless!

33

34 35

7 HOW DOES YOUR COMPANY HELP EMPLOYEES

DISCOVER AND DEVELOP THEIR TALENTS,

CHALLENgE THEMSELVES PROFESSIONALLY,

MANAgE THEIR CAREERS AND/OR ENHANCE THEIR

PERSONAL gROWTH?

At KFC we are passionate about being the company where people can grow and develop, a sentiment that is at the heart of our How We Win Together Principles. We believe that we can coach and support every individual to grow to their full potential (Believe in All People) and of course Build Know How; “we grow by being avid learners, pursuing knowledge and best practices inside and outside our company”.

We see training and education as a way for our business to positively impact the lives of our Team Members and society as a whole. We understand that not everyone automatically sees the quick-service restaurant industry as their first choice of place to build a career, and we want to do everything we can to dispel that myth by offering amazing development opportunities. We promoted an incredible 1,500 people across the business last year and are likely to exceed that figure this year.

“

“

“Training and Development is the life blood of KFC UKI. We have bold vision to be famous in the UK as the best provider of training and education in the country. That’s because 1) it’s a vehicle for making our business better, and 2) it’s a major opportunity for us to help the 24,000 people in our teams to develop the personal, leadership and life skills they need to be able to build the career that’s right for them. That’s why we invest the time and effort to offer fantastic programs like the KFC Degree, Apprenticeships and the various programs that make up Yum! University.”

James Watts – HR Vice President UK

Yum! University UK – Learning and development at KFC is framed under the umbrella of Yum! University UK. Yum! University enables us to drive engagement, personal growth and pride amongst our teams.

Yum! University is made up of five faculties:CultureFunctionalPersonal Effectiveness and Life SkillsLeadership Franchise World Class Operations

CultureTo ensure new hires are given the best possible start to their Yum! career we immerse them in our culture, some tools available in this faculty are:

Team Member Induction & Training – please see Chapter Two.

Achieving Breakthrough Results (ABR) – please see Chapter Three.

Taking People With You (TPWY) – please see Chapter Three.

Team Builds – Many of our teams participate in team builds at restaurant, area, region and functional levels, as well as a great opportunity for teams to get to know each other we use these as opportunities to offer development. These range broadly from coaching and interview techniques to leadership and development such as Myers Briggs and Belbin Team Roles.

Functional Curriculums vary by function, enabling our teams to develop relevant functional and technical skills, particularly but not exclusively, for talent early in their careers for example:

The Restaurant Training Continuum – replaces our Developing Champions programme and is a blended learning solution to train our restaurant teams with the functional skills they need to do great jobs in our restaurants. Each role has access to eLearning, workbooks, on the job activities, and coaching and support.

Team Member Training - In 2013, we launched Team Member Training across our company and franchise restaurants so that every new Team Member has the basics of Health and Safety, Food Safety, Cleaning Standards and additional components of their role such as lobby, burger building and cleaning, breading and cooking of great KFC chicken. This program has been mapped to our Apprenticeships and is the foundation for the Level 2 Apprenticeship.

Restaurant Manager Training - We also revaluated the workshops for our Restaurant general Managers and brought them up to date by making the content more engaging and relevant. Next year the primary focus will be on our Restaurant Managers to create a program that seamlessly fits in to the training continuum and puts RgM # 1 at the forefront of training since RgMs are the single most important role to the business.

Learning Zone - All of this training is unpinned by eLearning courses each window for new product launches, new systems and procedures and updated standards. We maintain an Electronic Standards Library to be a single source of truth for every action in restaurant. Each member of our restaurant teams from Team Member up through to Area Coach has access to this training at any time via laptops provided in restaurant.

External Qualifications – At KFC we believe in supporting staff when they decide to study for external qualifications that will help them develop personally and professionally. We support them in a number of ways including providing financial support and organising flexible scheduling to allow time for studies.

Team Leader Training – In September the Learning and Development Team launched a new version of Leading a Shift (LAS) to replace outdated training. This program is aimed at first time shift runners and provides immediate exposure to coaching and running a business. Along with the blended components, there are a series of workshops facilitated by our expert trainers. The eLearning raises the bar with gamification elements and broader theory so the learner must demonstrate competence on the job to be certified. It is also accompanied by a new Health and Safety and Food Safety qualification from Kineo City & Guilds leveraging the newly adapted eLearning tool so it is accessible via mobile devices. This qualification is being rolled out across equity and franchise to all Team Leaders, Assistant and Restaurant Managers, Area Coaches and Region Coaches. LAS is the first component of our Level 3 Apprenticeship.

Area Coach Training - October saw the launch of a first of its kind program to train our Area Coaches called Leading Multiple Restaurants. Previously, AC training was up to the line manager so the process lacked consistency. The new programme offers a 6 month blended solution composed of on boarding, restaurant training experience, eLearning, activities and coaching around the key topics of My Team, The Customer, Driving Sales, and Making Profit. To be signed off as an Area Coach, the delegate will complete a final project around perfect execution in their region, an operations assessment, and a meeting with the COO.

NEW

Graduate Scheme – Our graduate Scheme is another great way that we’re developing talent in our business. This Operations Leadership Programme is designed to fast-track graduates into Restaurant Manager roles within 12 months and Area Managers in 24 months – a great kick-start to their career at KFC.

