Short commentary by Mike Andes arguing that despite low unemployment, businesses must adapt to high turnover by designing systems that allow entry-level hires (who may stay only 2–3 months) to become quickly productive and profitable—citing McDonald’s ability to generate ~$120/hour from inexperienced teenage workers through simplification, standardization, and rapid training.
Look, the labor market stinks. Unemployment is ultimately super low historically. It's not going to go back up because of politics. It's likely that we will have to build the business in a way to be able to take people that stay two or three months at the business and we can somehow make it profitable. The same way that McDonald's is able to make $120 per hour from 16 year olds flipping burgers in the back of their kitchens. They do it because they have systems in place, they simplify and they standardize everything. And so if you do that in your business, you can take an entry level person, train them up very quickly until they're profitable.
