Beyond Salary – How To Attract and Retain Hourly Workers

The Great Resignation has placed excessive pressure on employers who staff hourly workers. With workers benefiting from ample job opportunities and high labor demand, they have more bargaining power than ever. As a result, employers are being pushed to pay higher wages to remain competitive, which is not always feasible.

Below, we explore a few ways employers can attract talent beyond offering higher hourly wages:

• Provide Training
  Ensuring new employees have the skills to get started on the right foot is critical for success, productivity and retention. Job training a great way to teach new employees the skills your company requires. It can also be a powerful tool to help attract new candidates to your field or to train experienced workers in newer technologies.
  
  Employers are more likely to attract candidates when training is fully paid rather than a condition for employment. There are resources that cover partial wage reimbursement during the training period such as Workforce Solutions’ On-the-Job Training program. When staff feel they are adequately prepared to perform their roles, job satisfaction is higher, and they are more likely to remain at the company.
  
  
• Offer Employer-sponsored Financial Well-being Benefits Beyond 401-K
  While retirement planning services are the most common employer-sponsored benefit offered, they are rarely utilized by hourly employees who often struggle to save, let alone set funds aside for retirement. As an alternative, employers of hourly workers can consider other financial benefits that better address the reality of their lives, fulfill their short-term needs, and set them up for longer-term financial well-being.
  
  According to a recent survey of 1,000 hourly workers, 73% want their company to offer and pay for earned wage access (EWA), or on-demand pay, which provides access to wages already earned before payday. In fact, 57% would likely switch to a comparable paying job if it provided free EWA. Having access to money when needed allows employees to avoid high-interest credit cards or exploitative payday loan services which can create a cycle of debt that can be hard to exit.
  
  Employers can also consider offering other financial service benefits such as tools for planning, budgeting, and saving that move employees up the financial ladder. In the end, financial benefits that create stability engender better engagement and higher productivity.
  
  
• Recognize That Flexibility is Critical
  At the heart of the Great Resignation is employees seeking better work-life balance and working conditions. Hourly workers tend to have far less flexibility than professionals, and yet there is a strong business case for providing them with flexibility – it helps to recruit, retain and grow talent, build employee morale, boost employee engagement, reduce stress and burnout, and increase productivity. Companies that have successfully implemented flexibility for their hourly workers generally provide a range of flexibility and time-off options – and more importantly an environment and culture where it is acceptable and encouraged to take advantage of these policies.
  
  A WFD Consulting study identified three key areas to focus on when creating flexibility for hourly employees: creating alternative work schedules (versus a standard 5-day/40-hour workweek), allowing employees to control scheduling to accommodate personal or family responsibilities, and enabling employees to manage periodic and unscheduled personal or family needs and emergencies. This is especially true for women, who have left the workforce in droves in search of flexibility.
  
  The return on investment for flexibility among hourly and non-exempt workers is evident. Employees who have flexibility in their work arrangements are less stressed and anxious, are happier and healthier, are more productive, and are more likely to want to stay at the company longer.
  
  While the battle for hourly workers can be fierce, it can be made easier by addressing the core concerns and needs of employees. Everyone is looking for a better life and means to fulfill basic needs. When employers find creative solutions to address these fundamental human rights, there is a higher chance of attracting and keeping talent on board.