This comprehensive programme allows our graduates to understand our business inside out. As well as a practical hands on training approach, we bring our graduates together regularly to offer development around emotional intelligence, coaching, leadership and personal branding to name but a few.

36 37

Retail Management Trainee Scheme As we talked about in chapter 2, we identified a gap in our Learning and Development offering for young people not wishing to go to university but to continue their education while starting a career. Our Retail Management Trainee Scheme is a one year scheme for recent college leavers to become Assistant Restaurant Managers.

Our Level Two and Three Apprenticeships in Hospitality In 2014 we are proud to be giving more opportunity than ever before, for our restaurant teams to gain further qualifications. Our Company Team Leaders and some franchise partners have the opportunity to participate in Level Three Apprenticeships and last year we began a phased launch of Level Two Apprenticeship to our Team Members. We currently have 580 Apprentices year to date across Levels 2 & 3 and have had 400 successful graduates. In 2015 we will be moving more of our key franchise partners on to the Apprenticeship Programme. In line with our goal for all of our training to be accredited, we are pleased to say that our in-house training for Team Members and Team Leaders has been mapped and accredited by City and guilds.

In 2014 we were exceptionally proud to achieve a grade 2 good in our Ofsted inspection, the government stamp for teaching and assessment practices and the management of the Apprenticeship Scheme in our organisation.

Due to the success of the Apprenticeship Programme we have been able to promote 5 of our Restaurant Managers into brand new Regional Apprenticeship Specialist roles, dedicated roles to support our Apprentices in the field. They are all completing the TAQA (Training, Assessment, Quality and Assurance) City & guild qualification required for their role.

We are super proud of the fact that in 2014 we have won the South Central Region National Apprenticeship Service Awards. These awards recognise excellence in two areas: businesses that grow their own talent with apprentices and apprentices who have made a significant contribution to their workplaces. This recognition places us once again in the Top 100 Apprenticeship Employers. We are also a key employer taking part in the governments Apprenticeship Trail Blazers influencing forthcoming changes to Apprenticeships in hospitality.

We are also using MyApp (Apprenticeship) - an online tool for managing apprenticeships, which can be accessed by the learner, assessor and verifier and provides up-to-the-minute information about the progress that the trainees are making.

This QR code shares with our teams and externally the exciting Apprenticeship Graduation held at Alton Towers this year.

KFC Degree – In 2012 we introduced a bespoke three year BA (Hons) Business Management course in partnership with De Montfort University, Leicester. This degree is specifically designed for our Restaurant general Managers and Area Coaches and combines existing KFC training, which has been mapped to the course and counts for 40 university credits, with core lectures from De Montfort’s Business Management degree.

In 2014 our second cohort of 17 Restaurant general Managers and Area Coaches, began their degree in April. These students received half of their university fees paid for by KFC as well as paid time off for lectures and travel and accommodation expenses. We are on track to put 60 Managers through the course over the next five years.

This QR code talks to our teams and externally about the KFC Degree

“It is great to get the opportunity to complete a degree. It is the one thing I have always regretted not accomplishing and I feel it will give me the opportunity and confidence to develop my career further. It’s terrific that the company is investing in me and giving me the opportunity to grow.”Gareth Branigan – Area Coach

Personal Effectiveness & Life SkillsTo develop personal capability and self-awareness.

London Business Forum – We have established a partnership with London Business Forum and we leverage their conferences to increase our teams capability. Some of the conferences include “Sprout – How To grow Your Own Leaders” and “The Ultimate Personal Development Experience” So far in 2014 130 people have had the opportunity to attend the London Business Forum.

“I love the fact that KFC partners with the

London Business Forum to run some of

its training.

I’ve been to 3 sessions this year and all

of them have been super engaging. They

really made me stop and think about how

I can work smarter, build strong working

relationships and have a bigger impact in

my role. This is true personal development

and I am so grateful for the opportunities

KFC have provided me so far.”

Zoe Oliver – Recruitment Lead

Building People Capability

Competencies – 2014 has seen us launch 2 new sets of competencies. The first is our How We Lead (HWL) Competencies which allow the team to rate themselves against a range of competencies to identify their strengths and opportunities. You can rate yourself as Learning, Demonstrating Capability or Mastery, the outcome of these assessments helps with both performance management and talent management. The second set of competencies have been launched specifically for success in HR at Yum! and have been implemented to align with our Global HR Vision to put People Excellence First.

Building People Capability Cycle (BPC) – The competencies feed into our annual Building People Capability Cycle. We take this cycle seriously at KFC and we are firm believers in the value of setting, reviewing and evaluating

goals. Our documented and well-run process enables us to develop people in a fair and transparent fashion. At the beginning of each year (or on joining for new starters) everyone sits down with their supervisor to set their professional and personal goals.

The Mid-Year Review involves discussing your 360° feedback (or coach’s feedback if 360° does not fall that year), agreeing your Individual Development Plan (IDP) and updating your goals. At your Mid-Year Review you will agree with your coach your “one big thing” to focus on. It is also an opportunity to discuss your career aspirations and what can be done to support these.

