Hourly Employees: Engaging for Performance

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Turnover for hourly workers is often sky-high. But does it have to be? If you manage hourly employees, this three-part blog series provides practical strategies on how to increase engagement, productivity, and retention for your workforce. ( Read the first blog .)

Turnover for hourly workers is often sky-high. But does it have to be? If you manage hourly employees, this three-part blog series provides practical strategies on how to increase engagement, productivity, and retention for your workforce. (Read the first blog.)

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More than one-third of all workers are hourly employees who earn less than $12 per hour. Low-paid hourly workers have different backgrounds compared to their higher-paid counterparts. According to the Families and Work Institute, hourly employees are more likely to be female, work part-time, work non-daytime hours, have higher stress levels, and possess only a high school education. But just like the professional and managerial workforce, hourly employees need to feel valued as team members and recognized for their contributions.

More than one-third of all workers are hourly employees who earn less than $12 per hour. Low-paid hourly workers have different backgrounds compared to their higher-paid counterparts. According to the Families and Work Institute, hourly employees are more likely to be female, work part-time, work non-daytime hours, have higher stress levels, and possess only a high school education. But just like the professional and managerial workforce, hourly employees need to feel valued as team members and recognized for their contributions.

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To boost employee engagement and retention for your hourly employees, try these practices.

To boost employee engagement and retention for your hourly employees, try these practices.

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Break down team size

Break down team size

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According to Gallup, employee engagement is higher for teams with fewer than ten team members. If you are responsible for managing a larger team, consider breaking down the team and assigning team leads.

According to Gallup, employee engagement is higher for teams with fewer than ten team members. If you are responsible for managing a larger team, consider breaking down the team and assigning team leads.

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Provide additional pay for the team leads if possible; if not, be sure to find other ways to recognize contributions. Assigning leads will increase employee motivation and also provide opportunities for those employees to develop new skills.

Provide additional pay for the team leads if possible; if not, be sure to find other ways to recognize contributions. Assigning leads will increase employee motivation and also provide opportunities for those employees to develop new skills.

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Provide more scheduling flexibility

Provide more scheduling flexibility

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Offering flexible work arrangements is especially important for hourly employees, since they are often juggling a second job along with family responsibilities. Increasing control and predictability of work schedules will keep employees engaged and committed over the long haul.

Offering flexible work arrangements is especially important for hourly employees, since they are often juggling a second job along with family responsibilities. Increasing control and predictability of work schedules will keep employees engaged and committed over the long haul.

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Managers may be surprised to learn that low-paid employees do not abuse workplace flexibility. They are not more likely to take advantage of flexibility options than other employees.

Managers may be surprised to learn that low-paid employees do not abuse workplace flexibility. They are not more likely to take advantage of flexibility options than other employees.

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Try implementing one or more of the following strategies for your team:

Try implementing one or more of the following strategies for your team:

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  Allow employees to trade schedules with other employees.

  Allow employees to trade schedules with other employees.

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  Let employees provide input into their schedules.

  Let employees provide input into their schedules.

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  Allow employees to choose their own start times and quit times.

  Allow employees to choose their own start times and quit times.

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  Provide schedules as far in advance in possible.

  Provide schedules as far in advance in possible.

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  Offer a compressed, four-day work week.

  Offer a compressed, four-day work week.

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Recognize and reward performance

Recognize and reward performance

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Hourly employees, like all employees, need to know that they are an important and valued member of your team. There are a number of ways to recognize good performance, such as establishing an employee-of-the month award, providing days off, offering opportunities to attend a conference or training program, or creating special perks such as parking spaces. Be sure to define success, find ways to recognize great performance when it occurs, and tailor the rewards to your employees’ needs.

Hourly employees, like all employees, need to know that they are an important and valued member of your team. There are a number of ways to recognize good performance, such as establishing an employee-of-the month award, providing days off, offering opportunities to attend a conference or training program, or creating special perks such as parking spaces. Be sure to define success, find ways to recognize great performance when it occurs, and tailor the rewards to your employees’ needs.

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Paying more pays off: Research out of MIT has shown that companies who pay their hourly workforce a higher rate, including Trader Joe’s and Costco, achieve higher customer satisfaction and profits. In addition to higher salaries, many successful businesses have implemented bonus systems. For example, at Zappos, each employee is allotted $600 per year to dole out to peers for good performance at their discretion. Companies such as Marlin Steel Wire Products in Baltimore and EJ Ajax in Minneapolis provide increases in pay based on new skills attained, increasing productivity for their overall workforce.

Paying more pays off: Research out of MIT has shown that companies who pay their hourly workforce a higher rate, including Trader Joe’s and Costco, achieve higher customer satisfaction and profits. In addition to higher salaries, many successful businesses have implemented bonus systems. For example, at Zappos, each employee is allotted $600 per year to dole out to peers for good performance at their discretion. Companies such as Marlin Steel Wire Products in Baltimore and EJ Ajax in Minneapolis provide increases in pay based on new skills attained, increasing productivity for their overall workforce.

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Talk to your management and HR about implementing a pilot program for your team to increase pay for your employees. For the low-paid hourly workforce, even small increases can make a big difference!

Talk to your management and HR about implementing a pilot program for your team to increase pay for your employees. For the low-paid hourly workforce, even small increases can make a big difference!

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Increase hours for part-time employees

Increase hours for part-time employees

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Find ways to increase the number of hours worked for employees, especially for your high performers, who are more likely to quit their jobs. Increasing hours will enhance scheduling predictability and hence commitment, making it more likely those employees will prioritize their work for your team.

Find ways to increase the number of hours worked for employees, especially for your high performers, who are more likely to quit their jobs.  Increasing hours will enhance scheduling predictability and hence commitment, making it more likely those employees will prioritize their work for your team.

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Provide ongoing support

Provide ongoing support

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Hourly employees may need more support navigating the workplace and resolving work-family conflicts. Set aside time to provide guidance and coaching, including helping employees think through alternatives and resolve challenges. Establish a relationship with a local non-profit that provides training, counseling, or other services for your employees.

Hourly employees may need more support navigating the workplace and resolving work-family conflicts. Set aside time to provide guidance and coaching, including helping employees think through alternatives and resolve challenges. Establish a relationship with a local non-profit that provides training, counseling, or other services for your employees. 

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Also, be sure that employees have ways to connect to community resources for common challenges such as childcare, transportation, financial difficulties, and domestic violence. If your HR department does not have a list of resources, contact your local United Way.

Also, be sure that employees have ways to connect to community resources for common challenges such as childcare, transportation, financial difficulties, and domestic violence. If your HR department does not have a list of resources, contact your local United Way.

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Stay tuned for my next blog post, which will feature proven practices for retaining hourly employees by helping them grow and advance on the job.

Stay tuned for my next blog post, which will feature proven practices for retaining hourly employees by helping them grow and advance on the job.