In recent years, the job market has shifted in favor of employees. According to the US Bureau of Labor Statistics, almost 11 million jobs remain unfilled. But it’s not that hourly workers resist working hard or solely focus on chasing that higher salary—they might just be feeling unfulfilled.
The needs of the hourly workforce have been overlooked for too long. Feeling unappreciated, unseen, and uninspired, hourly workers (who comprise 80% of today's global workforce) are doing something about it, as evidenced by the 150% turnover rate among the hourly workforce. Many feel forced to switch employers or industries to gain a sense of career growth.
of toady's global workforce is comprised of hourly workers
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turnover rate among hourly workforce
Rather than address this, many employers have started to view turnover as another cost of doing business. But with each new hire costing an average of $4,600 to acquire and onboard, this turnover is more than an inconvenience. It quickly becomes a financial strain that’s harmful to business.
In a competitive job market, hourly employees can no longer be treated as a churn-and-burn commodity.
The most obvious solution is this: employees will stick around if they feel supported and believe they can build a career with you. When we think of people as a future workforce pipeline rather than temporary workers, we create an employee experience that fosters growth and opportunity.
In this guide, we’ll show you how you can become a best-in-class employer by fostering a work environment where hourly workers can grow—ultimately lowering turnover, encouraging loyalty, and creating staffing stability.
Let’s look at the four workplace factors that help attract and retain hourly workers
Career advancement
A common misconception in the hourly workforce is that employees always chase money and will jump from employer to employer in pursuit of a higher wage. But according to the research shared in a BCG Deskless Worker Sentiment Survey, respondents valued opportunity over pay.
Among hourly workers who said they might leave their jobs, 41% cited their employer’s lack of career advancement as the reason, versus 30% of respondents who mentioned pay.
Career advancement isn’t just about getting job opportunities with more prestige or clout. It can also be the pursuit of a rewarding challenge, personal growth, or simply the need for change. If a job looks like a dead end, people seeking a sense of satisfaction from work will soon move on.
Tip: Be clear about career advancement opportunities
If employee retention is important to your business, demonstrate to your potential hire, as well as your existing workforce, how career growth is a viable (and highly visible) benefit. This means talking about career advancement as early as your job description. Go beyond simply saying there are opportunities for career advancement.
According to a 2022 Great Attrition, Great Attraction 2.0 Global Survey by McKinsey, employees are no longer willing to stay in roles with no clear path for advancement: 41% said they quit their previous job for lack of career development/advancement and 31% for lack of meaningful work.
Give people reasons to choose your job by showing opportunities it gives them. Because when you don't, your potential and current employees just might find new jobs that will.
"In a chronically leaking boat, energy devoted to changing vessels is more productive than energy devoted to patching leaks." - Warren Buffet, business magnate, investor, and philanthropist
Flexibility and autonomy
Prompted by the mandated office closures of early 2020, business professionals started working remotely en masse. Even as the pandemic subsided, many businesses continued to offer their employees flexibility and autonomy over their work lives with the choice of remote or hybrid schedules.
Simply because the hourly workforce often can’t work remotely doesn’t necessarily mean they don’t expect (or deserve) flexibility of their own.
In fact, 47% of hourly workers would rather work for an organization that provides flexible scheduling and/or increased autonomy over one able to pay 10% more. 87% of employees now expect their employer to help them find a balance between their work and personal obligations.
Tip: Give your employees a say in how they work
In an employee-driven labor market defined by record-breaking turnover, most hourly workers realize that they make essential services possible. And they know they have options. Since working from home isn't a possibility for many hourly jobs, companies must come up with other ways to offer autonomy.
Working how you want is often as important as working where you want.
As a general rule, managers must deepen their understanding of what hourly workers actually need. Ask if they're enjoying enough independence on the job and which things they'd like to change. Embrace the idea that every employee is different and might have different approaches to work. Flexibility and autonomy in the workplace is based on the notion that you trust your hourly workers to get things done. And the more you trust your people, the more likely they'll feel engaged at work.
"Giving employees control over when, where, and how they work, is key to attracting and retaining talent." - Arvind Malhotra, future of work expert and UNC professor
Skill development
When comparing possible employers, job seekers look for positions that either match their experience and strengths, or offer the opportunity to build new skills.
One Gallup survey found that jobs which offer skill development hold greater value to younger generations—with 87% of millennials citing development in a job as important.
of millenials want skill development on the job
People don’t want to find themselves committed to a new job without a sense of connection to the work. Without alignment to their goals or current skills, they ultimately move on to something more fulfilling.
Tip: Create a culture of learning
If potential employees are looking for a career they can grow into, stand out from your competitors by:
Doing so can help your organization find greater appeal among the career-minded applicants—the people who are able and willing to see the big picture. This is how you attract employees who are focused on how they can contribute to your success, not just how your job suits their needs.
Candidates who prioritize skill alignment and development aren't just better employees. They're more engaged employees—which can mean they're 87% less likely to resign from their jobs.
"I am convinced that nothing we do is more important than hiring and developing people. At the end of the day, you bet on people, not on strategies." - Lawrence Bossidy, author and former business executive
Good leadership
The support, guidance, and leadership of a good manager makes a big difference—particularly for employees within the hourly workforce. This takes proven people skills, the ability to communicate effectively with hourly workers, and the confidence to provide constructive feedback.
However, not all frontline leaders exhibit these attributes. Within many organizations, managers are almost entirely promoted from within without much guidance on how to transition from individual contributor to people leader.
New frontline managers may quickly grasp new responsibilities around team scheduling and hitting quotas but don't know what it takes to support and grow their teams. Without the right training, frontline leaders are often ineffective at motivating their teams or giving them a structured work environment—two reasons why good people leave.
Tip: Train your managers
Help reassure job seekers and new hires that management has their best interests in mind.
As you continue to train your managers in the fundamentals of people leadership, encourage them to foster a supportive work environment for their teams. Managers should conduct regular 1:1 conversations with everyone (not just for corrective action) and show them how to advance.
Supportive managers also know how and when to recognize employee achievements—both big and small. When personal growth is encouraged, people feel more connected to the workplace.
"The single biggest way to impact an organization is to focus on leadership development. There is almost no limit to the potential of an organization that recruits good people, raises them up as leaders and continually develops them." - John Maxwell, best-selling author and leadership expert
Show your employees you care, and they'll stick around
Most hourly workers would prefer staying with the same employer rather than routinely changing jobs to gain career growth.
Making the hourly workforce aware of the unique benefits you're already providing puts your organization at a greater advantage. In too many cases, applicants and current employees aren't aware of the great investments businesses are making to provide better work environments. Build great programs. Treat your team right. And shout it from the rooftops.
Ready to hire hourly workers who are in it for the long haul? Workstream's all-in-one Hiring, HR, and Payroll platform streamlines your admin tasks so you can spend more time creating a top-notch employee experience.