Hourly workers are among the most unhappy employees in the workforce. They often take fewer vacations, have worse benefits, and are passed over for promotions compared to their salaried counterparts. This isn’t surprising. When most companies hire hourly workers, they often focus solely on the dollar amount they must pay to attract qualified candidates, rather than the perks and benefits that can set them apart from other potential employers.
Don’t be MOST companies.
With hourly rates climbing in most major cities, it can be hard to make your job look enticing. However, it turns out that hourly workers value much more than their pay. Employee engagement is more important than ever before. Companies should be considering techniques to attract and engage their hourly workforce
Let’s take a deeper look at what hourly workers really want and how your company can use that to stand out amongst the competition and hire great talent!
It turns out that one of the perks hourly workers value most is work flexibility. In a recent study conducted by Snagajob, nearly 36% of hourly workers reported that work flexibility was the most important perk but only approximately 50% of employers planned on offering job flexibility. So, it begs the questions:
- How can your company offer flexibility?
- Is it possible for hourly workers to set their own schedule?
- Can you offer unlimited vacation time (even if it's unpaid)?
- Can your workers choose how many hours they work?
If any of this is possible, your company will greatly improve its odds of making a hire and can even potentially offer a lower hourly rate to prospective candidates.
Another work perk that hourly candidates care about is a performance-based employee bonus.
In the same Snagajob survey referenced above, it appears that 27% of candidates thought bonuses are the most important work perk, so much so that 54% of workers surveyed would change jobs if it meant a bonus structure was included in their compensation plan. Although this seems like the same thing as paying more per hour, which most hiring managers can’t do, bonuses are different.
That’s because bonuses are usually based on work performance. Therefore, if you pay an hourly worker less but offer them a large bonus if they perform well, it's a win-win situation. If they don’t meet their goals, you don’t have to pay as much. And, if they do, you pay more but you get great results.
See if there is a way your company can offer a bonus tied to performance. You’ll be able to attract more candidates and it will also give them a great employee incentive to work hard.
Nearly 13% of workers said that the number one perk they look for is Paid Time Off (PTO). However, many hourly employers don’t offer much PTO if they offer it at all. And this, on the surface, seems like a good idea. Why give workers time off when you can have them in the office being productive?
Well, there are a couple very good reasons. Offering PTO is clearly important to workers which means that offering more vacation time will allow you to offer a lower hourly rate or hire more qualified employees. Secondly, many workers don’t even use the vacation time they have earned, so it won’t impact your organization as much as you thought it might. Finally, if your company is in a position where it can offer hourly employees unlimited vacation (even if it’s unpaid), it will be difficult for a candidate to pass up, even for a higher wage. And, as outlined above, they probably won’t use an excessive amount of vacation, even if they do have the option.
Don’t just roll your eyes and say “Ugh, Millennials!” Employees, even contract or hourly workers, thrive on engagement, recognition, and general feedback. After all, these are building blocks for improvement and advancement in any career. And even better, deficits in employee recognition are simple to address and can (and most often will) cost you zero dollars. In the meantime, employee recognition improves company culture, increases retention and boosts morale.
There are simple ways to get an employee recognition initiative started. A manager can start by simply sending an end-of-week email highlighting the highs (and lows) of the week. This kind of constructive feedback will enhance an employee’s work. You can even gamify employee recognition, create an employee shout-out on social media or simply give a pat on the back at the end of a grueling project or difficult day. Try taking it one step further and consider implementing HR technology or an employee recognition program across your organization to encourage daily peer-to-peer recognition. Decide what sort of employee recognition best fits your culture and put it into action today!
Many hourly employees feel like they’re not really part of the organization or that they are simply temporary workers. However, studies have found that hourly employees usually want to be more engaged with the company they’re working for. There are numerous ways a company and its managers can work to keep hourly employees feeling engaged.
A great way to start is to create a culture of inclusion and make sure that hourly employees are treated and communicated with just like full time or salaried employees. Secondly, managers and other employees should invest the time to get to know hourly employees and form personal relationships. If an employee integrates particularly well, it may be a good idea to keep them on a salaried basis. Third, managers should communicate regularly with their hourly employees. Many hourly employees complain they are set on a task and are unable to communicate with their boss on a regular basis. Setting up an open line of communication and checking in regularly will not only help an hourly employee stay on task but will also make them feel more engaged with the company and team.
Pay attention to your hourly workers
If you find ways to stand out amidst an ever-crowded, you can make better hires and pay less per hour by offering the right work perks for your employees. Work perks like flexibility, employee engagement, and vacation time cost your company very little but are incredibly valuable to hourly employees.
If you have any other ideas for great perks that hourly workers highly value, let us know in the comments below, we’d love to hear what you think!
For more information on how employee recognition can help your company, check out the eBook Recognition Culture: The MVP of Employee Experience.