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The Hourly Workforce Trends

Talent Acquisition and Talent Management in the service industry’s heavily hourly dominated workforce is not the same as Talent Acquisition and Talent Management in traditional, white collar, office environments.  Hiring and managing employees in those two worlds is like night and day.  Recruiting and hiring in the service industry includes mass hiring, extremely high turnover (numbers that other industries have never experienced), and very diverse workforces- including diverse ethnicities, diverse educations, and diverse backgrounds.

Over the years, talentReef has researched the service industry and built a platform off of customer recruiting and talent management best practices.  Through this research and experience, talentReef has been able to define three major human resource trends that have impacted the Service Industry:

  1. Recruiting for an hourly & decentralized workforce during a tight labor market. The US Department of Labor reported over the summer of 2018 that the national unemployment rate was at 3.9%.  That means there are more jobs available than candidates.
  2. Combating the war for talent and understanding the importance of the applicant experience. A typical applicant uses 16 different resources when searching for a job.  That means a company needs to be anywhere and everywhere to be seen.
  3. Retaining top talent. With unemployment at such a low number and the service industry’s hourly turnover rate at 146.2%, the best hire is the one you don’t have to make.

These three trends helped guide the recent talentReef Hourly Workforce Trends Annual Report.  According to the report, Indeed dominates the hourly job site/board space delivering 51.1% of applicants and 15.6% of hires. The report also highlights the importance of referral-based hiring with a supporting ATS engine as it is the number one source of all talentReef system hires with 17.4%. This number shows the significance of the quality of employee referrals as only 6.3% of all applicants are referrals.

Though some recruiting and human resource tactics may be similar across many industries, it is important that service industry Operations and HR Professionals use tactics and tools that are compatible with the hourly workforce.  Download the report to learn more about the trends impacting the service industry's hourly workforce.

Abby Sandbach

Vice President of Marketing

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