At IDP time this year we launched “The Best Mid Year Review Ever” which was an opportunity for us to launch our new competencies and train our line managers on how to have even more open and transparent conversations with their teams, in order that our people get the most out of the process. The development needs which come out of peoples’ IDP are then used to help compile the new Building People Capability calendar, so that it is bespoke to the requirements of our employees.

At the end of the year, you meet your coach to review your performance for the year, focusing on your achievement against your goals and your overall performance, including how you have demonstrated the How We Win Together (HWWT2) Principles and competencies.

Franchise World Class Operations University World Class Operations is a tool to help our franchisees understand what great operations looks like. From this tool World Class Operations University has evolved, and was launched in 2013. It is a residential course that gives our franchise operators the opportunity to focus on the strategy, structure and culture of their business and to come away with a roadmap and action plan for the priorities of their business.

NEW

NEW

NEW

38 39

LeadershipWe build leadership capability and talent pipeline through tiered development programs, which include a specific focus on People growing. The delivery is an integrated mix of local and Yum! programmes.

Our leadership programmes include:

How We Lead - In 2014 we launched the How We Lead Development programme to leaders of others across our franchise and equity business. This Leadership Development programme includes a series of three 2 day workshops over 6 months and is built upon the How We Lead Competency framework; Me (Personal Leadership), We (People Leadership) and the Business (Results Leadership). The curriculum is supported with additional tools to drive application such as 360’s and cohort missions. Workshops are designed to drive, retain and grow talent by providing learning experiences that will develop them into next generation leaders.

Leadership Accel - In 2013 we launched the Leadership Accel programme for leaders of leaders across our franchise and equity business. The programme includes two face to face workshops as well as coaching calls to develop inspirational People growers, step change strategic thinking and influencing skills that will impact the broader business.

Leadership Impact - In 2014 we also launched Leadership Impact to the UK and Europe equity and franchise business. This 5 day intensive programme is designed for leaders of leaders and aims to provide a deeper understanding into personal leadership styles, strengthen thinking and build character and awareness of behaviours in order to promote effectiveness and maximise the delegates full potential as a leader.

Restaurant General Manager Leadership Excellence - a leadership development programme designed specifically for our Restaurant Managers. It gives them the tools, practice and confidence to have personal and business impact as a leader at KFC. It enables them to build know how, reflect on and practice leadership skills in order that they drive leadership in their restaurants, retain and develop talent and bring our culture to life in their restaurant.

The workshops, as with How We Lead, use the HWL competencies as a framework. Our first cohort started in October and consists of 25 franchise and equity Restaurant Managers.

Career Development Workshops – Our HR VP James Watts offers a career development workshop, which looks at providing our employees with the tools and platform they need to step-change how they manage their own careers. So far about 150 people have been through the training with James, the foundation of which is to help employees to build their self-awareness. The training is focused around three key areas:

Understanding you – building your self-awareness The Yum! approach to career development Tools and processes which you can leverage

Managing TalentYum! is the world’s largest restaurant company and is growing incredibly fast across the globe, opening well over 1,000 restaurants a year. A key enabler for that growth is the ability to have a constant pipeline of talented leaders ready and waiting to take on exciting leadership challenges around the world. And that’s where KFC UKI comes in; we are looked to by Yum as their biggest source of talent. Those goals combined with the fact that we are a big business with a good employer brand and great training programmes, means we’re passionate about attracting, developing and promoting the best leaders in any business in any industry.

Exporter of Talent – Yum! has officially identified KFC UKI as an exporter of talent. We have a fantastic track record over the last five years of giving people the unique opportunity to develop their leadership careers overseas. The Central and Eastern European Business came under our gMs leadership in 2013 and we have been able to export a number of big talents into that market, as well as exporting leaders into big leadership roles in other parts of Yum! with people moving from the UK to the US and Middle East. In the last two years alone we have exported 20 people from the UK into leadership roles in other YUM! businesses.

Growth Potential – Each person we hire is given a growth potential rating – this is our way of identifying those with the greatest development potential and working with them to create meaningful learning opportunities.

Hi Po – High Pro – We operate a Hi Potential – High Professional (Hi Po – High Pro) strategy to complement our existing succession planning. This strategy ensures that we are able to recognise and value not only our highest flyers (Hi Pos), but also those professionals who bring with them experience and depth (High Pros). In short, it helps us balance talent effectively and value everyone for what they bring.

Cross-functional Moves – We also have a strong history at KFC of cross-functional moves – in other words, we have a lot of people who move between often quite different roles but remain with KFC. This ensures we keep people in the business for longer but also provides people with critical development experience, during which they learn new skills that they bring back to roles.

Critical Development Experience – Another development approach we often use within the business is to give people the opportunity to lead or be part of a project team in an area they are interested in.

We have also been able to give the opportunity to a number of our employees to be seconded, as part of a team that are developing a proposal for a new approach to our restaurant management structure. This opportunity allows them to gain a critical experience in project management and further exposure to the RSC environment.

Key Development Roles – At the RSC we have a number of roles, which we have identified as Key Development Roles, they are roles which will provide a key experience for the holder for approximately 12-18 months before moving into their next role. We anticipate that the person in this role will have “three level stretch” or they have the development potential to move up at least three levels during their career with KFC.

