As we discussed in our last blog, employee turnover rates and expenses are rising; it’s challenging for business owners to hire hourly workers. Ultimately, this crisis stems from the idea of individuals being fed up with what they perceive to be “dead-end” jobs. This means that they see no future or promotion within the company. Not seeing a future or promotion within a business is a trend for hourly workers because of the following factors:
- Limited opportunities – Many hourly workers are in jobs that don’t necessarily offer a clear career path or opportunities for advancement. In some cases, these jobs typically don’t require specialized training or education, making it challenging for workers to move up the ladder.
- Low pay – Hourly workers often earn lower wages than salaried employees, which can create a perception that their work is not valued or that they are not being compensated fairly.
- Lack of training – Without access to training and development programs, hourly workers may not have the skills or experience necessary to move into higher-level positions within a company.
- Inequality – In some instances, hourly workers may feel that they are not given the same opportunities as salaried employees or that their work is not recognized or rewarded in the same way. This can create a sense of unfairness and limit workers’ motivation to pursue career growth within a company.
What Companies Are Doing
As a business owner, it’s time to start thinking about combatting these challenges and giving your employees what they deserve. For example, Amazon began offering a $1,000 sign-on bonus for hourly workers, and McDonald’s increased their hourly wages to $15 an hour. In addition, states have started implementing higher wages for all hourly workers. Illinois raised its minimum wage to $15 an hour.
However, we understand that raising pay rates may not be within your budget. So, another option is investing in your leaders. While offering higher pay could bring new talent through your doors, it may not keep them for the long haul. Despite this, employers have begun investing in their leaders because a good boss can make all the difference and will likely make your employees want to stay. Studies show that if a leader engages in employees they trust, it can take a pay raise of more than 20% to poach them. When your leaders build a highly trusted workplace, the following are the benefits you’ll receive:
- Enhances teamwork and collaboration
- Improves organizational alignment
- Enhances decision-making
- Decreases stress and burnout in the workplace
- Increases employee loyalty and retention
- Overcomes resistance to change
- Improves innovation and creativity
When employees have a boss they feel they can go to when they’re struggling or need help, it makes them want to stay with the company. In addition, you could provide your leaders with HR technology that allows them to offer confident solutions to their employees’ concerns. Imagine how impactful it can be if your employees feel valued by their leaders. It plays a significant role in the success of your organization.
While trust is the main driver in retaining your hourly workers, your employees also want more than just pay increases. Consider looking at your employee benefits. What can you add or change to create a more competitive benefits package? Providing your employees with a work-life balance, surrounding them with positive work culture, giving them learning opportunities, and training and career advancement opportunities all aid in the retention of your employees.
In addition, have you considered the possibility that the way you hire your hourly workers could lead to your employees leaving shortly after hiring them? Determining whether you’re hiring the right hourly employees from the start can be a challenging task. However, consider implementing the following steps when hiring employees to increase the likelihood of making successful hires:
- Define the job requirements clearly - It’s essential to clearly define the job requirements and qualifications necessary for the position. This includes skills, education, experience, and any other essential criteria that the employee should possess. Having a clear understanding of the job requirements can help ensure that candidates are evaluated against relevant criteria.
- Conduct thorough interviews - Employers should conduct thorough interviews that assess candidates’ skills, experience, and fit for the job. Asking behavior-based questions and assessing candidates’ problem-solving abilities and communication skills can significantly help identify candidates who are a good fit for the position.
- Check references – Checking references can provide valuable insights into a candidate’s work experience and performance. Employers should contact previous employers and other references to confirm the candidate’s qualifications and suitability for the job.
- Utilize pre-employment assessments - Pre-employment assessments, such as skills tests and personality assessments, can provide objective information regarding a candidate’s abilities and fit for the job. Employers should use assessments that are relevant to the job requirements and ensure that they are administered consistently to all candidates.
Utilizing these strategies, employers can increase the likelihood of hiring the right hourly employees from the start. However, it’s also important to remember that no hiring process is foolproof, and it’s always possible an employee may not be the right fit for the job, despite the employer’s best efforts.
GMS Is Here To Help
So, we’ve discussed the challenges hourly workers face along with business owners trying to hire them and how you can combat the challenges. The next segment we will discuss is what exactly your hourly workers want. Once you have a team together, it’s time to find ways to retain them, so you don’t have to go through this never-ending hiring cycle. When you partner with GMS, we provide you with the resources to help you attract and retain quality talent. Contact us today to learn more.