One of the most significant issues that hourly employers face is high employee turnover. The higher your turnover rate is, the more expenses you will incur to hire and retain new employees. Therefore, it’s important to hang on to employees for as long as you possibly can. Luckily we have some ideas to help you improve your turnover rate without making big changes.
What’s a Healthy Turnover Rate?
A healthy turnover rate is typically around 10-15%. However, for hourly employees in some industries like fast-food restaurants, turnover rates can be closer to 80% or more. As an employer that only hires hourly employees, a turnover rate of anywhere under 20% would be pretty impressive. Chances are, you will need some great strategies to obtain this.
Using Benefits to Reduce Turnover
Sometimes employees are interested in benefits. They will stay at their job if they feel they are getting more value from it. Here are a few benefits you can offer to help your employees feel like they want to keep their job.
Employee discounts and benefit programs can help employees to save money. If they have a discount on food or services, they may feel their hourly rate is quite a bit higher. This is a great way to compete with other hourly employers and keep your employees in place.
Early Wage Access/Financial Wellness
Financial wellness programs can help employees learn how to live within their means and reduce debt, ultimately leading to less stress and therefore more productivity.
Early wage access essentially means that employees can get their money as soon as they make it. Rain makes sign-up and enrollment for early wage access simple for both the employer and the employee. There is something quite intriguing about not having to wait for two weeks to see your next paycheck.
Sometimes if employees know they are getting close to their next raise, they will stay with you a bit longer. Even if the raises are just a small increase, they can make a big difference in an employee’s life. This small difference can be all that is necessary to retain the hourly employee and reduce turnover.
Adding a training program to your business can be a great way to increase employee retention. If an employee can get hands-on experience and training, certifications, and solutions for career growth, they are much more likely to stay in their position.
Fostering a Healthy Culture
People should want to come to work. If you’re going to reduce employee turnover of hourly employees, they have to enjoy coming to work each day. Making sure that employees feel respected and appreciated will help promote a healthy culture.
In addition, hourly employees want to feel like they are part of the team. Let them in on some information as to how the business is doing. Show them that their hard work is helping you grow. Help them understand their career path options, including how they can earn more money and how to get promoted to management.
If you want to focus on employee retention, you must ask yourself why an employee would like to keep working for your business. If you have a hard time coming up with reasons, the culture may need to be adjusted just a bit.
Ideas for Recruiting Hourly Employees
One of the easiest ways to increase employee retention is to hire great people, to begin with. There are a few ways that you can try and recruit great hourly employees.
To reduce hourly turnover, make sure that employees can schedule shifts during times that work for them. Try to be flexible when it comes to scheduling and options. This can require a bit more time spent on the weekly schedule, but it will be well worth it if the employee retention rate increases.
Let potential employees know that they will always have access to their money when they start working. Earned wage access programs (like Rain) work as excellent recruitment tools. Where do you think an hourly employee is going to go? A place that pays them at the end of the day, or a business that only pays every two weeks?
Set up a referral program where your current employees can get compensated or honored for bringing in a friend or family member as an employee. Referral programs help hourly employees feel like they are a more significant part of the business and want to help it grow and expand. This idea ties in well with “employee of the month” programs.
Set up a career planning system so that new recruits know they will have help in growing and expanding their careers. Ask your hourly employees what their goals are and get them on the right path to obtain their goals. Sometimes all employees need is a bit of direction, and then they will be able to turn their career into something quite impressive.
About the Author
Britt Olizarowicz has been creating, buying, and selling businesses for the last eight years. She has always had a love for finance and business and enjoys sharing that knowledge with readers.