Hourly Worker Turnover is Costly To Business

Challenges and Solutions

The Challenge: Budgets
When you have a department budget for temporary staffing or hourly employees, the decision becomes a little more complex.

The Real Issue in Determining a Solution: Cost

What is the Real Cost – Low Pay Can Be a Big Contributor and Cost More in the Long Run – It’s tough to identify a single solution to your business’s hourly employee turnover problems. If the hourly pay is bad and the work is just as bad, it goes without saying that no one is going to want to think of a job with your company as a long-term “career.”

Easy Solutions to Consider:

1. Create a simple incentive program that may not cost your written budget numbers – Create a plan around the issues that affect your productivity. Is it no-shows, lateness or is it productivity? Offer 10 cents an hour increases if they are on time every day in a 30 day period/or no missed days in the last 30 days. If it is 10 cents an hour and they work 150 hours in the month, that’s only $15. A minor increase of 10 cents an hour may save you big $$$ and the $15 may be important to lower wage employees.
If low is not possible…#2 may be an even bigger reward to your productivity

2. Making the Environment a More Welcoming Place – Usually, the best course of action will be to create an environment where non-salaried employees will want to stick around for a long time. Even if you can’t pay more for all hourly positions — particularly those who are just starting out — you can make work a more welcoming place for those employees.

  • Use employee bonding programs or outings to bring your staff together.
  • Heed complaints about managers, especially if you notice patterns.
  • Make sure each person is getting enough training to feel competent and accomplished in their job.
  • Consider varying job responsibilities when possible, to minimize monotony.
  • Figure out ways to engage and reward creativity and new ideas.
  • Create a goal-oriented environment with rewards for hourly employees who perform well.

All of these strategies can help make your department the kind of place where people want to work.

This blog courtesy of and written for Staffing Industry Analysts by Michael Klazema and added to by Roy Fazio – Mr. Klazema has been developing products for the background screening industry since 2009 and is lead author and editor for a background checks community. Roy Fazio is Partner and Executive Vice President for The Protocall Group and has been in the staffing industry for more than 40 years.

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