
The problem: In an industry known for high turnover, Chipotle needed a competitive advantage.
In 2016, Chipotle — like many other restaurant brands — was facing a retention problem. With low unemployment rates nationwide, many employers were starting to reexamine their benefits in an attempt to attract and retain talent in a tight labor market.
Chipotle was no exception. The company was seeing an annual turnover rate of 145% for hourly workers within the first six months on the job. Not only was the problem costing money, it was affecting restaurant operations such as customer service and efficiency.
Like many other restaurants and retail companies struggling with retention, Chipotle took a look at their benefits to see how they could improve their employer value proposition. The company already had a strong brand; customers and employees alike are drawn to Chipotle’s commitment to sustainability, quality, and ethical business practices. To stay aligned with its mission, Chipotle decided to redesign and expand its tuition reimbursement program.
The solution: An education benefits program aligned with Chipotle’s values
In looking to improve retention, Chipotle saw an opportunity to design a benefit that aligned with both business needs and its purpose to “Cultivate a Better World.”
In 2016, Chipotle partnered with Guild Education to launch the Cultivate Education benefits program for hourly employees, including entry-level workers also known as crew members. In order to give employees a chance at a better future, Chipotle provided tuition reimbursement up to $5,250 for a degree of the employees choosing at a network of high-quality schools and universities that catered directly to working adults.