Hourly workers make up over 60% of the U.S. workforce. In the hospitality sector, especially, these employees are the public face of your business. They have a significant impact on how successful your organization is.
Unfortunately, turnover is exceedingly high in the hourly space. The average cost to replace these employees is about $4,500 or one-third of their annual salary. Think about the costs of screening, interviewing, onboarding, and training new employees over and over. Many hourly workers leave within 90 days of hire, which makes it impossible to realize a return on investment. In high volume hiring situations, the constant replacement of even low-wage employees can become exceedingly expensive.
Fortunately, you can take steps to prepare for this churn, reduce turnover, and increase productivity. Hourly workers have different needs and motives than salaried workers, so you need strategies focused on their unique employment goals. The best way to reduce turnover is to find high-quality candidates that are high producers and fit in with your corporate culture. Easier said than done? We've listed three tips to help you create a company and culture that will make it easier for you to find the best employees.
An evergreen recruiting strategy is especially crucial if you're in a high-volume hiring industry such as hospitality, healthcare, or retail. An evergreen recruiting strategy means you have job requisitions that never close, and you are always looking for employees and accepting applications.
Because quickly finding great hourly employees will always be a challenge, you must develop a long-term, minimal impact recruiting strategy. If you expect to lose an employee a day, then you know you need to be looking for your next employees every day. Having a constant supply of high-quality candidates in your pipeline keeps you from making poor hiring decisions because you're scrambling to fill vacant positions. When you're not rushing decisions, you have a better chance of hiring the best-fit person for the job and your company, ensuring better retention and productivity.
Treat your current employees well. Make them want to work for you and your organization. Companies that have a reputation for being an excellent place to work will always have plenty of candidates from which to choose. Showing employees respect and appreciation, communicating with them clearly and often, providing them with the tools needed to do an excellent job, and helping them maximize their potential will foster goodwill and loyalty. You don't have to pay the most to get the best employees. Offering added benefits instead of higher wages and treating your employees like they're your customers, can make your organization a magnet for the best employees. Although it starts at the top, this kind of corporate culture must be present at all levels of an organization. Field managers who directly oversee employees must deliver and be accountable to employee first policies. By creating a positive, inclusive work environment, you'll give employees a reason to provide you with their best work. The improved productivity will show up in your bottom line.
Happy employees want to come to work. They also want to spread the love and will refer their friends for jobs if given the opportunity. Since employee referrals are one of the best sources for finding hourly candidates, this will save you time and money in your overall recruitment efforts.
Make sure your application process is easy and mobile-friendly. Allow applicants the ability to apply 24 hours a day. And don't let the length of your application deter candidates. If your application takes more than 10 minutes to complete, reduce its length. Then consider using other pre-screening methods such as one-way video interviewing to help you quickly gain insights into candidates. Additional pre-screening methods provide you with an understanding of your candidates that you just can't get from an application. A short application combined with a quick phone or video screening can create a hiring process that saves time for both candidates and hiring managers.
Hourly job seekers are looking to get employed quickly. The faster you can make the application and hiring process, the better.
In hourly hiring industries, there has always been high employee turnover. This is due in part to the fact that hourly workers are on the front lines, interacting with customers, and providing direct support. Vacancies in front line positions are immediately evident due to the nature of the jobs. Managers feel the need to hire replacements quickly. Depending on the job market, hiring managers may get too many applicants or not enough. To improve employee recruitment and retention, consider maintaining an "always-on" recruiting process, creating a positive work environment, and making your hiring process fast and convenient. Taking the three steps above will make you an attractive employer, and you'll have potential candidates lined up to work for you in no time.