Attached Supplementary Evidence:To support our submission we are also attaching the following evidence separately:

Building People Capability Catalogue graduate Journal How We Lead Competencies People Excellence Competencies Retail Management Trainee Scheme Journal

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NEW

LeadershipE cellence

40 41

8A. IN WHAT DISTINCTIVE WAYS DOES YOUR

COMPANY HELP EMPLOYEES BALANCE THEIR

WORK LIVES WITH THEIR PERSONAL AND/OR

FAMILY LIVES? INCLUDE BRIEF DESCRIPTIONS

OF YOUR COMPANY’S UNIQUE APPROACHES

TO TIME-OFF, HEALTH AND WELLNESS, ON-SITE

SERVICES, ETC.

‘Nine Lives Recharge’ is one of our ABR toolcards, and it reminds us that life is more than just work, we consider a good work-life balance to be crucially important to the wellbeing of all our employees. ‘Nine Lives Recharge’ gives us the chance to think about the nine different aspects of our lives that are important, that each has a value and provides a refresh and recharge to help us perform even better. As a business we have a range of systems, policies and informal practices in place to support the health and wellbeing of our employees and help them achieve a work-life balance which works for them.

Wellbeing Programme - MyWellbeingThe wellbeing of our employees is something we take very seriously at KFC, we are committed to making sure that our people are healthy and happy, both at work and in their lives outside of work.

Wellbeing Squad – We have a health and wellbeing squad, which has board level sponsorship. The squad are tasked with developing a comprehensive wellbeing strategy for KFC.

Since the launch of the Wellbeing Programme we have run a Wellbeing Challenge across the business on a quarterly basis. All employees have been given a pedometer and challenged to make small changes to their exercise and nutrition that will make all the difference to their overall wellbeing. The winners of the Wellbeing Challenge receive £1,000, £500 and £250 cash prizes respectively.

As part of the on-going MyWellbeing initiative we have partnered with Right Management, workplace wellness consultants, so our

Daily Breakfasts – In addition to the fruit mentioned above, breakfast is offered daily at the RSC, on offer are several varieties of cereal, as well as bread and jams. Team Room Provisions – In our restaurants our RgMs work to make team rooms comfortable places for their teams to relax, they are often decorated by the teams to personalise them.

Fridges and Microwaves – All of our restaurant team rooms have fridges and microwaves, this equipment has been provided to enable our teams the flexibility of storing and cooking an alternative option to a KFC staff meal.

Culture Team – For many years KFC has had a Culture Team to bring the team together at a social level. These events include pay day Friday drinks, Spring Event with circus skills for the kids, summer party, Santa’s grotto, and visits from The Book People, with discounted books on sale for employees.

Facilities Services – Our facilities team also arrange a number of services including car valeting, MOT and servicing, dry cleaning and alterations, parcel and post service, flowers and taxi bookings.

Work Life Balance Charters – Many teams at the RSC have work life balance charters which they have written as a team to agree on how they are going to achieve work life balance over a period of time. These charters are regularly reviewed and teams can discuss openly whether they feel they are achieving an appropriate balance.

HR Policies which Encourage Work-life BalancePart-time Workers – Our restaurants are set up to offer varied shift patterns and lengths to our team members, so that we are totally committed to offering flexible working solutions for all our people – we could not function as a business without this approach!

Flexible Working – We recognise the benefit flexible and shorter hours can have for both the employee and the business given the trading hours and patterns of our restaurants. We actively recruit for a diverse workforce that may equally be looking for an opportunity to work fewer hours throughout a day across a working week.

We actually measure our restaurants on their ability to create and hire into these shorter shifts, and find that employees are able to maintain higher levels of energy and enthusiasm during these flexible work patterns in our restaurants. We do not have Zero Hour Contracts within our company restaurants.

Faith Flexibility – KFC is also very open to requests from staff who wish to work flexible schedules for religious reasons, and have many staff from different faiths who work a schedule which fits around their religion.

Flexi-hours – At the RSC, many staff also work flexible hours. We treat every case for flexible working on an individual basis and encourage and support coaches to manage their teams appropriately. Home working is particularly common amongst our field-based workforce.

Holiday Allowance – Our holiday allowance for new starters is 25 days. We also give our employees an extra five days holiday a year on their fifth anniversary of working at KFC.

Maternity Support – We offer extensive support to mums-to-be both before and after they go on maternity leave. HR facilitates open and supportive conversations between the employee and their coach, during what can be an emotional time. We provide Maternity Information Packs, which includes all the forms that are required and supportive resources about how to complete them. We strongly encourage Keep In Touch (KIT) days and balancing joining in the fun events with training and key team meetings, this is supported by communications from functional PAs. We also have a Buddy System, mums have the option tobe buddied with another mum on their return to the business to offer support from someone who can relate to the challenges. There are also returning mum lunches which acts as a support network.

Pick & Mix – See chapter 8b

Caring

NEW

employees are able to access day-to-day guidance from an online wellbeing tool, which incorporates a questionnaire that assesses various aspects of their wellbeing including sleep, stress, nutrition and exercise to help them understand their current state and give advice on practical changes that they can make to improve their health and wellbeing going forward.

