In 2021, hourly employees accounted for 55.8% of all wage and salary workers in the United States. Besides representing the largest portion of the U.S. labor force, hourly employees are susceptible to burnout and disengagement at work — which can lead to turnover.
While salaried employees are vulnerable to burnout and disengagement as well, many are spared by their employer’s engagement efforts. In most cases, salaried employees hold higher positions than hourly employees, and therefore receive greater compensation.
Consequently, an employer might focus their engagement initiatives on salaried employees while disregarding hourly employees. This is normally not done with nefarious intent.
Instead, it stems from the notion that hourly employees are easier to replace than salaried workers. There is some truth to this, because key positions are typically held by salaried employees.
That said, when a productive hourly employee becomes disengaged or suddenly quits, it can adversely impact the organization.
Why employers should engage their hourly employees
The Great Resignation is still underway
According to a global survey by PricewaterhouseCoopers, “One in five workers plan to quit their jobs in 2022.” While most are seeking higher pay, many are looking for more fulfillment in the workplace. Note that lack of fulfillment is one of the main causes of disengagement.
Talent scarcity, and higher talent acquisition costs
In a 2022 Randstad survey, more than 1/3 of employers globally report experiencing increased talent acquisition costs. Moreover, “25% report a negative impact on their company’s bottom line due to talent scarcity alone.”
Soaring turnover rate in the retail industry
Total Retail says that “The turnover rate in the retail industry is slightly above 60 percent.” This is based on research conducted by the National Retail Federation. This data is critical, because hourly workers are heavily concentrated in the retail industry.
Hourly employee burnout is prevalent
Workforce.com reports that “Burned out employees are now commonplace in industries requiring an hourly workforce … Promoting worker engagement can be the difference between burned out workers on the verge of quitting and satisfied employees.”
It is not cheap to replace an hourly employee
Replacing a minimum-wage hourly employee can cost an estimated $1,500 — and that’s on the very lowest end. Other estimates put the cost of replacing an hourly employee at $3,500 to $10,000.
These replacement costs include:
The costs do not include indirect losses, such as:
Obviously, employers have much to lose when hourly employees are not engaged at work. Next are strategies to strengthen engagement and retention among your hourly people.
Offer more predictability to workers when possible
Whereas a salaried-exempt employee can typically expect to work the same schedule from week to week, things might not be so predictable for an hourly employee. For example, they may be called upon to suddenly work overtime, which can throw a wrench into their personal plans. Also, too much overtime can spur burnout.
Even if they are not required to work overtime, their regular work shifts can frequently switch — such as during busy, slow, or seasonal periods. Not knowing when their shifts will change can make it difficult for them to achieve any semblance of work-life balance.
IT’S IMPORTANT TO PROVIDE AS MUCH PREDICTABILITY FOR WORKERS AS POSSIBLE.
Granted, in some industries, it’s hard to ensure predictable hours and wages, especially for tipped employees. Nonetheless, it’s important to provide as much predictability as possible. Note that depending on where your employees work, you may not have a choice.
Some jurisdictions have predictive schedule laws that require certain employers to give hourly or minimum-wage employees their work schedules in advance. What’s more, some states require advance notice of pay rate changes.
Determine other factors driving disengagement and turnover
Employees become disengaged and leave their jobs for various reasons, some of which might be outside of the employer’s control (e.g., family or health problems). Oftentimes, however, the reasons stem from employer deficiencies that could have been prevented.
Before you implement preventative or mitigation measures, try to determine why your hourly employees left or what can cause them to leave.
For example, manufacturing and warehouse employees often leave their jobs for these reasons:
Another report says hourly employees become burned out for the following reasons:
Identify strategies for engagement and retention
After you figure out what can cause your employees to become disengaged, you’ll need to create strategies for combating those triggers.
For example, if your employees are disengaged because of too much overtime, see if your overtime requirements are unreasonable. If so, find a middle ground that allows you to meet your business needs without overworking the employee.
Additional solutions for engaging hourly employees:
Digitally elevate your scheduling and communication processes
Effective scheduling and communication are vital to managing hourly employees. But without efficient tools, the following headaches can occur:
A thoughtfully built employee time tracking platform can boost scheduling and communication in the following ways:
Advanced scheduling platforms come with reporting and analytics features plus built-in compliance to help you adhere to scheduling and hourly employee laws. For more on this, check out Zenefits All-in-One HR software.
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