Attracting and Retaining the Hourly Workforce of Tomorrow, Today

Businesses that have a sizable hourly workforce—like the retail and hospitality sectors—remain in dire need of employees but are struggling to hire them as they opt for gig-like jobs or leave the workforce altogether.

A Look at the Numbers

Just over 80 million Americans are paid hourly, representing the majority of US workers at just over 55%. For this reason, companies may be concerned to learn that 50% of hourly workers plan to leave their jobs within the next 12 months. Almost half of those hope to leave within 3-6 months. Meanwhile, businesses in nearly every industry that relies on hourly workers continue to struggle to fill open positions.

In this climate, it’s vital that companies understand what hourly workers want from their jobs so they can start building a better workplace experience.

Understanding Hourly Workers

So, what exactly do hourly workers want? In a recent survey, hourly employees were asked what they valued most about their current role:

• 69% said the people they work with.
• 60% said the work they do.
• 52% said schedule flexibility.

With these responses in mind, let’s consider some ideas for improving your hourly employee value proposition.

Strategies to Improve Employee Engagement

1. Commit to Scheduling and Payroll Flexibility

Salaried employees often enjoy the flexibility to work from home or come into the office a few days a week. While it’s not always feasible to provide hourly employees with these arrangements, you can give them more flexibility by:

• Establishing schedules that match their preferences.
• Giving them the ability to swap shifts or claim open shifts easily.

Greater scheduling flexibility will likely attract hourly workers to new job opportunities, making it key to retention and recruitment. When asked what incentives, besides pay, would drive them to take a new job, 57% of hourly workers said: “flexibility to pick up extra shifts and swap shifts.”

Interestingly, 36% of respondents in the same survey said: “the ability to be paid early,” with 43% of employees aged 18-24 and 47% of employees aged 25-34 saying it would sway them to take a new job.

An on-demand pay benefit can relieve the financial stress experienced by hourly workers who struggle to make ends meet between paychecks. By being able to view and access their earned wages, people can plan more effectively for upcoming expenses and make informed decisions about discretionary spending. And in the event of unexpected expenses, like a medical emergency, they can immediately transfer some or all of their available balance to cover the costs. This helps workers steer clear of expensive overdraft fees and high-interest payday loans.

2. Prioritize Employee Engagement and Communication

A salaried workforce has an array of ways to communicate with colleagues and senior management, including corporate email accounts and collaboration platforms like Slack and Microsoft Teams. These channels are generally not an option for most front-line workers.

A recent survey of thousands of North American workers and their managers found that 39% of hourly employees would leave due to poor communication with their employer. So, as companies seek out communication tools for their salaried workers, they must also consider solutions that can meet the needs of hourly employees.

The best communication apps for hourly workers provide two-way communication via mobile apps and feature built-in chat and news feeds.

3. Deploy the Correct Enabling Technologies

Unfortunately, many companies with hourly employees still rely on inefficient, manual business processes to support their hourly workers. For instance, supervisors may still use Excel worksheets to create work schedules, resulting in schedules that fail to align business needs with employees’ preferences and skills.

Many leaders still call, text, or email employees when they need to fill an open shift. This can result in labor compliance issues if a manager contacts an employee outside of work hours or requests someone to work more hours than they’re legally allowed to work. Tools that allow for automatic scheduling are available to safeguard against such issues.

Technology exists to facilitate greater flexibility and communication, but employers aren’t taking full advantage of these tools. Just consider these statistics:

• Nearly 66% of managers think AI could make scheduling easier, yet less than 20% are using programs that automatically generate schedules.
• If companies reduced the time they spend on administrative tasks like scheduling, 67% of managers would use that time to train their teams, while 27% would devote it to customer interaction.

Meeting Your Hourly Workers Where They Are

Today’s hourly workers prioritize schedule flexibility, on-demand pay, and collaboration, and this trend looks set to continue. Are you meeting them where they are and preparing the groundwork today to attract and retain the hourly workforce of tomorrow? Follow the steps and approaches we’ve outlined in this article to put your organization on track for success.

Payactiv is the partner of choice for businesses seeking to help their people fully engage in both work and life. Our all-in-one Livelihood benefits platform takes a holistic approach to improving financial wellness and increasing employee satisfaction.Learn more about Payactiv’s Service, or book your demo now.

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