We’re committed to revolutionising the way our people think about their wellbeing at KFC and so we run wellbeing rallies throughout the course of the year, educational and interactive forums where our people can have their cholesterol and blood pressure checked, as well as having checks for diabetes.

As part of MyWellbeing at the Restaurant Support Centre we have been able to offer a wellbeing calendar which has included talks from our in-house nutritionist, Pilates, Zumba classes and lunch time runs, walks and circuit training with some of our wellbeing Champions.

Wellbeing Champions – At the RSC and in the field we have Wellbeing Champions who are ambassadors for the programme; promoting initiatives, sharing regional success stories and keeping the programme alive at a regional level.Health & Wellbeing Services

Employee Discounts – This online discount scheme is available to all staff and enables us to claim discounts at a variety of retail outlets.

Gymnasium – We have a gym at our head office in Woking, which is open to all staff and is fully equipped with cardio and strength machines. Staff can also apply for discounted membership at various gyms via the lifestyle benefits scheme.

Rest Areas – In our new RSC we have a barista which supplies hot drinks and a variety of lunch options in a comfortable café style area which is frequently used by visiting restaurant teams. We have a new library space with sleeping pods and a ping pong room and an outdoor terrace with seating.

Fruit Provision – We introduced a policy of providing fruit in the communal lounge area at the Restaurant Support Centre – which has proved very popular with staff.

Wellbeing Challenge – As well as the

official challenge our restaurants often

do their own…

“I would like to welcome you all to the

Ashton Moss Wellbeing challenge.

Myself and Dan have four weeks to lose

as much weight as possible. The person

who loses will be donating £10 to WFP

and buying the winner a prize worth

£10. In addition to this the loser will also

be dressing up in fancy dress chosen by

the winner on our next fun day. Let’s see

who has what it takes to walk away will

all the glory #Wellbeing #KFCFit”

42 43

8B. HOW DOES YOUR COMPANY SUPPORT

EMPLOYEES AT TIMES OF SIgNIFICANT LIFE EVENTS

– A PERSONAL CRISIS, FAMILY ILLNESS, BIRTH,

MARRIAgE, ETC.? IF APPLICABLE, YOU MAY CITE

INDIVIDUAL STORIES, AS WELL AS DESCRIPTIONS

OF YOUR PROgRAMMES.

Life Event Celebrations – We are always very quick to celebrate life events such as birthdays, births and marriages. This often includes a birthday cake, cards, vouchers and a well decorated desk!

Comprehensive Benefits Package – We believe in providing our employees with support at difficult periods in their lives. A lot of that is hard to measure, except through personal stories but we can also ensure that we have the fundamentals in place – these include:

Pension provision Private health care Company sick pay (in addition to statutory sick pay) Compassionate leave policy Income protection Enhanced maternity pay

Above and Beyond Relocation Support – We are very proud of the relocation support we offer our people. Over recent years, we have helped families from Australia, Mexico, Dallas, and Kentucky relocate to the UK, and many of our employees relocate within the UK. We help our people not only with the logistics of the move and to find new accommodation, but also to find suitable schools for their children, cultural awareness coaching, and we ensure smooth transition of financial assets.

“Going to work in London for the first time was a daunting prospect, but even before I started the job, KFC supported and advised me. They were concerned for my welfare and that I had a suitable place to live to relieve any unnecessary stress. I always knew that with KFC help was only a phone call away, but when I needed temporary accommodation, they went above and beyond, not only offering me help and advice but also offering the support financially and practically to find a temporary flat. KFC care about every individual and knowing they are there has been very reassuring and helped me overcome any worries of a long-distance move.”

Ailis Topley – Operations Leadership Scheme

Retail Trust Partnership – as discussed in chapter 5b.

Crisis Counselling – At KFC we take the safety and security of our people very seriously. Unfortunately, there are occasions where we need to provide reactive support and counselling for our people following an unforeseeable event. For instance, in situations where staff have been threatened during a robbery or abused in some way, we have responded by providing appropriate support from colleagues, followed by professional counselling support where required.

The amazing flexibility that

KFC offers has allowed me to

be both a full time mum and a

full time area coach. I have busy

role running 8 restaurants and

I couldn’t juggle my home life

without KFC’s help.

Magda Olszewska

– Wilk, Area Coach

9 HOW DO YOU ENCOURAgE FUN

AND CAMARADERIE AMONg YOUR

EMPLOYEES? PLEASE INCLUDE THE

WAYS IN WHICH YOUR COMPANY

CELEBRATES TEAM AND/OR

ORgANISATIONAL SUCCESSES.

Recognition is the life blood of our business; “Recognise, Recognise, Recognise” is one of our HWWT2 principles (discussed in Chapter 1), every one of our team in restaurant or in our RSC, passionately believe in the power it holds and together we have so much fun celebrating key achievements, positive behaviours and great effort as part of our everyday life!

Celebration is all around us at KFC, we don’t need an excuse and our restaurants lead the way, no achievement too big or too small.

Here are just a few examples.

Celebrating

44 45

Even leaving the team - As well as celebrating all the great successes of KFC we also like to celebrate events where there are mixed emotions like in the instance of someone leaving KFC.

