A Blueprint for Engaging Hourly Workers

Posted by Abby Sandbach on 5/14/18 3:18 PM

Retaining talent in an hourly, decentralized workforce has always been challenging, but it has proved especially difficult over the past few years as Millennials have taken over the workplace, Gen Z and gig workers have emerged into the workforce, and the unemployment rate has shrunk meaning employees have more opportunities with potentially higher compensation elsewhere.  With nationwide unemployment hovering around 4%, the lowest since 2000, and an average service industry turnover rate of 67%, retaining hourly employees is not just a “nice to have,” it is a necessity for your bottom line.

Whether you are a large corporation with a recognizable brand, a franchisee, or an independent operator, it is imperative to have a strategic human resource initiative to prioritize retaining and engaging top talent to reduce the negative impact turnover has on your business.

Many companies think about the obvious impacts retaining employees has on turnover (equating to time and money saved training new hires, interviewing candidates, and posting job openings), but companies often don’t relate retention to customer service.  Studies show, time and again, that more engaged employees care more about their jobs, perform better, and stay longer.   A highly engaged employee is not only less likely to leave his/her job, but that employee is more likely to speak positively about the organization, provide better customer service, and potentially upsell customers.  This all results in higher profits for the business.  Another factor that is often overlooked when discussing retention of the hourly workforce is manager turnover.  Many managers leave due to disengagement often brought on by frustrations from managing constant turnover of their teams.  Often, the lower the hourly employee turnover, the longer managers tend to stay. 

But what can be done to help mitigate turnover and increase retention and engagement? With the right processes in place and a system to help manage these processes, reducing turnover can lead to both retention and engagement.

Learn what can be done to retain your hourly workers by downloading the whitepaper the Importance of Employee Engagement in Today's Hourly Labor Market.

Authored by Abby Sandbach, Vice President of Marketing

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