Improving Hourly Employee Retention: Strategies for Success

In today’s fiercely competitive job market, retaining top talent is critical to success. This is particularly important in sectors like retail and hospitality, where customer satisfaction is highly dependent on your hourly workers.

Now more than ever, businesses need a strong hourly employee retention strategy. Ignoring the factors that lead to high turnover rates can significantly impact your bottom line.

Factors Influencing Hourly Employee Retention in 2024

While compensation remains a primary factor in an employee’s decision to stay with or leave a job, hourly employees in 2024 are seeking more. Today’s hourly workforce wants an employer that recognizes their contributions and is committed to providing a positive work environment.

The Need for Flexibility

When conducting our 2024 State of the Hourly Workforce Report, we discovered that 45% of hourly workers want the ability to give schedule input when considering a new job, up from 39% the prior year. 

The desire for greater transparency into shift assignments and hours given climbed to 35% from 32% in 2023, indicating a change in preferences toward flexibility and control over scheduling.

Offering flexible schedules doesn’t mean giving employees complete control over their schedules. But there are simple things you can do, such as providing clear and advance notice of schedules that will give employees a greater sense of control over when and how long they work. 

Consider incorporating tools like Legion Automated Scheduling to allow employees more autonomy. Transparency and open communication are key here. Using Legion Workforce Management (WFM) Software lets employees know you value their time and preferences while finding ways to balance these needs with operational requirements.

The Significance of Workplace Culture for Hourly Employee Retention

A positive work environment significantly impacts employee morale, productivity, and retention. In the same report, we also uncovered that only 50% of hourly workers believe their employers are invested in creating a positive employee experience. 

This indicates that employers have a lot of work to do in fostering a culture that values hourly employees while promoting a strong team.

By actively engaging in open dialogue, soliciting feedback, and taking tangible action based on employee suggestions, you can improve employee engagement and performance. Consider implementing performance and rewards software, which can create opportunities for career advancement, even for hourly employees.

Compensation and Benefits

While not the sole driver, compensation still plays a significant role in hourly employee retention. Competitive wages and enticing benefits remain crucial for attracting and retaining talent. Creative benefits packages can include the usual—healthcare options and paid time off—or more unique offerings like flexible scheduling and immediate access to pay.

For hourly workers facing financial stress, offering earned wage access through solutions like Legion InstantPay can provide much-needed financial security. 

InstantPay allows employees to access earned wages before their scheduled payday. This demonstrates that you’re invested in their financial well-being and alleviates financial anxieties while making employees feel more valued.

Empowerment Through Technology and Tools

While 80% of hourly workers revealed they enjoy accessing their schedules and making changes online, our 2024 report indicated that managers still use manual processes for workforce scheduling. 

This reliance on outdated processes can contribute to dissatisfaction among hourly employees and increase the odds of mistakes creeping into your schedules. Instead, you can empower your workforce by providing user-friendly solutions.

Transitioning from manual to automated workforce management systems streamlines operations for managers and creates a better work experience for employees. Legion WFM provides features such as automated scheduling, time and attendance tracking, and communication tools, empowering both managers and employees.

Addressing Employee Turnover and Unionization

Employee turnover is expensive, costing businesses time and money in recruiting, hiring, and training new employees. In some cases, employers may see a decrease in productivity. 

Newly hired workers need time to get up to speed, particularly in industries heavily reliant upon hourly workers, like restaurants or retail.

Dissatisfaction with working conditions, lack of growth opportunities, and inadequate compensation contributed to high turnover rates. 62% of hourly employees are planning to leave their jobs within the next 12 months, according to our State of the Hourly Workforce report.

While fewer than 10% of hourly workers stated there was a unionization effort at their workplace, over a quarter wish there was. According to the report, the following factors inspired this desire: 

• Low wages (68%)
• Unappealing benefits packages (56%)
• Poor work-life balance (51%)
• Lack of schedule flexibility (46%)
• Social and political issues (41%)
• Compliance and safety violations (31%)

How to Improve Hourly Employee Retention

There are several opportunities for you to boost hourly employee retention rates. Focus on implementing the strategies below to improve job satisfaction, reduce turnover, and build a loyal and dedicated workforce.

Focus on Effective Communication

Transparent, two-way communication builds trust and makes employees feel valued and heard. Make sure to create opportunities for regular feedback from your hourly workforce. 

This could involve one-on-one meetings, employee surveys, or suggestion boxes. Good communication helps build a strong team and improves team morale.

With Legion Frontline Communications, you can leverage employee communication software to build trust and transparency. Through an easy-to-use mobile app, employees can engage in a group chat, newsfeed, and company-wide announcements. They can also participate in polls and surveys, providing valuable feedback. 

Recognize and Reward

Everyone wants to feel appreciated. When employees go above and beyond, making an effort to acknowledge their hard work goes a long way. Legion’s Performance and Rewards Software provides you with a quick and easy way to provide instant feedback and recognition to help employees feel valued. 

Invest in Technology

Modern workforce management software powered by AI helps streamline and automate many workforce-related processes. When done manually, these tasks can take up managers’ time and create an environment where hourly employees feel like cogs in a machine. 

Using tools that empower workers rather than hinder them helps contribute to an overall increase in hourly employee retention.

The Right Tools at Your Fingertips

Hourly employee retention is crucial in today’s business climate. While many external factors contribute to talent acquisition difficulties, prioritizing employee well-being is key to retaining hourly employees. 

Create a supportive work environment, offer competitive pay, and promote from within to help cultivate a company culture where hourly employees feel appreciated. 

Embracing these strategies leads to increased productivity, reduced turnover, and, ultimately, long-term organizational success.

Contact us today for a free demo. Together, we can tailor a solution to help you continue to bolster your most valuable asset—your people.