Great Place To Work Celebration

We were so proud to make it onto the Top 25 UK Best

Workplace list, last year, for the fifth year in the row that

Martin Shuker made a video to thank all of our teams

and we ran a competition for five of our team to win

£1,000 as a contribution to

their education or to learn a

new skill. Our five winners

were country wide and

included learning to drive a

mini bus and gaining a health

and safety qualification

Britain’s Top Employer Celebration

For the third year in a row we were named as Britain’s

Top Employer by the Britain’s Top Employer Institute. We

went to the award dinner with 20 of our team including

ten restaurant managers. To celebrate with the rest of our

teams James Watts made a video while he was out in

restaurant the following day and we issued 3 Golden

Tickets in Meeting in a Box (as discussed in Chapter

4) so three lucky Restaurant Managers received a

Golden Ticket to take part in an experience of their

choice.

Birthdays & Babies

New Restaurant Openings We celebrate new restaurant

openings by inviting the teams friends and families into the restaurant the day before opening to the public, with vouchers to share the

excitement.

Breaking records and achieving

& exceeding targets - these could

be hourly, daily, weekly, monthly or

yearly for sales, Guest Experience

Survey or Drive Thru time, as I said

we need little excuse to celebrate.

Joining the Team People regularly join our team either from other functions or restaurants or externally and we like to make a fuss.

Gaining a qualification

Hopefully as you have

gathered from chapter 7 we

are passionate about training

people so when people gain

a qualification we like to have

a shindig for example our

Apprenticeship Graduation at

Alton Towers in September where

140 Apprentices received their

certificates.

Being Promoted

We like to share and celebrate internal moves

and promotions with everyone so we send out

emails & Glassboard announcements.

“Thank you so much! You have

changed my life! I appreciate

this so much! I got the news at

work today from my area coach

and I broke down crying with

happiness. Life changing!”

Ashleigh Smith – Team Member,

South Shields, winner of £1000

GPTW Education Prize

46 47

Sharing

10A. HOW DOES YOUR COMPANY PROMOTE A

SENSE OF FAIRNESS WITHIN THE ORgANISATION?

IN PARTICULAR, WE ARE INTERESTED IN: METHODS

FOR COMPENSATINg EMPLOYEES, FOCUSINg

ON APPROACHES THAT EMPLOYEES ARE LIKELY

TO CONSIDER UNIQUE OR SPECIAL (E.g. PROFIT-

SHARINg, BONUSES, EMPLOYEE OWNERSHIP,

gAIN-SHARINg, ETC.). POLICIES AND/OR PRACTICES

THAT PROMOTE A SENSE OF EQUITY BETWEEN

EMPLOYEES AND MANAgERS.

At KFC we are always reviewing and improving our approach to total compensation, as we are keenly aware that this is an area where best practice is constantly evolving. We work hard to promote a sense of fairness within KFC, however, we also feel it is important to treat our people as individuals and to recognise that people have differing benefit requirements.

Unique Benefits at KFC Our great Place To Work feedback regularly suggests that whilst our people really value their benefits package and the way their achievements are recognised internally, they would like to see the business offer them a more tailored, unique set of benefits that respond to their individual needs. Since the launch of Pick and Mix benefits in 2012 we have seen this question improve by as much as 17%.

“Pick & Mix is a great example of the flexibility that KFC gives its employees when it comes to rewards. You can tailor your benefits package to suit your individual needs, rather than take part in a ‘one size fits all’ scheme. I was able to trade in a couple of paid leave days for a comprehensive health check that I felt I needed. I still have loads of holiday entitlement left, but now also have peace of mind. KFC truly is a great place to work.”

Aga Biszta – Education Coordinator

My Rewards i Portal – This was launched as an online platform to support our flexible benefits scheme. The portal provides information about all of the benefits available to our salaried employees, through which they can make changes on an annual basis during a specific time window.

Flexible Benefits – Spurred on by this feedback from last year we have introduced a flexible benefits scheme called Pick & Mix for our salaried employees; a selection of options that allows flexibility on core benefits, enabling employees to tailor requirements based on individual needs. These benefits are split across Finance and Protection, Health and Wellbeing and Leisure and Lifestyle and also include a new online discounted shopping site.

Communicating the offer for KFC was all about making it fun and linking it back to employees’ lifestyles. To launch the Pick & Mix Programme we ran Lunch & Learn sessions to inform employees about the changes to the benefit system. Advisors were on hand from Lorica to provide 1-2-1 assistance, present at Lunch & Learn, and run conference calls for our colleagues in the field. There is also a Lorica Helpline for any current enquiries. Our Head of Reward ran roadshows at regional meetings and took Pick & Mix sweets to engage employees about the changes, pick & mix sweets were also used at the RSC.

My Car & Mobile Phone – Two new elements of the Flexible Benefits Scheme launched in 2014. The My Car benefit scheme allows you to lease a brand new car while saving money by using salary sacrifice. By choosing a car with a low carbon dioxide (CO2) output the tax on the car can be substantially less than the savings made on income tax and National Insurance contributions on the salary foregone, giving employees a net saving. The mobile phone scheme offers employees the chance to save up to 42% on their next mobile phone contract, by paying for it via Salary Sacrifice over a period of 24 months.

