
Hourly workers represent more than half the U.S workforce and their pay is at an all-time high. Yet leaders continue to struggle attracting, retaining, and engaging frontline workers amid severe talent shortages, frequent resignations, and the “quiet quitting” phenomenon.
With thanks to WTW’s Lori Wisper, several factors explain why:
Frontline worker shortages and high inflation have driven workers to expect more from employers. Leaders who address concerns in a thoughtful way can differentiate their organizations through the following actions:
- Use location-specific pay differentials: Ensure hourly pay rates are competitive for each location where there are frontline workers (it no longer works to use “buckets” of hourly rates for groups of locations based on national or regional averages).
- Understand and recognize roles and working conditions: Spend time in plants, work sites, call centers, distribution facilities, hotels, stores and emergency rooms to reconnect with frontline workers, better understand how work gets done and convey appreciation for the impact of that work.
- Focus on culture and wellbeing: Strive to meet frontline employees’ physical, emotional, financial and social wellbeing needs. 86% of employers are making it a top priority to address stress, burnout, anxiety and depression, and to reduce presenteeism (a form of quiet quitting) among their workforces.
- Apply a “total rewards” lens to frontline workers: Don’t stop with pay. Provide meaningful benefits and career opportunities to ensure an advantage over employers that focus solely on pay to attract and retain workers.
- Don’t offer hand-me-down salaried programs to frontline workers: Develop and communicate specific and customized HR programs that meet the needs of frontline workers.
Attracting and retaining frontline hourly workers has never been more challenging. Effective leaders understand that they need to shift both their programs and mindsets to attract and retain these essential employees.
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