3 Ways to Reduce Hourly Worker Turnover

3 Ways to Reduce Hourly Worker Turnover

At your company, coping with a high turnover rate among hourly employees can feel a lot like yo-yo. You’re thrilled when you make a new hire, and you despair when they suddenly quit. You search for new processes and ideas to keep employees on board, but your retention rate stays stubbornly low.

You’re worried about turnover, and with good reason. Turnover costs American companies $1 trillion yearly, and replacing just one employee can cost as much as twice the worker’s yearly salary.[1]

Fortunately, you can entice hourly workers to stay:

1) Create an engaging workplace so employees want to remain.

Building an employee-focused culture is key, since workers who are thriving and invested in their work are 59 percent less likely to seek a different job in the next year.[2] Offering personalized feedback, investing in your hourly employees, and providing your workers with a vision and mission they love can help. Empowering your employees to succeed and keeping them moving forward ensures they want to show up every day.

2) Weed out the problems that make hourly employees leave.

According to a Paychex study, 69 percent of workers leave because of a low salary, and 63 percent quit because they feel overworked. Fifty-three percent look for new work because they feel their company or employer doesn’t care about them.[3] Paying a competitive wage, balancing workloads, and investing in your employees can help assuage much of the discontent that pushes hourly employees away. Offering and getting feedback also helps you evaluate what you need to change to make your workplace engaging for workers.

3) Offer valuable benefits.

For hourly employees, benefits such as sick leave, paid time off, medical insurance, and other coverage are important for protecting their financial wellness. Benefits help make up for a week lost due to the flu or an unexpected hospital bill. One survey found 77 percent of employees leave due to poor benefits.[4]

PayActiv is a benefit you can offer your employees at no cost to you. This benefit promotes your workers’ financial wellness by offering Earned Wage Access, savings tools, financial counseling, budgeting tools, and access to other resources. One survey revealed that 81 percent of workers would stay with an employer because of the PayActiv benefit.[5]

If you’re ready to give up the yo-yo experience of high turnover, start with these tips. You may find you save more than just money when you invest in employees and start offering a benefit like PayActiv.


[1] Shane McFeely and Ben Wigert, “This Fixable Problem Costs U.S. Businesses $1 Trillion,” Gallup, March 13, 2019, https://www.gallup.com/workplace/247391/fixable-problem-costs-businesses-trillion.aspx.

[2] Tahir Mohammad, “3 Reasons Your Best Employees Stay, Even When They Receive Better Offers from Your Competitors,” August 31, 2017, https://www.entrepreneur.com/article/295860.

[3] “Employee Retention: What Makes Employees Stay or Leave,” Paychex, August 19, 2016, https://www.paychex.com/articles/human-resources/employee-retention-what-makes-employees-stay-leave.

[4] John Dujay, “Lack of Progression Big Reason for Workers Quitting: Survey,” January 15, 2020, Canadian HR Reporter, https://www.hrreporter.com/focus-areas/compensation-and-benefits/lack-of-progression-big-reason-for-workers-quitting-survey/325020.

[5] “81% Users Will Stay with Their Employer Because of the PayActiv Benefit,” PayActiv, October 2, 2019, https://www.payactiv.com/press/81-users-will-stay-with-their-employer-because-of-the-payactiv-benefit/.

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