In 2014 our Flexible Benefits Programme was Highly Commended by the CIPD People Management Awards

Total Reward Statements (TRS) – For a forth year we will be issuing Total Reward Statements, which outline the true value of the benefits that our employees receive. Employees have a lot more sense of what constitutes a competitive package, so it’s important to give an accurate account of this via TRS. The TRS will also give KFC the chance to promote Yumbucks – its share incentive scheme. This year’s TRS will offer more transparency around salary bands and levels.

In our business, new Team Members earn the minimum wage, while base pay for longer serving Team Members, Team Leaders, Assistant Managers and Managers is in the median range for the hospitality industry as a whole (a Restaurant Manager’s base salary is between £22,000 and £44,500 depending on experience and size of operation).

Some ways in which we specifically ensure our offerings are fair include:

Yum Bucks – it’s important to us that it isn’t just the Directors that receive shares in our business, in fact every Restaurant Manager shares in the profits of our business with their allocation of Yum Bucks. Yum Buck are one of the ways our teams can share in the profits of KFC. Through ownership of Stock Appreciation Rights, whether as an initial grant (for coming into an eligible RgM or Area Coach role) or as a performance grant. Yum Bucks grants are made every year and people use them to take life changing actions from new kitchens, to putting children through university and pay for weddings.

Salary benchmarking – using Mercer data to ensure we offer competitive packages

Annual performance reviews for all staff – salaried and hourly paid

Childcare vouchers – provided for all salaried staff

Pension provision – exists for all salaried staff

Bonus structure – based on company as well as individual performance

Bonus bands – for Restaurant Managers which are based on clear transparent criteria

10B. PLEASE BRIEFLY DESCRIBE YOUR

ORgANISATION’S PHILANTHROPIC,

ENVIRONMENTAL, OR OTHER CORPORATE SOCIAL

RESPONSIBILITY INITIATIVES, FOCUSINg ON HOW

EMPLOYEES PARTICIPATE IN AND/OR DERIVE VALUE

FROM THESE EFFORTS.

We have outlined our philanthropic, environmental and other corporate social responsibility initiatives in our response to question three in this submission.

>

Human Resources

32 Goldsworth Road

Woking

Surrey GU21 6JT

Tel +44 (0) 1483 717000

Fax +44 (0) 1483 717192

I’m pleased to send you your 2014 Total Reward

Statement, which details your complete pay and

benefits package, all together in one place.

You’ve voted KFC a Great Place to Work for four

years running now – and we know an important

part of that achievement is providing you with great

rewards and benefits. So, we’ve also included a

brochure that gives you information about the full

range of benefits on offer – all part of what makes

working at KFC So Good!

Our aim continues to be working together as a team

to run great restaurants and give every customer

a special experience every time they visit KFC. Our

rewards and benefits are our way of saying thank

you for everything you do to make this happen.

I hope you find this information useful and that it will

help you to make use of the full range of benefits

on offer.

Kind regards

Martin Shuker

Name Surname

Address 1 Address 2Address 3Address 4Postcode

My pay: £00,000.00

My share of success: £00,000.00

My benefits: £00,000.00

£000,000.00

Dear Name,

Total Reward

Statement 2014

2014 total reward

See inside for more details

3

2

Total reward for 2014

My pay

Current Salary (as at 28/10/2014) £00,000.00

My share of success

My benefits

*currency conversion rate used £X.XXX as at 22/8/2014.

Pension £00,000.00Medical Insurance £00,000.00 Life Assurance £00,000.00Income Protection £00,000.00Personal Accident Insurance £00,000.00Critical Illness Insurance £00,000.00Holiday Entitlement

00 daysCar Allowance / Company Car £00,000.00Fuel Cards (you currently benefit from a personal fuel card)

YOUR TOTAL BENEFITS

£00,000.00

Name Name Surname Employee Number 0000000000

£000,000.00

Your annual sogood total rewards

Bonus (your share of profits earned in last 12 months) £00,000.00Executive Income Deferral (as a Yum executive you have access to the EID plan, inc. Yum! matching stock)

£0,000.00Yumbucks (value of grants in 2014) $00,000.00 (£00,000.00) Long Term Incentive Plan (LTIP) (value of grant in 2014) $00,000.00 (£00,000.00)

YOUR TOTAL PAY & SHARE OF SUCCESS IN GBP (£) £000,000.00*

3

2

Total reward for 2014

My payCurrent Salary (as at 28/10/2014)

£00,000.00

My share of success

My benefits

*currency conversion rate used £X.XXX as at 22/8/2014.

Pension

£00,000.00

Medical Insurance

£00,000.00

Life Assurance

£00,000.00

Income Protection

£00,000.00

Personal Accident Insurance

£00,000.00

Critical Illness Insurance

£00,000.00

Holiday Entitlement

00 days

Car Allowance / Company Car

£00,000.00

Fuel Cards (you currently benefit from a personal fuel card)

YOUR TOTAL BENEFITS

£00,000.00

Name Name Surname Employee Number 0000000000

£000,000.00

Your annual sogood total rewards

Bonus (your share of profits earned in last 12 months) £00,000.00

Executive Income Deferral (as a Yum executive you have access to the EID plan, inc.

