How Workforce Management Tools Can Help Reduce Turnover

In today’s labor market, hourly employees expect transparency, flexibility, and a sense of control over their work lives. Competitive wages are important, but they’re no longer enough to keep employees engaged and committed.

Legion’s 2025 State of the North American Hourly Workforce report reveals just how high the stakes are:

• 61% of hourly workers cite schedule flexibility as their top non-wage priority
• 40% of Gen Z workers say on-demand pay is a deciding factor in accepting a job

These aren’t perks—they’re expectations. Workforce management tools help businesses increase retention by improving scheduling flexibility, communication, and employee wellness. Let’s explore how these tools can enhance your retention strategy.

Download the full 2025 State of the North American Hourly Workforce Report

How Workforce Management Tools Reduce Turnover and Improve Retention

Modern workforce management software helps businesses optimize labor while supporting employee well-being. By reducing administrative burdens and improving the day-to-day experience, these tools can significantly improve employee retention when implemented effectively.

Automated, Preference-Based Scheduling

Employees can set their preferred hours, roles, and locations—and update those preferences anytime. Legion AI incorporates these preferences into the labor plan before generating schedules—matching business needs with employee skills and preferences 96% of the time. Legion Automated Scheduling ensures shifts are generated to align with both business demand and employee preferences, improving satisfaction and coverage.

Real-Time Shift Offers and Claims

On-Demand Shift Offers empower employees with real-time access to open shifts. They can view shift offers and accept or decline with a simple swipe left or right—eliminating manager bottlenecks. With a simple swipe, eligible employees can instantly claim shifts tailored to their role, location, and availability. Built-in compliance ensures only the right staff see the right shifts, reducing friction and filling schedules faster across all locations.

Shift Swapping and Availability Updates

Giving employees the ability to swap shifts or adjust availability easily keeps work in sync with life. This flexibility helps reduce last-minute callouts and disengagement.

On-Demand Pay

Financial stress is one of the leading causes of absenteeism. Legion InstantPay gives employees direct access to earned wages after each shift through the same app they use to view their schedules. When workers can manage urgent expenses without waiting for payday, they’re less likely to miss their shift to take on gig work.

These tools reduce turnover by making hourly work more adaptable, predictable, and rewarding.

The Key Role of Workforce Management Tools in Employee Retention

Flexible scheduling and on-demand access directly affect employee loyalty, absenteeism, and retention.

When hourly employees have more control over their time, they are less likely to leave. In-app access to schedules, communication, and pay reinforces transparency and trust—two essential drivers of engagement.

Key benefits include:

• Reduced callouts due to more predictable, preferred schedules
• Fewer manual errors and compliance issues with auto-scheduling
• Higher shift fulfillment through real-time shift claims
• Lower absenteeism through on-demand pay access

Together, these features help companies create a more stable, motivated workforce.

Built for Flexibility and Retention

Today’s workforce management platforms are built for both business efficiency and employee experience. Core capabilities that drive retention include:

• AI-Powered Scheduling: Automatically matches labor plans with employee skills, preferences, compliance rules, and business needs
• Mobile-First Experience: Scheduling, messaging, and shift actions happen in one intuitive app
• Built-In Compliance: Flags conflicts and keeps schedules compliant
• Communication Tools: In-app messaging, announcements, and surveys keep teams informed and heard
• Earned Wage Access: Helps reduce stress and absenteeism by giving employees early access to their pay

By giving employees more control while simplifying operations, workforce management software makes attracting and retaining talent easier.

Boost Employee Satisfaction with Flexible Scheduling

Rigid, top-down scheduling drives turnover. Employees who have more control over their schedules stay longer, work more hours, and are more engaged.

One retail customer using Legion reduced turnover by offering self-service shift claims, allowing associates to pick up hours on their terms. Employees with flexible scheduling options were also more likely to accept extra shifts during peak demand or critical periods.

Allowing workers to set preferences and swap shifts makes a significant difference. It signals trust and creates a culture of mutual respect.

Foster Trust and Loyalty with Transparent Communication

Clear, two-way communication is a critical piece of any retention strategy. Workforce management tools provide structured, trackable ways for teams to stay connected. Key features include:

• In-App Messaging: Storewide or targeted messages reach teams in real time
• Announcements: Critical updates are delivered directly to employees, not lost in group chats or bulletin boards
• Surveys and Polls: Get quick insights into team sentiment, schedule satisfaction, or feedback on recent changes

These tools replace fragmented methods like group texts or calls, giving managers better visibility and employees a stronger voice.

Reduce Financial Stress with Instant Access to Earned Wages

Legion’s 2025 State of the North American Hourly Workforce report found that financial flexibility is a top expectation. Employees are choosing jobs where they can get paid faster.

On-demand pay options, like Legion InstantPay, help reduce turnover by reducing financial stress. Workers can access their earned wages after each shift—without waiting two weeks. This can make the difference between calling out for a gig shift or showing up ready to work.

Offering earned wage access is good for employees and delivers operational benefits. In one example, companies that introduced on-demand pay saw a 72% increase in clock-in performance (Legion, ALDO Group Case Study).

The ROI of Reducing Turnover with Workforce Management Tools

Turnover is expensive. According to industry research from SHRM and Gallup, replacing an hourly employee can range from $1,500 to $5,000, depending on the role and industry (SHRM, 2023). Even modest reductions in attrition can deliver significant ROI:

• Lower recruiting and training costs
• More consistent service and productivity
• Less time spent backfilling open shifts

For example, retaining just 10% more employees annually, while reducing scheduling-related absences by 15%, the savings often outweigh the cost of the software itself.

How Real-Time Feedback Can Prevent Employee Turnover

Disengagement often stems from feeling unheard. WFM tools make collecting, reviewing, and acting on employee feedback easy—before issues lead to resignations.

Built-in features like polls, quick surveys, and schedule satisfaction ratings allow managers to monitor employee sentiment in real time. If burnout or dissatisfaction starts to spike, they can adjust workload, shift distribution, or offer support.

These feedback loops also build trust. When workers see their input acted on, they become more invested in the team.

Protect Your Business’s Future: Retention Starts with Empowering Employees

Turnover isn’t inevitable. With the right tools, businesses can give employees more control, clarity, and connection—leading to higher engagement and stronger teams.

Want to see how workforce management tools can help reduce turnover and build employee loyalty? Request a demo or explore our solution.