Background
In industries with high turnover rates—like retail, restaurants, manufacturing, and healthcare—improving employee retention is often at the top of a hiring department’s to-do list. Traditional retention strategies may not be practical for all hourly workers, either for logistical reasons or budget constraints.
But there are still several effective tools that businesses can utilize to help can help reduce turnover amongst their staff and build a more stable workforce.
Predictable Scheduling
One of the biggest challenges for hourly employees is managing unpredictable schedules. In many cases, workers are aware their schedules might be at the mercy of business needs. But that can still wreak havoc on their personal lives. Implementing consistent scheduling practices can significantly improve retention simply by giving employees more time to plan ahead.
Here are some scheduling tips teams may consider:
- Posting schedules at least two weeks in advance
- Maintaining consistent shift patterns when possible
- Allowing shift swapping among employees
- Creating set teams for different shifts
- Respecting time-off requests
When employees can plan their lives around reliable work schedules, they're more likely to stay with their employer and perform better on the job. And when staffing needs change, offering the flexibility to employees to move shifts can be a huge difference maker in their perception of the business and overall happiness.
Skills Training and Career Pathways
Even in entry-level positions, employees want to see opportunities for growth. For many workers, hourly jobs are stepping stones to other career opportunities, and they’re often eager to pick up new skills that will prepare them for their lives ahead. Developing clear pathways for advancement can ensure your staff feels supported and remains engaged throughout their time with the company.
If your business doesn’t already provide these, here are some key strategies to improve employee retention in hourly-wage work:
- On-the-job training for higher-skilled positions
- Cross-training opportunities for different roles
- Clear requirements for promotion to team lead or supervisor
- Certification programs for specialized skills
- Partnerships with local vocational schools
Showing employees they can build a career path—even without formal education—gives them a reason to stay and grow. Investing in these programs can pay dividends in the future through a better-trained, longer-tenured workforce.
Employee Engagement Programs
Creating a positive work environment doesn't have to be expensive, and even businesses with slim profit margins can still find ways connect with staff. Simple engagement initiatives can make a big difference, particularly when they incentivize good performance and dependability.
Here are low-cost strategies employers can try when looking to improve workforce engagement and retention:
- Employee of the month recognition with practical rewards
- Performance incentives like extra paid time off
- Team meals or food allowances
- Perfect attendance bonuses
- Peer recognition programs
These programs help show appreciation for your staff’s hard work and consistency. Consider implementing different reward tiers so even newer employees can find a pathway to success and recognition.
Practical Benefits That Matter
While comprehensive healthcare or 401(k) matching might not be feasible for businesses in service industries, there are many practical benefits employers can offer that might make the difference between a worker staying on staff or looking somewhere else. As they fit into your employee engagement strategy, adding small benefits like these can help.
- Meal discounts or free meals during shifts
- Transportation assistance or parking benefits
- Employee purchase programs with discounts
- Uniform allowances
- Referral bonuses
- Healthcare scheduling flexibility for doctor appointments
These benefits focus on addressing daily challenges your workers face. Many benefits that employers provide go unused, rendering them useless. Everyday impact benefits like these are much likelier to be utilized and provide higher returns for employers.
Earned Wage Access Programs
For hourly workers living paycheck to paycheck, having flexible access to earned wages can be a game-changer. Expenses don’t stop for payday, so why should employees need to wait weeks for money they’ve already earned? Earned wage access (EWA) through Tapcheck provides:
- Immediate access to earned wages when unexpected expenses arise
- Freedom from predatory payday loans and high-interest credit cards
- Better ability to manage bills and avoid late fees
- Reduced financial stress that can impact work performance
- Simple mobile app access for checking available earnings
Studies show that in high-turnover industries, businesses offering EWA can see retention rates improve by up to 38%. For employees working multiple jobs or managing tight budgets, EWA benefits provide crucial financial flexibility that can make the difference in an employee’s decision to stay or leave.
Conclusion
While traditional retention strategies often focus on salaried employees, hourly workers have different needs and priorities. By implementing tools that address their specific challenges—like scheduling predictability, clear advancement opportunities, meaningful recognition, practical benefits, and earned wage access—employers can significantly improve retention rates even in traditionally high-turnover industries.
The key is understanding what matters most to your workforce. Often, it's not about offering the most expensive benefits, but rather providing tools and support that make their daily lives easier and show you value their contribution to your business.