Yum! matching stock)

£0,000.00

Yumbucks (value of grants in 2014)

$00,000.00 (£00,000.00)

Long Term Incentive Plan (LTIP) (value of grant in 2014) $00,000.00 (£00,000.00)

YOUR TOTAL PAY & SHARE OF SUCCESS IN GBP (£) £000,000.00*

NEW

48 49

11A DO YOU HAVE ANY EVIDENCE (EITHER HARD

DATA OR ANECDOTAL) TO SUggEST THAT YOUR

COMPANY’S WORKPLACE CULTURE DOES, IN FACT,

CONTRIBUTE TO THE ORgANISATION’S SUCCESS?

KFC is a growing business in the UK, we attribute this to a number of factors, such as our great tasting food which keeps people coming back for more and the great service we provide in our restaurants. Without the commitment and enthusiasm of our people, we couldn’t continue to deliver the high level of service our customers expect and we firmly believe that, if it wasn’t for our culture, we wouldn’t attract such star-performers.

“I have worked for KFC for over 25 years now, I started as a Team Member and have worked through to RGM, Regional Trainer, Area Coach and currently I work in the RSC as the Operations Communications Manager. That’s what I love about working here, the continuous focus that is put on people development and the opportunity to grow not only yourself but others around you. I like the fact that people genuinely take an interest in your development and it is talked about regularly. I love the camaraderie, not only in the RSC but also out in the field, it’s a real family atmosphere and a place where we get the opportunity to laugh and have fun every single day! Who wouldn’t want to work here for 25 years!”

Karen Parr (26 years with KFC) – Operations Communications Manager

“First of all I have seen the company grow and develop a great ‘people environment’ where everyone counts no matter what position you hold. Secondly, the company really looks after their people’s development and encourages all staff to think of their future and what they would like to achieve. For example the apprenticeships and the degree programmes, this demonstrates that they are not only looking after their managers but their teams in terms of development. The senior management are really down to earth people just doing a great job and taking all of us with them. Last of all it gets into your blood, the team, management and customers all make it worthwhile.”

Margaret Partridge (27 years with KFC)– RgM Oldbury and KFC degree student

Our retention figures have risen considerably in the last five years, with turnover declining at all levels for restaurant based staff. Leading to us seeing a move from a 2.5 to a 3/5 measure over the last year on the People Metric of our Balance Scorecard or KPIs.

Our restaurant stability (the number of restaurants which have the same RgM for over 12 months) has increased. Due to this increased retention and stability in our restaurants, we have seen improved same-restaurant sales growth year-on-year. We know that our success is not the result of one single initiative. Rather, it is the product of ongoing hard work and a belief that we needed to go back to our core principles. Our strategy since 2005 has been to ensure that all new initiatives are aligned with our business strategy and grounded in our How We Win Together HWWT2 principles. We have tried to bring these principles to life for you through the examples, stories and quotes we have used throughout this submission. In the section on the following page, we have summarised some of the most significant changes we have made over the past few years.

HWWT2 PrincipleKey Initiatives linked to the HWWT2 Principles

Believe in all People Team Member Assessment Centres Taking People With You training for our RgMs Our Barnardo’s partnership Our planned careers website refresh to communicate the

great opportunities at KFC Increased our use of video story sharing to bring our so

good stories to life internally Wellbeing Programme Cultural buddy and induction for new starters to help

them live and breathe our unique culture

We are Customer Maniacs Enabling prospective employees to spend time in

the restaurants prior to joining so they can immerse themselves in our ‘customer-mania’

Ensured all new hires at RSC receive in-restaurant training and access to Learning Zone modules

Our new restaurant designs to bring the feel of the kitchen out into our restaurants

Transparency around the provenance of our chicken Launch of KFC voice an employee engagement survey The introduction of the guest Experience Survey Moving our RSC to a more collaborative and eco friendly

environment Launching our new website allowing candidates to take

part in a virtual job preview The launch of new careers Facebook and LinkedIn pages Taking part in Red Tractor Week Launch of a range of community consultation materials

Go for Breakthrough CSR Report Achieving Breakthrough Results training for all RSC/RgMs

and Franchisees to promote new ways of thinking Launch of the Harvest Project

Build Know How YUM! University KFC Degree, the Level Three Apprenticeship scheme for

Team Leaders, the new Level Two Apprenticeship for Team Members and our graduate Scheme

Team Member training on the Learning Zone

Skills Events to promote careers and training for 15-24 year olds

Partnership with the London Business Forum Developed TM trainer programme enabling peer-to-peer

knowledge exchange Introduced centralised inductions for new starters at

restaurant level to ensure consistent introduction to culture and brand

Launch of the Retail Management Scheme for College Leavers

The launch of a number of Leadership Programmes for various populations across the business

Take the Hill Teamwork Involved everyone in World Food Programme fundraising

activity, including new graduates Working closely with the government on the Public

Health Responsibility Deal Working with the National Skills Forum Our eco-restaurants

Recognise, Recognise, Recognise! Pick & Mix benefits scheme in response to great Place to

Work feedback, offering even more unique benefits to our people

Recognised as an Employer of Choice by Britain’s Top Employer and great Place to Work

Focused on incentivising in line with business objectives Driving our recognition culture from the top of the

organisation, through recognition moments and sharing photos and updates via glassboard